Gearing up for the Minnesota State Fair, House Republicans say they want to engage Minnesotans in reforming government, not just talking about taxes and spending.  GOP Majority Leader Matt Dean joked they were "a little tanned and a little less crabby" now but also admitted that some of the reforms that got done were "overshadowed by the special session and government shutdown."  Speaker Kurt Zellers added that announcing a legislative agenda in August for a January session is "about taking the time and giving the opportunity to engage Minnesotans."  Republicans also reiterated a commitment to passing a constitutional amendment on fiscal policy, such as requiring a supermajority to raise taxes.

Democrats also showed they are rested and ready for a fight, distributing a mocking movie poster style press release reading "From The Creators Of 'Government Shutdown' and 'Beg, Borrow And Steal Budget' Comes GOP Reform 2.0."  DFL Minority Lead Paul Thissen responded that Minnesota state government is one of the most efficient governments in the nation, but added we can never rest on our laurels.  Zellers said he hoped and expected reform to be a bipartisan effort.  Thissen conclued " I fear today’s Republican proposals are simply more of the same giveaways corporate special interests.”

DFL Governor Mark Dayton signed a stack of budget bills into law, swiftly ending the longest state government shutdown in history.  The governor said he wasn't happy about the $35 billion budget that borrows more than a billion from schools and tobacco bonds, but because of the shutdown he concluded it was the best option available.  What was missing for Dayton was "the progressive tax increase I campaigned on."  Ultimately, the governor said he and the legislature share responsibility for the shutdown. 

The Republican controlled legislature passed 12 bills in 12 hours, a pace many had never seen before.  After the special session concluded at 3:45 am, Speaker of the House Kurt Zellers said “This budget accomplishes what we set out to do: it does not raise taxes, cuts projected spending by $2.5 billion and bends the cost curve of unsustainable state spending."  Republican Senate Majority Leader Amy Koch added “We made a concerted effort to build-in substantial, real reform measures into our budget package that funds Minnesota state government at appropriate levels."

After speeding through nearly half a dozen budget bills with little debate, lawmakers slowed the pace and picked up the partisan rhetoric when the tax bill hit the House floor.  Republican House Majority Leader Matt Dean told Democrats "Every red vote is a vote to continue the shutdown." DFL Minority Leader Paul Thissen teed up his counterpart with "You and this legislature have nothing to be proud of, we have every reason to hang our heads and vote no."  GOP Tax Chair Greg Davids still praised one Democrat saying "the governor stepped up, he's leading." 

Numerous legislators spoke passionately at length on taxes in contrast to just a couple of quick remarks on less controversial budget bills on the way to the governor including public safety, jobs, environment and higher education.  Democratic lead on taxes Rep. Ann Lenczewski concluded "This bill is an utter failure" because of the spending shifts to education and borrowing against tobacco bonds.  The bill passed 71-57.  Gov. Mark Dayton plans to wait until all the budget bills arrive on his desk to sign them together and end the longest state government shutdown in history.

A grim looking DFL governor and GOP lawmakers emerged from behind closed doors to announce they have a deal to solve the state's $5 billion budget shortfall and end the longest state government shutdown in history.   Governor Dayton said he would call a "special session as soon as possible" when they have clear agreement.  Republican Senate Majority Leader Amy Koch called it a framework for a deal adding "agreement was difficult for both sides."   Republican House Speaker Kurt Zellers said "It's a deal that's done, we're not all happy."  

Dayton concluded "I expect to be here all weekend and gets the lights on and get people back to work."   Exactly when the special session will happen is unknown.  Also, up in the air is whether Democrats will put up the necessary supermajority votes to pass a bonding bill that was part of Dayton's last offer.  DFLers were not in the room for the final dealmaking.  Shifting school payments and tobacco bonds will make up the more than a billion dollar divide between Democrats and Republicans.

Four Republican lawmakers stood at Canterbury Park and called on the crowd to contact their leadership and the governor to get the horse industry back to work and pass a racino.  Leading the charge was respected Republican Senate Finance Claire Robling who after questioning said "I am willing to raise some revenue."  Further pressed if it would take her GOP leadership to offer racino to the governor, Robling responded "I'm willing to provide the leadership... I think our leadership is supportive of racino, it's not a caucus position."

With a loud, large and supportive crowd gathered at the winner's circle at the racetrack, freshman Republican Rep. Kelby Woodard told us "this is one of the innovative things that breaks the impasse."   He suggested racino revenue could be applied to pay back shifts in school payments used to balance budgets.   Veteran Republican Rep. Michael Beard also spoke in support of the racino.  But freshman Senator Al DeKruif still said "we have to live within our means" and wouldn't commit to increasing the GOP budget above $34 billion even with racino revenue.  Lawmakers there said they would need Democratic votes in both chambers to increase any state gambling.   

A visual bombardment of frustration with the government shutdown hit the State Capitol.  It started sedately enough with House Democrats putting out six empty chairs labeled "courage to compromise" inviting six Republicans to join them in a budget fix to tax the rich.

Then developmentally disabled adults from a group home struggled to get their wheelchairs up the to microphones eclipsing them from the press.  Michael Vernell could be heard from behind the cluster of electrical cables with this plea "Don't shutdown my house."  Democrats wouldn't name names of Republicans who might join them on a budget solution but say they're reaching out.

After a brief squabble about removing and replacing a microphone stand so Republicans to talk to the press following the Democrats, several senators commented on the Minnesota Supreme Court's decision to consider their challenge of the constitutionality of government funding during a shutdown.  Sen. Warren Limmer (R-Maple Grove) said "I believe we will win."  But an angry state worker yelled and swore at the senators asking them why they should get paid while he doesn't.

Joining the shouting was a group of senior citizen tourists protesting all the state historic sites they won't be able to visit during the shutdown.  They held signs from New York, California and Arizona.  Their tour guide said the tourists wanted to do the protest and made the signs.   They looked right into all the TV cameras and chanted "We came to town, don't shut us down!"

Finally, loaves and fishes and milk and honey literally arrived on the Capitol steps along with religious leaders.  The ISIAH coalition of more than 100 congregations urged leaders to "find creative ways to ask those who have done well to make small sacrifices so that we can invest in those who've been hurt most by the economic downturn."  They delivered a letter signed by more than 200 clergy to the governor and legislative leaders.

DFL Governor Mark Dayton stood on the Capitol steps in the longest state government shutdown in history and offered other revenue options like expanding sales taxes to services, not food or clothing.  The governor also announced he'll "take his budget message directly to the people of Minnesota" traveling the state to communities "directly impacted by the cuts in the Republican budget" including St. Cloud, Rochester, Winona, Albert Lea, Moorhead and more.  Asked if he was negotiating against himself by proposing the last two budget offers, Dayton said "I am still waiting for a counter offer, but I want to get this resolved."  Former Republican Leader Senator Dave Senjem said gambling will be "part of the recipe in the end" but neither side wants to be the first to bring a Racino up in negotiations.  

Republican Senate Majority Leader Amy Koch issued the following statement:  “Despite his insistence during the campaign cycle that he would not allow government to shut down, Governor Dayton has not only allowed Minnesota’s State Government to shut down, but he has allowed it to continue by refusing to call us into a special session.  Only Gov. Dayton can end this shut down, which is now the longest government shut down in U.S. history."   Koch said the shutdown will cost nearly $65 million a week and added "Gov. Dayton chose to layoff over 22,000 people, suspend road construction projects and close state parks.  He chose this, while keeping his personal chef and housekeeper on staff in the official Governor’s residence."

Here's the Walter Mondale/Arne Carlson Framework for a Budget Solution:

The budget impasse is unprecedented and must be addressed as soon as possible. Minnesotans 

are suffering, our reputation has been hurt, and our credit rating is endangered.

We reviewed Minnesota’s budget situation, and we reviewed previous reports on Minnesota’s

revenues, expenditures, and budgets.

The following principles shaped our recommendations:

• Everyone in Minnesota needs to contribute to the budget solution;
• The budget should only spend an amount equal to ongoing revenues (no shifts or gimmicks should be used to balance the budget);
• Minnesota needs to consider both revenue increases and expenditure decreases in solving the state’s problems;
• While Minnesota’s spending has slowed in recent years and is not out of control, spending must be slowed from projected levels especially public health care costs;
• Spending reform is necessary to make state spending more productive;
• The solution to this year’s budget impasse should be roughly 70% spending decreases and 30% revenue increases; and,
• The spending in this year’s budget should focus on growing the Minnesota economy.

Our recommended framework for a budget solution:

1. Cut state spending $3.6 billion from projections, which results in a biennial budget increase of 3% (or 1.5% increase per year);
2. Increase state revenues $1.4 billion as follows:

• Human Services Surcharge $.25 billion
• Tobacco tax increase of $1.29/pack (the Wisconsin current tax rate) $.33 billion
• Alcohol tax inflation increase (from the last time the tax was increased in 1987) $.14 billion
• A temporary 4% increase in income tax liabilities for everyone only during the biennium (Three calendar years.)

1. Longer term, the sales tax should be broadened and the rate lowered.

 

Steve Dille, Co-Chair                          Wayne Simoneau, Co Chair                             Jim Campbell

 

John Gunyou                                                   Kris Johnson                                          Jay Kiedrowski                          

 

As the state's most serious government shutdown reaches one week, lawmakers and the governor seem no closer to agreement.  Education was the topic of the day as key lawmakers shuttled in and out of chief executive's office.  Republicans said K-12 talks provided "progress" the governor's education commissioner said "we're not making any agreements" and Democrats added "we're at the same place."   One bright spot was the DFL lead on the House Education Committee Mindy Greiling saying "I was please behind closed doors to see how well they (governor and leaders) got along." 

Republican legislative leaders said talks to end the government shutdown took a "frustrating step backwards" with DFL Governor Mark Dayton offering up income tax and cigarette tax increases.  Dayton responded to Republicans "If this is a step backwards they took the step backwards" in immediately rejecting his proposal making an income tax increase temporary on people making more than a million dollars and moving to a dollar a pack cigarette tax increase.  Republican Senate Majority Leader Amy Koch said "no additional reforms or reductions were offered that's the most disappointing."  Republican House Speaker Kurt Zellers repeated "Tax increases in general are a non-starter in our caucuses."  

Dayton's staff released papers showing a $1.4 billion gap remains.  It details the largest divide of $556 million in health and human services.  Yet, the only thing leaders and the governor seemed to agree on today was the fact health and human services negotiations are progressing between committee chairs and commissioners.  Tomorrow similar staff negotiators are meeting on K-12 education where a smaller $128 million gap remains.  Lawmakers and the governor met for less than half an hour today.

Outside the Capitol, one state worker from the Pollution Control Agency held up signs to raise taxes on the rich.  Later today more laid-off workers will "set up an unemployed town called 'Downeyville,' named after the state representative from Edina who would wipe out the jobs of 5,000 state employees and eliminate the collective bargaining rights of all state employees and public school teachers in Minnesota."  The state's two largest public employee unions AFSCME and MAPE also say "If Republican leaders get their way, their cuts-only budget will also eliminate 30,000 public- and private-sector jobs – permanently."