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California Has A Budget – Minnesota Has A Shutdown

California Has A Budget – Minnesota Has A Shutdown

California and Minnesota: same budget battles, but different outcomes.

In both states, Republicans have refused to give in. In California, Republicans successfully fought off Brown’s months-long effort for a budget that included extending tax increases, so over the weekend, he turned to the Legislature’s Democrats, whose budget he had vetoed earlier this month, to hammer out a budget compromise they could approve on their own.

In Minnesota, a Democratic governor who sought to raise taxes on the wealthiest residents bumped heads with a Republican-controlled legislature, and their protracted budget impasse shut down state government just after midnight on Friday.

The California Budget Deal

Governor Jerry Brown signed a California budget on Thursday, June 30, approved by the legislature, that prescribes $15 billion in spending cuts in a bid to alleviate the crisis in the deficit-ridden state.

It was the first time in years that California has adopted its budget almost on time. Last year, lawmakers passed the budget of the richest and most populated state in October, three months late.

The sacrifices needed to bridge a $26.6 billion deficit will be very significant this year. Brown’s office noted that the cuts meant California’s public expenses as a share of the economy were now at their lowest levels since 1972-73.

From The San Francisco Chronicle:

Poor people will receive less medical care and welfare, disabled people will see fewer services, state parks will close and public university students will pay more in California under the budget that takes effect Friday.

But also Friday, the state sales tax will decrease from 8.25 percent to 7.25 percent and vehicle licensing fees will drop by almost half. Combined with the taxes that expired in January, an average California family will pocket about $1,000 this year.

Those are just some of the impacts of the new budget, which Gov. Jerry Brown finished signing today to close the state’s $26.6 billion deficit. Before he finished signing, Brown used his line-item veto authority to cut millions more dollars in spending for courts, transportation and educational oversight programs.

Meanwhile, In Minnesota

The broadest shutdown of state services in Minnesota’s history will begin early Friday, Governor Mark Dayton indicated late Thursday after intense talks over a new budget broke down among the state’s leaders.

Since early this year, politicians in St. Paul have been locked in a battle over how to work out a $5 billion budget deficit under a divided government. Republicans, who took control of both chambers of the Legislature after elections last year, called for cuts and reining in spending to the $34 billion that the state expected to take in over the next two years. But Mr. Dayton, a Democrat who was also elected in 2010, called for collecting more in income taxes from the very highest earners to spare cuts in services to the most vulnerable residents.

From The Washington Times:

Both sides spent weeks negotiating over how to deal with a projected $5 billion deficit. The talks, which continued in secret Thursday, included marathon sessions over the past seven days between Democrat-Farmer-Labor PartyGov. Mark Dayton and key lawmakers, trying to work through differences and create a compromise two-year state budget. But no such luck.

While Republican lawmakers put on a confident front Thursday afternoon and staged a symbolic sit-in in the legislative chambers, Mr. Dayton emerged from the statehouse Thursday evening telling reporters that a budget agreement was unlikely.

The governor, in a news conference late Thursday night, said he was committed to making it right, even as he defended his position, calling suggested Republican budget cuts Draconian. He described Thursday as “a night of deep sorrow.”

“I will continue tonight, tomorrow and however long it takes to find a fair and balanced compromise,” Mr. Dayton said, noting real progress had been made in the past few days but a fundamental divide over the revenue gap kept them from resolution.

“One basic difference remains. They don’t want to raise revenues on anyone and I believe the wealthiest Minnesotans can afford to pay more taxes.”

This dynamic is one which is apparently being repeated all over the country, at the state and national levels. Indeed, this statement mirrors almost exactly what President Obama reiterated today. Let’s hope he has better luck than Governor Mark Dayton.

Photo Credit: stopnlook via Creative Commons

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20 comments

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4:20PM PDT on Mar 19, 2012

To Glenn M. ,
You are right of course, but there is one point you are missing and I have yet to see it corrected and I am 80 yrs old. When our economy is built on making war equipment for the U.S. and other countries worldwide we will be forever in free fall if we want peace. We need to invest as much as possible in renewable energy and green products like making highrise roof tops solar and ocean current wind power. Invent, invest, and correct corporate thinking: longing for the easy buck.
Be a leader of the free, peaceful, world.
Bring integrity back to the U.S.

5:01AM PDT on Jul 8, 2011

Thank you for sharing

11:09PM PDT on Jul 2, 2011

There is a problem for many with posting comments on Care2 stories. Care2 are working on it.
I'm testing here using Firefox 5, so far I've had no problems.

10:49PM PDT on Jul 1, 2011

Enslaving women, making the richest richer and kissing corporate ass.. REPug agenda.

9:23PM PDT on Jul 1, 2011

Why do Republicans want to take away everything including peoples' dignity and give nothing in return? Their greed is so evident and the way they are taking over the states day by day is because of lies and distortions of facts that came through e-mails over the past two years. And the worst part is....along with taking away all 100% of services to those whose lives depend on them, they take away the dignity of these people and all of us as a nation who at one time believed that caring for those less fortunate (including other poor nations) was a deep belief of this country.

We no longer have the capital to do this and why is this? It's certainly not the poor, ill, disabled and unemployed who have been out there carelessly spending, adding up bonuses and profits while everyone else who is fortunate to have a job watches their wages decrease.

Oh, I know you'll tell me they worked for it and deserve their wealth just like you tell me ALL homeless are lazy and ALL those on welfare don't want to work. Great excuses for justifying not giving up a cent of your own wealth. If you cared at all, when you outsourced or downsized your employees, and shut down manufacturing and auto plants that you had a plan for those displaced employees.

I once received an e-mail that said the reason Obama won the election was because all those people who live in tenements and the very poor voted for him. How many are living in tenements and rundown neighborhoods who lost outsourced jobs? An

8:24PM PDT on Jul 1, 2011

@ Yvonne C.

We have plenty of funds - the Republicans simply choose to spend it on crap. For example we have 3 Virginia Class (cold-war era) Fast Attack submarines under construction at 1.8 billion each... with plans for 30 more! 54 billion on obsolete junk! The cold war ended decades ago!! The list of these "projects" goes on and on... we are talking BILLIONS

Republicans have no problem giving tax breaks to oil companies. No problem giving corporate hand-outs to wealthy companies... have no problem cutting taxes while going to war... no problem cutting unemployment compensation while extending the war in Afghanistan... no problem giving billions to banks while ignoring victims of Katrina. No problem allowing old people to starve by cutting meals on wheels...

Republicans run this country into debt - wasting tax payer money on war, corporate hand-outs, tax breaks for oil and the rich - then tell us we don't have money to take care of American citizens... the TRULY needy.

What is more important - feeding hungry Americans, or giving tax payer money to the rich? These tax paying citizens end up paying for war machines and gift to oil companies - instead of getting the help they need.

Despite Republican rhetoric - this country was built on the taxes of the rich - which used to be up to 90% at one point... the rich will be taxed again - and they should be.

8:09PM PDT on Jul 1, 2011

I like your Governor. More states need guys like him...

8:05PM PDT on Jul 1, 2011

As a Minnesotan who has a brother who depends on state run agencies for his monthly living expenses due to mental disabilities that prevent him from getting a full time job to support himself (he does have a small part-time job) this government shut down means that he will not be receiving at least 2/3 of his benefits and will most likely not get any medical coverage as well and will have to pay for his medications completely out of pocket.

The republican proposal wanted to cut funding for many social programs that benefit him and many other people in the state that depend on the social system in order to live their day-to-day lives and our governor wanted to increase taxes ONLY on the wealthiest 2% of the state in order to increase the funding for education, infrastructure, and social services that benefit EVERYONE in the state--he was not willing to compromise on these things but the republican party was willing to compromise. Additionally, during the government shut-down Governor Dayton will not be taking a salary of any kind because he feels that it would be unfair to those who were laid off during this time--something that those unwilling to compromise on the budget with him most likely will be doing.

----Just to clarify a few things for you all.

4:23PM PDT on Jul 1, 2011

The repubathugs have wanted to starve social and economic safety nets to death for decades, looks they are almost there, in Minnesota anyway. Sans the John Birch Society, I think they started the idea back in Nixon's day.

1:42PM PDT on Jul 1, 2011

You can not spend more than you take in, you can not pretend this fact doesn't exist by borrowing to cover what you didn't take in. This system doesn't work for individual people and it doesn't work for governments. Why can't the democrats get this simple fact through their heads. Please try living in the real world, it's getting to be hell trying to live in yours.

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