Jan 28, 2009 10:57 pm US/Central
Reality Check: Minnesota's Budget Woes
(WCCO)
Minnesota's budget problems are so severe, there's little comfort in knowing we are not alone. Many states have big deficits and despite what you may have heard, they're dealing with them in much different ways.
Minnesota is one of
45 states facing a budget deficit, and Minnesota's is worse than almost all of them. The state is $5 billion in the hole, which is about 15 percent of the budget.
"Our nation, and our state, faces a historic crisis the likes of which we have not seen since World War II," said Minnesota Gov. Tim Pawlenty.
That's TRUE.
The combined
budget gaps for all states could total a jaw dropping $350 billion.
As bad as Minnesota's budget looks, Wisconsin's is worse with a budget deficit of $5.8 billion. Iowa's budget deficit is $718 million.
"There is broad consensus in the country that when you have a recession that is this deep, particularly in highly taxed places like Minnesota, that it is not wise to add to the burdens of Minnesota taxpayers and Minnesota families by increasing the bill they receive from government," said Pawlenty.
But that's just NOT TRUE.
There's a
fierce tax debate in states across the country. California, New York, Florida, Illinois, Wisconsin and Indiana are all considering tax hikes, and some are considering canceling tax cuts.
"The $42 billion deficit is a rock upon our chest and we cannot breathe until we get it off," said California Gov. Arnold Schwarzenegger.
IN FACT...
Schwarzenegger has proposed a $14.3 billion tax hike. His state has suspended some business tax deductions. Florida has cancelled a sales-tax holiday.
Among the only state with a bright budget future is frigid
North Dakota.
Here's the good news you NEED TO KNOW about.
There's no recession in North Dakota. A surge in oil production is resulting in a $1.2 billion budget surplus. North Dakota's biggest problem is deciding how big the tax rebate checks should be.
That's Reality Check.
To check the resources for this Reality Check, click on the links below.
Center On Budget and Policy Priorities: State Budge Troubles Worse
New National Survey Reveals Escalating Budget Crisis for States
In Red, States Seek Tax Hikes
A Placid North Dakota Asks, Recession? What Recession?
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