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budget

Who is Jeff Johnson?

by Eric Ferguson on May 7, 2013 · 0 comments

Hennepin County commissioner Jeff JohnsonWho is Jeff Johnson? From his Q&A with Minn Post, he seems to be a basic doctrinaire conservative who holds the positions conservatives have held for decades, experience notwithstanding. He refers to himself as a mainstream conservative, which is the same thing. He showed that doctrinaire side when he said some rotten things about the people participating in Occupy MN. Whatever anyone thinks of the Occupy movement, this much should bother you: on the first day, when they were just arriving, Johnson wasn’t there. He was speaking at a Republican event, so he had no idea who was showing up or who they were. There was at that point nothing to be judged, yet he said, “Because of you, I don’t have to spend my Friday afternoon with 1,000 or so clueless, obnoxious and frankly, very messy anarchists or socialists … or whatever they call themselves. Instead, I get to spend my Friday with 1,000 or so patriots.”
 
Since some time has passed, let me remind readers that the Occupy MN protest happened at the plaza in front of the Hennepin County Government Center, where Johnson works. He was absent the first day. He could have waited until he went back to work and saw the protesters before commenting. He could have asked them why they were there like I did. He could have asked them what they call themselves. Instead he used the dismissive phrase, “whatever they call themselves”, which is a phrase used to say people are so far beneath you, that you don’t even have to accord them the basic respect of finding out anything about them before running them down.
 
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Read. Learn. Repeat.

by Joe Bodell on April 15, 2013 · 1 comment

I’ll have more thoughts on today’s events in my ancestral homeland of Boston tomorrow. But for now, more about the Obama/Chained CPI ragefest, from Politicus:

 

Proposal. Not law. Copyright Reuters.

Proposal. Not law. Copyright Reuters.

Many GOP operatives fear Obama’s embrace of chained consumer price index, a mechanism to slow the growth of Social Security benefits over time, is a trap — a means of getting Republicans to support the policy on the record only to see Democrats savage them for it down the line.”

 

The Republican strategists who suspect this are partially correct. President Obama is using Chained CPI to set up a win/win/win situation for Democrats. Republicans have to choose between raising taxes in order to get the Chained CPI, arguing for Chained CPI without the tax increase, or rejecting Chained CPI. If Republicans express any desire to cut Social Security, Democrats will savage them for it during next year’s election. If Republicans agree to raise taxes at all, the base of their party will erupt in rage. If Republicans split and some of them reject Chained CPI, it will never become law. (Chained CPI probably won’t become law anyway, because Harry Reid and many Senate Democrats have promised to oppose any changes to Social Security.)

 

While the activists on the left continue to completely ignore the political realities unfolding before them, it is looking more and more like Obama’s Chained CPI offer was designed to call the Republican bluff on Social Security.

 

The truth is that outside of the right wing ideologues, many Republicans see real political danger in messing with Social Security. In plain English, Republicans will get nothing on Social Security unless they agree to raise taxes. Since they will never raise taxes, Chained CPI is pretty much DOA.

It’s not about winning the news cycle, it’s about winning the war. And the Obama White House is staffed with people who know how to win the long fights against opponents who fight dirty. So let’s take a deep breath, avoid stepping closer to that cliff in the back yard, and wait for the GOP to step in this trap.  It’s looking increasingly like they don’t have a choice.

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I’ve been watching with a mixture of disdain and wonder the release and public flagellation of President Obama’s 2013 budget proposal. Disdain mostly because a Democratic President actually just proposed cutting benefits to current Social Security recipients (along with the rest of us, when we get there) through this Chained CPI bullpucky, and wonder because of what a brutally aggressive political gambit it represents.

Proposal. Not law. Copyright Reuters.

Proposal. Not law. Copyright Reuters.

 

I’ll explain. For one thing, Obama’s budget has zero chance of becoming law. We know this. He knows this. Mitch McConnell, John Boehner, Harry Reid, and Nancy Pelosi know this. None whatsoever. Perhaps this is an optimistic reading of the circumstances here, but I think that’s part of the point of this exercise. The things that President Obama proposed in this budget are the very things the Republican Party demanded in return for additional tax revenue to close the budget deficit (despite Social Security contributing exactly zero dollars to the deficit. I digress). At the same time, Obama knows that McConnell and Boehner will never, ever, ever agree to any compromise at all, let alone one that involves additional tax revenue on top of what Obama already achieved in December. So by offering them exactly what they wanted with the foreknowledge that they will never accept it in any real way, he’s forcing them once again (and again, and again) to own their right-wing, reactionary agenda in front of a public that, if memory serves, recently rejected that crap by a pretty huge margin.

 

Is this proposal a good thing? No, of course not. It doesn’t do enough to push renewable energy production or rapid transit options or a host of other priorities, especially in light of a still-fragile economy. But with divided government, we really have two options: publicly moan about how mean and nasty the other side is, or beat the other side over the head with their own intransigence until they either submit, or the voting public turns them out on their ear and demands progress. John Boehner and Mitch McConnell are stuck with the first option, whether they like it or not. President Obama has apparently chosen the second option. The progressive movement must keep up the fight to protect Social Security and Medicare, and make sure public opinion stays on our side. At the same time, we need to help keep the focus where it needs to be through the 2014 elections: on a right-wing political party that has effectively broken our national political discourse, and does not deserve to be anywhere near the levers of power.

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classwarThis report is actually from late last year, but nothing’s changed. There are numerous rational, reasonable, legitimate plans out there for dealing with U.S. budget issues with a maximum of fairness and effectiveness, and without the crass, corrupt idiocy that currently dominates public discussion of these (and most other) issues. Conservatives from both parties, realizing (in the crude sort of way that they “realize” anything) what a threat such plans might pose to frenzied, heedless corporate profiteering and therefore their own political sinecures, are spurning them in terror, the way that stupid people do in general when their fundamental views are questioned, even a little bit.
 

This is the second edition of an Institute for Policy Studies study that debunks the premise that the United States of America is broke. We released the first one a year ago, shortly before the supercommittee — a congressional panel tasked with putting our nation on a sound fiscal path — fizzled into obscurity…
 

Our proposed reforms amount to $881 billion in potential new revenue and savings per year. These measures would eliminate most of the budget deficit, leave plenty of resources for jobs and for the nation’s pressing human and environmental needs, and stave off those…across-the-board cuts. We have not assembled an exhaustive list of rational budget-cutting alternatives. But we have demonstrated that there are sensible ways to achieve a more sustainable budget without shredding our already threadbare safety net. Together, these measures would generate more than enough savings to prevent a (further) harmful shift toward austerity.
 

(Institute for Policy Studies)

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Forum on the State of Our State

by Eric Ferguson on March 4, 2013 · 0 comments

capitol mazeThe DFL of Senate District 63 is hosting the State of Our State forum. How will federal sequestration affect the state’s finances? What’s going on with the legislative budget process, the health insurance exchange, marriage ban repeal, education finance reform, and whatever else the legislature is working on? Our speakers will be Rep. Jean Wagenius and Sen. Patricia Torres Ray,  so bring your questions.  The forum is Sunday March 10th, Lake Nokomis Community Center, 2401 Minnehaha Parkway (between Cedar Ave/28th Ave So), Minneapolis. MAP.

RSVP on my.barackobama.com or on Facebook. RSVPs aren’t required but are helpful for planning.

State Sen. Patricia Torres Ray SD63               State Rep. Jean Wagenius 63B

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Dayton’s budget reduces cost of government

by The Big E on February 7, 2013 · 4 comments

… and makes Republicans heads explode.

Republicans across Minnesota are very very frightened that when Gov. Mark Dayton signs the new budget that will include tax increases on the 2% of earners, the cost of government. This goes along with the fear that increasing taxes on the magical job creators will somehow force them to not create more jobs or something.

Yet again, their fears have nothing to do with reality:

Despite all of the right wing groups’ handwringing about tax increases under Gov. Mark Dayton’s budget proposal, Minnesota’s price of government under the Dayton plan actually will be less over the next four years than during the previous four.

The price of government or POG measures total Minnesota state and local government taxes, fees and charges as a percentage of statewide personal income. According to the most recent POG report from Minnesota Management and Budget:
(Grand Forks Herald)

The best part is pretty much all of the conservative groups active at the State Capitol accept that the POG is an accurate reflection of reality.

Watch them try to deny since it doesn’t mesh with what they want.

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In the last two legislative sessions, Republicans controlled both houses at the State Capitol. After promising to focus on the budget and creating jobs, they couldn’t manage it.

They just couldn’t manage to pass an entire budget, only parts of it. When Gov. Dayton rejected their piecemeal budget, they never negotiated in good faith and caused the 2011 government shutdown.

In 2012, they came through with a bonding bill at the last minute. It was the smallest bonding bill ever.

In the meantime, they’d considered myriad ballot measures and considered every single conservative pet issue known. Members were busy copy-pasting ALEC-written legislation.

They huffed and they puffed during hearings and they just couldn’t manage to actually do much at all.

Now that the DFL controls both Houses and is working in conjunction with the DFL Governor Mark Dayton, Republicans assume that the DFL is incompetent as they were at governing.

Republicans are currently kvetching about the DFL’s overreach and how the DFL is bringing up all their pet projects instead of creating jobs and working on the budget. They’re crowing about how the DFL is holding hearings on gun control this week instead of doing the budget or creating jobs.

Republicans forget that Democrats can walk and chew gum. At the same time even.

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Dayton plan would stabilize Minnesota’s budget

by Jeff Rosenberg on January 23, 2013 · 1 comment

For the last decade, Minnesota’s finances have lurched from one disaster to another. With insufficient revenues, lawmakers have patched the budget together with different accounting gimmicks each biennium. When the recession hit, even those tricks weren’t enough to prevent painful spending cuts.

Mark Dayton’s budget would restore stability to both our revenues and our expenditures. On the revenue side, he would rebalance our tax system, reducing property taxes while increasing sales and income taxes, as the image to the right illustrates. The broader sales tax base will make the sales tax less variable and more reliable, and will allow us to increase revenues while lowering the tax rate. And under Dayton’s plan, the rich will finally pay their fair share in taxes.

Dayton’s budget will also restore spending to the minimal level needed to maintain state services. The chart below shows the amount of spending required to just keep pace with inflation and population growth. For the last two biennia, we’ve fallen below that minimal level of spending. Dayton’s budget restores stability to our state’s spending.

There’s a case to be made that we should go farther than merely restoring stability. As I said, expenditures under Dayton’s budget would be the minimum needed. Raising another billion or two would allow us to make much-needed investments in areas like higher education, transit, and social services, all of which have suffered from neglect over the past decade. But while it doesn’t go quite as far as I’d like, that’s really just a quibble. In the end, what’s important is that Dayton’s budget would finally restore fiscal responsibility to Minnesota.

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Dayton’s budget

by The Big E on January 23, 2013 · 0 comments

Gov. Mark Dayton presented his budget today. Last time Dayton presented his budget (2011), the Republican-controlled legislature were completely unwilling to negotiate and they eventually caused the 2011 government shut down.

But now as a result of a number of factors, including the government shutdown, the DFL controls both houses of the legislature.

“If the investments in my budget proposal are made, they will yield returns in new jobs, private investments, vibrant communities and additional state and local tax revenues; and they will help keep our economy moving forward,” said Dayton. “They represent my best judgment about what Minnesota needs to grow our economy, expand our middle class, improve our quality of life and take care of those most in need.”

Senate Majority Leader Tom Bakk called Dayton’s budget “bold.” House Majority Leader Paul Thissen says this budget “takes Minnesota forward.”

The budget not only pays back our schools, but there will be investments in education instead of deep cuts.

He wants to lower property taxes for Minnesotans and tax the richest 1% of Minnesotans at the same level the rest of us pay. In other words, a tax increase for the 1% and property taxes may go down for the first time in more than a decade.


Dayton starts talking at the 16:42 mark

“Governor Dayton is right to push for long-term structural tax reform that makes tax rates fair and asks the richest 2% and corporate tax avoiders to pay their share and get our economy moving again,” said Dan McGrath of Take Action Minnesota. “The Governor’s plan will create a more robust economy by ending some of the worst abuses of our current tax system.”

Conservatives will kvetch, wail and gnash their teeth over this. They will shriek that our state’s magical job creators won’t magically create jobs because their taxes went up.

They will continue to lie about the $1.1 billion deficit they left behind. They will continue to lie and claim that they balanced the budget with just spending cuts.

Republicans solution to the problem they caused is always austerity — more spending cuts that hurt the people least able to handle more cuts.

But cuts hurt the economy more than raising taxes on the richest Minnesotans.

“Cutting state government spending would trigger three times greater job loss and decline in economic output than raising income tax rates on high income ($200,000/$250,000) an equivalent amount,” said Wayne Cox at Minnesotan Citizens for Tax Justice. His analysis was based August 2011 analysis by the CBO (PDF here).

Also according to Cox, state budget guru Tom Stinson has argued for years that increasing tax rates at the top would be better for Minnesota’s jobs and economic growth than cutting state spending.

Instead of listening to Republicans and their Underpants Gnomes Economic Theory, let’s consider actual facts. Let’s also listen to the people who know the most about our economy.

For example, let’s listen to Paul Anton. He served on Minnesota’s Council of Economic Advisors for 26 years. He wrote an op-ed on May 20, 2011 to no avail as Underpants Gnomes Economic Theory ruled the day.

I understand that Republicans firmly believe that if Minnesota raises its tax rates too high, companies and some high-income individuals will leave the state, thereby affecting long-term state growth. But I am not aware of any careful studies that support that contention, or indicate what would constitute “too high.” Given the relatively strong economic growth (compared with other states) that Minnesota experienced during the 1990s (when its tax rates were somewhat higher than today) I doubt there would be great risk in passing a modest tax increase today. But I would be interested in seeing more evidence before setting policies for the long term.

OK, based on the evidence, what do I think should be done? Two things:

First, pass the governor’s proposed “half tax increase” as a temporary, two-year surtax that sunsets after the next biennium. It will not slow the economy more than would the equivalent spending cuts.

Second, vote additional resources, maybe between $10 million and $15 million, to fund the production of additional evidence that could be used to set sustainable longer-term economic policies.
(Star Tribune)

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Another fine mess the GOP has gotten us into

by Eric Ferguson on January 21, 2013 · 3 comments

That title refers to the messes the MNGOP majorities left behind for DFL legislators, though I don’t mean to compare the MNGOP to Laurel and Hardy by paraphrasing Hardy’s favorite expression. That would be unfair. Laurel and Hardy were funny on purpose.

There is something of a meta-mess going on, unfortunately. Some skittish DFL legislators are listening to the framing of the Republicans and the press and adopting a word they should just get out of their vocabularies, “overreach”. Looking at a mess and working on a way to fix it is not “overreach” — especially when you ran your campaign on fixing it and the voters agreed.
Overreach is when you do what the Republicans did. They ran in 2010 telling voters angry about high unemployment and their underwater mortgages that they would fix it, and then they worked on anything but. Well, not anything, some specific things, but not what they ran on. They were sent to address the mortgage crisis and lack of jobs, and instead they tried to restrict voting rights, put marriage discrimination in the constitution, and for good measure imposed a government shutdown to force the governor to sign off on a bunch of lousy legislation. Now that’s overreach.

Fixing the budget mess — that’s what you ran on, not overreach. DFL legislators, you rightly campaigned on what a sham it was for the Republicans to claim they balanced the budget when they cashed in the tobacco endowment, shifted school financing to make the public schools into involuntary lenders, and drove up such taxes as they could blame on local governments. Caution will not fix these things.

I wouldn’t suggest that mere tweaks and tepidity would accomplish nothing, for indeed they will. They will give you the chance to start on non-political careers after the next election. Right before embarking on your new careers, you’ll have the pleasure of running a campaign on a slogan like, “Re-elect me because I went to the legislature and thought about doing what I said I would do, and I might even have done it as long as there was no political risk involved.”

Actually, the skittish caucus is talking about taking a huge risk, though they may not have realized that’s what they’re saying.
Care to take a risk of throwing away the governor’s office after just one term? Then by all means, ignore that Gov. Dayton said, “Tax the rich” at every stump speech and debate and managed to win. It was a narrow win to be sure, but keeping in mind that the IP candidate also called for tax increases, that’s a big majority that voted for a candidate promising to raise taxes. This should tell you two things. One, voting to raise taxes is not risky and two, your refusal to raise taxes means Gov. Dayton will have to run for reelection next — next year — looking weak from being unable to get a DFL legislature to support what got him elected. If the governor looks weak and gets taken down, what will that do to your own prospects? What will you do in 2015 after losing the governor’s mansion and a bunch of seats? I don’t know either, but I’m pretty sure it won’t have much to do with legislating.

Yet this pointless risk of defying a DFL governor seems to be what the skittish caucus is thinking about:

Dayton’s proposal to tax high earners has run up against some political and practical realities. First, President Obama recently pushed Congress to raise the federal income tax rate for high earners, potentially limiting how much more Dayton could raise and not overburden the wealthy. Some DFLers have cooled to steep income tax increases on high earners, saying they don’t want to make it harder for the state’s leading companies to recruit top talent.

Legislative leaders now say it would be difficult to get $1 billion in new income tax money from high earners, about half of what Dayton sought two years ago.

“There’s some room, but there are some limitations,” said Senate Majority Leader Tom Bakk, DFL-Cook. “We need to be careful with it. It is not an unlimited pool of [m]oney.”

Well, mathematically, that’s true, since no pool of money is unlimited, but overburden the wealthy — are the Senate Majority Leader and the writer of the article kidding? Is that a bad attempt to feign innumeracy? The federal rates just went back up to where they were in the 1990′s for the richest people, and they made bags and bags of money then. We had tax cuts in Minnesota too, remember? You know, those stupid things that kicked off over a decade of perpetual budget crises? Not only did the wealthiest get most of the income gains during that time, but since the financial crisis of 2008, they’ve gotten almost every gain. So Majority Leader, if you can’t be bold, then be mathematical: this pool of money that’s not unlimited is nonetheless massive. We simply refuse to use it. Moreover, there is simply no way to end the annual budget crisis in our state without raising taxes at the top. That’s not even about fixing the unfairness of our state and local tax burdens being heaviest at the bottom. It’s just math.

So if some skittish legislators can’t get motivated by opportunity knocking on the door, ringing the doorbell, tossing pebbles at your window and threatening to trample your flower bed if you don’t open the door, then be motivated by the fear of what happens when you toss away the only means of fixing the budget because some rich person somewhere who would never vote for you anyway might get mildly ticked. Speaking as one of those grassroots DFLers who is going to have to try to drag you over the finish line next year, that’s a bad risk to take.

So far we’re just thinking about the budget in general. If you really want to fix education funding, you’re not going to do it with some technical fixes to funding formulas. There isn’t enough money. Period. Making tweaks to the distribution of inadequate funding is going to leave our schools pretty where they are, hard up for funds. If the schools on Labor Day 2014 are in the same position as the schools on Labor Day 2012, the Republicans will spend the campaign season at the voters’ doors making sure they know bupkis got fixed. You can’t take that chance, which means you need to act boldly. You could run for reelection explaining how you resolved the Republicans’ chronic underfunding of schools to put them on a sound financial footing, or you could leave taxes right where they are, and have fun explaining next election why you did pretty much nothing.

And that just the fiscal messes. Let’s think about some other messes they left, and the accompanying opportunities. Yes, we’re thinking about marriage equality (though not only marriage equality — more on that later). Non-metro legislators are mostly representing districts where the marriage ban won. This has legislators worried about bringing up the issue for fear of losing heir seats. Not only me, but others in the liberal blogosphere and DFL grassroots have been trying to explain to DFL legislators not just the opportunity in front of them to get the ban repealed while our opponents are back on heir heels, and when there is a lot of time for voters to move on to other issues before the 2014 elections, but that failing to act will entail a huge price in the loss of support and enthusiasm from people who worked hard to beat the amendment and put the DFL in the majority. A lot of these are people who hadn’t volunteered for a campaign for a long time if ever, and young voters who are still developing their voting habits. Failing to move, and we’re far enough into the session that there is no excuse for further delay, risks harming DFL electoral prospects for a long time. Young voters, and people of all ages who come out infrequently but did this time, will learn that even with a clear win, their candidates won’t move.

But I ask legislators to think about this in terms other than relative risks (though to be clear, it’s still the case that inaction is much riskier than action). Think very long term. Yes, people in more conservative districts aren’t ready for gays to get married, or really, equality in general. Yet think back a bit — they weren’t ready for black people to vote either. They weren’t ready for women to be paid the same as men. They weren’t ready for Jews to buy what houses they want despite restrictive covenants. They didn’t get ready until after equality under the law became real. There were, at the time these laws were passed, legislators who opposed these laws because their constituents just weren’t ready for other people to have rights.

So I ask current legislators, when you think back on the legislators who voted against civil rights in their time, what do you think of them now? Does the claim that their constituents weren’t ready ring hollow? So when it comes time to vote on the civil rights issues of today, what do you think future legislators will think of you for refusing to do the right thing? Is a slightly improved chance of winning one more election really worth how you’ll be thought of in decades to come?

Now the “more on that later” part, because circumstances have handed the DFL other opportunities. The photo ID debate revealed that not only is voter fraud remarkably rare, but what there is is almost all former felons voting or registered before their rights are restored. Few cases can be prosecuted because the former felons involved were unaware their rights weren’t restored yet. There’s a chance to end all real voter fraud, to reenfranchise every former felon whose rights haven’t yet been restored, and maybe above all, reenfranchise those who rights have been restored, but from mistaken assumption or uncertainty, refuse to vote just to avoid going back to jail for it. Set a clear standard that works for other states: when you’re out of jail, you can vote. Simple.

I know I’ve written essentially those same words before, more than once I’m pretty sure, but another opportunity has presented itself since the election. The fact is the gun massacre at Sandy Hook Elementary has changed many people’s attitudes towards gun regulation. Maybe having some gun laws isn’t so terrible after all. I’m aware that unlike raising upper income taxes, fixing school financing, marriage equality, and voting rights, gun regulation wasn’t an election. Quite true. However, the public has finally become ready to think about the carnage we inflict on ourselves with crazy gun laws. States can do much on their own to prohibit large capacity magazines. They can develop better record keeping on people suffering dangerous mental illnesses, people seeking to buy guns and ammunition, and above all put those records together. We could put taxes on guns and ammunition to deter impulse purchases (plus every time a Democrat gets elected, the revenue will just flow in!). Even if federal agencies are prohibited by the gun lobby’s laws from keeping records, developing databases, or doing research, the same does not apply to the state. Something we know for sure: people too dangerous to own guns are having little trouble getting them legally. We also learned after seeing the last election’s results that the dreaded NRA isn’t nearly so powerful as politicians have been scared into believing. So the opportunity is here to stop letting fools like Tony Cornish set gun policy.

Just remember: lukewarm water doesn’t clean many messes. Ignoring opportunity is the biggest risk of all.

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