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By Alyah Khan

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Minn. government shutdown expected to end soon

Minnesota lawmakers have reached a budget deal to end the state’s two-week government shutdown – the longest state government shutdown in U.S. history, the Minneapolis Star Tribune reports.

According to the article, Minnesota Gov. Mark Dayton and state legislators said they plan to work through the weekend to fine-tune details and call a special session to pass the budget bill. The state’s government is expected to be up and running again within days.

Minnesota’s government shut down Friday, July 1, leaving 22,000 state employees without work or pay.

But the budget debate wasn’t all bad news for government employees, as Dayton, a Democrat, forced Republican legislators to drop a proposed 15 percent reduction in state workers from the spending bills.

As I wrote in an earlier entry, the budget fight in Minnesota is similar to the tense negotiations taking place at the federal level.

For now, President Barack Obama and House Republicans are arguing over raising the nation’s debt limit with no clear resolution in sight.

Experts have said that if Congress fails to raise the debt ceiling, federal employees would be among those who suffer the consequences, including furloughs and holds on salaries and benefits. (See related FCW story)

John Palguta, vice president for policy at the Partnership for Public Service, said a debt default would be worse than a government shutdown because a default presents an unprecedented situation.

“There’s nothing good that happens with regards to the operation of government,” he said. “There’s no silver lining.”

Posted by Alyah Khan on Jul 15, 2011 at 12:29 PM



 

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Reader comments

Tue, Jul 19, 2011 Susan S. Pastin Chicago IL

Most people I know have not only suffered economically in this Great Recession caused by high-level bankster gambling, BUT ARE WILLING TO SACRIFICE FURTHER TO SOLVE OUR DEFICIT PROBLEMS! Because I have a union job and therefore can afford to live in a condo and enjoy a few luxuries, I begged my state to raise my income taxes to pay its past-due bills. I know government employees who work hard every day, are now subject to a pay freeze, yet would be willing to pay A LITTLE BIT more towards their retirement - IF that were part of a fair compromise to close tax loopholes and raise taxes on high earners, most of whom have not suffered nearly as much as we peons who earn less than a quarter of a million a year. I frankly am APPALLED by the lack of patriotism by oil companies et. al. who want to keep their tax handouts - and be free to foul our air and water in the bargain; hedge-fund managers who want to continue paying a 15% tax break while the rest of us pay more; corporations that want to continue to get a tax break for shipping American jobs overseas; and posturing politicians who expect everyone else but THEM to compromise - as if only THEY have Divine Right! Yes, one part of the solution - a big part - is more revenue from those who can most afford it. Yes, cut farm subsidies to agribusiness and waste like the above discription of the two scuttled Navy ships. Yes, REQUIRE that Medicare be able to negotiate the price of prescription drugs - a give-away granted to drug companies that's a direct result of their purchase of the politicians who are supposed to be representing US!

Mon, Jul 18, 2011 john Orlando, FL

My thoughts wander around this topic and two related questions keep coming into my brain. First When did politicians convince the majority of us that there is a free lunch to be had and that we have a right to it? I remember growing up and hearing my parents and other adults saying repeatedly that there is no free lunch if you want something you must work for it and earn it! Second Was there a point where the fall of the Roman Empire could have been prevented? I am sure historians can point to many events if done differently would have slowed the decline or reversed the decline. I think that basic human nature ensured the down fall because many Roman citizens believed they deserved the free lunch. Today the lower 50% of income tax payers pay no tax and many get more back than was with held from their paychecks. There are "Tax the rich to feed the poor, Tax the rich until there are rich no more" growing political attacks holding out the hope ( a false hope) to the lower 50% that all problems can be cured if only the rich and their evil defenders would pay their fair share. I of course wonder what or who determines their fair share? Realtors have a standard commission of 6% which upsets many of us so we try selling with no agent. Auction houses charge nearly 30% commission for items sold by them. Lawyers commonly charge 30% plus expenses for cases they win in the game of lawyer lotto commonly called civil court.

Mon, Jul 18, 2011 Ken

Our government has spent way to much money thru the years (both parties can share this responsibility) and now approaching more debt than income. How many of us with a bank credit card can just say let's raise my debt(credit) limit without consequences. The private sector shares the blame also (it's a common practice to blame the government for all our countries financial problems)and we have seen that state governments are suffering also. If we don't make the hard choices now, than they won't be choices later.

Mon, Jul 18, 2011

Didn't we all just read about billions of dollars lost that is virtually unaccounted for in Iraq? Or how about the two Navy ships being scuttled after more billions spent on contracts which defaulted. These ships havn't seen a day of service and will never be completed. Could go on with how our lawmakers love to spend taxpayer money. Maybe we should ask them directly if we could get past the gates at their summer homes in the south of France, or the Hamptons.

Mon, Jul 18, 2011 OKC

Classic overspending by government without a whits worth of long tern, big picture thinking. Oh - and lots of after the fact political posturing according to the newspaper article.

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