Alliance for a Better Minnesota

Minnesota Campaign Report ran a brief, but compelling analysis of the Governor's budget "compromise" based on information from the State Auditor.

A few things to consider about Governor Pawlenty and property taxes:

1) MN property taxes are up over 70 percent since Pawlenty took office.
2) Pawlenty admitted in '04 that he broke a campaign promise by cutting $491 million in local goverment aid. (After acknowledging in '03 that his budget would raise property taxes.)
3) As a result, cities and towns in Minnesota cut services and raised revenues through increased fees and property taxes.

One could argue that Pawlenty is taking advantage of a political opportunity around a mess partially caused by his own policies.  It's perfectly fine to be against property taxes - but the Governor has had plenty of chances to fix the problem, and instead seems to be playing political games with the future of our state's finances.

Is this perhaps an attempt on Pawlenty's part to clean up his own record on increased taxes and fees by proposing what appears to be an empty and short-sighted "No New Taxes" promise part II?

Cost of groceries? Going up.
Cost of gas? Going up.
Cost of Xcel bill? Going up.
Minimum wage? Maybe.

Pawlenty is threatening to veto help for the state's lowest wage workers...while at the same time 450 Minnesotans are having their power shut off every day. ABC News ran a story about working families in Minnesota struggling to pay their bills.

Click HERE for more on Pawlenty's threat to veto minimum wage legislation.

Is this yet another political move on Pawlenty's part to impress Mr. McCain and the rest of the Republican establishment?

Monday, the bonding bill became another victim of the Governor’s political games.  Instead of modestly trimming the bonding bill, he decided to be vindictive and cut all transportation projects from the bill.

It really is a shame. For the first time in 20 years, legislators were able to build bipartisan support to address Minnesota’s dilapidated transportation infrastructure. The first step was passing the transportation bill, which provides sufficient funding for infrastructure improvements.  The second step was the bonding bill, which allows the state to leverage federal dollars to make regional transit opportunities a reality.

But – to use a transportation analogy – the train of progress stopped there. This bonding bill was used as a political toy by a Governor unconcerned about what the citizens of Minnesota think.

Tell the Governor that you are outraged by his decision and he needs to fix the mess he created: http://ga0.org/campaign/games

One of the major projects jeopardized by the Governor’s veto is the Central Corridor light rail project.   This project has major benefits: It would leverage over half a billion dollars in federal funding, decrease Minnesota’s share of the project’s cost and spur economic development for areas that need it most.

Aside from these benefits, the fact is that this light rail project really can make our state better – and better for those who need help. Research shows transportation is second only to education in its ability to make social mobility possible.

But support for light rail goes beyond just one group of people. The think tank Minnesota 2020 has conducted a recent poll that shows overwhelming support for mass transit in the state.

We can no longer sit idly by as this Governor obstructs the progress that the legislature is trying to make – especially when his actions are motivated by political animus rather than policy convictions.  Now is the time for Minnesotans to stand up and hold our Governor accountable for the political games he is playing with our future.

Bob Collins' News Cut blog at MPR raises key questions about Governor Pawlenty's short-term approach to the state's budget.  The key question is whether or not the Governor has broken a promise to nor raid the state's health care access fund.

In addition, the Star Tribune wrote about the consequences of Pawlenty's short-term, band-aid approach to a very serious budget problem.

A Minnesota Public Radio story raised concerns and questions about whether or not Pawlenty will again cut key funding to Minnesota's cities.  Local government aid plays an integral role in funding core city services like police, fire and paramedics.  The Governor has done it before, and vetoed a bill last year that would have returned some aid and eased the property tax burned on Minnesota homeowners.  Some history and background:

Pawlenty Admitted to Breaking Promise on Aid to Local Governments. In 2004, Pawlenty "candidly admitted he broke one campaign promise - cutting state aid to local government.  After telling city officials he would not cut local government aid, he reduced it by one-third."  Pawlenty claimed that after the projected budget deficit tripled, he had no choice to "put LGA on the table." [Pioneer Press, 1/11/04]

2003: Pawlenty Cut Aid to Local Governments by $491 Million. In 2003, Governor Pawlenty signed a budget cutting state aid to Minnesota cities and counties by $491 million over two years.  Cities and counties lost $206.8 million in 2003 and another $284.5 million in 2004.  The budget deal included a provision allowing cities to increase property taxes to recoup up to 60 percent of the state aid they lost.  [Minnesota House Research, Aid Cuts to Local Governments in CY 2003 and 2004, February 2004]

Pawlenty's veto pen wasn't enough to stop the Minnesota legislature from funding much-needed road and bridge repair -- in a way that's much more fiscally solvent than Pawlenty's plan to put it on a credit card and make our kids pay for it.

Coverage of the veto override -- and what it means -- can be found at:

MPR

Pioneer Press

Alliance for a Better Minnesota Fact Check:
Pawlenty’s State of the State 2008

St. Cloud – “What was most interesting in today’s state of the state is not what Governor Pawlenty said, but rather what he didn’t say,” said Denise Cardinal, Executive Director of Alliance for a Better Minnesota. “He failed to provide a larger vision for our state’s economic stability and instead bragged about governing by veto.”

“Governor Pawlenty’s veto pen is a job killer. Chronic disinvestment has created an economy that doesn’t work,” said Eliot Seide, Director of AFSCME Council 5, a union of 43,000 workers in Minnesota. “Tax equity can raise the revenue to revive our economy. Let’s get the wealthiest Minnesotans, who earn over $400,000, to pay their fair share of taxes. Let’s close tax loopholes for corporations that ship our jobs overseas. Then let’s invest that revenue in transportation, education and healthcare – the things that create jobs and sustain our quality of life.”

“We heard the same thing we’ve been hearing from this Governor for the last 5 years. We need leadership that will address the needs of Minnesotans–and health care reform is one of those issues that must be dealt with,” said Carol Nieters contract organizer of Service Employees International Union (SEIU) local 284 which represents school support employees in Central Minnesota. "The high cost of health care is having a direct impact on my members – who work in schools. They have watched the cost of health care go up 25 to 37 percent in the last few years. That means 85 dollars less a week in income at a time when everything costs more. That’s a real problem for our families – and for our economy.”

Alliance for a Better Minnesota has fact-checked Governor Pawlenty’s state of the state address for 2008 to make sure the Governor truthfully addresses the needs of Minnesota’s working families this legislative session. Below is an outline of some of his statements, and the facts about his record on those issues he mentioned in his speech:

Pawlenty Rhetoric On Minnesota’s Economy:

“Our economy has successfully grown and evolved…”
-Governor Tim Pawlenty

Reality - Minnesota Economy Needs Real Help:

Minnesota Economy is Losing Jobs.  According to a recent report by the Minnesota Department of Employment and Economic Development, Minnesota’s economy is losing jobs for the first time in four years.  The Pioneer Press reported that the economy lost 2,300 jobs from November to December of 2007.  [Pioneer Press, 1/15/08]

State Lost 23,300 Jobs During Last Half of 2007.  During the final six months of 2007, Minnesota lost 23,300 jobs. [Pioneer Press, 1/15/08]

Faltering Minnesota Economy Led to $86 Million Decrease in Revenue Collections.  According to a memo from Finance Commissioner Tom Hanson, Minnesota tax collections dropped $86 million, or 5.2 percent, during the month of January, which indicates that the state’s economy is faltering. [Associated Press, 2/11/08]

Pawlenty Rhetoric On Taxes:

"Minnesota’s hard working families are struggling enough…
We should not add to the burden by raising their taxes…
We need to reduce taxes…
We should also protect homeowners from unreasonable property tax increases…”
-Governor Tim Pawlenty

Reality - Pawlenty’s Record of Raising Taxes:

MN Property Taxes up 71 percent. The average property tax on a Minnesota homestead is expected to increase by 71 percent from 2002 to 2008.  Even after adjusting for inflation in the cost of government services, the increase is nearly 30 percent. [Sticker Shock, Minnesota 2020, 2/10/2008]

Under Pawlenty, Property Taxes Up By Nearly $1.3 Billion. Under Pawlenty, total statewide property taxes have increased by $1.29 billion from 2003 to 2006 or 28%, using projected 2006 rates. In 2003, the total levy was expected to generate $5.34 billion; by 2006, the levy increased to a projected $6.31 billion.  [Minnesota House Research Department, Property Tax Simulations -- 6A2, 12/20/05; 5A4, 9/19/05; 4C6, 12/29/04; 3G1, 8/26/03]

Pawlenty Admitted His Budget Raised Property Taxes. In 2003, the Star Tribune editorialized that “Pawlenty tacitly acknowledges that his budget will compel local property tax increases…” [Star Tribune, 3/30/03]

Pawlenty Rhetoric On Healthcare:

“Minnesota is the best place in the nation to lead the way on health care reform let’s show the country how to do it right.”
-Governor Tim Pawlenty

Reality - Pawlenty’s Record on Healthcare:

Pawlenty Cut Thousands Off Health Care. In his FY2004-05 proposed budget, Pawlenty recommended reducing the number of people receiving health insurance by 68,000. The final budget cut 38,000 by the year 2007, including 20,000 children. [Pioneer Press, 6/9/03; Children’s Defense Fund of Minnesota, The Child Defender, August 2005]

Number of Minnesota Kids Uninsured Grew Under Pawlenty. According to a study released by Children’s Defense Fund Minnesota, between 2001 and 2004 the number of uninsured Minnesota children under age six grew by 11,000.  The report found that children and working families were unable to access employer-based programs because of reduced coverage or the increased costs associated with those programs.  "Meanwhile, the state government reduced eligibility and erected additional barriers to prevent families from accessing public coverage.  Today, more than 3 out of 4 uninsured Minnesota children are believed to be eligible for a public health care coverage program, but are unable to access it for one reason or another." [Children's Defense Fund Minnesota Report, 04/2006, pg. 1-2]

Pawlenty Healthcare Plan Had Little Impact.  In 2004, Pawlenty rolled out his “Smart Buy Alliance” plan to harness the “thundering power” of government, business and labor interests to push through improvements in health care and reduce health care costs.  A year later, many in the health care industry said they had yet to feel much impact from the initiative.  [Associated Press, 11/20/05]

Groups to Governor:

“Put Aside Personal Political Ambition”
Statewide Organizations Want Economy to be Strong for Long-Term

On the first day of the legislative session and in anticipation of Wednesday’s State of the State address by Governor Tim Pawlenty, several of Minnesota’s groups representing working families are calling on the Governor to put aside his personal political ambition this legislative session and work for the long-term strength of the state’s economy. Below are a few comments from local leaders about the key issues that need to be addressed this session:

“Twice Governor Pawlenty has vetoed a bipartisan solution for safer, faster, better transportation,” said Eliot Seide, Director of AFSCME Council 5, a union of 2,600 Minnesota Department of Transportation workers and 43,000 workers statewide. “It’s time to override Governor Gridlock before another bridge falls. It’s time to reject his credit card plan, which would waste $859 million on interest payments. Instead of burdening our kids and grandkids with interest, let’s leave them a legacy of safe roads, bridges and transit with the House and Senate plan. Investing in transportation will jump start our economy and get Minnesotans moving.”

"Minnesota's businesses – small and large – are struggling with the high costs of health care,” said Dan McGrath, executive director of TakeAction Minnesota, which is leading coalition of 7 groups working to bring health care reform to the state. “It’s imperative that the Governor and the Legislature find a solution that guarantees affordable health care for all Minnesotans. Our economic future depends on it.”

“My members are really struggling with rapid increases in their health care costs,” said Carol Nieters, contract organizer of Service Employees International Union (SEIU) local 284 which represents school support employees in Central Minnesota. "We can’t pretend like it’s an issue that doesn’t directly affect our state’s economy. I can tell you, without a doubt, that my members have less money to spend because they have to spend more and more on health care. Minnesota can’t afford to let that go on if we want to be competitive.”

“Without property tax relief for Minnesota’s businesses and homeowners, especially in our struggling rural areas, Governor Pawlenty has no right to claim he’s kept a lid on taxes,” said Niel Ritchie, executive director of the League of Rural Voters. “Not supporting investments in the things our communities need to succeed – like education, roads and bridges -- may be good politics for his national ambitions, but it will make life more difficult and expensive for the people of Minnesota.”