The Budget Project, which provides independent research, analysis and advocacy on budget and tax issues, did a side-by-side comparison of the budgets put forth by the Republican-controlled Legislature and DFL Governor Mark Dayton.
The analysis found the Legislature “relies heavily on spending cuts to services that are vital to a strong future economy. Their plan dramatically reduces the state’s investments in the higher education and training that creates a competitive workforce, transit that gets people to work, and health care and other services that create safe and vibrant communities. Further, it cuts state aid to cities and counties, which will result in higher property taxes for businesses and residents alike.”
Dayton also proposes to cut funding to many services, but at a much lower level than that sought by legislators. He would fill the gap by requiring higher-income Minnesotans to pay their fair share of state taxes. Currently, the wealthiest Minnesotans pay only 8.8 percent of their income in state and local taxes, while middle class families pay 12.8 percent.
Among the drastic cuts sought by Republican lawmakers:
• Cuts in state support for Metro Transit by 84 percent in FY 2012-13. The reduced funding could mean a fare hike of 50 cents, a 30 percent reduction in service and the layoff of more than 500 employees.
• Substantial reductions in local government aid, which helps fund public services in communities across the state. Duluth, St. Paul and Minneapolis are cut by 25 percent each year until they lose all aid in FY 2015.
• An 18 percent cut in jobs and economic development services that are important to helping stabilize families and expand the state’s recovery from the recession.
• Repealing Medical Assistance for extremely low-income adults and dismantling the safety net for thousands of the state’s most vulnerable citizens.
View the entire side-by-side report here.
“The Governor has shared his vision of a balanced approach that includes a mix of revenues and cuts to services,” the Budget Project says in its report. “The Legislature’s budget reflects the view that revenues should not be part of the approach, resulting in a budget that relies heavily on cuts to services. However, it’s clear that both plans will raise revenues to meet the state’s needs. The question is whether these revenues are raised at the state level transparently and based on ability to pay, or whether those revenues will come from higher local property taxes.
“As the July 1 start to the FY 2012-13 budget draws nearer with no compromise, the possibility of a government shutdown grows. The issues at stake are serious. A shutdown would interrupt vital government services for days, possibly weeks. However, failure to raise new state revenues will mean deep, and likely permanent, cuts to services that build a healthy state economy. A balanced approach is needed to protect higher education, transit, health care and other public investments that are crucial to the state’s ability to recover from the recession and create a more successful future.”
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The Budget Project, which provides independent research, analysis and advocacy on budget and tax issues, did a side-by-side comparison of the budgets put forth by the Republican-controlled Legislature and DFL Governor Mark Dayton.
The analysis found the Legislature “relies heavily on spending cuts to services that are vital to a strong future economy. Their plan dramatically reduces the state’s investments in the higher education and training that creates a competitive workforce, transit that gets people to work, and health care and other services that create safe and vibrant communities. Further, it cuts state aid to cities and counties, which will result in higher property taxes for businesses and residents alike.”
Dayton also proposes to cut funding to many services, but at a much lower level than that sought by legislators. He would fill the gap by requiring higher-income Minnesotans to pay their fair share of state taxes. Currently, the wealthiest Minnesotans pay only 8.8 percent of their income in state and local taxes, while middle class families pay 12.8 percent.
Among the drastic cuts sought by Republican lawmakers:
• Cuts in state support for Metro Transit by 84 percent in FY 2012-13. The reduced funding could mean a fare hike of 50 cents, a 30 percent reduction in service and the layoff of more than 500 employees.
• Substantial reductions in local government aid, which helps fund public services in communities across the state. Duluth, St. Paul and Minneapolis are cut by 25 percent each year until they lose all aid in FY 2015.
• An 18 percent cut in jobs and economic development services that are important to helping stabilize families and expand the state’s recovery from the recession.
• Repealing Medical Assistance for extremely low-income adults and dismantling the safety net for thousands of the state’s most vulnerable citizens.
View the entire side-by-side report here.
“The Governor has shared his vision of a balanced approach that includes a mix of revenues and cuts to services,” the Budget Project says in its report. “The Legislature’s budget reflects the view that revenues should not be part of the approach, resulting in a budget that relies heavily on cuts to services. However, it’s clear that both plans will raise revenues to meet the state’s needs. The question is whether these revenues are raised at the state level transparently and based on ability to pay, or whether those revenues will come from higher local property taxes.
“As the July 1 start to the FY 2012-13 budget draws nearer with no compromise, the possibility of a government shutdown grows. The issues at stake are serious. A shutdown would interrupt vital government services for days, possibly weeks. However, failure to raise new state revenues will mean deep, and likely permanent, cuts to services that build a healthy state economy. A balanced approach is needed to protect higher education, transit, health care and other public investments that are crucial to the state’s ability to recover from the recession and create a more successful future.”