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December 01, 2005

Vultures On The Scraps Of Fortune

Let's flash back, if you will, to two years ago.

The DFL predicted, in full facial-vein-bulging fury, that combining the Ventura Deficit ($4.5 billion dollars at the time) with Pawlenty's "New New Taxes" pledge was irresponsible, and would plunge the state into ruin.

They were wrong, of course, as all of us tax hawks predicted; as the economy has improved, so has the state's revenue picture.

The forecast is positive: The state budget is projected to be back in the black by $1 billion after four years of red ink.

Even more certain, with a major state election year ahead in 2006, is an intensified political debate over what the numbers really mean and who was responsible for what.

Prediction: Look for the DFL to find some way to claim that raising taxes spurred the economy.

Similarly, look for them to disavow the notion that Jesse Ventura's profligacy in converting the temporary surpluses of the '90's into permanent spending had anything to do with the crisis in the first place.

Republican Gov. Tim Pawlenty and DFLers began sparring on those points as soon as news of the projected surplus broke.

The state Finance Department projected a $701 million surplus for 2006-07, in addition to $317 million already banked from fiscal 2005, which ended in June.

Pawlenty said the swing from the $4.5 billion deficit projected shortly after he was elected to Wednesday's projected surplus had been a "heavy lift," and represented "the biggest financial turnaround in the state's history."

True, of course:
DFLers, however, were quick to point out that all of what they dubbed the "so-called surplus" was already committed to repaying money the state had borrowed from school districts during leaner times.

"Minnesota has a surplus only because its bills haven't been paid," said House Minority Leader Matt Entenza, DFL-St. Paul. "And Minnesotans at home have no surplus in their wallets."

Huh.

And I presume Matt Entenza wants to keep it that way?

Any measure of fiscal balance, he said, was achieved at the expense of higher college tuitions, underfunded K-12 schools, higher fees and more Minnesotans turned away from state help with health care.
Questions nobody in the media will ask:
  • Why shouldn't college students pay more of their tuition?
  • Are K-12 schools "underfunded" in terms of being unable to operate, or in terms of keeping up with the teachers union's and the Admininstrative/Industrial complex's demands?
  • Minnesota provides more health care per capita than any state between Illinois and California. What, precisely, is Matt Entenza looking for?
Oh, I'm afraid to hear the answer for that...

Posted by Mitch at December 1, 2005 12:03 PM | TrackBack
Comments

""Pawlenty's "New New Taxes" pledge""

That's funny, I assume a typogaphic slip, or are you referring to the health Impact Fees, increased court fees, toll ways and other New New taxes that Governor TaxemPlenty has proposed during his administration!

Flash

Posted by: Flash at December 1, 2005 12:21 PM

Education spending in Minnesota exceeds 50% of the state budget. When will we reach a sufficient level of spending? When will the Matt Entenzas and Dean Johnsons and Ann Rests in government be satisfied?

Posted by: Kermit at December 1, 2005 01:58 PM

"When will the Matt Entenzas and Dean Johnsons and Ann Rests in government be satisfied?"

When any person making a 6 figure income (or family making $250K) or more (a.k.a. EEEEEEEEEEEEEEVIL RICHIE RICHES) are taxed at Carter-era levels.


They should be paying their fair share, and that fair share includes subsidizing everything that the lower income brackets ever need to use/buy/eat/pay for. All the better to keep the poverty pimps in power.

Posted by: Bill C at December 1, 2005 02:31 PM

Kermit stole my thunder (I could start whining like a liberal or I could just congratulate him...which I will do).

Spendza Entenza was leading the charge not that long ago that he "feared for Minnesota" because the state was in such dire financial terms (read not enough for the Dems pork). But as Kermit stated, over 50% of the states budget goes to education. That is an unbelieveable $9 to $10K per student....per student! So to the Dems out there.....at what number WILL IT BE ENOUGH for education!?!? 98% of the state budget!!

That would be a good story for you Mitch. How does Minnesota rank in terms of education spending to other states in terms of A) percent of state budget and B) $ per student. And throw in C) the number of special counselers and administration needed as compared to 20-years ago.

Posted by: mrcheerordie at December 1, 2005 03:11 PM

Why shouldn't college students pay more of their tuition?

Maybe because a large number of working people can not afford the higher tuition. If the tuition were lower, they could get more education, become more productive workers, pay more taxes, contribute more to the public good, and generally help themselves and the rest of us live happier richer lives.

Posted by: RickDFL at December 1, 2005 03:37 PM

Mitch..

They were wrong, of course, as all of us tax hawks predicted; as the economy has improved, so has the state's revenue picture - that my boy is not exactly the epitome' of profoound.

First, EVERYONE understood that as the economy went, so went revenue.

Second, I know I certainly didn't predict ruin, just poor priorities.

Third, and most important, under Ventura, the state irresponsibly set income at a level sufficient to fund boom time needs, using boom time tax rates. Clearly, as needs increased, and revenue fell, that was foolish.

The only thing the Pawlenty administration has proven is that if you ignore needed programs long enough, eventually the cycles of the economy, inflation and a couple of really large estate tax collections, will bring you back into the black.

That doesn't excuse pushing people from environmnent where they were living at home with assisted care, to being wards of the state. It's not about the ends Mitch, it's the route you choose to get there.

PB

Posted by: pb at December 1, 2005 04:50 PM

"First, EVERYONE understood that as the economy went, so went revenue."

Nope. All absolutes are false, Peeb.

Not EVERYONE understood it. Scads of DFLers, pundits, commentators, and Nick Coleman evinced not the faintest clue that they knew this. Ditto not a few DFL legislators (and a few GOP solons as well).

"Second, I know I certainly didn't predict ruin, just poor priorities."

Nick Coleman: "Our Schools Are Burning!", becauase of the "Tax Evaders' League". His opinion was far from unique.

"Third, and most important, under Ventura, the state irresponsibly set income at a level sufficient to fund boom time needs"

I don't think I'm being nigglingly semantic when I say that's incorrect; Ventura *assumed* the boom would last forever, and the DFLers (and Ventura acted like nothing so much as DFL Lite from the beginning, and all but f*llated Roger Moe by the end of his term) increased permanent spending with that assumption.

"using boom time tax rates. Clearly, as needs increased, and revenue fell, that was foolish."

The foolish part was turning *surplus* revenue - by defnition cyclical - into permanent entitlements.

"The only thing the Pawlenty administration has proven is that if you ignore needed programs long enough, eventually the cycles of the economy, inflation and a couple of really large estate tax collections, will bring you back into the black."

True - and even more true (or at least more germane) if you leave out the "if you ignore..." clause.

"That doesn't excuse pushing people from environmnent where they were living at home with assisted care, to being wards of the state."

Not sure when/if that happened, but that's certainly up for case-by-case discussion.

" It's not about the ends Mitch, it's the route you choose to get there."

And who tells the story about the trip. Especially.

Posted by: mitch at December 1, 2005 06:01 PM

Minnesota provides more health care per capita than any state between Illinois and California. What, precisely, is Matt Entenza looking for?

Mitch,

What, precisely, is the point you're trying to make? Every state between Minnesota and California sounds like a lot — in geography — but it's only 14 thinly populated states.

Posted by: charlie at December 1, 2005 06:28 PM

Point being, we provide more per capita for healthcare than Illinois, Wisconsin, Missouri, Colorado or really any other state inland from the coast. I could have stated it more clearly.

As, indeed, I just did.

Posted by: mitch at December 1, 2005 07:47 PM

The DFL can spin it anywhich way they want. But no amount of DFL spin can get past this fact: Pawlenty inherited a massive budget deficit when he took office and, thanks to his sound and prudent management of state government dollars, Minnesota now has a surplus.

Posted by: Larry at December 1, 2005 08:09 PM

Oops...I forgot to add how much I enjoyed watching Entzena and Dean Johnson (aka The Brothers Grim) on TV. They looked like they were sitting in a mud puddle. They and the other misery merchants in the modern DLF just can't stand something good happening in the state. The modern DFLers sure have lost their way from the days of HHH's politics of joy. Perhaps that explains why they have lost, period, in recent years.

Posted by: Larry at December 1, 2005 08:19 PM

"Maybe because a large number of working people can not afford the higher tuition. If the tuition were lower, they could get more education, become more productive workers, pay more taxes, contribute more to the public good, and generally help themselves and the rest of us live happier richer lives."

More subsidized women's studies majors, that's what we need.

Meanwhile, employers are crying for apprentices in building trades all over the country and would gladly pay kids to learn them but no, that's not good enough for our kids: every Minnesota kid is above average so all must have college degrees, regardless of usefulness or cost.

And the military will train anybody who will sign up plus pay for college besides. But that's not good enough either.

Why is mine the only pocket good enough for the DFL to pick?

.

Posted by: nathan bissonette at December 2, 2005 08:01 AM

Nathan,
The DFL beleives in equality, fairness and inclusion. They will gladly pick every pocket they can. For the Children, of course.

Posted by: Kermit at December 2, 2005 09:08 AM

Er, mitch, could you block the porn peddler? I mean, yuch!

Posted by: Kermit at December 3, 2005 11:49 PM

“That's funny, I assume a typogaphic slip, or are you referring to the health Impact Fees, increased court fees, toll ways and other New New taxes that Governor TaxemPlenty has proposed during his administration!”

Umm, no. The only one of those that qualifies as a tax is the cigarette tax increase. The rest of them are fees in that they charge the user for a particular government service for their use. When Pawlenty made his No New Taxes pledge back in 2002 he specifically stated that he was not including fees (nor should he have) and with the exception of the cigarette tax increase, he’s kept his word.

Posted by: Thorley Winston at December 4, 2005 01:17 PM

“What, precisely, is the point you're trying to make? Every state between Minnesota and California sounds like a lot — in geography — but it's only 14 thinly populated states.”

1) Mitch said “any state between Illinois and California.”

2) Look up the meaning of “per capita.”

Posted by: Thorley Winston at December 4, 2005 01:21 PM

Hey if Minnesota is really spending 10k per student, it'd likely better served by simply sending out 10k vouchers for each kid, and making each public school a seperate private corporation, with the teachers as shareholders. We'd soon see a education market develop, and as those less entrepreneurial teachers sold their shares to those who wanted to be equity holders in the industry, the dead managerial weight would be tossed overboard. Heck, I know a very qualified person who would likely re-enter the profession; lease space for fifteen to twenty students, do some marketing through her network, and hang her shingle out. There'd likely be all sorts of home-school/traditional school hybrids which would spring up.

Innovation; what a concept!

Posted by: Will Allen at December 6, 2005 09:34 AM

Hi i wanted to leave the message

Posted by: elorette at January 4, 2006 09:29 AM
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