How Will Gov. Dayton Solve Minnesota’s $6.2B Deficit?

By Pat Kessler, WCCO-TV

ST. PAUL (WCCO/AP) — Gov. Mark Dayton will unveil his $6.2 billion budget solution Tuesday, and the DFL governor is already running into resistance from Republicans, who control Minnesota’s House and Senate.

Dayton, who campaigned on raising income taxes on the highest earning Minnesotans, will propose a mix of income tax hikes, budget cuts and borrowing to erase the record deficit.

Republican leaders say it’s unacceptable, historic and “frightening.”

“My expectation will be that this will be the largest single tax increase that we’ve ever seen in St Paul,” said State Sen. Geoff Michel (R-Edina), the GOP Deputy Majority Leader. “I think he’s going to raise taxes even higher than he campaigned on.”

Senior Dayton administration officials say the governor will propose income tax hikes on the top 5 percent of Minnesota earners, which include: Singles making $150,000 after all deductions and couples earning $200,000 after all deductions.

Dayton will argue a tax hike at those levels result in an additional tax bill of about $131 a year.

He will also reprise another campaign promise: Creating a new, higher property tax rate on the value of a home above $1 million.

Administration officials say Dayton budget will also keep his promise to increase school aid, but not by much.

And he will delay for another two years payback to schools of the $1.8 billion former Gov. Tim Pawlenty and the legislature borrowed last year to balance the budget.

Dayton’s budget won’t include deep cuts to cities and counties or public workers, which he will argue will hold down future property tax hikes.

According to the Associated Press, Dayton’s plan would have Minnesota spend almost $3.5 billion on several local aid and tax credit programs. About $1.5 billion of that goes to cities and counties; hundreds of millions of dollars more would go to property owners or renters and other money would feed into pension programs as scheduled.

The leader of the state’s 43,000 member public worker union said last week there are no good options.

“We can tax workers out of their homes, or we can tax the rich,” said Eliot Seide, executive director of AFSCME Council 5. “We can close libraries and parks, and lose police and fire protection, or we can tax the rich.”

More from Pat Kessler
  • Tom

    he won’t be able to do it just wait and see

    • Flanders

      Their all crooks. No one would ever be able to.

  • paying "pla"enty...

    i don’t get it… pawlenty grew our debt, yet the republicans want to do the same thing??? i don’t get it…

  • Norge

    Should be called the Daytons Protect the Rich Act. Biggest mis-direct in politics is “tax-the-rich”. If you have 100mil, they only raise the tax on what the 100mil ‘earned’ (interest,dividends, etc) and the rich still have their 100mil plus what didn’t get taxed! Who really gets the shaft are the people trying to get all of us. As soon as you generate a little wealth, or your train comes in because your cool invention hit the market…. forget about getting wealthy cause here come the liberals kicking your door in saying” give us half ’cause you’re rich..and we know how to spend your money better then you”!! The reality is only those hard-working folks trying to aquire wealth will be taxed to prevent them from getting wealthy or aquiring power. This whole class-warfare scam supported by the public trough feeding unions and their puppets is to simply protect the limosine-liberal from competition and keep the trough full of taxpayer dollars for the public-employee unions. Worst Senator ever to worst governor ever…but to Mark Daytons credit…he is a poitician who is honest enough that once he is bought and paid for he stays bought and paid for.

  • Kevin

    Well first….increase state spending….then continue to bring in as many immigrants as he can……and dont forget to increase spending for Education…..being ranked #37 in the nation…well….just throw more money at it….

  • Norge

    To:” Pawlenty grew our debt” I want whatever you’re smoking dude!! All…repeat ALL: spending must originate in the House of Representitives, whether in the state legislature or the US Congress. And guess who controlled, and grew the debt for the last 30 years….all your liberal buddies that controlled the House, suported by the public employee unions, illegal aliens getting welfare, trial lawyers and school teachers…who are all responsible for the growing debt and deficet. All spending originated in the HOUSE…get it???

  • jefe

    If he were honest with the citizens of minnesota he would show them the comprehensive annual financial re-port.

  • uncle Bud

    How about cutting some welfare for the Lazy.. Then set guidelines what they can spend it on… Also end unemployment checks after 1 year…….Then lets cut other spending along with adding Sunday Liqour sales and a small tax on clothes

  • Pete

    Why is this being looked at as “Dayton’s” problem? How about if all of those who live and work in Minnesota look at this as “our” problem and work out a way to fix it together. It took a whole state to create this deficit it may take all of us to fix it.

  • Diane Johnson

    i GUESS Minnesota is not the place to come if you want to do any business.

blog comments powered by Disqus
Thursday Night Football

Listen Live