Governor Dayton insisted on $500 million in bonding to end the Shutdown (borrowing with, we are told, about 10% in debt service). Here is the summary of the bonding bill.
Archives for Bonds
Stephen Moore thinks that the Republicans in Congress could learn a lesson from the GOP leadership here in Minnesota. Here is his conclusion:
Republicans did agree to new revenues through bonding tobacco settlement money and shifting education payments — an accounting trick to create the fiction of savings. They also may have to agree to drop policy riders on abortion and other issues unrelated to money.
Still, it’s a big victory for House Speaker Kurt Zellers and Senate Majority Leader Amy Koch, who led the fight. It’s also a win for Minnesotans, who won’t face new taxes or unsustainable spending. Republicans remained committed to the principles that won them legislative majorities in November for the first time in more than two decades. Let’s hope lawmakers in Washington were watching.
The St. Paul Solution appeared in WSJ’s political diary. Moore is not the only observer to note the similarity between President Obama and Governor Dayton.
Gary Gross from Let Freedom Ring had some good observations, including details about former Minnesota Free Market policy fellow King Banaian’s reforms, on the negotiations to end the Shutdown: Is Our Long National Embarrassment Really Over? Maybe.
Here is the cautious statement from public union AFSCME 5: note that they have phone banks still cranked up (courtesy of union dues paid with taxpayer dollars). They want to be sure they get back-pay as part of the Shutdown deal.
Union members showed up at various town-hall style meetings recently to support Governor Dayton’s demand to increase taxes but so did tea party members and other folks when Dayton toured the state. We’d like to think that these good citizens and all the emails, letters and phone calls you sent Dayton’s way convinced him and his team that it was time to come to the table. He wanted this Shutdown but came to regret it.
We agree that the devil is in the details (like if the GOP agrees to a bonding deal even though this is not a bonding year, where will the money be spent) but the bottom line is that “the Dayton” as he is fondly called by the SW Metro Tea Party, has caved on his demand to tax the rich. This is a political win and it is a big one. We have heard nothing about a stadium bill for the Vikings or the consolidation of the Minneapolis Police and Fire pensions into PERA.
It has taken us many years to reach a $34 billion dollar general fund (and a $62+/- billion dollar operating budget when you add in federal funds and state fees). Last year, Minnesota gave the GOP a decisive legislative majority and filled the state house with talented freshman who promised to bring fiscal discipline and innovation to state government. While we must keep a sense of urgency, fiscal conservatives must be patient, persistent and in office to succeed. The legislature will face elections next year. Dayton will be with us until 2014.
(Mitch Berg offered this advice: Dayton’s down (in a gauzy-focused, politically-sanded-off kind of way); we have to keep kicking.“)
There is much to be done. As you observe the debate here at home and also our nation’s capitol over the weekend, you may want to read Tom Kelly’s excellent article, “Where do we go from here?”