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Thank God we’ve only got 13 months left!
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 Word last Wednesday that the State of Minnesota would be facing a $1.2 billion deficit for the 2010-11 budgeting period was no big surprise. Most folks figured it was coming. And the first statement issued by Minnesota’s Governor was no surprise either.
As soon as the projected deficit was announced, Gov. Tim “I won’t raise taxes, I’m running for President” Pawlenty indicated that state funds earmarked for local governments may once again take a hit before the end of the year.
When I saw the $1.2 billion figure the first thing that came to mind was “does that figure include the nearly $1.2 billion Pawlenty withheld from our public schools or the $562 million that was part of Gov. Tim’s ‘shell game’ with the K-12 property tax recognition shift?” By withholding that money, it forced school districts across the state to borrow money from lending institutions. And as we all know, when you take out a loan, you are charged interest.
After logging onto the Minnesota Management & Budget’s world wide web, I learned the bulk of the projected deficit was due to the repayment of the $1.167 billion Pawlenty held back from our public schools last year. But it does not include the $562 million K-12 property tax recognition shift.
Pawlenty and company blame the projected budget deficit on the drastic drop in anticipated income and sales tax revenues caused by the terrible recession we are currently trying to fight our way out of. That might be partially true, but I blame Pawlenty for putting his future political aspirations above the needs of the people who he is supposed to be serving.
Last summer two bills were authored that would have raised the amount of tax on wholesale and over-the-counter liquor sales. The tax increase on distilled spirits would have amounted to a dime increase on a mixed drink and less than a dime increase on a beer or glass of wine.
House File 2125 would have raised an additional $530 million during fiscal year 2010-11, according to the General Accounting Office. And House File 1896 would have raised $430 million in fiscal year 2010-11 for the general fund and an alcohol and judicial impact fund.
It doesn’t take a rocket scientist to figure out the increase in tax revenues from those two bills would have amounted to nearly $1 billion, which is about what the experts have predicted the state deficit to be this coming year.
It didn’t matter that it’s been more than 20 years since we’ve seen a tax increase on booze in Minnesota. And I guess it doesn’t matter that we taxpayers will have to pay the interest on the loans our school districts were forced to make. What mattered was our governor, who is suppose to be looking out for OUR best interests, promised he wouldn’t raise taxes. He is so intent of looking as squeaky clean to the ultra right conservatives as he possibly can in hopes of getting nominated for a run at the White House that he sold us out.
Would I complain if I stopped down at my favorite watering hole and had to pay an extra dime or even an extra quarter for a beer or a mixed drink? Not if I knew the additional money was going to help keep our schools open and keep the state’s budget solvent enough that our cities and counties wouldn’t be looking at state aid cuts.
Here’s the real kicker. Even though I voted for Tim Penny for governor in 2002, I felt Tim Pawlenty, who defeated Penny and Roger Moe, would probably make a pretty good governor. He was a moderate Republican, seemed to be fairly open minded and worked with both parties while he as a state legislator. Unfortunately it appears as if his political future has become more important than doing what it right for the citizens of Minnesota.
He exhibited that in 2008 when he vetoed an increase in our state gas tax. He felt it was better to bond (which is a fancy way of saying taking out another loan which our children and grandchildren will be forced to pay off) to fix our roads instead of raising a user tax. Shouldn’t the people who are using the roads pay for them? Not in Gov. Pawlenty’s eyes. That would have been another tax increase. And the road to the White House for Pawlenty is predicated by “no new taxes!!!!”
With a $1.2 billion shortfall predicted for this go around, and projections for 2012-2013 show a $5.4 billion deficit, local governments will once again be forced to thin the soup some more. But how much more can our local governments cut? How many more services, employees and programs can be cut before there’s really nothing left?
When Gov. Pawlenty took over the reigns in 2003, Minnesota had a very healthy budget reserve. I realize there have been many mitigating circumstances that have soured our state’s economic picture that he had no control over. But he sure painted himself into a corner when he vowed “no new taxes” when he ran for a second term in 2006.
Being the optimistic person I am, there is a silver lining to this predicament we are facing in Minnesota. At least Gov. Pawlenty has announced he will not seek a third term. He’s a serious candidate for a run at the White House in 2012. We’ve only got 13 more months to put up with his vetoes, unallotments and bonding proposals. Thank God for that!
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