Jun 15, 2009 6:50 pm US/Central
Reality Check: Budget Balancing With Cuts Alone
ST. PAUL (WCCO) ―
Minnesota Gov. Tim Pawlenty is planning to announce this week which programs he plans to deeply cut to fix the state's record budget deficit. The governor's office says Pawlenty will use the rare executive power called unallotment because he would not agree to any tax increases.
However, that's a different strategy from most other states, according to the Center on Budget and Policy Priorities.
The non-partisan group says the recession is affecting all 50 states and
most state budgets.
However, this is one of the only places in the country where the governor is going to extremes to keep a no-tax hike promise.
"It is a horrifically bad idea," Pawlenty told reporters recently. "We need to find ways to reduce taxes, minimize taxes in Minnesota, not increase them, particularly in these times."
Here's what you NEED TO KNOW...
Twenty-nine states are planning $24 billion in tax hikes. Those
hikes include:
Income taxes: $8.8 billion
Sales taxes: $6.5 billion
Cigarette taxes: $1.5 billion
Most of the tax increases are coming in California, which is proposing $11.3 billion in hikes to close a $21.3 billion deficit.
Neighboring Wisconsin is considering
$2.1 billion in tax and fee increases.
It's TRUE...
Minnesota's not raising general state income taxes.
However, the state is reaching in your pocket to extract imposing millions of dollars in new and higher fees; from court filings to marriage licenses to parking tickets, just to name a few.
Pawlenty's daring budget cut plan puts Minnesota in a small minority. Minnesota's
one of only a handful of states using
budget cuts alone to ease the bad economy.
Even after Pawlenty cuts the budget himself this week, Minnesota's deficit won't be fixed. In just two years, the next governor already has a monster deficit waiting -- the state's already
$4 billion in the hole.
That's Reality Check.
To check the resources for this Reality Check click on the links below:
CBPP: State Budget Troubles Worsen
CNN Money: States: It's Taxes, Taxes And More Taxes
The Badger Herald: Assembly Passes Budget In Late Night Session
CBPP: More States Are Raising Revenues
CNN Money: States Propose $24 Billion In Tax Hikes
Minnesota Management And Budget: Feb. '09 Budget Forecast
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