In his annual State of the State address Thursday, Pawlenty outlined some of his plans for dealing with a projected $5 billion deficit in the state\'s two-year budget. His proposals included several tax breaks for businesses – such as cutting the state\'s business tax rate in half – and a wage freeze for state employees and any entities that receive state money.
Minnesota AFL-CIO President Ray Waldron called Pawlenty\'s plans "terrible."
"It\'s a cold day outside and if you\'re a worker it\'s even colder," Waldron said. "The governor wants to freeze our wages, give businesses a tax break and he\'s still trying to cut his way to economic growth."
Wayne Cox, executive director of Minnesota Citizens for Tax Justice, said the governor\'s plans appear to be a rehash of the Bush administration\'s approach to the economy.
"Pawlenty proposed ideas such as expansion of the discredited JobZ program and various other business tax cuts of the type that marked the dismal national performance of the last eight years in Washington," Cox said. "These proposals would heighten Minnesota\'s projected budget deficit.
"Ironically, Pawlenty\'s approach is also a blueprint for significant new job loss in Minnesota. If he succeeds, Pawlenty will pile public sector job loss onto private sector job loss, heightening Minnesota\'s recession. Tens of thousands of public sector pay checks of teachers, police and fire officers and health care workers will disappear from Main Street, adding further stress to Main Street businesses."
Wage freeze would violate contracts
To implement a wage freeze, the Legislature would need to pass legislation changing the contracts already negotiated with AFSCME, MAPE and other state employee unions.
"Union wages and benefits are not the cause of the budget deficit," said Eliot Seide, director of AFSCME Council 5, which represents 43,000 public and non-profit workers in Minnesota, including 19,000 state employees. "If the governor cut all state employees, it would reduce Minnesota\'s budget by only 4 percent."
"Like most Minnesotans, public employees live paycheck to paycheck," says AFSCME Council 5 President Mike Buesing. "By freezing our wages, the governor is freezing our spending, which fuels economic recovery. Our wages and job security should be negotiated, not mandated."
"Our public sector workforce is one of the leanest and most productive in the nation," explains Seide. "We welcome the opportunity to work with any public employer to provide even better services at a lower price."
Concerns about education
In his speech, Pawlenty said he would protect K-12 education from funding cuts, but wanted changes in the way teachers are paid and districts are funded.
"We are pleased to hear that the governor understands and agrees with us that education funding must be increased, even in these economic times," said Tom Dooher, president of Education Minnesota, which represents 70,000 educators across the state. "We don\'t agree with the way the governor wants to distribute the increase. And we certainly don\'t agree that our members should have to give up their collective bargaining rights to get it.
"As he has done before, the governor proposes to use experimental programs that distract from or nibble around the edges of the problem: a broken education funding system.
"Additionally, today he spoke of extreme measures such as eliminating teachers\' right to strike, getting rid of the traditional steps-and-lanes salary schedule, and freezing any pay increase except for those provided under his \'Q Comp\' system. The governor\'s speech made no mention of any new money to meet other school cost increases, or fund any other programs to bolster student achievement.
"Education Minnesota\'s goal is to zero in on the fundamental issues that will close the achievement gap and allow every Minnesota student to receive a world-class education: small class sizes, which will allow for more individual attention for students; well-qualified teachers in every classroom; and up-to-date materials for every student.
"To do that, the state needs a school funding system that is equitable, sustainable, predictable and sufficient."
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In his annual State of the State address Thursday, Pawlenty outlined some of his plans for dealing with a projected $5 billion deficit in the state\’s two-year budget. His proposals included several tax breaks for businesses – such as cutting the state\’s business tax rate in half – and a wage freeze for state employees and any entities that receive state money.
Minnesota AFL-CIO President Ray Waldron called Pawlenty\’s plans "terrible."
"It\’s a cold day outside and if you\’re a worker it\’s even colder," Waldron said. "The governor wants to freeze our wages, give businesses a tax break and he\’s still trying to cut his way to economic growth."
Wayne Cox, executive director of Minnesota Citizens for Tax Justice, said the governor\’s plans appear to be a rehash of the Bush administration\’s approach to the economy.
"Pawlenty proposed ideas such as expansion of the discredited JobZ program and various other business tax cuts of the type that marked the dismal national performance of the last eight years in Washington," Cox said. "These proposals would heighten Minnesota\’s projected budget deficit.
"Ironically, Pawlenty\’s approach is also a blueprint for significant new job loss in Minnesota. If he succeeds, Pawlenty will pile public sector job loss onto private sector job loss, heightening Minnesota\’s recession. Tens of thousands of public sector pay checks of teachers, police and fire officers and health care workers will disappear from Main Street, adding further stress to Main Street businesses."
Wage freeze would violate contracts
To implement a wage freeze, the Legislature would need to pass legislation changing the contracts already negotiated with AFSCME, MAPE and other state employee unions.
"Union wages and benefits are not the cause of the budget deficit," said Eliot Seide, director of AFSCME Council 5, which represents 43,000 public and non-profit workers in Minnesota, including 19,000 state employees. "If the governor cut all state employees, it would reduce Minnesota\’s budget by only 4 percent."
"Like most Minnesotans, public employees live paycheck to paycheck," says AFSCME Council 5 President Mike Buesing. "By freezing our wages, the governor is freezing our spending, which fuels economic recovery. Our wages and job security should be negotiated, not mandated."
"Our public sector workforce is one of the leanest and most productive in the nation," explains Seide. "We welcome the opportunity to work with any public employer to provide even better services at a lower price."
Concerns about education
In his speech, Pawlenty said he would protect K-12 education from funding cuts, but wanted changes in the way teachers are paid and districts are funded.
"We are pleased to hear that the governor understands and agrees with us that education funding must be increased, even in these economic times," said Tom Dooher, president of Education Minnesota, which represents 70,000 educators across the state. "We don\’t agree with the way the governor wants to distribute the increase. And we certainly don\’t agree that our members should have to give up their collective bargaining rights to get it.
"As he has done before, the governor proposes to use experimental programs that distract from or nibble around the edges of the problem: a broken education funding system.
"Additionally, today he spoke of extreme measures such as eliminating teachers\’ right to strike, getting rid of the traditional steps-and-lanes salary schedule, and freezing any pay increase except for those provided under his \’Q Comp\’ system. The governor\’s speech made no mention of any new money to meet other school cost increases, or fund any other programs to bolster student achievement.
"Education Minnesota\’s goal is to zero in on the fundamental issues that will close the achievement gap and allow every Minnesota student to receive a world-class education: small class sizes, which will allow for more individual attention for students; well-qualified teachers in every classroom; and up-to-date materials for every student.
"To do that, the state needs a school funding system that is equitable, sustainable, predictable and sufficient."