Dayton, Emmer, Pawlenty react to budget forecast

Updated budget numbers released by Minnesota officials Thursday show a surplus for the state through the end of the year and a $6 billion deficit for the upcoming two-year biennium. Gov. Tim Pawlenty called on legislators to pass a constitutional amendment that would change the way the state does accounting, while his likely successor, Mark Dayton, said that is was Pawlenty that helped the deficit get that big.

At a press conference on Thursday, Pawlenty took credit for the $399 million surplus that the state reported earlier in the day.

“Our plan to control government spending, stop tax increases and support private sector economic development has worked,” Pawlenty said. “Every budget during my time in office has been balanced. We leave with money in the bank and one of the lowest unemployment rates in the nation. If government lives within its means, the next budget is manageable.”

He also called for a constitutional amendment “that would cap the state general fund budget at the level of revenue actually received during the previous budget period.”

“With revenues projected to increase 5 percent, it is absurd that state government is on track for a whopping 27 percent jump in spending,” he said. “That’s why the next governor and legislature should reform this broken process by passing my Spending Accountability Amendment so Minnesotans will never face this problem again.”

Dayton held a press conference after Pawlenty’s and questioned Pawlenty’s assertion that his administration was responsible for a surplus.

“He’s left us in a terrible situation,” said Dayton. “The important thing to know, the fund balance for this, 58 percent comes from the federal money that came last fall, with the medicaid assistance,” he said. “We have President Obama and the congressional delegation to thank for the fund balance.”

Dayton also said that it’s important for the gubernatorial race recount to proceed along the timeline set by the Secretary of State and to have a governor seated by Jan. 3 to have “enough time to present a balanced budget on Feb. 15 as the Constitution requires.”

“The people of Minnesota have a right to this timely and orderly budget process,” he said.

He said the projected budget shortfall for the next biennium “is a very serious challenge.”

“These enormous challenges,” said Dayton, “make it even more imperative that the next elected governor take office on January 3rd as Minnesota’s constitution provides so he and his administration’s budget team and agency heads will have enough time to present a balanced, responsible budget.”

His opponent on Election Day, Republican Tom Emmer, released a statement on the budget deficit on Thursday.

“What this forecast shows is exactly what we discussed throughout the campaign, we cannot sustain government growth of 27.5%. Government must live within its means and control spending in order to drive Minnesota’s economic engine forward. Gov. Pawlenty has relentlessly worked to control growth but was thwarted at every turn by the DFL legislature — a legislature that lost their majority because of their reluctance to make structural changes to our budget and instead simply kicked the can down the road.”