The Stig
07-02-2011, 02:02 AM
State Government Financial Issues
Wasn't sure where to put this, but given the social unrest in Greece and the UK due to government austerity programs, and the potential for same here, I thought I'd pass along these stories.
If you want to discuss the political ramifications please do so in the political forum. But for general "how can this cause mayhem and how do I prep for it" here's the place to discuss.
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Original story at wsj online (http://online.wsj.com/article/SB10001424052702304584004576419454116902030.html?m od=WSJ_hp_MIDDLENexttoWhatsNewsSecond)
Minnesota Government Shuts Down
By AMY MERRICK
Minnesota encountered its second government shutdown in six years on Friday as Democratic Gov. Mark Dayton and Republican lawmakers failed to reach a compromise on closing the state's $5 billion budget gap.
Meanwhile, lawmakers in Iowa averted a shutdown Thursday, and several other states waited for governors to finalize their budgets.
Without a two-year budget agreement in place, state parks and the Minnesota Zoo will be shut for the July 4 holiday weekend, nonemergency road construction will halt and thousands of state workers will be furloughed.
Government functions deemed critical by a county judge on Wednesday will keep operating, including the state patrol, prisons and the Medicaid health-insurance program for the poor. Courts will stay open, and welfare and food-stamp payments will continue.
Republican leaders met with Mr. Dayton several times Thursday, but both sides gave few details about the talks.
Senate Majority Leader Amy Koch, a Republican, said late Thursday that the state's health and human-services budget was a sticking point in the negotiations.
Ms. Koch was interrupted several times by protestors in the Capitol chanting, "Tax the rich!"
Republican lawmakers had suggested approving a short-term budget to keep the government running, but Mr. Dayton had said he wasn't interested.
A spokeswoman for Mr. Dayton didn't return a phone call seeking comment Thursday.
Rep. Ernie Leidiger, left, talked with Rep. Doug Wardlow on the House floor Thursday. Both are Republicans. Lawmakers from the party had suggested approving a short-term budget to keep the government running, but Mr. Dayton had said he wasn't interested.
The governor and Republicans who control the Legislature have collided over the budget since Mr. Dayton took office in January. Mr. Dayton, the state's first Democratic governor in 20 years, wants to raise taxes on the wealthiest Minnesota residents to erase part of the deficit.
Republicans, who campaigned on a platform of no tax increases, want to eliminate the gap through budget cuts and accounting shifts. The state GOP took control of both houses of the Legislature for the first time in 38 years as part of a power shift of state governments toward Republicans in November's elections.
Mr. Dayton wants the state to spend $35.8 billion over the next two years, while Republicans favor a $34 billion spending plan.
In 2005, the Minnesota government partially shut down for eight days when then-Gov. Tim Pawlenty, currently a Republican presidential candidate, and Democratic lawmakers missed the deadline to complete a budget. That impasse ended with an agreement to impose a new "health impact fee" on cigarettes.
Minnesota's battle has been echoed in budget fights across the U.S. States had to close a collective $86 billion budget gap for their new fiscal year, which began Friday for most states, according to the National Conference of State Legislatures.
While state tax revenue has been improving over the past year, lawmakers have had to make sharp cuts because federal stimulus funds used to prop up state budgets during the recession have run out.
In Iowa, lawmakers on Thursday reached a last-minute deal over using Medicaid funds for abortions in certain cases. The practice has been legal in Iowa for decades, but some Republican lawmakers wanted to end it.
The compromise will require that women receive information about alternatives to abortion, such as putting a child up for adoption. Women seeking an abortion paid for by Medicaid also must be given the opportunity to view their ultrasound. The issue was the last hurdle to finishing a $5.99 billion budget.
Related Article
California Gov. Jerry Brown, a Democrat, signed an $86 billion budget Thursday. It was the first state spending plan to pass under a new law that allows budgets to be passed by a majority rather than a two-thirds vote.
New Jersey Gov. Chris Christie, a Republican, used his line-item-veto power Thursday to trim portions of the $30.6 billion budget sent to him by the Democratic-controlled Legislature.
Illinois Gov. Pat Quinn endorsed most of his state's $33 billion budget, despite his objections that the plan shortchanges education and health care. Mr. Quinn, a Democrat, vetoed portions of the budget to free up money for his priorities.
—The Associated press contributed to this article.
Write to Amy Merrick at amy.merrick@wsj.com
Wasn't sure where to put this, but given the social unrest in Greece and the UK due to government austerity programs, and the potential for same here, I thought I'd pass along these stories.
If you want to discuss the political ramifications please do so in the political forum. But for general "how can this cause mayhem and how do I prep for it" here's the place to discuss.
*****************
Original story at wsj online (http://online.wsj.com/article/SB10001424052702304584004576419454116902030.html?m od=WSJ_hp_MIDDLENexttoWhatsNewsSecond)
Minnesota Government Shuts Down
By AMY MERRICK
Minnesota encountered its second government shutdown in six years on Friday as Democratic Gov. Mark Dayton and Republican lawmakers failed to reach a compromise on closing the state's $5 billion budget gap.
Meanwhile, lawmakers in Iowa averted a shutdown Thursday, and several other states waited for governors to finalize their budgets.
Without a two-year budget agreement in place, state parks and the Minnesota Zoo will be shut for the July 4 holiday weekend, nonemergency road construction will halt and thousands of state workers will be furloughed.
Government functions deemed critical by a county judge on Wednesday will keep operating, including the state patrol, prisons and the Medicaid health-insurance program for the poor. Courts will stay open, and welfare and food-stamp payments will continue.
Republican leaders met with Mr. Dayton several times Thursday, but both sides gave few details about the talks.
Senate Majority Leader Amy Koch, a Republican, said late Thursday that the state's health and human-services budget was a sticking point in the negotiations.
Ms. Koch was interrupted several times by protestors in the Capitol chanting, "Tax the rich!"
Republican lawmakers had suggested approving a short-term budget to keep the government running, but Mr. Dayton had said he wasn't interested.
A spokeswoman for Mr. Dayton didn't return a phone call seeking comment Thursday.
Rep. Ernie Leidiger, left, talked with Rep. Doug Wardlow on the House floor Thursday. Both are Republicans. Lawmakers from the party had suggested approving a short-term budget to keep the government running, but Mr. Dayton had said he wasn't interested.
The governor and Republicans who control the Legislature have collided over the budget since Mr. Dayton took office in January. Mr. Dayton, the state's first Democratic governor in 20 years, wants to raise taxes on the wealthiest Minnesota residents to erase part of the deficit.
Republicans, who campaigned on a platform of no tax increases, want to eliminate the gap through budget cuts and accounting shifts. The state GOP took control of both houses of the Legislature for the first time in 38 years as part of a power shift of state governments toward Republicans in November's elections.
Mr. Dayton wants the state to spend $35.8 billion over the next two years, while Republicans favor a $34 billion spending plan.
In 2005, the Minnesota government partially shut down for eight days when then-Gov. Tim Pawlenty, currently a Republican presidential candidate, and Democratic lawmakers missed the deadline to complete a budget. That impasse ended with an agreement to impose a new "health impact fee" on cigarettes.
Minnesota's battle has been echoed in budget fights across the U.S. States had to close a collective $86 billion budget gap for their new fiscal year, which began Friday for most states, according to the National Conference of State Legislatures.
While state tax revenue has been improving over the past year, lawmakers have had to make sharp cuts because federal stimulus funds used to prop up state budgets during the recession have run out.
In Iowa, lawmakers on Thursday reached a last-minute deal over using Medicaid funds for abortions in certain cases. The practice has been legal in Iowa for decades, but some Republican lawmakers wanted to end it.
The compromise will require that women receive information about alternatives to abortion, such as putting a child up for adoption. Women seeking an abortion paid for by Medicaid also must be given the opportunity to view their ultrasound. The issue was the last hurdle to finishing a $5.99 billion budget.
Related Article
California Gov. Jerry Brown, a Democrat, signed an $86 billion budget Thursday. It was the first state spending plan to pass under a new law that allows budgets to be passed by a majority rather than a two-thirds vote.
New Jersey Gov. Chris Christie, a Republican, used his line-item-veto power Thursday to trim portions of the $30.6 billion budget sent to him by the Democratic-controlled Legislature.
Illinois Gov. Pat Quinn endorsed most of his state's $33 billion budget, despite his objections that the plan shortchanges education and health care. Mr. Quinn, a Democrat, vetoed portions of the budget to free up money for his priorities.
—The Associated press contributed to this article.
Write to Amy Merrick at amy.merrick@wsj.com