On Thursday, state officials announced that the nation\'s economic downturn has "body-slammed" the state budget, leaving lawmakers and Gov. Tim Pawlenty stuck with a nearly $4.8 billion deficit for the 2010-11 biennium.
Minnesota Management and Budget Commissioner Tom Hanson didn\'t mince words in presenting the state\'s grim November forecast, which predicts an additional $426 million deficit for the remainder of the current biennium ending June 30, 2009.
"This presents a $5.273 billion dollar challenge over the next three years," Hanson said, summarizing the difficult situation that state leaders will have to negotiate when the upcoming legislative session begins Jan. 6.
Pawlenty and legislative leaders reacted swiftly to the announcement, pledging not only budget cuts but also major changes to the state\'s budgeting process.
However, Minnesota unions said lawmakers need to consider all options to address the shortfall and put the state economy on the road to recovery.
Minnesota AFL-CIO President Ray Waldron urged immediate investment in job creation.
"The quickest way to rebuild our state is to create good-paying jobs — a move that will help workers, employers and the state as a whole," he said.
The need is clear, Waldron said. The JOBS NOW Coalition reported this week that the number of unemployed workers in the state has risen by 98 percent during the past eight years, while the number of job openings has dropped by 63 percent. Currently, 165,000 unemployed workers are competing for only 52,000 open jobs.
The state can save money by taking a close look at outside contracts, said the Minnesota Association of Professional Employees, which represents 12,000 professional employees engaged in public service.
"The Legislature and governor have used all of the gimmicks and shifts to patch holes in the budget during past sessions," said MAPE Executive Director Jim Monroe. "This makes it imperative that we can\'t take any of this state\'s budget-balancing tools off the table. One avenue they urgently need to explore is getting rid of the excessive use of consultants, non/late collection of taxes and fees, use of sole and overpriced vendors, and many other areas of state government."
MAPE established its own task force to look for ways to trim excessive spending from state government. MAPE representatives will be taking the task force\'s recommendations to the Legislature for further review.
Cuts in public services are not the answer, union leaders said.
"The solution to the state\'s financial crisis can\'t continue to be to carve state services to the bone," Monroe said. "We tried that before and it didn\'t work. Cutting state services does not work in the long term. We pay more in the long run when we have to correct the harm that is done by unwise cuts."
"We need to jumpstart our economy with fair taxes and public investment," said Eliot Seide, director of AFSCME Council 5, a union of 43,000 public and non-profit workers in Minnesota, including 19,000 state employees.
"It’s time for the wealthiest Minnesotans and corporations to pay their fair share. Instead of more giveaways for the wealthy, let\'s give families the health care and unemployment assistance they need to survive this recession."
"Cutting the jobs of public servants takes paychecks off of Main Street," said Wayne Cox, executive director of Minnesota Citizens for Tax Justice.
Cox urged the governor and legislators to adopt fair tax policies. In recent years, working class Minnesotans have shouldered a larger share of the cost of paying for public services, while the wealthy have enjoyed huge tax cuts.
Based on his track record, "Governor Tim Pawlenty plans to send the bill for Minnesota\'s projected deficit to Sam\'s Club shoppers," Cox said.
This article includes information from Session Daily, published by the Minnesota House of Representatives.
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On Thursday, state officials announced that the nation\’s economic downturn has "body-slammed" the state budget, leaving lawmakers and Gov. Tim Pawlenty stuck with a nearly $4.8 billion deficit for the 2010-11 biennium.
Minnesota Management and Budget Commissioner Tom Hanson didn\’t mince words in presenting the state\’s grim November forecast, which predicts an additional $426 million deficit for the remainder of the current biennium ending June 30, 2009.
"This presents a $5.273 billion dollar challenge over the next three years," Hanson said, summarizing the difficult situation that state leaders will have to negotiate when the upcoming legislative session begins Jan. 6.
Pawlenty and legislative leaders reacted swiftly to the announcement, pledging not only budget cuts but also major changes to the state\’s budgeting process.
However, Minnesota unions said lawmakers need to consider all options to address the shortfall and put the state economy on the road to recovery.
Minnesota AFL-CIO President Ray Waldron urged immediate investment in job creation.
"The quickest way to rebuild our state is to create good-paying jobs — a move that will help workers, employers and the state as a whole," he said.
The need is clear, Waldron said. The JOBS NOW Coalition reported this week that the number of unemployed workers in the state has risen by 98 percent during the past eight years, while the number of job openings has dropped by 63 percent. Currently, 165,000 unemployed workers are competing for only 52,000 open jobs.
The state can save money by taking a close look at outside contracts, said the Minnesota Association of Professional Employees, which represents 12,000 professional employees engaged in public service.
"The Legislature and governor have used all of the gimmicks and shifts to patch holes in the budget during past sessions," said MAPE Executive Director Jim Monroe. "This makes it imperative that we can\’t take any of this state\’s budget-balancing tools off the table. One avenue they urgently need to explore is getting rid of the excessive use of consultants, non/late collection of taxes and fees, use of sole and overpriced vendors, and many other areas of state government."
MAPE established its own task force to look for ways to trim excessive spending from state government. MAPE representatives will be taking the task force\’s recommendations to the Legislature for further review.
Cuts in public services are not the answer, union leaders said.
"The solution to the state\’s financial crisis can\’t continue to be to carve state services to the bone," Monroe said. "We tried that before and it didn\’t work. Cutting state services does not work in the long term. We pay more in the long run when we have to correct the harm that is done by unwise cuts."
"We need to jumpstart our economy with fair taxes and public investment," said Eliot Seide, director of AFSCME Council 5, a union of 43,000 public and non-profit workers in Minnesota, including 19,000 state employees.
"It’s time for the wealthiest Minnesotans and corporations to pay their fair share. Instead of more giveaways for the wealthy, let\’s give families the health care and unemployment assistance they need to survive this recession."
"Cutting the jobs of public servants takes paychecks off of Main Street," said Wayne Cox, executive director of Minnesota Citizens for Tax Justice.
Cox urged the governor and legislators to adopt fair tax policies. In recent years, working class Minnesotans have shouldered a larger share of the cost of paying for public services, while the wealthy have enjoyed huge tax cuts.
Based on his track record, "Governor Tim Pawlenty plans to send the bill for Minnesota\’s projected deficit to Sam\’s Club shoppers," Cox said.
This article includes information from Session Daily, published by the Minnesota House of Representatives.