Twin Cities Daily Planet (https://www.tcdailyplanet.net/author/nickbusse/page/5/)
Programs funded through the state’s Legacy Amendment need better documentation and closer financial oversight.
Those are among the conclusions of a pair of reports from the Office of the Legislative Auditor. The Legislative Audit Commission heard testimony from Legislative Auditor Jim Nobles and his staff on the reports’ findings. No action was taken.
The overall economic impact of this summer’s state government shutdown was minimal, but it had other negative consequences, a state official said.Minnesota Management & Budget Commissioner Jim Schowalter said the partial cessation of government services, which began July 1 and lasted for 20 days, damaged the state’s reputation more than its pocketbook.“At this point, when we look at the jobs numbers, when we look at the GDP numbers, we are not seeing a huge ripple effect on the state’s economy,” he said, adding that the impact on the state’s budget outlook appears to be negligible as well.Schowalter said the shutdown impact was “blunted” by court-ordered spending. A Ramsey County judge ordered “essential” state services to remain open during the shutdown, effectively guaranteeing that 80 percent of state spending would continue to flow uninterrupted to schools, hospitals, nursing homes and many other state-funded programs.The findings are detailed in a new report.In spite of this, the state still lost some $49.7 million in revenues and incurred more than $10 million in preparation and recovery costs, according to MMB. But Schowalter said those figures were more than offset by the roughly $65 million it saved from temporarily laying off 19,000 state workers. State employees bore the brunt of the shutdown’s impact, he said.While the total cost appears to be marginal, Schowalter cautioned that the failure of Gov. Mark Dayton and the Republican-controlled Legislature to agree on a new two-year biennial budget was not without consequences.“I think the budgetary impact isn’t the cautionary tale,” Schowalter said, adding that the state’s credibility in the financial markets, its ability to recruit and retain quality state employees, and its ability to provide uninterrupted services were all damaged.“They don’t have direct budget costs right now, but they’re things that we’re going to be dealing with for years to come,” he said. Continue Reading
A hearing on the possible unionization of thousands of Minnesota child care providers who receive a state subsidy left members of a House committee with more questions than answers.The House Commerce and Regulatory Reform Committee held a hearing on Gov. Mark Dayton’s Executive Order 11-31, which calls for an election to decide the issue next month. A key question is whether the move would impact all of the state’s roughly 11,000 child care providers, or just the 4,287 who are currently registered to receive the subsidy.The state official charged with administering the election, scheduled to take place in December, didn’t have a clear answer for committee members.“I don’t know,” said Josh Tilsen, commissioner of the Bureau of Mediation Services. He said any guarantee of a limited impact “has to come from the folks who will be doing the negotiating” — i.e. the unions themselves.Representatives from the unions involved — the Service Employees International Union and the American Federation of State, County and Municipal Employees — did not testify at the hearing. In a written statement, union leaders said nothing in the executive order would interfere with the independence of the non-subsidized child care providers. They also emphasized that union membership would be strictly voluntary.Many committee members were skeptical, however.“It seems to me that there’s no safeguard here,” said Rep. Greg Davids (R-Preston).Other questions from lawmakers included whether non-unionized child care providers could someday be forced to pay “fair share dues,” and also what the typical rate of participation is for mail-ballot elections of the type that is scheduled to take place next month. Continue Reading
Gov. Mark Dayton’s administration plans to move forward with its application for a No Child Left Behind Act waiver, but some lawmakers questioned a lack of legislative input into the process.
The state’s short-term fiscal outlook has improved, but another recession could easily reverse its fortunes, officials told a joint legislative panel.Members of the Legislative Advisory Commission were given an update on the state’s cash flow outlook. Jim Schowalter, commissioner of Minnesota Management & Budget, said the state ended its fiscal year in June with an extra $233 million in the treasury. He said the improved cash balance will likely preclude the need for any emergency short-term borrowing in the current fiscal year.“We’re looking at improved numbers from where we were last year,” Schowalter said, calling the latest projections “good news.”Over the last several years, the slumping economy has precipitated a drawdown in the state’s cash reserves. To keep the state operating, budget officials have resorted to moving money back and forth between different state accounts (inter-fund borrowing) and temporarily delaying certain payments and tax refunds.In 2010, the state arranged for an emergency line of credit with U.S. Bank. With as little as 24 hours’ notice, the state can borrow up to $600 million to keep state coffers from running dry. Continue Reading
Minnesota is headed for an unprecedented state government shutdown.In spite of several days’ worth of intense negotiations, Gov. Mark Dayton and legislative leaders did not come to an agreement on a two-year state budget. Current biennial funding runs out on July 1, forcing all but the most critical state government functions to shut down indefinitely.“This is going to be, I think, one of those moments in our state’s history we’ll look back on and be very disappointed,” said House Speaker Kurt Zellers (R-Maple Grove).Budget talks continued off and on right down to the final hours of the midnight June 30 deadline, but a gap of about $1.4 billion remained between the respective proposals. Majority Republican lawmakers proposed passing a “lights-on” bill that would fund government services temporarily.Dayton called that a “publicity stunt,” and rejected their calls for a special session.“Anybody who wanted to avoid a shutdown today knew there was one way to do it. That was to accept a budget proposal that would bridge this gap, and we’d have a global agreement and we’d avoid the shutdown,” Dayton said.Both Dayton and the legislative leaders said they had made progress in closing the gap on the majority of individual budget bills; the key dispute remained the issue of taxes.From the beginning, Dayton argued the state needed additional revenue, and he proposed raising taxes on high-income earners. He originally proposed $3.2 billion in new revenues, but later revised it down to $1.8 billion. Continue Reading
Lawmakers and Gov. Mark Dayton have one more day to fund state services and avoid a potential government shutdown, and Republican leaders said they can make it happen.
Legislative leaders met with Gov. Mark Dayton again this morning and said budget talks are moving forward, but would not say how close they are to a possible deal.In a press conference, Dayton said today’s negotiations are focused on health and human services spending. He met with legislative leaders this morning at 9 a.m., and said committee chairs were scheduled to meet with executive-branch staff to discuss the issue at 11:30 a.m. He did not discuss details.“We had a constructive meeting. We still have our differences,” Dayton said.Lawmakers and Dayton are negotiating an agreement to enact a new state budget and erase a projected $5 billion shortfall. If they do not act by Friday, most state government functions will be forced to shut down.“Things are still moving ahead. That’s good news,” said House Majority Leader Matt Dean (R-Dellwood).Dayton and lawmakers are scheduled to meet again at 2 p.m., but will break later in the day to attend memorial services for the late Sen. Linda Scheid (DFL-Brooklyn Park), who died of cancer June 15. Continue Reading
Gov. Mark Dayton and DFL legislative leaders said Republicans are unwilling to compromise and that their budget plan protects wealthy Minnesotans at the expense of the middle class.At a press conference, Dayton and the DFLers renewed their call for Republican leaders to agree to raise new revenues to help erase a projected $5 billion budget gap. The governor said he’s cut his call for tax increases in half, but Republicans haven’t budged from their $34 billion budget target and refuse to consider new revenue sources.“Every effort I’ve made to compromise has been flat-out rejected. And their position has remained the same: ‘Our way or no way,’” Dayton said.Lawmakers and the governor have eight days to enact a new biennial budget for the state. If no new budget is in place by July 1, some or all state government services may be forced to shut down.House Minority Leader Paul Thissen (DFL-Mpls) said that Dayton’s proposed $1.8 billion in tax increases would mainly impact the wealthiest 2 percent of Minnesotans. In contrast, he said the Republicans’ budget plan would increase property taxes, raise college tuition and force 140,000 Minnesotans off of health insurance.“The choice is clear: we can either ask those richest 2 percent of Minnesotans to play their part in resolving this budget deficit, or we can continue to squeeze middle-class families,” Thissen said.The governor said he would not call a special session until and unless there is a budget deal. Continue Reading
Republican legislative leaders said Gov. Mark Dayton has agreed to meet with them extensively over the weekend to try to hash out a deal on the state budget.With eight days left to enact a budget and avoid a potential state government shutdown, House Speaker Kurt Zellers (R-Maple Grove) said the leaders will meet with Dayton and “literally lock ourselves in a room” and work toward an agreement. Zellers said he, Dayton and Senate Majority Leader Amy Koch (R-Buffalo) will seek a “framework” for a budget deal.“From Friday and Saturday, we will spend all day — the governor, the majority leader and I — in a room, negotiating bills,” Zellers said.Koch said she and Zellers plan to focus on budget areas where there is significant consensus with the governor, such as K-12 education and transportation funding, and work out agreements on those first. Dayton has frequently stated that he wants a deal on new revenue before discussing individual budget bills, but Koch said Dayton agreed to their negotiation plan.“We can solve this budget. And in certain areas, we’re incredibly close. In certain areas, we’re a little further away, but we need to get down and dig into these bills,” Koch said.Asked whether new revenue options would be on the table during the negotiations, Zellers did not answer directly. Continue Reading