Photo: Governor Dayton's Office, Flickr

Mark Dayton to concede to GOP on shutdown compromise

Governor offers conditions, tax increases for state's wealthiest not among them
By Andy Birkey
Thursday, July 14, 2011 at 10:45 am

At a speech at the Humphrey Institute at the University of Minnesota on Thursday, Gov. Mark Dayton announced that he is prepared to concede to most of the demands offered by Republican legislative leadership on June 30 in order to end the 14-day government shutdown. The Republican demands included a shift of $700 million in payments to public schools and borrowing another $700 million from the state’s tobacco settlement fund. Dayton will also drop his proposal to tax the wealthiest 2 percent of Minnesotans. He excoriated Republicans for not offering any compromises during the shutdown.

The governor and Republicans are $1.4 billion apart in their budgets, and Republicans had steadfastly refused Dayton’s proposal to tax the wealthiest 2 percent of Minnesotans — Dayton’s signature campaign theme — and a subsequent proposal offered by Dayton to make up the $1.4 billion with a tax the state’s 7,700 millionaires.

Dayton offered some conditions on his concession. Dayton said he will rely on the Republicans’ public statements that they have dropped the push to include a ban on abortion and certain kinds of stem cell research, as well as the inclusion of private school vouchers. Those were included in negotiations two days before the government shutdown began and were still being pushed by interest groups as recently as Tuesday.

Dayton also said that a $500 million bonding bill would be necessary in any agreement, as well as increases of $50 per pupil in school payments to offset the education payment delays. In addition, Dayton wants $10 million to offset tuition hikes to higher education and to restore funding for the Department of Human Rights and the Trade Office.

“I want to get this done. I’m willing to take the initiative and the leadership necessary to get a resolution that is not ideal from my standpoint,” he said at the Humphrey Institute. He said his opposition to delaying payments to schools and borrowing to fix the gap are “as strong today as they were two weeks ago.”

In the letter he sent to Republican leadership, Dayton did not mince words about the fact that they hadn’t offered any compromises during the two weeks of the shutdown.

“Astonishingly, I have not received a single new proposal from you during [the two week shutdown],” he wrote.

The GOP had not responded to Dayton’s concession immediately following his speech.

Here’s Dayton’s letter:

GMD-7.14.11-Letter-to-Speaker-and-Majority-Leader

Follow Andy Birkey on Twitter


Comments

33 Comments

Don
Comment posted July 14, 2011 @ 12:04 pm

These fiscal issues work themselves out one way or the other. Minnesotans aren’t going to become Republican just because the GOP managed to shelter the wealthy for another year. What Dayton did accomplish, hopefully, is to thwart the now typical right-wing blitz of attacks on public service employees, voters and women.


Dog is my Shepherd
Comment posted July 14, 2011 @ 12:08 pm

Though I was appalled by the headline, after reading Dayton’s actual words I think he is making a wise decision. The Republicans will now have to justify taking a position that kicks school payments further off into the indefinite future. Certainly, that will not help them in their next election cycle (just as Pawlenty’s “balanced budged” claims on the campaign trail are proving problematic). How much debt will the schools be required to bear before parents revolt? I also like Dayton’s insistence that the republicans abandon any further social engineering for the remainder of the year and focus on jobs (remember jobs?). If they reject that stipulation, they will never be able to make the “jobs first” claim again (hollow as it is, already).

So, instead of calling Dayton’s office to chew him out, I’m going to sit back and watch the continued self-immolation of the Republican party.


EricF
Comment posted July 14, 2011 @ 12:10 pm

It’s a shame Dayton has to agree not just to what’s personally painful, but what is dreadful public policy. Those conditions however are going to be tough for the GOP to swallow. They really hate the bonding bill, so much they wouldn’t even consider it, and they really wanted the 15% employee cut and culture war legislation he’s telling them to drop.


Thomas
Comment posted July 14, 2011 @ 12:13 pm

This is rewarding the republicans for thuggery. This is wrong.


Keith
Comment posted July 14, 2011 @ 12:24 pm

This is pathetic. All he’s doing is emboldening the GOP extremists because they know he will back down. He’s been the one doing all of the compromising. Now they’ll just push harder to get even more concession.


HG
Comment posted July 14, 2011 @ 12:26 pm

Wait til Dayton caves on most of his “conditions” to this concession. It’s coming.


Hans
Comment posted July 14, 2011 @ 12:41 pm

Pathetic and predictable.


Randy
Comment posted July 14, 2011 @ 12:51 pm

For all of you purists, I can say only that you need to recognize whom Governor Dayton is up against. The Republicans are a bunch of take-no-prisoners ideologues who are perfectly prepared to keep state government shut down indefinitely. Who is served by that? This shutdown is causing real pain. People are hurting because of it. How long are people supposed to suffer in a probably futile wait for the Republicans (they have forfeited “GOP,” in my opinion. Nothing “Grand” about these thugs) to show some sense?

Do I like this deal? No. Do I like the alternative (i.e. keeping the state shut down)? No. Unfortunately, politics is usually about choosing teh lesser evil.


ray
Comment posted July 14, 2011 @ 1:00 pm

booooo boooooo boooooo1


Mike
Comment posted July 14, 2011 @ 1:01 pm

It is painful to see MN,a state that I love and was resident of for many yrs,to be in such dire straits.The old IR party has been replaced with rabid,culture warrior,know nothing sorts who demand their way or the highway.Hopefully the voters of MN will realize their folly in electing these right wingers.


Keith
Comment posted July 14, 2011 @ 1:05 pm

@randy – a ‘purist’ would be driven by the same ‘take no prisoners’ ideology we’re seeing from the extremists. I was satisfied to see Governor Dayton offer compromises, but this isn’t compromise. This is just encouragement for them. If they continue to hold their position and want the social agenda items put back in, or now move to drop their offer down to their first budget, should he continue to give in because they won’t budge?


Ginny
Comment posted July 14, 2011 @ 1:32 pm

Sad. But perhaps necessary.

The Republican party should go back to using the initials “IR,” but this time it stands for “Irresponsible Republicans.”


Rod
Comment posted July 14, 2011 @ 1:45 pm

Amazing! Disgusting! Where oh where can a Democrat with backbone be found in this country?


Kevin
Comment posted July 14, 2011 @ 2:44 pm

In reality, what choice did Dayton have? Republicans were willing to keep tossing babies in the fire until the cows came home if necessary. They simply did not care what this shutdown did to the state or the people in the state. Dayton did. He knew the hurt this thing was causing and had to end it. If anything, the people of MN caused this whole mess. They elected these Taliban. They can also un-elect them in the next round, although by then everyone will have forgotten this whole thing. We are a nation that simply does not learn from mistakes.


Dog is my Shepherd
Comment posted July 14, 2011 @ 2:47 pm

To those who are criticizing Dayton’s decision, I’d be interested to know what you would have done to resolve the situation. Seriously. The Republicans are like suicide bombers: they are willing to destroy themselves and everything around them for the sake of their narrow, warped ideology. They proved that they will not compromise, regardless of the consequences to the state. As Governor, Dayton had very few alternatives, other than emulating the childish and destructive behavior of the legislature, or being the adult in the room, taking his lumps, and moving on. This is just one battle in a long war. We will live to fight another day.


Joe
Comment posted July 14, 2011 @ 2:50 pm

Congrats Minnesota for having a government more screwed up than California. That’s saying a lot!


cadita
Comment posted July 14, 2011 @ 2:50 pm

The GOP initials seems rather fitting here: Greedy Old Pigs!

Mark my words, GOP! Democrats, Independents & (the sane wing of the) Republican party alike WILL remember this & you all are up for re-election in 2012 – Dayton wont be until 2014.


Guy Farris
Comment posted July 14, 2011 @ 3:20 pm

What part of balancing a budget and living within your means don’t you people understand? Your beloved Democrats are bankrupting every state in the union the same way the European countries have bankrupted their countries. Everybody wants something for nothing, and, if they don’t get it, they blame the successful. Success used to be rewarded in this country. Now, the only people being rewarded with big salaries, pensions and health care that others pay for, and, early retirement are public employees. Wake up people – we are broke and we cannot continue to expect others to pay our bills.


Marcus
Comment posted July 14, 2011 @ 3:21 pm

Emmer would be proud .. These little GOP cowards are DOOMED in 2012..


Guy Farris
Comment posted July 14, 2011 @ 3:39 pm

Ok, let’s assume Marcus is correct and the Democrats are successful. At some point it won’t matter because you cannot spend money you don’t have. Yes, you can always try to tax businesses and successful people more, but, it’s a free country and businesses and people will migrate to other states. Remember, the State of Texas has created 33% of all the jobs created in America since the recession. People and companies are moving to that state because success is rewarded rather than penalized, the state lives within it’s means and the public employees are not holding the residents hostage. Just because you want a utopia where everything is given to you doesn’t mean lenders will provide you with the money indefinitely. Take a look at what the liberal approach has done to Europe. There are no more “rich people” to tax. Now they are facing years of pain with no end in sight. At some point you have to face your debts. Calling conservative people names will not fix the problem. People who are willing to work hard and live within their means will find success and will be laughing at those who won’t all the way to the bank. Keep begging for bailouts – no one is going to bite. Investors are going elsewhere. At some point the entitled class will run out of options. Welcome to California…I’m mean Minnesota.


TSG
Comment posted July 14, 2011 @ 3:52 pm

Texas might be attracting certain companies and kinds of jobs, but good paying tech/skilled jobs are in Minnesota. A friend just moved his family to Minnesota from Texas last month because this where the jobs are. I’m more worried about quality of life than I am about an extra percent or two on my state taxes. Companies and the rich may complain about taxes but when it comes to deciding where to live, taxes are way down the list of important items. First and foremost is can they find a skilled workforce or can they attract a skilled workforce if one isn’t there. I don’t care how cheap the taxes are if I have to live someplace with sub-standard schools and nothing to do at the end of the day.


C.A. Arneson
Comment posted July 14, 2011 @ 4:19 pm

Here’s a suggestion for raising funds. Allow all property owners in Minnesota the opportunity to buy the mineral rights to their property. The resulting revenue could either go into the state’s general fund or directly to the county in which the property is located.


Thomas
Comment posted July 14, 2011 @ 4:30 pm

@Guy Farris –

Excellent recitation of the ALEC talking points – even though there isn’t an ounce of truth to any of them.


Guy Farris
Comment posted July 14, 2011 @ 4:33 pm

TSG, thanks for your response. I agree with much of what you have said. However, keep this in mind, I lived in California for many years and heard many of the same arguments – remember the golden state with great weather? It is not so golden any more. It was golden for many years until the bills came due – just like all the people who bought houses they could not afford to have a better life style. Today, for most in California the quality of life is gone and even soaking the rich will not help them. There are not enough rich to make even a dent in the state’s debt. The other states (including Minnesota) gave California 19 billion via TARP in 2010 in an attempt to save them. It hasn’t worked as I’m sure you know. The public employee unions have bankrupted the state and the tech. industry is on the run looking for new places to prosper. The average state employee in California retires after 25 years of employment with 90% of their highest salary and full health care for the rest of their lives! How many people in the private sector get this deal? Why are we demonizing successful hard working entrepreneurs when it is the public employees that are taking so much more out than they ever put in. How many people can say their neighbor is paying their retirement for them? Can you imagine only working for 25 years, retiring at 55 and getting a check for 75,000 the rest of your life? That is exactly what is happening in California and we don’t want Minnesota to end up the same way. The big public employee labor unions could care less about you and I as long as they get their money. Yet I see most on this blog calling Republicans greedy. Does that make sense? I fully understand the frustration with those who want entitlements to continue and feel those who have done well should pay more. However, at some point this approach will fail. It doesn’t matter whether you are a Republican, Democrat or Independent – the bond market will punish you if you don’t show fiscal responsibility. Minnesota is a great place to live and we don’t want to end up with the same financial mess the new governor of Wisconsin was given.


Guy Farris
Comment posted July 14, 2011 @ 4:45 pm

@ Thomas

The national debt is 14.3 TRILLION and counting. Unfunded liabilities at 60 trillion – Obummer.

Dispute those facts!


cadita
Comment posted July 14, 2011 @ 5:02 pm

uh oh, somebody upset the wacky Guy – three, count them THREE tomes –

Seriously, Guy, it is YOU that needs FACTS – there are many, but here are two:

Minnesota Effective Tax Rates: top 10% = 10.3%
Minnesota Effective Tax Rates: bottom 90% = 12.3%

“IF MINNESOTANS PAID THE SAME PERCENTAGE OF PERSONAL INCOME TO STATE AND LOCAL GOVERNMENT AS WE DID IN 1998, THERE WOULD BE AN ADDITIONAL $6.62 BILLION/YEAR IN REVENUE.” ~ Mpls/St P magazine. “Where Did All the Money Go” by Britt Robson


Thomas
Comment posted July 14, 2011 @ 5:19 pm

@Guy Farris -

Another excellent ALEC talking point – IT”S THE UNIONS!


JimL
Comment posted July 14, 2011 @ 5:31 pm

I lived in Massachusetts under Governor Dukakis. Governor Dayton’s desire for increased taxes seems eerily familiar to that dark time. Massachusetts did achieve a higher level of taxation and industry left. So did the taxable assets of the welathy. It took almost two decades to repair the damage. Minnesota is a great state and is not infected with the same level of self-destructive behavior. But we do have a bit of it. My hope is that it will not take Medtronics, Best Buy, General Mills or any of the other major employers in the state deciding to leave to ensure we don’t go down the MA path too far. The pain of the shutdown will pale in comparison.


Don
Comment posted July 14, 2011 @ 5:40 pm

Guy Farris might benefit from knowing that the average public employee in California retires with $22,400 yearly benefit. And does not get social security either.

Less than 2% of them retire with more than $100,000 yearly benefits. And most of these are in the upper management levels and/or have benefited from spiking. Unions and most Democrats will have no problem putting caps on these kinds of excesses.

But to claim the budget deficit in Calif is the fault of public employees is ridiculous.


Lloyd Fjare
Comment posted July 14, 2011 @ 6:18 pm

I am very disappointed in you!! I guess you can call the corporations that donated to your campaign fund and the republicans funds and tell them to keep the money coming!!
You sold out the middle class and the people who voted you in!!


Chayanov
Comment posted July 14, 2011 @ 7:33 pm

JimL — yes, it would be a shame to expect millionaires to pay their fair share of taxes. The rest of us can pay more, or lose essential services, just so they can continue to pay less then we do. Dark times indeed.


Mary Schnell
Comment posted July 14, 2011 @ 7:56 pm

I’ll tell you what… I’ve never been one to write letters or work hard to get people into office, – but that is going to change. I plan to work hard to eliminate the MN GOP out of office and put in some sensible people instead. Then we can get the top 1% – 2% to pay fair share taxes. And the corporations pay their way too. This is the first time that I can remember that this issue has come up – and it’s not going to go away the next two years, because those of us that can will keep this idea alive. It’s time that we all pay taxes equally to keep our State funded well.


susan
Comment posted July 15, 2011 @ 10:26 am

Well the bullies win again. So in your jursidiction did any of these Repubs ask their constituents what they wanted OR did they just send out sick letters of how its all the Dems and govenrors fault because they diddn’t get their way and that they were totally disgusted? Disgusting IS…. people that think that their little “gang” decisions is what the people want..our lives being decided in local bars over beers by several people, so sad that some folks up at the capital i thought would do a reasonably good job desepite party have so sold their selves out to the devil and party that they make hot wings seem like sucking on ice cubes. In the end .. they will be the one judged.


RSS feed for comments on this post.

Sorry, the comment form is closed at this time.