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Pawlenty unallotment to kill thousands of jobs
Published Monday, July 13, 2009
In a tough economy where every job counts, legislators received information from state economist Tom Stinson that Minnesota stands to lose up to 4,700 jobs under Gov. Tim Pawlenty’s unallotment plan. Up to 600 of those jobs are going to be in education.
The news from Stinson came during a Legislative Advisory Commission meeting. As chairman of the Senate Tax Committee, I serve on the LAC.
In determining the impact of unallotment on Minnesota employment, Stinson divided direct job losses through 2011 into: local government (non school) 1,630 — 1,970 positions; state government (including higher education) 870 – 1,630 positions; school districts 300 – 600 positions; and the private sector 500 positions. An additional 1,500 to 2,500 jobs could be lost as people without jobs purchase fewer goods, the industries losing employees purchase fewer supplies, etc.
Losing these jobs is unacceptable because Minnesota’s seasonally adjusted unemployment rate in May was more than 8 percent and families are struggling to keep their homes, health insurance, and plan for their children’s future education.
Tom Bakk
While the governor has said that raising taxes is a job killer, Stinson told the commission that the governor’s unallotments will cost Minnesota three to five times as many jobs as the balanced budget proposal recommended by the Legislature. The Senate tax bill I authored invested more than $300 million in job creation policies.
It’s the governor’s action, not the Legislature’s, which in the end will cost the state thousands of much-needed jobs.
In the past few weeks as chair of the Senate Tax Committee, I’ve visited communities across the state and talking about how we need to get people back to work and a state budget that is balanced for the long-term, avoids shifts and gimmicks, and raises revenue fairly for vital government services. In the coming months as candidate for governor, I’ll continue to talk with citizens about these issues, how I have a passion for creating jobs, and how I have the experience and leadership to better manage Minnesota’s finances, and restore balance, fairness and common sense to the state’s economic policies.
Anyone with questions about the 2009 Legislative Session, tax bill or unallotment process can contact me at bakk2010@gmail.com.
Tom Bakk represents Senate District 6, lives in Cook and is a candidate for Minnesota governor.
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Comments
Posted by leftys2221 (anonymous) on July 13, 2009 at 9:28 a.m. (Suggest removal)
freedman, do you know how nice the roads and other infrastructure would be without taxes? Also, turn your caps off. It is interesting that the GOP spends a lot but does not raise taxes, they raise "fees."
Posted by nesaajr (anonymous) on July 13, 2009 at 1:20 p.m. (Suggest removal)
First as a Candidate for governor, is this not a Political Advertisement and should Mr. Tom Bakk and his Campaign Committee not have paid for this letter as such to be published?
Secondly: How many non-government jobs would have been lost due to the steep Tax Increases the DFL wanted?
Posted by ErnieGann (anonymous) on July 13, 2009 at 6:33 p.m. (Suggest removal)
"Stinson divided direct job losses through 2011 into: local government (non school) 1,630 — 1,970 positions; state government (including higher education) 870 – 1,630 positions; school districts 300 – 600 positions; and the private sector 500 positions. An additional 1,500 to 2,500 jobs could be lost as people without jobs purchase fewer goods, the industries losing employees purchase fewer supplies, etc."
That's 2800-4200 government jobs--and 500 private sector. WHAT AN IMBALANCE!
Pawlenty, according to Bakk, cut government jobs more than private sector. I'd consider that a GOOD thing. For far too long, the private sector not only PAYS for these government workers, but the government worker segment rarely gets cut.
Where is it written than government should never be cut, and should be exempt from the pain felt in the private sector?
Posted by newyankee (anonymous) on July 14, 2009 at 8:07 a.m. (Suggest removal)
The Legislatures inability to set spending priorities and appropriate cuts in an economic downturn is what led us into the Governor unalloting funding. This silly notion that we are not a high tax State and still spending a great deal of money on Government jobs and sending out a few welfare checks is not true. What seems to be the case, is the current level of taxing and spending is once again, not enough for some when the Legislature meets in St. Paul. It never is.
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