February 15-16, 2011
Feb 15 02:43 Dayton Frightened Into His Budget? Feb 15 01:24 Birds of a Feather Feb 15 10:51 Mandate Reform Required Feb 15 12:50 Dayton's Budget Gives Minnesota Highest Tax Bracket in Nation Feb 15 21:57 DFL Leadership, Strib Pass on Supporting Dayton Budget Feb 15 22:33 Dayton's Proposal Isn't Playing Well With GOP: Feb 16 18:19 Gottwalt, Zellers Express Disappointment With Dayton Budget Feb 16 06:15 Obama's Destruction In Numbers
Prior Months: Jan
Prior Years: 2006 2007 2008 2009 2010
Dayton Frightened Into His Budget?
If Rachel Stassen-Berger's article is accurate, the first logical question is whether Gov. Dayton was frightened into this budget. Here's the portion of the Strib article I'm referring to:
The two-year, $35 billion state budget plan Dayton will release Tuesday is far from becoming reality.
Gov. Dayton said repeatedly that we were staring at "a $6.2B deficit." I continually disputed that, with robust help from Mitch Berg . The St. Cloud Times even published my LTE saying that:
This biennium, Minnesota's general fund budget is scheduled to spend $30.7 billion. The Department of Revenue said in its November forecast that Minnesota's revenue will increase by between $1.5 billion and $2 billion To have a $6.2 billion deficit, Minnesota would have to spend almost $39 billion, an increase of 26.5 percent from the current biennium's spending.
Based on Ms. Stassen-Berger's reporting, Gov. Dayton won't be proposing nearly as big a budget as he led us to believe during his SOS speech .
This is vindication for me. I said that we didn't have a "$6.2B deficit", that it'd require a general fund budget approaching $39,000,000,000 to reach that big of a deficit. We're still waiting on the February forecast, too. Rumor has it that February's forecast will be even more favorable than November's forecast. If that's the case, the forecast deficit might be less than $2,000,000,000.
If that's the deficit, enacting reforms from Dan Fabian, King Banaian and Steve Gottwalt might be enough to balance the budget without a tax increase. That's before tackling unfunded mandate reform and other GOP reforms in the hopper.
That's before asking the question of whether we should increase spending that much. I wouldn't support that big a spending increase, especially with the economy this fragile. Before increasing spending, we'd better talk about refilling the state's reserve funds. Before increasing spending, we'd better have a serious discussion about reforming how government delivers constitutionally mandated services.
As Mitch points out in this post , there's still a possibility that Gov. Dayton's proposed budget won't balance:
Mark Dayton is scheduled to present his budget tomorrow.
The question, as I see it, isn't so much 'how will he balance the budget' as it is 'how far off from balanced will his proposal actually be?'
There's another question worth asking, Mitch, namely whether his special interest allies will scold him after promising them tons of new spending during his SOS speech.
If Gov. Dayton doesn't insist on his job-killing tax increases, the legislature could wrap up this budget relatively early, leaving time for cost-saving policy reviews and redistricting.
If, however, Gov. Dayton insists on killing Minnesota's economy with his tax increases, this will be a tough slog.
Posted Tuesday, February 15, 2011 2:43 AM
Comment 1 by walter hanson at 15-Feb-11 07:55 AM
Gary:
When I trid to use the contact link it didn't work. I'v been hearing commercials this week an the lady appeared on Sue's radio show during the weeked that Gottwalt is proposing health exchanges to implement Obamacare. You like to defend Steve. Any idea what's up with this proposal that's suppose to have a hearing tomorrow?
Walter Hanson
Minneapolis, MN
Response 1.1 by Gary Gross at 15-Feb-11 09:34 PM
It's quite simple: Twila Braase is dead wrong. She should talk with Steve first before making such statements.
Comment 2 by walter hanson at 17-Feb-11 12:57 AM
So Obamacare isn't mentioned at all in the bill? She said it was mentioned like forty times and the Secretary Of Human Services something like twenty times.
Walter Hanson
Minneapolis, MN
Birds of a Feather
If there's anything that I've learned this past year, it's that public labor unions and DFL politicians move with incredible synchronicity. It isn't that I'm surprised that they're allies. I've known that for decades. It's that I've seen firsthand how tied together they are, how their corrupt storylines merge together with almost seemless synchronicity.
There are times, though, when DFL candidates say things totally opposite of what their union supporters are doing. Like this past summer when then-candidate Dayton called for a clean campaign based on the issues. Of course, an eighth-grader could expose the fact that that's when Dayton knew his ex-wife and public employee unions were running millions of dollars worth of totally dishonest ads against his opponent.
Dayton knew about the lies being told on the Tom Emmer's Minnesota website, too. I wrote about that website in May. Here's some of the lies the unions were telling then:
Settle in high flying corporate executives, because Tom Emmer's Minnesota is going to be more fun than your last trip in a golden parachute. Here in Tom Emmer's Minnesota, we believe that paying for good schools and hospitals is the job of the unwashed masses. That's why the slightly regressive taxes of the past have been replaced by a massively regressive tax code in Tom Emmer's Minnesota.
In Tom Emmer's Minnesota, we don't even care if you have your interns set up post office boxes all over the world to avoid paying your taxes. Even if those funds would go to fund nursing homes and other medical facilities, in Tom Emmer's Minnesota we want nothing to get in the way of the gobs and gobs of money coming your way, not even fair play.
Rest assured, my very rich friend. This isn't just a one-time deal. You can trust that in Tom Emmer's Minnesota, solid investment in good schools, nursing home facilities, clean lakes, fixing roads or health care for "regular folk" will never get in the way of your extreme wealth and stealthy tax maneuvering.
There isn't a thing in those paragraphs that's accurate. It didn't matter to ABM. They only cared about ripping Tom Emmer. If that meant taking dishonest potshots at him, they didn't hesitate. Calling their nonsense playing fast and loose with the truth is a euphemism used to hide what it really is: a pack of disgusting lies.
Gov. Dayton's ex-wife hand-picked Ken Martin to be the next DFL state party chairman. This isn't the first job he's gotten from Alida. Here's ABM's board of directors :
ABM Board of Directors
Chair
Jon Grebner, AFSCME
Treasurer
Jessie Danielson, America Votes
Secretary
Ryan Greenwood, TakeAction MN
Members-at-Large
Luchelle Stevens, SEIU
Ken Martin, Win Minnesota
Connie Lewis, Planned Parenthood
According to Win Minnesota's CFDB report , they received $896,000 from 10 donors. Alida Messinger gave $500,000 and Mary Lee Dayton contributed $250,000. It's interesting that Win Minnesota contributed $913,750 to ABM. What's more interesting is the fact that ABM's partners include all of the public sector unions, whether it's AFSCME, SEIU or other public sector unions who rely on state funding for their health.
Similarly, the DFL relies heavily on public sector unions for campaign contributions, their voter registration drives and their GOTV operations.
The question that's inescapable is why DFL legislators haven't denounced the Teamsters' and the public sector unions' lies. Is it because DFL legislators rely too heavily on public sector unions for campaign contributions?
Part of the ABM 'family' is an organization Mark Ritchie created, an organization called State Voices. Here's what State Voices says about campaigning:
Rigorous Planning and Evaluation: The real collaboration that happens in the State Voices networks requires honesty amongst groups. That honesty means organizations come together to agree on a plan and hold each other accountable to achieving the goals necessary to win.
In other words, team members develop a plan, kinda like what the Teamsters and ABM are doing. The DFL doesn't need to know what they're doing. They just care that they're doing something that's coordinated.
Here's the bottom line: most DFL legislators serve their public union puppetmasters more than they serve their in-district constituents. The DFL can faithfully serve their public union puppetmasters the rest of this session like they've served them thus far if they'd like. I'd just suggest to them that there won't be nearly as many DFL legislators serving in 2012 as there are now.
That's what happens with birds of a feather.
Posted Tuesday, February 15, 2011 1:24 AM
No comments.
Mandate Reform Required
With it being likely that LGA won't return to its previous funding levels, legislators are trying to identify other ways of helping cities, counties and townships without actually writing them checks. Sen. John Carlson appears to have found a way :
Since Election Day, counties, cities, townships and school boards have reached out to me and asked that I take a look at over 100 unfunded state mandates on local government. They felt that a significant proportion of the cost of local government is derived from these unnecessary mandates. With Local Government Aid shrinking, local government has been forced to think about new ways to do business. I have proposed legislation to remove many of these mandates with the goal of having a rigorous and transparent debate in committee about old, and in many cases, unnecessary laws.
This seems like a reasonable, logical reform. Good for Sen. Carlson for working with cities, counties and townships on this issue. The problem is that nonsensical government apparently is getting in the way:
As we dig into budget talks, what many are finding is that downsizing through attrition is enough to push a county, school district or city into non-compliance with the 'Local Government Equal Pay Act.' Voters are asking government to shrink and streamline and here in Beltrami County we have been doing exactly that. Unfortunately, the retirement of about 50 employees through attrition has pushed Beltrami County into 'noncompliance' with the mandate.
Once deemed 'noncompliant,' a county must undergo a costly and expensive process of studies and reshuffling to meet a subjective bureaucratic formula. With less tax revenue on the way for the foreseeable future, many are asking if such a mandate is necessary or prudent given the protections for equal pay already provided by federal and state government.
This is proof that no good deed goes unpunished and that government can screw up the most common sensical ideas imaginable. This makes no sense whatsoever.
It's time to prune the illogical laws from the books. If they don't make sense or run contradictory to other laws, then it's time to eliminate them.
Posted Tuesday, February 15, 2011 10:51 AM
No comments.
Dayton's Budget Gives Minnesota Highest Tax Bracket in Nation
Based on Don Davis's reporting , Gov. Dayton's budget, if passed, would give Minnesota the highest tax bracket in the nation:
There were few surprises, since he talked extensively about the budget during a year he campaigned for governor. Republicans already have said they would limit spending to $32 billion and said his plan to increase taxes on the rich a non-starter.
Dayton would pay for his increased spending in part by increasing taxes on what he considers wealthy Minnesotans to 10.95 percent. It would apply to joint filers earning more than $200,000.
He also would apply a 3 percent surcharge on those earning more than $500,000.
'It makes Minnesota's tax fairer by raising taxes only, only on the wealthiest 5.5 percent of Minnesota taxpayers,' Dayton said this morning in unveiling the budget plan.
Gov. Dayton can call the additional tax on people making over $500,000 a surcharge but it's still a tax. Couple the 3% surcharge with the 10.95 income tax rate and the effective top tax rate is 13.95%, the highest in the nation by 2.95%.
The good news is that Dayton's tax increases are DBA: Dead BEFORE Arrival.
According to this tweet , Gov. Dayton is cutting the MinnesotaCare budget:
Dayton budget cuts 7,200 people from MNCare, with incomes above 200% of fed poverty level
According to Rachel Stassen-Berger's tweet , Gov. Dayton is being cruel to seasoned citizens:
#mnbgt cuts home and community-based service rates by 4.5% and nursing facility rates by 2%.
That's downright cruel. It's one thing to cut the budget on people making above 200% of the poverty level. It's another to slash reimbursement rates to community homes and nursing facilities. Gov. Dayton is slashing these budgets without considering any of the GOP's reforms.
KSTP's Tom Hauser is reporting that Gov. Dayton is "closing the loophole" on snowbirds living outside the state "part of the year." The Supreme Court has ruled that unconstitutional. That isn't a loophole. It's the law of the land.
Gov. Dayton's budget, if it were approved, would tank Minnesota's economy. Thankfully, Gov. Dayton's budget is going nowhere fast. It kills jobs. It spends too much on the wrong things. It spends too little on senior citizens dependent on Minnesota's safety net.
Based on these reports, Gov. Dayton's budget is a picture of what ill-advised priorities look like.
Tom Scheck is reporting that the 6% public workforce reduction is approximately 2,160 employees. Using the Teamsters' definition, that means Gov. Dayton hates public employees, though not as much as Republicans hate them. That's assuming that you think the Teamsters have an ounce of credibility, which I don't.
Gov. Dayton's office issued a statement after releasing his budget. This part particularly stood out:
Dayton's budget is balanced just as he outlined in his campaign, by requiring high income Minnesotan's to pay their fair share of income taxes.
The tax increase is reportedly $4.1B, well over half of the projected deficit. In fact, it's more than two-thirds of the projected deficit. If that's Gov. Dayton's definition of balanced, then someone should get him a new dictionary.
This part of Chris Coleman's statement is downright silly:
By making hard choices, Governor Dayton is planting the seeds needed to make Minnesota great again through economic growth and opportunity for everyone. As a result, we can move beyond the partisan rhetoric and we must work together to solve the state's deficit.
Governor Dayton's commitment to cops, firefighters and librarians through Local Government Aid recognizes the critical role these funds play in keeping residents safe and in educating our children. This investment in Local Government Aid will also help hold the line on property taxes.
Gov. Dayton's budget avoided making difficult choices. Instead of figuring out reforms or setting sensible priorities, he tap-danced around making difficult choices.
As for the false choice between terminating "cops, firefighters and librarians" and raising property taxes, Coleman is as clueless as R.T. Rybak. It's time they got held accountable for the spending they've done that have triggered the property tax increases.
Speaker Kurt Zellers said that Gov. Dayton's tax increase is the biggest tax increase in Minnesota history. It's now being calculated as raising $3,350,000,000 in additional revenue, not $4,100,000,000 as mentioned before. Speaker Zellers also told Minnesota businesses that Republicans "would protect" them from Gov. Dayton.
This budget isn't where Minnesotans are at. They voted in GOP majorities in both houses of the legislature because they wanted spending brought under control. They didn't vote for their taxes to be increased to pay for the DFL's status quo spending habits.
Posted Tuesday, February 15, 2011 12:50 PM
Comment 1 by walter hanson at 15-Feb-11 02:24 PM
All we need is for the state of Illnois to start commercials asking businesses to move there since the income tax there is just five percent.
What state elected this governor Dayton for us? Was it Wisconsin or South Dakota since he's trying to get Minnesota's businesses and residents to move to those states.
Walter Hanson
Minneapolis, MN
Comment 2 by Chad A Quigley at 15-Feb-11 05:19 PM
I'm not anywhere near the $200k income level but for those who are, what's the incentive to stay in this god forsaken state and pay for liberal pet projects while those who benefit from said projects feel no pain? Gov. Dayton forgot to ask New Jersey how the "tax the rich" scheme went as they didn't collect 50% of what they thought they were going to collect. Good thing the adults control both houses.
DFL Leadership, Strib Pass on Supporting Dayton Budget
It's stunning that Sen. Bakk and Rep. Thissen refused to support Gov. Dayton's tax increases :
One exchange:
Question: "Do you support the tax increases in this bill?"
Thissen: "The governor is delivering on what he promised. We have always been in our DFL caucus in favor of a solution that is going to be fair...We need to look at the details of it. I think the most important thing now to look at is asking the Republicans, okay, what's your answer."
That answer just adds to Thissen's weasel factor. I can't picture Gov. Dayton not discussing this with DFL leadership before rolling it out. If he didn't discuss it with them, it's likely because he's talked constantly about the biggest tax increase in Minnesota history. The other possibility is that there's already a rift between Gov. Dayton and DFL leaders.
I'm betting Bakk and Thissen know that these tax increases are the political equivalent to toxic waste. It's so bad that the STrib has written an editorial criticizing Gov. Dayton's tax increase , saying in its title that Gov. Dayton's "plan misses competitive reality."
Dayton's proposal is true to this state's 20th-century preference for taxation based on ability to pay. But Minnesota is not an economic island.
The rigors of the 21st-century economy demand that the state leaven its egalitarian impulses with the imperatives imposed by worldwide competition for highly mobile capital and talent. Most states have tax systems more regressive than Minnesota's.
What Dayton proposes would make Minnesota an outlier, at a time when the penalty for a reputation as a high-tax state is large and growing.
Based on his SOS speech and his budget proposal, it's apparent that Gov. Dayton still hasn't stopped thinking we're living in the 1970s and 80s. It's time for Gov. Dayton to notice that time has passed him by.
The paradigm that worked in the 20th Century doesn't exist anymore. It's shifted...dramatically. It's time that our governor stepped into the twenty-first century. High taxes steals Minnesota's competitiveness.
I suspect that's why Bakk and Thissen won't touch Gov. Dayton's tax increases:
Question: "That didn't answer the question...Do you support these tax increases?"
Bakk: "If you look at the tax incidence study, it will show you that more well to do Minnesotans, especially those over $500,000 in income pay a little bit over eight percent of their income in taxes and the rest of us, in the middle class and lower income Minnesotans, pay about 12.3 percent. And I think from a policy standpoint, the governor is right that everyone should be expect to pay about the same percentage of their income in state and local taxes."
A third:
Question: "So yes or no. Do you two support the tax package in the governor's proposal? Yes or no."
Bakk: "Well, I certainly want to see the budget pages and I'm not going to tell you if they offer a vote on it I'm going to vote yes or no on it because we are actually having a hearing in the tax committee (to delve into the budget) either tomorrow or Thursday...After Thursday I can probably give you an answer."
LAST ANSWER TRANSLATION: Hopefully, you'll drop the question by then. If not, I'll think of a better way of spinning it by then.
The rumors I've been hearing, and they've come from multiple sources, say that there's friction between DFL legislators and Gov. Dayton. I won't say that this is proof positive confirming those rumors but it certainly doesn't put them to rest, either.
I can't help thinking that it's a dreary day for Gov. Dayton when the Strib and the DFL legislative leadership won't enthusiastically support your budget.
Posted Tuesday, February 15, 2011 9:57 PM
Comment 1 by Chad A Quigley at 15-Feb-11 10:28 PM
Glad to know someone other than me thinks Thissen is a weasel. Bakk on the other hand looks like Capt. Cavemen with that scruffy beard. Bakk is also not being honest about the tax study. Low and middle income families get money back in the form of an earned income credit so in reality, they pay little or no income tax at all except for payroll tax which the low and middle incomes benefit from the most and should have to pay in to them.
Comment 2 by Ken Tschumper at 16-Feb-11 01:02 AM
I think it's a great budget. It's going to protect seniors from further increases in property taxes. It will provide more money for kindergarten ed. State workers who have taxable incomes above $85K will pay more taxes. I would think most middle class people would be very pleased with this budget. Let's remember that these are marginal tax rate increase.
A couple's taxable income is $200,000. On the current tax schedule they pay 5.35% on the first $33,280, 7.05%% on the next $98,939, and 7.85% on the rest for a grand total of $14076.49. Under Dayton's proposal, the tiers would be the same up to $150K, but with a 10.95% rate on the last $50K, for a total of $15626.49. So...a difference of $1550.(taken from a comment in Star Tribune. That's not a lot extra to pay for a great State.
Response 2.1 by Gary Gross at 16-Feb-11 03:07 AM
So...a difference of $1550.(taken from a comment in Star Tribune. That's not a lot extra to pay for a great State.I think it's an outrageous price for a mismanaged state with major spending problems. Anyone that thinks Minnesota is a great state compared with the Dakotas is an idiot.
In the words of our beloved governor, the roads are filled with potholes, there's a major achievement gap in our government education system & we've got a huge deficit. North Dakota, OTOH, has dirt cheap tax rates, a flourishing economy (unemployment is only 4%) & property values are going up. Great recreation, too. And northern Minnesota is an hour drive away. Why not let liberal idiots pay extra for a great state while we enjoy recreating there?
I noticed that you didn't get re-elected, Rep. Tschumper. Might that be because you represented the DFL more than you represented your constituents? Perhaps you would've done better had you listened to your bosses instead of your drill instructor?
BTW, while some seniors will be protected from higher property taxes, others will pay higher prices for senior care thanks to Gov. Dayton's cutting the reimbursement rates to community centers and nursing homes. Despicable guy, that Dayton.
With businesses leaving the state or, at minimum, not growing their businesses here, the middle class gets squeezed. It's time that the DFL got new calculators & new principles that We The People agree with. It's obvious that they vehemently disagreed with the DFL the last election. It's likely that they'll disagree with them in the 2012 state legislative races, too.
Comment 3 by Rex Newman at 16-Feb-11 08:03 AM
Couple of thoughts. One, if as the Strib notes Minnesota's tax code is already more progressive than most other states, on what basis can Dayton claim the high earners are somehow not now paying a "fair" share?
Two, what is it about being a Democrat that makes them choose candidates and leaders who then relieve themselves in the punchbowl, just as the Republicans said they would? There have to be some DFLers out there squirming, not expecting maybe a $2 billion proposal only to see twice that, too much even for the Strib.
Comment 4 by eric z. at 16-Feb-11 10:04 AM
All the Karl Rove spin-meistering that you guys can generate, is not going to change the way taxing the rich instead of everyone else for a change will resonate.
To the extent GOP cuts from Dayton's proposals, he can say that should translate to tax breaks for the little guys, homeowners, and if the GOP does not see it that way, why should regular voters agree?
You guys have painted yourselves into a corner, and you cannot face "Tax the Rich" with any popular direct answering argument, and so will attempt to glide and slide and deflect attention.
A GOP shell game.
Attempt to rephrase the debate, with a lot of hand waving and smoke and mirrors.
It might work.
Regular people have been dumb enough to elect Republicans. The dumbness might continue. People may show no end of voting against their own best interests.
We wait and we see.
Will we have a state to be proud of, patriots of Minnesota, or something less from GOP Koolaid freaks?
Response 4.1 by Gary Gross at 16-Feb-11 02:11 PM
Eric, Conservatives are putting into practice the limited government principles that the Founding Fathers built the Constitution on. For that, we gained 16 Senate seats & 25 House seats. (I don't think that growing the GOP qualifies as painting oneself into a corner.) We believe in stable, low taxes for the entrepreneur AND the middle class.
The myth that conservatives aren't for the middle class is exploded by R.T. Rybak's & Chris Coleman's mismanagement of Minnesota's 2 biggest cities. They've done worthless jobs in prioritizing spending, instead choosing to waste money on frivolities like drinking fountains rather than making sure they could guarantee the health of the police forces & firefighters.
Because they didn't prioritize, they scrambled & raised property taxes on the middle class. Now they complain that the state has tightened its belt in an effort to protect taxpayers. It's their lack of leadership that's made them the biggest enemies of the middle class.
By the end of this year's session, it will be clear that Republicans have a vision AND A PLAN for making government get out of the way of people who want it out of the way & for helping those who genuinely need help. Saying that conservatives are the party of no ideas isn't the same as conservatives not having ideas.
BTW, Dayton's plan has been tried before in California, New York, New Jersey, Illinois & Michigan. Those states have had miserable economies for a decade. Those are states where businesses left for Texas, Florida, Utah, Colorado & New Mexico. When those businesses left, the middle class in those states were hurt, which we're still feeling today.
Who's the villain now?
Dayton's Proposal Isn't Playing Well With GOP:
After examining Gov. Dayton's budget proposal, Rep. King Banaian issued this statement :
Gov. Mark Dayton today unveiled historic tax increases and the nation's highest income-tax bracket as his means to setting Minnesota's budget.
His plan calls for around $4 billion in tax increases; that's approximately $4 in tax increases for every $1 in spending reductions. Our state would increase spending by 22 percent over current levels, to around $37 billion.
There would be two new tax brackets, including our top earners paying 13.95 percent, the highest income-tax rate in the country. It is supposed to be temporary, but many temporary taxes become permanent. The second new tier would be 10.95 percent, a mere .05 percent behind the nation's current top rate. The tax increases would begin for joint/married filers earning $150,000 a year combined.
We face a $6.2 billion budget shortfall and this is the wrong proposal to send Minnesotans; it keeps government spending on autopilot, which I campaigned against last fall and will continue to work to stop. We need to focus on reforming government to help us live within our means.
Here's some figures from Pat Garofalo's e-letter update:
Governor Dayton's proposed budget is.....
$4.1 billion dollars in tax increases (primarily on the "wealthy")
$1.5 billion dollars in delays of payments to schools
$485 million in spending reductions (mostly welfare and human services)
$139 million dollar reduction in the "reserve" fund.
Based on Rep. Banaian's and Rep. Garofalo's statements, it's pretty apparent that Gov. Dayton's definition of a balanced approach is having "the rich" pay $4 in deficit reduction to each dollar of spending cuts. That's a mighty lopsided definition of balanced.
It's worth taking time to congratulate Rep. Garofalo for his statesmanship:
I believe that my energy needs to be focused on offering a better plan as opposed to trashing the Dayton tax increases. Therefore, I've pledged to the Governor that I will not criticize his plan. While it is certainly easy to disagree with his plan, and trust me I STRONGLY do, the reality is that there is no popular way to solve a $6.2 billion dollar deficit. People can propose "taxing the rich" or "cutting welfare and fraud", or "kicking out illegal aliens" but there isn't 6.2 billion dollars of that in the budget. I will repeat what I said during the campaign: the only sustainable solution is a smaller government that provides fewer services. Again, this is an easy position to criticize but we cannot afford to kick the can down the road any longer.
The good news for Minnesotans is that this reckless budget isn't going anywhere in the legislature. Anyone thinking that this biennium's budget will look anything like Gov. Dayton's budget is kidding themselves.
Significantly more Minnesotans agree with King Banaian's and Pat Garofalo's positions than agree with Gov. Dayton's position. Frankly, this might get ugly for Gov. Dayton and the DFL this session.
Posted Tuesday, February 15, 2011 10:33 PM
Comment 1 by walter hanson at 16-Feb-11 04:35 PM
Okay now that Dayton has put out a dream proposal that doesn't have a chance of becoming law when is he going to put out his budget. I heard it was suppose to come out yesterday, but all he did was call for a tax increase which wasn't going to be passed for the one millionth time.
Walter Hanson
Minneapolis, MN
Response 1.1 by Gary Gross at 16-Feb-11 06:04 PM
Actually, Walter, the commotion yesterday was Dayton's tax increases attached to what people laughingly are referring to as a budget.
Gottwalt, Zellers Express Disappointment With Dayton Budget
Rep. Steve Gottwalt didn't mince words in expressing his disappointment with Gov. Dayton's budget:
Today, Governor Dayton released his state budget proposal. We knew it would contain job-killing tax increases, but I did not expect the extent of new taxes and reckless spending increases he would propose. At a time when Minnesotans are pleading with us to rein in out-of-control government spending, and live within our means, Governor Dayton's proposal seems out-of-touch with reality.
His budget proposal includes the largest tax increase in Minnesota history, more than $4 billion! It also creates the highest tax rate in the nation and two new top tiers targeting our job creators, including small businesses. Governor Dayton's proposed $5.4 billion in taxes, surcharges and shifts, combined with a 22 percent increase in state spending, are the wrong direction for Minnesota, our economy and our families. He also leaves a $1 billion hole in the fiscal year 2014 budget, a burden for the next legislature to address.
Minnesota's fiscal reality demands fundamental reform and change. We need a responsible and sustainable approach to solving our structural state budget deficit now and for the long term. As I've said before, we must set better priorities, make tough decisions, and live within our means instead of Governor Dayton's approach of growing government on the backs of struggling Minnesotans.
Keep in mind, Minnesota already has more to spend! We are projected to take in $2 billion more dollars for the new biennium without boosting taxes, a six percent increase in revenues! However, planned state spending over the next two years represents a whopping 24 percent increase. Minnesotans want us to live within the six percent increase, instead of raising state spending 22 percent and jacking up taxes to cover the out-of-control spending Governor Dayton proposes.
Here are some of the disappointing highlights of Governor Dayton's budget proposal:
Taxes: Largest Increase in History; Highest Rate in Nation -
New fifth tier of 13.95% for anyone earning over $500,000.
New fourth tier of 10.95% for single earning $85,000 or married filing jointly earning $150,000.
State property tax on Home Values over $1 million.
Closing Corporate and other Loopholes
Health Care Surcharges including the Granny Tax.
Other Tax Revenues including a car rental tax to help fund Minnesota tourism.
No complete payback of K-12 shift until 2023.
Spending: A 22% Increase -
Governor Dayton proposes spending $37 billion in FY12-13, a 22.3% increase.
While he claims to cut $1 billion in spending, the actual net reduction is only $485 million.
Government is growing at a rate Minnesotans can't afford. A 22% increase in state spending is not sustainable or responsible.
Governor Dayton also cuts health care coverage for 7,200 low income Minnesotans on MinnesotaCare, and cuts nursing homes and community-based care. We can and will do better!
Gov. Dayton's budget is a joke. His spending increases, as Rep. Gottwalt said, are reckless and unsustainable. Gov. Dayton's budget also leaves a $1,000,000,000 hole for 2014 that the next legislature will have to fix. Does that sound like a budget we should support?
Gov. Dayton's tax increases will be the biggest income tax increase in Minnesota history. Gov. Dayton's 22 percent spending increase is reckless, especially when our economy is struggling.
Minnesotans had enough with Kelliher, Sertich, Pogemiller and Clark. That's why they're either working elsewhere or they're in the minority. Minnesotans essentially told the DFL that they were tired of the reckless spending.
Despite that message from the voters, Gov. Dayton thinks he's got some sort of mandate to raise taxes. That's wrong-headed thinking, something I suspect we should get used to. Gov. Dayton's mandate was 100 percent name recognition and an ex-wife running the most vile campaign ads in Minnesota history while he took the high road.
Some mandate.
Another question that businesses have to be asking themselves is when they should start leaning on DFL legislators. Gov. Dayton's tax increase will demolish their competitiveness with competing businesses in other states. Why should they think that Gov. Dayton's policies will help them create jobs?
Rep. Gottwalt is right. Gov. Dayton's budget isn't sustainable. Gov. Dayton's budget doesn't represent Minnesota's priorities, either.
In his two highest profile events, the budget and the SOS address, Gov. Dayton hasn't delivered for the people. His SOS address was dreary, his budget out of touch with Minnesotans' priorities.
The good news for Minnesotans was delivered by House Speaker Kurt Zellers:
[Zellers] offered this message to small business owners, who he said would be disproportionately hurt by higher taxes: "Don't worry; we're here for you. We're not going to let Mark Dayton tax you out of the state."
The thing that I keep thinking about is whether the DFL will vote Gov. Dayton's wishes and get defeated in 2012 or if they abandon him in their attempt to save their political careers. Either way, they're facing some difficult choices in the next 3 months.
Posted Wednesday, February 16, 2011 6:19 PM
No comments.
Obama's Destruction In Numbers
The latest post on Dick Morris' blog provides a glimpse into the destruction Obamanomics has wrought. Here are some of the statistics that jumped off the page at me:
Avg. retail price/gallon gas in U.S. in 1/2009: $1.83; today: $3.104 Percent of Change: 69.6%
Number of unemployed, 1/2009: 11,616,000; today: 14,485,000 POC: 24.7%
Number of food stamp recipients (curr = 10/10) 31,983,716; today: 43,200,878; POC: 35.1%
Number of long-term unemployed, 1/2009: 2,600,000; today: 6,400,000; POC: 146.2%
National debt, in trillions, 1/2009: $10.627; today: 14.052; POC: 32.2%
That's scary. Gas prices have spiked, nearly 3,000,000 people (net) have lost their jobs, 11,000,000+ people have become food stamp recipients, long-term unemployed has more than doubled and the national debt has skyrocketed.
Any of these figures should scare people. They'd certainly constitute a staggering economy. Yet in President Obama's imaginitive world, he's " broken the back of this recession ."
With all due respect, the only thing President Obama has broken is this economy. Before liberals start getting their dander up, yes, I know that President Obama inherited a mess. Halfway through his first (and hopefully only) term, President Obama's solutions have failed. It isn't that they just haven't produced as well as expected. It's that they've failed.
President Obama's media allies keep telling us that he's moving to the center, a claim that he'll have difficulty proving. Whether he's moving to the center or he's staying hard left, one thing is inescapable: Thus far, his policies haven't worked.
As long as that's true, a second term remains an uphill fight.
Posted Wednesday, February 16, 2011 6:15 AM
Comment 1 by J. Ewing at 16-Feb-11 05:58 PM
Just to note that a recent online poll offering head-to-head matchups of 25 possible presidential candidates finds Obama dead last, far behind the mayor of Newark, N.J.
