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Location: Blogs Dan's Blog |
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| Posted by: Dan McGrath |
2/22/2010 |
Minnesota Can't Afford Current Debt Payments, but Will Borrow Another $1 Billion
Both the Minnesota House and the Senate have passed similar versions of a bonding bill equaling about $1 billion in general obligation bonding. In the House, Speaker Kelliher pushed the bill through without allowing debate.
Right now, minor differences between the two bills are being reconciled in a conference committee.
Minnesota is already in debt over $7 billion. Making the payments on that borrowed money consumes over 3% of the state’s biennial budget, and we’re running a deficit of over $1.2 billion this year, with deficits projected to be over $5.4 billion in the next biennium. This means we can’t afford to make the debt payments we are already obligated to make. Taking on more debt in a financial crisis like this, one might think the money must be for something pretty important. Some of the money is for worthy projects like improvements to public facilities, but these improvements can wait and there is absolutely no excuse for some of the appropriations. Legislators in the conference committee have decided a criminal sex offender facility in Moose Lake isn’t important enough to borrow money for this year, but they will use the taxpayer’s maxed-out credit card for:
- The Perpich Center for the Arts ($1.2 million)
- The Minnesota Zoo ($32.5 million)
- Amateur sports ($4 million)
- The Metropolitan Council ($74.5 million)
- The Minnesota Historical Society ($14 million)
- New hiking and ATV trails connections ($31 million)
- Expanding a campground facility ($1 million)
This bill will probably emerge from conference committee today. The governor will have three days to veto or sign the bill.
Take Action: Call Governor Pawlenty right now at (toll free) 1-877-378-3864 to urge him to veto the bonding bill. Tell him we have to solve our current budget crisis before we borrow any more money.
Update: Governor Pawlenty has issued a statement, saying he intends to veto the entire bonding bill.
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Comments (6)
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Re: Stop Growing the State's Debt |
By Walter Scott Hudson on
2/23/2010 |
| I don't know who you guys have making these videos, but they're doing a fantastic job. LOL, gorilla cages. I have previously featured the "What Would Reagan Do?" and "New Day Dawning..." ads on my internet radio show, with attribution of course. This will make an appearance as well. Keep up the good work. |
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Re: Stop Growing the State's Debt |
By Jeff N on
2/23/2010 |
| Why would you want us to bother the Governor when he has already promised the veto. You are wasting our time and his. |
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Re: Stop Growing the State's Debt |
By dan.mcgrath on
2/23/2010 |
| Our action alert was issued before the governor announced that he would veto the bonding bill in it's entirety. Because our distribution list is so large, it takes several hours for all messages to be delivered, so yours may have come late. Anyway, nothing is official yet and it doesn't hurt to let the governor know he's doing the right thing. |
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Re: Stop Growing the State's Debt |
By Melissa on
2/23/2010 |
| It is important to contact the Governor and let him know we're behind him. I see politicans cave all the time because all they hear from is the side wanting spending and they don't hear from the taxpayers. So please call and let Pawlenty know we want him to veto the bill. They have plenty time left to pass a good bill - there is no rush - we're only in the first month of the session and we have four months left! The democrats are just trying to rush this thru so they can get in all their pork! |
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Re: Stop Growing the State's Debt - RAISE TAXES nothing worthwhile is free |
By Cakexner on
2/23/2010 |
| For God's sake this is MINNESOTA not Mississippi, RAISE taxes, it only takes a 2 cent raise in the sales tax or the cost of a gallon of gasoline a week to eliminate our state deficit - $2.71 a week for each household OVER 130% of the poverty rate in the state. There is no free lunch. |
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Re: Stop Growing the State's Debt |
By dan.mcgrath on
2/23/2010 |
| I have already pointed out how far off your math is in another thread. Again, you are so very wrong. It would require either an across the board increase of 30% in income taxes or a 56% increase in sales taxes to close the deficit. In addition, the state's unfunded liabilities (outside the general fund deficit) equal over $60 billion (that's $30,000 per Minnesota household above and beyond normal taxes paid). |
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