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The Minnesota Budget Crisis, By The Numbers

by: TwoPuttTommy

Sat Jan 30, 2010 at 11:22:57 AM CST


Last night, on AM950 Radio's "Minnesota Matters - Friday Edition" show, we had State Senator Jim Carlson, DFL, SD-38 on, to discuss how Minnesota, under the "fiscally (non)conservative" Gov. Tim Pawlenty got the state into it's latest budgetary mess.

Well, we also talked about The Sons Of Nixon's Plumbers, a story that's not going away, and we played "False or False Witness!" too - Bachmann MotorMouth Overdrive's quote is below the fold, at the very end.  But, the bulk of the show was how Gov. TBag deliberately put the State into an unbalanced budget, so TBag could exercise Unitary Executive Power (Nixon would be so proud!).

When the podcast/download becomes available, I'll update and link to it.

In the meantime, Senator Carlson's sheet explaining what we talked about is below the fold.

In a nutshell, here's what happened:

The February 2009 Forecast predicted revenues of $31.1 Billion (rounded).  Knowing that number, Gov. TBag proceeded signed Spending Bills of $33.8 Billion (rounded) anyway.  

This created a deficit from Governor-approved spending (remember, when TBag signed those spending bills, they were now law) and the Feb 2009 Forecast of $2.7 Billion (rounded).  A bill to balance that deficit, HF-2323, was passed and presented to Gov. TBag to sign.  Except, TBag didn't sign that revenue bill to balance the budget; he vetoed it.

Upon creating an unbalanced budget, TBag immediately claimed unilateral power to fix the problem he created, and then hit the campaign trail.  As to TBag's actions creating an anticipated budget problem, then using powers to deal with unanticipated budget problems?  The Court was not amused.

Details below the fold.  

TwoPuttTommy :: The Minnesota Budget Crisis, By The Numbers
How We got Here - Who Approved the Spending?
Senator Jim Carlson
sen.jim.carlson@senate.mn

(Bold numbers from Senate Research)

FY 2010-2011 General Fund Budget

    Projected FY 2010-2011 Resources from February Forecast: $31,113,000,000

    (From February Forecast and enacted changes. Includes carry forward of $188 million from FY 2009
and $225 million of increased revenues in enacted budget)

FY 2010-2011 biennial spending contained in bills signed by Governor: $33,789,000,000

    (Governor vetoed $387 million, including $381 million GAMC)

New revenue needed for Governor-approved spending: $2,676,000,000

HF-2323 passed for new revenue, but vetoed by Governor May 19, 2009 $2,732,000,000

Governor action July 1, 2009 to unallot his previously approved spending:
   K-12 Unallotments/Deferrals: $1,771,032,000
   Net Unallotments (Reductions) to Approved Spending: $694,560,000
   Revenue Actions (Refund delays, tax reciprocity): $210,700,000
     --  Total previously approved spending, now unalloted by Governor: $2,676,000,000

FY 2010-2011 Biennial Budget after unallotment of Governor-approved spending

Projected current law biennium resources, revised by unallotment $31,330,000,000
Spending budget after unalloting previously approved spending $31,330,000,000

November Forecast Review - Presented December 3, 2009

    November 2009 Re-forecast of FY 2010-2011 biennium resources: $30,127,000,000
    Official FY 2010-2011 Budget deficit (spending exceeds resources): $1,203,000,000

FY 2012-2013 General Fund Planning Budget

Projected FY 2012-2013 Biennium spending per 2009 Governor-signed law: $38,644,000,000
   Based on FY 2010-2011 budget obligations signed into law by the Governor
   Includes repayment of unalloted education funds of $1,155,894,000

Projected FY 2012-2013 Resources from current law: $33,218,000,000
   Forecast November 2009, presented December 3, 2009

Official FY 2012-2013 Budget deficit (spending exceeds resources): $5,426,000,000
    Does not include additional budget pressures or inflation

    Additional 2012-2013 Budget Pressures and Inflation
     -- Re-instate General Assistance Medical Care: $928,000,000
     -- Buy back School Property Tax Recognition Unallotment/Deferral: $562,000,000
     -- Estimated Planning Inflation: $1,179,000,000

Possible FY 2012-1013 General Fund Planning Deficit: $8,095,000,000

(note:  Senator Carlson's sheet is much, Much, MUCH cleaner; the ol' TwoPutter's coding of it?  Not so much.)

Oh, and that Bachmann MotorMouth Overdrive quote, used during last night's "False Or False Witness!" game?

Here it is:

"Dear Fellow Conservative,

Will you let Barack Obama KILL conservatism?

If you're the type of conservative I trust you are, I know your answer is a resounding 'NO!'

Because you and I have our work cut out for us opposing Obama's outrageous gangster government."  -- American Conservative Union mailing, posted on DumpBachmann.Blogspot.com on January 24th, 2010

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Difficult to Grasp (0.00 / 0)
Are you saying that Pawlenty basically vetoed his own spending bill?

Don't cook your own goose.

What TBag Did, is.... (0.00 / 0)
...sign the spending bill, knowing that it was more than the projected revenue, then veto the revenue bill that would raise revenue to the spending bill he previously had signed.

Again:

The February 2009 Forecast predicted revenues of $31.1 Billion (rounded).  Knowing that number, Gov. TBag proceeded signed Spending Bills of $33.8 Billion (rounded) anyway.  

This created a deficit from Governor-approved spending (remember, when TBag signed those spending bills, they were now law) and the Feb 2009 Forecast of $2.7 Billion (rounded).  A bill to balance that deficit, HF-2323, was passed and presented to Gov. TBag to sign.  Except, TBag didn't sign that revenue bill to balance the budget; he vetoed it.

Upon creating an unbalanced budget, TBag immediately claimed unilateral power to fix the problem he created, and then hit the campaign trail.



"Those that forget the lessons of history, tend to vote GOP"

[ Parent ]
Nice catch, Tom. Apparently (0.00 / 0)
he's been taking his "fiscal responsibility" strategy from "Alice in Wonderland" all along. But the papers treat like he's credible and respectable...What a world we live in...  

[ Parent ]
When did Pawlenty decide (0.00 / 0)
I've never been able to believe Gov. Gutshot decided on the spur of the moment after he vetoed the revenue bill that he would have to unallot. DFL legislators, though they wouldn't be this blunt in public, felt Pawlenty negotiated in bad faith, even vetoing bills he said he would sign. I suspect he planned for a long time before the session ended to abuse unallotment. Too bad we can't see the governor's office internal e-mail, because I expect there are written records somewhere.

[ Parent ]
DFL legislators, though they wouldn't be this blunt in public,... (0.00 / 0)
And THAT is part of the problem.

The GOP has no problemo in bein' blunt, when affixin' blame, when blame is earned/deserved.

Hey, they got no problemo affixin' blame when blame is NOT earned/deserved.

The GOP Leadership is morally bankrupt, intellectually dishonest, and institutionally corrupt.  The GOP Party should be investigated under RICO.

And it's a shame that you are correct, Eric - "DFL legislators, though they wouldn't be this blunt in public,..." - it's a real shame.


"Those that forget the lessons of history, tend to vote GOP"


[ Parent ]
Thank goodness someone noticed! (0.00 / 0)
The Governor has not been fiscally conservative, spending has increased every year as he has signed into law the bills authored by the legislature.  He has raised taxes every year and yet we still have a monstrous deficit.  Hopefully it has become obvious that raising taxes didn't help, nor continued increased spending.  Our next Governor will hopefully encourage less taxation and less spending since more of each hasn't worked.  Unfortunately the federal government (which is spending more and taxing more) may place too big a burden on the State and it will be next to impossible to dig out for years.

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