Minnesota Government Shutdown "Cost Clock" Is Ticking
Wednesday, July 13, 2011
It looks like the debt ceiling battle in Washington, D.C., writ small.
Energized Republican legislators demanding budget cuts; a Democratic chief executive seeking a compromise that includes increased tax revenues. And an 11-day government lockdown that might offer a peek at what the country, days before a financial deadline of its own, is heading for.
It’s been almost two weeks since budget gridlock forced the shutdown of Minnesota state government. While savings from not having to pay 22,000 furloughed workers may seem like a boon to some, myriad costs to the state are incalculable.
Or are they?
The GOP group, Minnesota Majority, says the deadlock at the state capitol has cost more than $110 million since July 1, when the new fiscal year began without a budget. The organization, which blames Democratic Governor Mark Dayton for the trouble, estimates the closure of state operations is robbing the state and its residents of around $9 million per day.
“It seems counterintuitive and a lot of people just don’t realize that the shutdown is actually costing Minnesotans a lot of money,” said Minnesota Majority President Jeff Davis. “There’s nothing positive about a prolonged shutdown and our shutdown cost clock is designed to present one of the consequences in a way that’s easy to understand at a glance.”
With agencies closed for business, the state is not collecting revenues from audits, commuters, state parks and the lottery. Furloughed workers aren’t paying taxes or making purchases. The “cost clock” also includes the expense of having to restart construction projects now sitting idle.
The Washington Post pointed out that precise figures are unavailable because the government workers who would make those calculations are laid off. But some statistics are known.
The Department of Revenue loses $52 million in taxes every month. The state loses $1.25 million a day in lottery sales, $40,000 to $50,000 a week in uncollected tolls and $200,000 a day from state park closures.
Republican lawmakers have been unable to reach a compromise with Dayton, who wants to raise taxes on the wealthy to offset some spending cuts. The GOP refuses to consider any tax increase whatsoever.
-Noel Brinkerhoff, Ken Broder
New ‘Cost Clock’ Highlights Mounting Price of Minnesota Government Shutdown (by Dan McGrath, True North)
Shutdown's Damage to the Minnesota Economy Will Be Real, Significant -- and Incalculable (by Paul Anton, MinnPost)
Minnesota Shutdown Longest in Recent History, No New Talks (by David Bailey, Reuters)
The Cost of Minnesota's Shutdown: A Warning to Washington (by Justin Horwath, Time Magazine)
Budget Impasse Brings Minnesota to a Screeching Halt (by Noel Brinkerhoff, AllGov)
In Minnesota Shutdown, Workers Who Calculate the Cost Are Laid Off
(by Rachel Weiner, Washington Post)
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