Minn. likely gets $430 million from feds, $5.57 billion to go

Feds to the rescue, Source: US Army

If a state aid package goes through in Washington, D.C., Minnesota will reap $430 million to offset medicaid costs and cushion K-12 cuts. The Star Tribune reports it would save 2,300 school jobs, but even these many millions of dollars are a drop in the bucket compared to the expected $6 billion deficit legislators, and the new governor, will face next legislative session.

As lawmakers and academics have pointed out numerous times, the state has been structurally unbalanced for a long while. Although the DFL sometimes pushed for revenue increases, Pawlenty held firm, instead pushing the state in the direction of quick fixes that rely on one-time money.

But Pawlenty criticized the federal aid in the Star Tribune anyway:

“Congress should not be raising taxes,” said Pawlenty spokesman Bruce Gordon. “Minnesota balanced its budget without raising taxes and without relying on this money.”