Months after shutdown fight, Minnesota projects an $876 million surplus
By Sarah Kliff,
WashPost
Published: December 1
Minnesota is now projecting a $876 million surplus over the next two years, a stunning turnaround after a bruising partisan battle that shut down the government for 20 days over the summer.
The saga drew in national political figures as the state’s dilemma ignited a broader debate over how the country should approach government spending. Minnesota’s shutdown, the longest in recent history, locked Democratic Gov. Mark Dayton and the Republican-controlled legislature in an impasse over how to reduce the state’s projected $5 billion deficit.
GOP presidential candidates and governors urged state Republicans to dig in to push through deep cuts. State parks, libraries and the zoo were closed, along with the office that tallied how much the government was losing in revenue. Ultimately, Dayton conceded to their demands, and the shutdown ended when he signed a $35 billion budget that relied on deferred payments to schools and additional borrowing that would eventually eliminate the deficit.
As it turns out, cuts from previous budgets helped, but it was the state’s economic recovery that led to the surprise surplus.
The heroes? Minnesota businesses.
(More here.)
WashPost
Published: December 1
Minnesota is now projecting a $876 million surplus over the next two years, a stunning turnaround after a bruising partisan battle that shut down the government for 20 days over the summer.
The saga drew in national political figures as the state’s dilemma ignited a broader debate over how the country should approach government spending. Minnesota’s shutdown, the longest in recent history, locked Democratic Gov. Mark Dayton and the Republican-controlled legislature in an impasse over how to reduce the state’s projected $5 billion deficit.
GOP presidential candidates and governors urged state Republicans to dig in to push through deep cuts. State parks, libraries and the zoo were closed, along with the office that tallied how much the government was losing in revenue. Ultimately, Dayton conceded to their demands, and the shutdown ended when he signed a $35 billion budget that relied on deferred payments to schools and additional borrowing that would eventually eliminate the deficit.
As it turns out, cuts from previous budgets helped, but it was the state’s economic recovery that led to the surprise surplus.
The heroes? Minnesota businesses.
(More here.)
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