Gov. Jesse Ventura and the Minnesota Legislature must act quickly to aid those hit hard by the recession, particularly laidoff workers, the leader of the state's labor movement said.

'We can't watch this economy batter more and more Minnesotans and do nothing,' Minnesota AFL-CIO President Ray Waldron told reporters at a Capitol news conference Tuesday.

'From the closed iron mines on the Range to the burnt out Farmland Foods plant in Albert Lea to the confusion at Fingerhut, a lot of Minnesotans who've never asked for anything need a little help from the state.'

Waldron said that assistance should include:

• Extending unemployment benefits for people who have been out of work more than 26 weeks.

• Fixing the loopholes in unemployment insurance so that it covers more workers who are losing their jobs.

• Providing adequate funding for the state's Dislocated Worker Program, which is running out of money as it stretches to meet current and future needs.

'Do no harm'

Waldron unveiled the Minnesota AFL-CIO's priorities for the 2002 legislative session. Chief among them is 'doing no harm.' The message to lawmakers is 'Do not use the budget shortfall as an excuse to shortchange working Minnesotans and the services they rely on' such as education and aid for the unemployed.

'Use the state budget as an engine to pull Minnesotans out of the present recession,' the federation urges. Its top priorities for 2002 are 'good jobs, good public schools and good health care.'

Joining Waldron at the news conference were other organizations who support the same priorities. They included the Minnesota Children's Defense Fund, the Minnesota Catholic Conference, the Minnesota Senior Federation, Jobs NOW Coalition, the Alliance of Early Childhood Professionals and Housing Minnesota.

The projected state shortfall of more than $4 billion is a cause for concern, Waldron said. However, it can be addressed by delaying the phase-in of changes in property tax rates and restoring a higher bracket for those at the top of the income scale, he said.

'Taxes will still aggravate us, but they will be based on our ability to pay them,' he said. The federation opposes the Ventura administration's proposal to extend sales taxes to more services and supports an increase in the gasoline tax - but only if the money is spent on the transportation system, Waldron said.

Addressing the recession
Some problems, such as the shortfall in the Dislocated Worker Fund, can be easily addressed by restoring the assessment on employers, the AFL-CIO said. When the program began about 10 years ago, employers were assessed one-tenth of one percent of payroll. Last year, that amount was cut to seven one-hundredths of one percent. Restoring the rate to its original level would generate approximately $10 million a year.

The federation also called on lawmakers to implement legislation to help Minnesotans who lack prescription drug insurance purchase affordable prescription drugs. The Fair Drug Pricing Act would create a rebate program that would provide more affordable prescription drugs for those who have no coverage.

Ventura and legislators knew last spring, when they enacted sweeping changes in the property tax and school funding system, that a shortfall would happen, said Wayne Cox, executive director of Minnesota Citizens for Tax Justice. They could see the state was heading into an economic downturn and that surpluses would not materialize, he said.

'We don't agree with the governor that this particular shortfall was caused by Sept. 11' terrorist attacks, Cox said. 'They (Ventura and Republican lawmakers) brought this problem on themselves. We don't think the solution is to cut education for the smallest kids and to cut the university and access to education.'