Editorials
Our View — Borrowing not a good budget sign
Gov. Tim Pawlenty’s budget officials recently announced the state may have to borrow money to make ends meet. This is not a budget solution. It should only put more pressure on the governor and Legislature to come up with a bipartisan solution to Minnesota’s budget problems.
State revenue is currently running at $225 million below projections, and Minnesota Budget Commissioner Tom Hanson told legislators the state should be ready with a plan to borrow the money to keep paying the bills.
Minnesota has not faced having to borrow to pay its bills since the 1980s when a similar recession took place. At that time, the state borrowed some $1.6 billion and paid some $125 million in interest. Borrowing for current operations should be avoided simply because interest is an additional expense.
There are more people without jobs, wages are lower and we are proposing adding debt to the tax bill.
The long-term state budget remains unbalanced, and there is a projected $7 billion deficit coming up sooner than later. Minnesotans aren’t comfortable with that, and rightly so.
The governor’s unallotments are also coming back to haunt us. While Pawlenty approved unallotments that would cut some 28,000 to 30,000 poor off of General Assistance Medicaid, he now wants to put them all on MinnesotaCare, shifting the costs to county property taxpayers.
That will likely also bankrupt the MinnesotaCare fund, one of the few things not funded totally by taxes. When that fund goes into deficit, more will be expected from your doctor who pays the “fees” disguised as taxes to MinnesotaCare.
Minnesota faces myriad budget problems. Legislators and the governor need to get to work sooner than later at coming to a bipartisan solution. We should remember the Legislature did send the governor a balanced budget last year. He chose to reject it because it raised taxes. Now, his unallotments face a legal challenge.
Borrowing is not a solution. It’s a crutch. Minnesotans deserve an honest budget policy from their governor in these troubled times, not more borrowing or debtor status.
- Editorials
-
-
Our View: A good state for women's athletics
There's a lot of prominent college women's sports events going on in Minnesota, not least of which is the Division III "frozen four."
-
Our View: Drinking enforcement must be fair
A plan to curb drunk driving that would lead investigators back to bars has merit if it can be proactive instead of reactive and use carrots instead of sticks.
-
Our View: Cut's costs exceed savings
Why It Matters
Taxpayers will pay more to treat the mentally ill as crisis center closes. -
Our View: Everyone is important in census count
Minnesota’s representation, funding and national voice, is on the line with the 2010 U.S. census.
-
Our View: Library plan touches on dilemma
For many, it was a jaw-dropping proposal. The city of Mankato has a tentative plan to reduce its funding to the Blue Earth County library and the Summit Center by 50 percent.
-
Our View: Students must be the top priority
Why it matters
Allegations of sexual misconduct by school employees bring focus to the need to
protect students. -
Our View: School athletics model may need work
Why it matters
School sports will come under increasing scrutiny with tight budgets. -
Our View: Students' efforts aid community
The students behind Brand New Image are great role models.
-
Our View: Legislature, governor win one for the people
The Minnesota Legislature and Gov. Tim Pawlenty deserve credit for coming to agreement on a bonding bill in a truly unprecedented timeline.
-
Our View: 'Centrist' Walz walks a fine line
Why it matters
In an election year where partisans are in a rush to define candidates, Minnesotans need to carefully pay attention to what they see and hear. - More Editorials Headlines
-
Our View: A good state for women's athletics
