Business

Minnesota braces for shutdown over budget impasse

admin Contributor
Font Size:

ST. PAUL, Minn. (AP) — Minnesota stumbled into its second government shutdown in six years on Thursday, with a partisan divide over taxes and spending to close a $5 billion deficit becoming only more bitter as a midnight deadline came and went without agreement.

Any hope of a last-minute budget deal between Democratic Gov. Mark Dayton and Republican legislative leaders evaporated around 10 p.m., when Dayton appeared to say he and Republicans were still fundamentally divided over how much the state should spend the next two years and that he saw no chance of avoiding a shutdown.

“It’s significant that this shutdown will begin on the Fourth of July weekend,” Dayton said. “On that date we celebrate our independence. It also reminds us there are causes and struggles worth fighting for.”

Republicans appeared again minutes later, and tried to hang blame for the shutdown around the governor’s neck. They said the two sides were closer than he admitted, and they criticized his refusal to call a special session so lawmakers could pass a “lights on” budget bill to keep government running. Dayton refused, saying he’s been clear for months that he would only agree to a total budget approach.

“I think the governor’s insistence that we pass a full budget is not going to be of much comfort to Minnesotans who are going to see delays on the highways because construction projects stop,” said Senate Majority Leader Amy Koch, R-Buffalo. “It’s not going to comfort people who can’t use our state parks, or who can’t get a driver’s license.”

The two sides didn’t meet again ahead of the deadline.

The shutdown means thousands of layoffs, a standstill for road projects and padlocked state parks just ahead of the Fourth of July weekend. The effects were already being felt hours ahead of the deadline, as people rushed Thursday to get driver’s and fishing licenses, and park officials began warning campers to pack their gear and leave.

Though nearly all states are having severe budget problems this year, Minnesota was alone in its futility, thanks to Dayton’s determination to raise taxes on high-earners to close a $5 billion deficit and the Republican Legislature’s insistance that the gap should be closed by cutting spending.

Negotiations between Dayton and legislative leaders were fitful Thursday, starting and stopping with no outward signs of progress. After talks broke down for the last time, Dayton and GOP leaders gave conflicting accounts of the last few rounds of offers.

Republican Sen. Michelle Benson said earlier in the day she wasn’t budging, a position that Republican leaders held to even after it became clear the shutdown was coming.

“If we don’t start taking a different approach to how we manage our government, we’re going to swing from one bad economic circumstance to another,” Benson said. “We can’t just keep throwing more money at government and hoping that makes things better.”

The showdown was something of a small-stage version of the drama taking shape in Washington between President Barack Obama and the Republicans over taxes and the nation’s debt ceiling.

Though many states are having budget difficulties this year, those where political power is concentrated in a single party easily passed budgets. Some of those with divided government had healthy reserves, including Alaska, Iowa and Montana; Minnesota’s rainy-day accounts are drained. Others such as Louisiana and Nevada used one-time money or federal dollars to patch things together. Nevada and Missouri renewed taxes.

In New Jersey, Republican Gov. Chris Christie used the line-item veto Thursday to pare a budget from the Democratic-controlled Legislature before signing it into law, preventing a shutdown.

Only four other states — Michigan, New Jersey, Pennsylvania and Tennessee — have had shutdowns in the past decade, some lasting mere hours. Minnesota’s last shutdown, in 2005, lasted just eight days and was far smaller than this stoppage because lawmakers had agreed on several pieces of the budget.

Minnesota’s stoppage halted non-emergency road construction, shut the state zoo and Capitol, and stopped child-care assistance for the poor. More than 40 state boards and agencies would go dark. Critical services, including the State Patrol, prisons, disaster response and federally funded health, welfare and food stamp programs, will continue.

State park officials told campers to strike their tents well before the deadline. They said it would be too difficult to herd campers out in the middle of the night if talks failed.

In Afton State Park, near St. Paul, Rick Miller of Elko-New Market pushed up a camping trip with his 7-year-old son, Jack, to beat the shutdown. Miller originally hoped they could spend Thursday and Friday nights in the park on the picturesque St. Croix River, but he booked a campsite for Wednesday night.

“With the shutdown we decided we better come and get it in,” he said. “We don’t know how long it will be before we can get back into a state park.” He added: “It’s too bad they can’t just get the job done.”

A small group of protesters paraded before reporters clustered outside Dayton’s office on Thursday afternoon, chanting and waving signs to support the governor’s position. “You say cut back, we say fight back!” they yelled. One woman carried a handmade sign that read: “GOV DAYTON DON’T BACK DOWN!”

Dayton is Minnesota’s first Democratic governor in 20 years, and Republicans are running the entire Legislature for the first time in 38 years.

Dayton has proposed raising taxes on couples earning more than $300,000 and individuals making more than $180,000. Republicans have opposed any new taxes or new revenue sources, arguing instead that the state should rely on spending cuts, including deeper reductions in health and welfare spending than Dayton is willing to accept.

Some GOP moderates have talked of breaking the impasse with other means of raising revenue, such as eliminating tax breaks or authorizing a casino. Dayton has said he is open to such ideas.

Rank-and-file Republicans gathered at the Capitol on Thursday, more than a month after their regular session ended. Members of the large Republican freshman class, whose election victories in November helped the party take control of the Legislature for the first time in decades, held tight to their message that a total two-year state budget of $34 billion is big enough.

“I personally think the Republicans will probably be more damaged than the governor” by a shutdown, said freshman Rep. Mike LeMieur, R-Little Falls, who toppled an incumbent Democrat in November. “The fact is that we’re all up for re-election again next year, and he’s not up for three years.”

___

Associated Press reporter Amy Forliti contributed to this report from Afton, Minn.

PREMIUM ARTICLE: Subscribe To Keep Reading

Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!

Sign Up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
Sign up

By subscribing you agree to our Terms of Use

You're signed up!
BENEFITS READERS PASS PATRIOTS FOUNDERS
Daily and Breaking Newsletters
Daily Caller Shows
Ad Free Experience
Exclusive Articles
Custom Newsletters
Editor Daily Rundown
Behind The Scenes Coverage
Award Winning Documentaries
Patriot War Room
Patriot Live Chat
Exclusive Events
Gold Membership Card
Tucker Mug

What does Founders Club include?

Tucker Mug and Membership Card
Founders

Readers,

Instead of sucking up to the political and corporate powers that dominate America, The Daily Caller is fighting for you — our readers. We humbly ask you to consider joining us in this fight.

Now that millions of readers are rejecting the increasingly biased and even corrupt corporate media and joining us daily, there are powerful forces lined up to stop us: the old guard of the news media hopes to marginalize us; the big corporate ad agencies want to deprive us of revenue and put us out of business; senators threaten to have our reporters arrested for asking simple questions; the big tech platforms want to limit our ability to communicate with you; and the political party establishments feel threatened by our independence.

We don't complain -- we can't stand complainers -- but we do call it how we see it. We have a fight on our hands, and it's intense. We need your help to smash through the big tech, big media and big government blockade.

We're the insurgent outsiders for a reason: our deep-dive investigations hold the powerful to account. Our original videos undermine their narratives on a daily basis. Even our insistence on having fun infuriates them -- because we won’t bend the knee to political correctness.

One reason we stand apart is because we are not afraid to say we love America. We love her with every fiber of our being, and we think she's worth saving from today’s craziness.

Help us save her.

A second reason we stand out is the sheer number of honest responsible reporters we have helped train. We have trained so many solid reporters that they now hold prominent positions at publications across the political spectrum. Hear a rare reasonable voice at a place like CNN? There’s a good chance they were trained at Daily Caller. Same goes for the numerous Daily Caller alumni dominating the news coverage at outlets such as Fox News, Newsmax, Daily Wire and many others.

Simply put, America needs solid reporters fighting to tell the truth or we will never have honest elections or a fair system. We are working tirelessly to make that happen and we are making a difference.

Since 2010, The Daily Caller has grown immensely. We're in the halls of Congress. We're in the Oval Office. And we're in up to 20 million homes every single month. That's 20 million Americans like you who are impossible to ignore.

We can overcome the forces lined up against all of us. This is an important mission but we can’t do it unless you — the everyday Americans forgotten by the establishment — have our back.

Please consider becoming a Daily Caller Patriot today, and help us keep doing work that holds politicians, corporations and other leaders accountable. Help us thumb our noses at political correctness. Help us train a new generation of news reporters who will actually tell the truth. And help us remind Americans everywhere that there are millions of us who remain clear-eyed about our country's greatness.

In return for membership, Daily Caller Patriots will be able to read The Daily Caller without any of the ads that we have long used to support our mission. We know the ads drive you crazy. They drive us crazy too. But we need revenue to keep the fight going. If you join us, we will cut out the ads for you and put every Lincoln-headed cent we earn into amplifying our voice, training even more solid reporters, and giving you the ad-free experience and lightning fast website you deserve.

Patriots will also be eligible for Patriots Only content, newsletters, chats and live events with our reporters and editors. It's simple: welcome us into your lives, and we'll welcome you into ours.

We can save America together.

Become a Daily Caller Patriot today.

Signature

Neil Patel