Nov. 5, 2009

Pawlenty’s budget proposal is shortsighted

Today, Governor Tim Pawlenty unveiled a proposed constitutional amendment that would freeze Minnesota’s general fund budget, limiting it to revenues collected in the previous biennium. The proposed constitutional amendment would need to pass the Legislature and then win approval from a majority of voters to become part of the state constitution. Just this week, similar measures failed at the ballot box in Maine and Washington.

 “Once again, Governor Pawlenty is showing that he is more focused on his presidential run in 2012, than he is on doing what it is right for Minnesota, now, in 2009,” said MAPE Executive Director Jim Monroe. “This proposal is shortsighted. It doesn’t consider the ups and down of the economy as well as the needs of Minnesotans.”

The governor’s proposal would throw out the current system of basing state spending commitments on estimated revenues in favor of freezing the budget with revenue received during the previous budget period. After passing a similar proposal, business leaders in Colorado joined with citizens to repeal taxing restrictions.

“This amendment is a formula for disaster in Minnesota, as it has been everywhere else it’s been tried,” said Speaker of the House Margaret Anderson Kelliher.  “It will cripple our schools and hospitals, not to mention the businesses that rely on a vital economy to survive.” 

In the coming years, Minnesota will continue to undergo massive demographic changes, including the continued diversification of our workforce, mass retirements by baby boomers, out-migration of college graduates and a sharp drop in high school graduates. These challenges necessitate active leadership.

 “This is nothing more than putting the State of Minnesota on autopilot and a continued downward slide,” said Monroe. “The people of Minnesota expect more than this out of our leadership. We elect a governor and a Legislature, and then we should expect them to make the necessary difficult choices to serve the needs of all Minnesotans.”