Minnesota is facing a $6 billion deficit.
I’ve been sharply critical of the governor’s plan to deal with it. His proposal would slash funding for nursing homes and disability services, including nearly $8 million in cuts to facilities right here in our community.
Senate Democrats have released their own framework, and it’s more of the same. Their plan includes over $1.3 billion in cuts to health and human services over the next four years, and $687 million in cuts to education in the next budget cycle. It also sets a tax “target” of $735 million. That means they’ll propose $735 million of some combination of tax increases or cut important aids and credits, like the Child Tax Credit.
Balancing the budget by cutting services for children, seniors, and people with disabilities is a choice. And it’s the wrong one.
Here’s where I would start instead.
Senate Republicans have identified at least $600 million in wasteful spending that should be eliminated immediately. This includes $194 million for a train to Duluth that still hasn’t proven it’s viable, and $22 million every two years to keep Northstar Rail limping along.
We also found hundreds of millions going toward benefits for people in the country illegally. That includes $220 million for expanded MinnesotaCare coverage and $158 million in tax credits for those without a Social Security number.
In the 2023 budget handed out $1.1 billion to nonprofits, with little to no competitive process, accountability or transparency. Some of these organizations had ties to the power chair of the Senate Jobs Committee and president of the Senate. That money could have supported care for vulnerable Minnesotans.
But the bigger issue is this. We never should have been in this position to begin with.
Two years ago, Minnesota had an $18 billion surplus and the rainy day accounts were full. Democrats had full control of state government. They spent the entire surplus, raised taxes by another $10 billion, and increased state spending by 40 percent in one budget. We urged caution. We urged them to slow down. We warned their decisions were breaking the state budget.
They ignored us, and now the consequences are here. So when I’m asked how I would fix the deficit, my answer is simple.
If Republicans were in charge, there wouldn’t be one.