The Lowdown On Minnesota’s Shutdown and Credit Ratings

by Prune Juice Media on July 11, 2011

in Politics & Policy

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Republicans in the Minnesota State Legislature are giving Gov. Mark Dayton (D) hell about the state’s budget gap. The state government is in shutdown mode now.

Our friends in Minnesota had a pretty tough week, at least at the state level.

On July 1, their state government shut down as a result of lawmakers inability to come to an agreement on the $1.4 billion budget gap. State governments, unlike the feds, must balance their budgets each fiscal year. As a result of the shutdown, Fitch debt ratings agency has downgraded the state’s AAA credit rating. Now it’s going to be harder and more costly for the state to borrow money. It also makes the financial markets throw a mean side-eye a governments that can’t get their act together.

You may wonder what exactly a government shutdown at the everyday folks’ level. Well, if you live in Minnesota you haven’t been able to:

• Purchase Minnesota lottery tickets.
• Renew liquor, business, teacher, fishing, nursing, doctor, barber, and other state-level licenses. Driver licenses and tags are exempt.
• Go to work if you work for a state-level agency. Only essential services are reporting during the shutdown.
• Visit state parks and other recreation areas.

Minnesota is one week into the shutdown. Republicans and Democrats have yet to agree on a compromise. The governor is a Democrat, but both houses of the Minnesota State Legislature are held by the GOP.

Democratic ideas such as higher taxes for everyone and reduced spending, along with others like healthcare surcharges, a $1 per pack tax on cigarettes, or a temporary tax increase on those earning $1 million or more annually have all been turned down by Republicans.

Republicans have yet to provide their own offer to help address the situation.Why am I not surprised??

Minnesota, and several people have noted this, is eerily similar to how the federal government has been acting lately.

Minnesota Shutdown Rally Protest June 30th

June 30th - US Uncut Minnesota and friends (Citizens Committee to stop a shutdown) hold a rally.  We know the politicos aren't listening to us.

We know the only way they will do that is for us to FIGHT BACK.

State Shuts Down, Thousands Left Jobless

A late-night budget deal could not be reached Thursday at the Capitol.

By Michael Rose and Jeff Roberts 

The state of Minnesota has shut down, leaving St. Louis Park resident Justin Kaufman among more than 20,000 public employees now without a job.

After weeks of intense negotiations, capped by closed-door sessions through Thursday’s waning minutes, Gov. Mark Dayton and Republican lawmakers failed to agree on an operating budget for the coming biennium.

Earlier in the week, Dayton said a deal would have to be done by Wednesday in order to draft and pass the necessary legislation. But Thursday, the governor continued meeting with GOP leaders on-and-off trying to put an agreement in place.

The shutdown will trigger the loss of a number of state services not deemed critical by a Ramsey County judge on Wednesday. It will also leave Kaufman, a City Council candidate who works as a state negotiations manager, searching for what’s next.

“I have a wife and three kids,” Kaufman said. “It’s a fairly big concern.”

Kaufman said only one person kept his job among his small team of five within the larger Department of Administration. The other four got official notices Thursday morning from the human resources department.

“(There was) a lot of anxiety in coming down to the last minute,” Kaufman said.

The council candidate said he would spend his shutdown free time focusing on his kids and campaign. He said he doesn’t have another source of income, and because of the uncertainty of how long a shutdown will last, doesn’t think he will get one.

“I didn’t know until today if I would be working or not,” Kaufman said. “So how do we set up another job?”

Kaufman said he might file for unemployment if a shutdown drags on, adding that he believes a number of other state employees might as well. He said he has supported the governor’s position throughout, adding that his impression is that Dayton is more concerned with public workers than Republican legislators are.

“I think there is a lot of frustration (among state employees) with the legislature,” Kaufman added.

There appeared to be a glimmer of hope early Thursday evening that a deal might be reached. But at around 8:30 p.m., Rep. Tony Cornish (R-District 24B) reported to his seat in the Minnesota House saying he had received a message from the GOP leadership to do so.

“There is always time for a deal,” Cornish told reporters as he walked into the House.

The gesture was called “grandstanding,” “theatrics” and “mock legislature” by Democratic minority leaders Sen. Tom Bakk and Rep. Paul Thissen.

Bakk took the podium at 9 p.m. and pleaded with his GOP counterparts to return to the negotiating table instead of sitting in the legislature.

“We are running out of time,” he said plainly.

Bakk’s statement proved prophetic. Fiscal year 2012-13 began at 12:01 a.m. today without a budget in place. Owing to a June 29 ruling by Ramsey County District Court Judge Kathleen Gearin, state correctional facilities, nursing homes, public safety, and payment of medical services are all considered “core functions” of government and will continue operating. Everything else is no longer functional until a budget deal is reached.

St. Louis Park Sen. Ron Latz (DFL-District 44) said he was "saddened, (and) certainly frustrated" by the shutdown.

"The Republicans have decided they'd rather shut down to protect the wealthiest 2 percent of Minnesotans," Latz said, a reference to Dayton's plan to raise revenue by implementing a new tax on the state's highest earners.

At the heart of the impasse is a nearly $2 billion difference between the governor’s operating budget and the budget proposed by the GOP. Dayton and GOP leadership haven’t committed to a date for the next round of negotiations.

Related Topics: MN shutdown, Minnesota Legislature, Minnesota budget, and Minnesota state shutdown

It’s Shutdown Time In Minnesota: Mark Dayton's speech

Governor Mark Dayton announces that he has not been able to reach an agreement with Republicans.

theuptake on livestream.com. Broadcast Live Free

Republican legislative leaders respond.

Watch live streaming video from theuptake at livestream.com

Constitutional chicken: litigating the Minnesota shutdown

BY DAVID SCHULTZ, SCHULTZ'S TAKE

June 27, 2011

As kids we played chicken all the time, daring someone to do x or cross over a line. The same game of chicken is being played now with the Minnesota budget and economy. First it was between the Governor and the Republican legislature during session, now in Court and the participants have expanded to include the Attorney General, interest groups, and the courts themselves.

At Thursday’s hearing in Ramsey County (which I attended) Judge Gearin closed the day by indicating that all of the sides were playing chicken with the state. And numerous times she admonished that the stakes were high, the problems serious, and that no one should expect her to bail them out. In many ways, her threat too was one of chicken. Do not expect her to blink. See my first thoughts on the court proceeding on Fox 9 from Thursday, June 24, 2011.

The Stakes

There are numerous agendas at play here. Of course, there is the agenda to secure a budget by July 1, to avert a shutdown. There is also a broader agenda between contending and philosophical views on state spending and what role we view for the government in our society. But there are also significant other economic, political, and legal or separation of powers issues here.

Economic

The economic stakes are significant. I discuss them on Kare 11 on Thursday, June 23, 2011.

According to the Bureau of Labor Statistics the May unemployment rate in Minnesota was 6.6%. This is based on a state workforce of 2,977,400, with total employed being 2,781,000 and unemployed 196,300. Assume all 36,000 state workers given notice are furloughed. Using the May figures, this pushes the total unemployed to 233,300, yielding an unemployment rate of 7.8%. The economic consequences of the shutdown are apparent–nearly a 20% increase in the unemployment rate almost immediately.

Laying off state workers and cutting state services is only the beginning. There is also the multiplier effect. By that, for every dollar of state spending, it produces more down the line. Paying public employees means they will additionally purchase food or consume items, thereby resulting in more spending across the economy. Now some market fundamentalists claim the government adds no value and produces no multiplier. Yet they are often the same ones who claim that tax cuts for the wealthy trickle down to the poor.

Mainstream economists who have studied government spending verify that multiplier effects exist. University of California San Diego Professor Valerie Ramey is considered the leading expert. She indicates that the historical average for the United States government is 1.4. For every government dollar the ripple effect across the economy is $1.40. Money spent early in a recession has a larger multiplier than in a recovery. The multiplier effect varies with consumption. Government spending placed in the wallets of those who will consumer more of it will produce greater multipliers than those who do not. This is the concept of marginal propensity to consume.

Minnesota’s current gross state product (GSP) is about $275 billion. One estimate from the United States government is that Minnesota spending is $20 billion per year, or about 7% of the GSP. Assume a State multiplier of 1.4x; then total annual state spending produces additional effects equal to another $8 billion. Suddenly state spending accounts for over 10% of the GSP.

The shutdown will clearly have dramatic effects on the economy and unemployment rate beyond laying off state workers. The State recently informed 572,000 Minnesotans on cash welfare, food support and health care programs; 7,000 families receiving adoption assistance payments, and 26,000 families receiving child-care subsidies that they may not receive help after July 1. All these are individuals who will most likely consumer most money they receive from the government, thereby producing a higher multiplier effect. But the multiplier does not stop there.

Many private vendors and contractors doing business with the state–including those from the private and non-profit sectors–may not get paid and would stop work. Local governments too, facing uncertainly and a halt to payments, might also be forced to layoff. It is not inconceivable to see a partial or total shutdown of the state pushing the unemployment rate to over 8%.

Political

The political stakes here are significant. The GOP Legislature and the Governor are in a battle over who controls the state and the political agenda. But both are also battling with their bases.

If the GOP blink and compromise they have a better chance of winning re-election in 2012. But if they do they alienate their political base and Tony Sutton, facing challenges from the right. They are trapped by their own rhetoric.

Dayton so far has played it well with the cut spending and raise some taxes and then agreeing to cut more and reduce some taxes. Public opinion still supports him but recent polls show support for him is down to about 43%–approximately his vote last November. He is down to base politics in terms of support for his leadership. But support for the legislature is in the 25% range–even worse. Dayton can continue to use the 4/2 strategy to his advantage. He is up for election in 2014, the GOP next year 2012. An angered public takes it out on them first.

If Dayton forces the GOP to crumble because of public opinion and fears of 2012, he breaks the GOP’s back. He does that by pushing Tony Sutton and the TEA Party wing to challenge the already conservative state GOP, forcing a war within the party.

Dayton has to win this battle to retain support of his base, he appears to have lost support from all but that. If he gives in anymore he damages support to his core constituency. Thus the reasons or why Dayton added medical payments at the last minute to his list of core functions to be funded–better not alienate the grandma in the nursing home vote.

Legal

The legal battle here are amazing and reveal contrasting views of the State Constitution and political power.

AG Swanson has produced the best legal brief and arguments that build on past state law. She has argued for a more expansive notion of core functions, using her consumer advocate role to represent the people. Her brief argues for continued funding of federal mandates, the constitutional obligations, statutory requirements, and protection of vulnerable people in the event of a shutdown. This would result in a soft shutdown, less onerous than Dayton.

Dayton’s legal arguments are most fascinating. He first asks that Judge Gearin order mediation. She cannot do that since the legislature is not a named party and therefore cannot be brought into mediation. There also are constitutional problems (separation of powers) in issuing this order. not issue any orders until after July 1. Dayton’s second legal argument is that the issue is not ripe. He also opposes allowing the joining of additional parties, contending that there is no real dispute here yet. His attorney argues that once July 1, hits, then maybe one can go to Court to order certain action but until then there is no real legal issue. But more importantly, Dayton has suggested that he has inherent constitutional authority as governor to act on July 1, to keep core state functions going! This is an amazing argument based on separation of powers and the governor’s veto. His arguments remind me of Nixon during Watergate, Bush after 9/11, and Pawlenty when he acted to use unallotment to end the budget impasse. This is a significant assertion of authority. Dayton’s arguments for the funding of core functions by the court is far less than Swanson, but the legal implications of his arguments more extensive.

Now the GOP. First the four GOP senators who cannot shoot straight. First they go to the Supreme Court asking a halt to the Ramsey County proceeding. The basis of their claim is that they did not think they could win in district court so therefore they wanted to go to the Supremes. (They also mentioned in their brief that they did not want the court to intervene since it would change the balance of power in a political dispute). The Supreme Court correctly told them to go to district court. They reminded them they would take original jurisdiction only in emergencies and this was not one. Overall they instructed them on Civil Procedure and Law School 101–file complaints in the proper court and don’t venue shop.

Then on Thursday the same gang of four ask the judge to order Dayton to convene a special session. They somehow forgot the plain language of the state constitution textually commits this decision to the governor. Somehow all the language about the political question doctrine, separation of powers, and constitutional interpretation they developed in their Supreme Court brief was forgotten. This is also the gang that takes what they think is a literal reading of Article 11 of the State Constitution in contending (wrongly) that only the legislature can appropriate funds. Obviously they have forgotten about issues such as the Supremacy Clause and do not understand the difference between the state and federal constitution.

Then there is the House and Senate GOP. Their main legal strategy seemed to be to agree with Swanson and allow for more of the government to be run as core functions. If Swanson wins then the GOP get the minimal government they want.

Finally, the courts are a major player here. They too have filed to make sure they are funded. And then of course Gearin. She made clear her disgust with the whole process, threatening minimal action that will please no one.

Overall, everyone is playing chicken. But what are the real stakes here? Former AG Mike Hatch stole the show. He indicated he was representing a woman who received state medical assistance to breathe. He pointed out that she wanted to continue to do so after July 1. That summed it up.

Closing Thought

How long the shut down? Submit your answers to my blog. I do not know how long but am certain it better not go to State Fair time. Imagine 1.6 million angry Minnesotans talking to elected officials at the Fair.

David Schultz

David Schultz is a professor in the School of Business at Hamline University.

Minnesota shutdown: Budget talks back on

ST. PAUL — Minnesota’s top politicians resume talks today after Gov. Mark Dayton refused a chance to offer hope that state government will remain open when the budget runs out Friday.

By: Don Davis, Forum Communications

ST. PAUL — Minnesota’s top politicians resume talks today after Gov. Mark Dayton refused a chance to offer hope that state government will remain open when the budget runs out Friday.
“Either one is possible, either we will or we won’t,” Dayton said about a shutdown. “I’m not going to lay odds on that.”
The Democratic governor’s comments came after a Monday meeting of less than an hour with the top two Republican legislators. They emerged to say negotiations will continue this morning and Dayton’s office reported he could be involved most of the day.
Otherwise, the trio left their “cone of silence” intact and refused to discuss any budget negotiations specifics.
However, House Speaker Kurt Zellers, R-Maple Grove, and Senate Majority Leader Amy Koch, R-Buffalo, did speak out in a controversial email to state employees in which they agreed with an editorial about Dayton’s negotiations: “This is not a compromise. This is hostage taking.”
Dayton, Zellers, Koch and key aides met all day Friday and Saturday, but talks abruptly broke off Sunday after just over an hour, with no explanation.
The three are heading talks aimed at avoiding a government shutdown that will begin Friday if they do not agree on a new budget. Republicans want to spend $34 billion in the next two years, while Dayton’s budget calls for $35.8 billion, helped by a $1.8 billion tax increase on the state’s best earners.
Making the budget-writing exercise more difficult is the need to fill a $5 billion deficit at the same time.
Zellers and Dayton defended the pledge of silence about budget talks.
“We can have frank and honest conversations,” Zellers said.
Added Dayton: “We tried the other way, the public process, and you have seen the impasse. ... We are doing everything we can to resolve the impasse.”
Zellers and Koch asked “some very good questions,” Dayton said of their Monday meeting. He said he gave them some answers and told them he would have to think about other questions and get back to them.
The speaker could not give a real deadline for finishing the budget.
It would take time to do the technical work, such as rewriting and printing bills, but he has not asked when an agreement needs to be made for that budget bills still to pass by the end of Thursday. Many in the Capitol say it already is too late for the physical work to be done in time.
Zellers said Minnesotans understand why this year’s budget talks are taking longer than usual: “Because this is a very different legislative makeup, because these are tough economic times, these are difficult budget items to work through, it is taking us a little longer. I think most Minnesotans would say do it right, get it right the first time and if takes a little longer it is worth the while.”
Koch, who stood next to Dayton and Zellers after their meeting but did not talk, joined the speaker in a letter they sent to a state employees saying that they do not want a government shutdown.
The email promoted a Republican-passed budget while criticizing Dayton. Some employees did not like the message.
Executive Director Jim Monroe of the Minnesota Association of Professional Employees, state government’s second largest union, said, “Many of our members have termed it (an) inappropriate ‘political’ letter.”
In a statement, Monroe told Zellers and Koch that they support Dayton “and do not trust what tricks your party will pull during a legislative session. Leadership is about compromise and fairness for the common good, not ideology that allows the rich to get richer. You are jeopardizing our members’ livelihoods and financial well being by not compromising with Gov. Dayton.”
Zellers told reporters that he and Koch were just trying to express concern and tell employees “we don’t want a shutdown.”
He said it was supposed to go to all state workers, but his office does not have a complete email list.
While the speaker said that he has heard no complaints about the email, a Dayton spokeswoman said their office has received several.
GOP staffers provided the media with letters from Dayton commissioners that blamed Republicans for the budget problems.
Davis reports for Forum Communications Co., which owns the Herald.

MINNESOTA SHUTDOWN ACTION, #30JuneMN

FIGHT BACK! MINNESOTA SHUTDOWN EVE

Invest in MN rally, 10 am.

Our Parade permit granted: ASSEMBLE at Kellogg Park, Kellogg Boulevard & Wabasha Street, 1:30 pm, march @2 pm. BRING SIGNS !! WHISTLES!! DRUMS !

!

Rally at the Capitol, Thursday, June 30th, 3 - 7 pm.
From 3 - 5, if a shutdown occurs we will be giving PINK SLIPS to all GOP legislators
@5 pm - the doors to the Capitol are LOCKED.
5-7 pm - speaker rally. People who will be hurt by a shutdown/social cuts will speak, Money Outta Politics will speak, Vets for Peace Tom White, and many other surprise speakers - people from ALL communities have been invited to speak.

If your group has a message on FIGHTING BACK - please call 612 492 1411, ASAP.

At 7 pm, AFSCME has the Capitol lawn. They will doing a ceremony @ 9 pm to LIGHTS ON the Capitol. Bring a flashlight!

WE HAVE APPLIED TO THE CITY OF ST. PAUL FOR A CAMPING PERMIT for low-income people who want to stay since ALL State parks will be closed. "Camp No State Parks" will hopefully be established with lights and water available until the shutdown ENDS.

Planning meeting @Lutheran Church of the Redeemer, 7 pm, Monday 6/27, 285 Dale Street. PLEASE GET INVOLVED !! There will be a paypal account for DONATIONS. We need them. Teeshirts available for $15. Phone: 612 492 1411.

There will be a website, shutdownriseup.org established to help people find shutdown actions and rallies!

Hundreds of workers have taken early retirement to avoid foreclosure and other financial hardship in anticipation of a shutdown.

We will hold a rally of support for the workers and their families and to discuss how to defend our state next steps, rain or shine!

We ask that YOU come and tell your friends, neighbors, relations and co-workers attend.

Bring food for a food shelf for laid off workers and to supplement the food shelves during July and August when poor families have children at home to feed, but are low on donations.

Also bring a flashlight as we intend to be staying around the Capitol til dark - (just remember, no camping out or falling asleep). PLEASE PICK UP YOUR OWN TRASH !!!

We plan to deliver hundreds of pink slips to GOP legislators who are STILL collecting pay for not doing their jobs: which is to provide health and safety for all Minnesotans.

Enough! The People must circle the wagons, now. Citizens must ban together.

Enough is enough. Join with US Uncut Minnesota and its friends to say that our citizens come FIRST. We all rely on the State funds for healthy living choices. Now it's time to get people ON the page. Poverty does not mean second class citizenship; we contribute to the state, too. People need clean water. The People need State park spaces. They shouldn't filling up their own potholes! And 12,000 people should not be facing going to nursing homes; it's more expensive in the long-run. The ALEC/GOP "plan" is to bankrupt our communities and get unelected receiverships in place, ala Michigan. We must defend Minnesota now.

Enough with politicians who rule out ending tax cuts for millionaires being called "serious" about the deficit. We're serious, too.

Enough with talk about tax cuts for billionaires helping the economy when over the last ten years household income did worse than during the Great Depression. (1) On June 25th, the GOP is continuing to say that we need trickle down economics as it's a "recession." Well, we beg to say, there is PLENTY OF MONEY. NO human services need to be cut. NONE.

Enough with politicians being called "courageous" for proposing the end of Minnesota Care in order to pay for tax cuts for the rich.

Enough with Republicans holding the country and our state hostage for further cuts while unemployment and foreclosures remain rampant, while the cost of food, gas and health care go up, and while families around the country fall into poverty.

Enough. We are not broke, and there is a better way out of this. Join with us to say: tax millionaires and billionaires instead. Close corporate loopholes, too. And STOP the cuts!

We would like to get the Chamber of Commerce to Minnesota say whether they support this unfair tax system and all the cuts as they did during the session - OR do they want to stop squealing about the loss of revenue during the SHUTDOWN? We want to know why the American Legislative Exchange Council is writing MINNESOTA law - out of state.

Why should the poor continue to pay 21.1% in tax in MN, while the billionaires pay 7.7%!! AND we get our services cut when we are vulnerable. Everyone is one accident away from DISASTER.

This is a networking FLASH MOB !! Bring treats to share, if you like !

We can do enough to end this stalemate !!

Support our Governor now and stand STRONG 

and united.

(1) Last Ten Years Of Wage Gains Lower Than During The Great Depression, Think Progress, June 3

To RSVP:
http://www.facebook.com/event.php?eid=174559199270844

also, @USuncut.org's website
http://usuncut.org/actions/535

We need donations to pay for Porta-potties, trash receptacles, medical supplies, transportation and an adequate speaker system. People are asked to print their own flyers at their own expense, which can be emailed to you via USuncutMN@@gmail.com.

We will soon have a paypal donation link. We appreciate your support.

See you there, because even if there is not a SHUTDOWN for many it will be their last day of work. Rain or shine.

So pass this AROUND virally. 

GOAL; 60,000 peiople fighting back!! (with lots of support)

See US Uncut Minnesota FB page, USuncutMN twitter, and www.USuncutMN.blogspot.com

Email: USuncutMN@gmail.com 

This is an ad hoc Committee of Concerned Citizens to STOP the MN State SHUTDOWN.

Tax the rich! Stop the tax subsidies to corporations! End the draconian cuts! NO CONCESSIONS!

Fight Back 2.0 will be shared, "liked" and tweeted.  We will win.

Shutdown: Industry ‘simply can’t afford this fight’

Posted: 3:58 pm Fri, June 24, 2011
By  MARGARET DONAHOE

Margaret Donahoe

Association: Minnesota Transportation Alliance

The thousands of people employed by private sector companies in the transportation construction industry are bracing for a summer of potentially devastating work stoppage that could occur if state government shuts down on July 1.

How many jobs could be affected? We could see more than 28,000 jobs related to highway and bridge construction lost if projects are halted.

In the case of the state budget fight, commuters will be putting up with longer road closures and driving challenges, and they will have to pay some serious dollars for the privilege. For construction projects, the need to demobilize, maintain and protect active projects, have thousands of workers file for unemployment compensation, remobilize and then deal with delays in completing projects, will cost millions of dollars – all at taxpayer expense. Anyone who thinks that a state government shutdown will save taxpayer dollars should think again.

The entire 2011 state highway construction season is at risk – 258 new and ongoing projects worth $900 million. And that is just the work on the state system.

Cities and counties are also looking carefully at road and bridge projects and may be forced to cancel or delay projects because state personnel will not be available to inspect the work and forward federal funds designated for road projects. Local projects with federal funds involved may well be shut down, adding another $150 million to the $900 million worth of projects on the state system.

According to the U.S. Department of Transportation, every $1 billion in investment in highway and bridge construction generates 28,500 jobs. So our state is looking at the potential loss of more than 28,000 jobs as contractors lay off skilled trades people, engineering firms let talented professionals go, cities and counties defer projects, and suppliers of materials such as asphalt, cement, steel and pipes to the transportation industry will be forced to lay off workers and will have to sit on inventory.

The state has a long way to go to recover from the economic downturn, and Minnesota’s construction industry has been hard hit. The construction sector is still more than 60,000 jobs short of its peak in 2006. More than 6,000 construction companies have gone out of business since 2006. While larger companies may be able to continue operating without state payments, smaller companies could go bankrupt under a state government shut down. How is this budget impasse making Minnesota a good place to do business?

With a short construction season in Minnesota, the worst time of the year to disrupt highway construction is between July 1 and Thanksgiving. Some of the potential project delays and disruptions simply can’t be made up this year before the snow flies.

Lawmakers came to St. Paul in January promising to create and expand private sector jobs and get the state economy back on track. After five months of hearings and meetings, the Legislature and governor failed to get a two-year budget for the state enacted and they failed to get a bonding bill passed that would invest dollars in public projects all across the state.

The private construction industry could make a huge difference in improving the state’s economic health or it could become a drain on our economic recovery. It’s time for both sides to end the rhetorical battles and get their work done. Minnesota’s construction industry and Minnesota’s economy simply can’t afford this fight.

Margaret Donahoe is executive director of the Minnesota Transportation Alliance, which includes more than 250 member organizations representing local governments, the transportation industry, labor and advocates for all transportation modes.

Duluth Feeling Impact of Possible Govt. Shutdown

Thu, 06/23/2011 - 6:15pm

• Business
 
• Community
 
• Local Government
 
• Government (MN)
 
• Minnesota
 
• Twin Ports

By Tracee Tolentino, FOX 21 News

DULUTH- The impacts of a possible Minnesota government shutdown hit Duluth on Thursday, as city employees received their potential layoff notices. 16 City of Duluth employees received word that if the government shuts down on July 1st, they may be out of a job.

The notice came from Minnesota’s "Department of Employment and Economic Development" to the Workforce Development Division here in Duluth.

“Employees were notified that they may be, and I stress may be, subject to lay off 10 working days from now which would be effective Friday July 8th,” said City of Duluth Chief Administrative Officer, Dave Montgomery.

It wouldn’t just be those 16 employees affected; the Workforce Development Division helps nearly 700 people with job placement, training, and other career assistance programs.

With an unsettled budget, this is all part of a much larger state issue at hand.

“We're still uncertain about LGA and how much and whether it will be impacted ultimately. We do know as part of a state shutdown that we're likely not to receive our LGA allocation,” said Montgomery.

That Local Government Aid allocation is about $15 million dollars, and further layoffs could be dependent on what happens to that money.

The city says they have a number of contingency plans, and are working on alternatives so if they can, they will try to avoid these tough layoffs.

However, all of this hinges on what happens down in St. Paul with the budget.

Will budget cuts spell the end for "Team D"?

From Consumer Reports:

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SAFETY ADVICE

Will budget cuts spell the end for "Team D"?

Jun 24, 2011 10:36 AM

A couple of years ago we told you about Team D - the D stands for diarrhea - a remarkable team of graduate students at the University of Minnesota who are more like the A-Team when it comes to finding the causes of food-borne illness outbreaks such as E. coli and salmonella.
But now Team D is in danger of becoming victims themselves, facing big cutbacks or a possible shutdown beginning June 30 due to budget deadlock between Minnesota governor Mark Dayton and the state’s legislature.
The ramifications of such cutbacks or a shutdown would go well beyond the borders of the Land of 10,000 Lakes.
Team D played a vital role in figuring out that jalapeño peppers were behind a nationwide outbreak of salmonella in the summer of 2008, accurately contradicting the best guesses of federal food-safety officials that tomatoes were the likely source. In early 2009, Team D played a similarly critical role in identifying institutional jars of peanut butter as the source of a cluster of salmonella cases in Minnesota, a finding that ultimately led to one of the largest food recalls in U.S. history by the Peanut Corporation of America.
When 80 people from 31 states got E. coli, it was Team D that traced it back to specific batches of raw cookie dough from Nestlé USA. The company subsequently recalled 3.6 million packages of cookie dough.
Although revered in public-health circles, the secret of Team D’s success isn’t complicated. The students lose no time getting on the phone with every person in the state who has reported contracting a food-borne illness, quizzing them about what they ate and where they ate it in the days before they became ill. That information is immediately sent to epidemiologists and other disease-detecting experts at the Minnesota Department of Health, which operates one of the top labs in the country for fingerprinting the DNA of viruses.
The lab issues daily reports to the state’s epidemiologists, comparing the results to other cases both within Minnesota and nationally. The scientists look for clusters and patterns that could indicate an outbreak.
The graduate students from the University of Minnesota School of Public Health who form Team D are paid by the state health department. Minnesota Department of Health spokesman John Steiger says Team D’s operations will most likely be severely curtailed unless the governor and legislature get together on a budget deal before a July 1 deadline.
“Everything is really up in the air and nobody really knows what is going to happen with the budget,” says Steiger. “We’re hoping for the best.”

—Bob Williams