Minnesota Government Shutdown – No End in Sight But Thankfully Legislators Are Getting Paid

The Minnesota Public is Going to Have to Choose

In the 2010 election the state of Minnesota unwisely elected a Democratic Governor and a Conservative Republican dominated state legislature.  The former Governor, Tim Pawlenty now running for President got out of Dodge and left the state with a $5 billion budget deficit.  The Governor had campaigned on closing the deficit in part with higher taxes on wealthy tax payers.  The legislature had promised not to raise taxes on anyone. 

The result, the state has no approved budget and is under fiscal control of the courts, who decide what stays open, who gets paid and who goes without.  The latest report from Minneapolis has these items and The Dismal Political Economist has these comments

"I don't see a quick conclusion," said Rep. Larry Howes, R-Walker. "If this thing goes to the State Fair, it will probably go to January. That's my gut."

So nothing looks like it will be settled soon.  This seems to favor the Republicans who can hold out longer and seem willing to do so.

And because there is no new budget, the court is paying out funds based on older, higher spending assumptions. That means the state treasury is beginning to burn through what could become hundreds of millions of dollars more than it is taking in

"If we keep spending more than we are bringing in, we will run out of money," said Jim Schowalter, commissioner of Minnesota Management and Budget. "We don't have a huge cushion.

This doesn’t sound like a recipe for fiscal stability.  And in terms of sharing the suffering, there is this.

After Gov. Mark Dayton announced that he would not accept pay during the state government shutdown, 14 senators and 48 representatives followed suit.

That leaves 52 of the current 66 members of the Senate (79 percent) and 86 of the 134 members of the House (65 percent) who collected July paychecks

138 legislators are collecting paychecks during shutdown

Well, what exactly did anyone expect? (Note:  Mr. Dayton is independently wealthy.)

And finally, this note of the seriousness of the problem.

Even bars and restaurants could start feeling the pain as state-issued cards that allow them to buy liquor begin to expire

Which may be the only hope that the people of Minnesota have for any quick resolution of the shutdown.  People may not care much about shutting down education, construction project, services for the needy and the like, but shutting down the bars ??? The Dismal Political Economist doesn’t think so. 

 He does think that ultimately the Republicans will win in Minnesota, just as he thinks that ultimately the Republicans will win in their deficit/debt ceiling battle in Washington.  Three of a kind beats two pair, and a no-tax increase plan beat tax-increase plan.  And just like in Washington, in the Twin Cities the Democrats may not be fielding their A Team.