Carstarphen going to Texas The Austin school trustees >voted unanimously to hire Meria Carstarphen as superintendent on Thursday morning, ending the suspense over her future plans.
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Tag Archives: budget
News Day: Carstarphen going to Texas – and in other news: Getting rid of environmental watchdog; First Dog; Pig brains; Workers’ comp abuses–by insurers; Cartel crackdown; Smoking in cars; Around the world in 90 seconds, and more
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News Day 2/23/09: Oscar-free zone / Stormin’ Norm / Bonding basics and blunders / World news and more
T-Paw playing fast and loose with bonding rules In theory, MN can’t borrow to pay for current spending. The tobacco bond borrowing is an end run around that prohibition, based on a fiction that the state is just borrowing against future tobacco settlement revenues. In fact, explains Steve Perry in MinnPost, other states have already found that tobacco bonds don’t sell well, and MN is marketing the bonds as general obligation bonds. The Department of Revenue says that $987 million in bonds now will cost $1.6 billion in payback.
Your chance this week! The St. Cloud Times reported on the first town hall forum on the state’s budget woes, with more than 250 people mostly agreeing on one part of a solution: “Raise taxes. Cutting the budget and services is not the best way to solve the problem.” Hearings started Thursday in Mankato, Rochester and St. Cloud, and continue across the state this week, including metro-area meetings.
Last-minute RNC lawsuits As the deadline for filing civil claims related to the RNC expires this week, expect more lawsuits. In an RNC-related suit last week, Betsy Raasch-Gilman charged that Sheriff Bob Fletcher failed to provide “all private and public data” on her. The State Department of Administration had already issued an advisory opinion that Big Bob failed to comply with state law, reports Randy Furst in the Strib.
And on Friday, St. Paul city attorney John Choi announced that no charges will be filed against 323 people arrested on the final day of the convention, but that 20 arrests are still being investigated.
Sinking Strib ship A bankruptcy filing says that Strib gross earnings plummeted by almost one-third in two years, down to $203 million in 2009 from the $303 million earned in 2007. The Strib survival plan, reports Braublog includes a demand that pressmen take a 23-50% pay cut, chopping $6-12 an hour from wage rates.
Secret meetings on health care reform According to the NYT:
Since last fall, many of the leading figures in the nation’s long-running health care debate have been meeting secretly in a Senate hearing room. Now, with the blessing of the Senate’s leading proponent of universal health insurance, Edward M. Kennedy, they appear to be inching toward a consensus that could reshape the debate.
Unfortunately for single-payer advocates, the NYT predicts this will mean “a requirement that every American carry insurance.” And Republicans, predictably, are not participating in the talks, though business is on board.
Around the world in 90 seconds In Mexico, the Juarez police chief quit, reports BBC. The border city, torn by drug war violence, saw a police officer and a prison guard killed just before Roberto Orduna quit. Gangs had issued a notice that they would kill a cop every day unless Orduna quit, and he said this was the only way he could safeguard police lives. Orduna took over in May after his predecessor fled to Texas following death threats.
In Afghanistan, , a tribal militia of “men and boys, armed with old riffle and true grit” in southeastern Paktia province is protecting people against Taliban and Al Qaeda forces. The government and the U.S. plan a “Public Protection Force” to provide “community defence initiatives,” but insist it is different from the militias. In Pakistan, reveals the NYT, U.S. Green Berets are training Pakistani Army and paramilitary troops in a now-no-longer-secret task force.
Sri Lankan Tamil Tiger rebel planes bombed the capital, reports the NYT. Though this is the first air attack on the capital, the last six weeks “have seen a surge in civilian casualties, with up to 2,000 killed and 5,000 wounded as the government attempts to rout the rebels.”
In Somali, Islamist insurgent suicide bombers killed 11 African Union peacekeepers at an AU military base in Mogadishu, reports the BBC. The al-Shabab group said its members carried out the attack, as part of its continuing armed struggle against peacekeepers.
Corn vs. clean cars You might think that corn growers and ethanol producers would like legislation requiring lower emissions. Not so, reports Ron Way in MinnPost. The Corn Growers Association opposes clean car legislation, claiming that 18 flex-fuel and biodiesel cars and trucks are banned in California because of the clean car law. But wait — Rep. Andy Welti, DFL-Plainview, called CA car dealers and discovered that “the vehicles that the Corn Growers said are not available were in fact available and being sold.” When confronted by this information in the committee meeting, the Corn Growers lobbyist … had nothing to say.
Stormin’ Norm Since he continues to lose every battle in court, Norm Coleman now wants to recount ALL absentee ballots — that’s right, all 290,000 votes cast, not just those that were rejected, reports Jason Hoppin in the PiPress But wait — the PiPress editorial page goes even further, calling for the election to be thrown out entirely, and a new election held. That’s just what we need to do — hold a clean election, and throw out the results. Politico reports that the Republican National Committee has sent Norm a quarter of a million to pay legal fees in the recount battles.
Save northern MN land, string powerlines across south? As the DNR proposes using the dedicated sales tax funds to protect 187,000 acres of forest and wetlands in north-central MN through the Upper Mississippi Forest Project, private developers propose stringing hundreds of miles of intrusive high-power transmission lines across the rest of the state. More on this tomorrow.
Let’s make people miserable and lose money, too! A successful Anoka county program for meth-addicted moms is targeted by state budget-cutters, reports Brady Gervais in the PiPress. Not only would this particularly short-sighted and mean-spirited budget cut eliminate a successful program that helps addicted mothers kick the habit, find jobs and learn parenting skills — it would also lose money in the long run. Gervais writes that, “By reducing the need for social assistance and child protection services, the program is estimated to save between $8,400 and $16,800 per participant, according to a recent study by Wilder Research.”
Million Dollar Mile Oops, make that $9.2 million — for a one mile bike path in downtown Minneapolis. The Strib’s Pam Louwagie blows the whistle.
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News Day 2/17/09: Never-ending recount / Zombie banks / Battered by spouse? Get out of town / More …
Never-ending recount The judges ruled Friday on which sets of absentee ballots would be considered (not counted, just considered for counting), and Coleman’s lawyers struck back Monday, asking them to reverse their ruling, reports Jay Weiner in MinnPost. Weiner sees the move as preparation for an appeal after the judges’ “final” decision on who won … and there’s still no word on when that decision will come. Trial, and posturing, continue today.
Zombie banks “A zombie bank drains bailout capital but doesn’t respond with any meaningful lending,” reports MPR’s Chris Arnold. When the government props up a zombie bank, it’s not lending but it won’t die. Andy Kessler, a former hedge fund manager, says zombie banks “eat the fabric of the economy,” and warns: “I’ve watched every single one of those zombie movies and everybody knows you can’t cure zombie-ism … you gotta shoot ’em, you gotta get rid of ’em, cut their heads off, put the silver bullet through their hearts–and get some healthy banks.” As Treasury Secretary Timothy Geithner proposes a complicated package of private investments and public loans to buy toxic assets from banks, the zombie bank explanation sounds a timely warning. Arnold and his guests discuss solutions such as wiping out the zombie banks, and then creating new healthy banks with taxpayers as the shareholders or taking over troubled home loans and giving them to smaller community banks to restructure.
Get on the bus and get out of town Finally find a way to escape that abusive spouse and get your children to safety? Now Twin Cities victims may be given tickets to ride the old grey dog to Bemidj, Brainerd, or Albert Lea, because metro-area shelters are out of room, reports Joy Powell in the Strib. With little affordable housing, shelters and safe houses have seen average stays go from 20 days in 2005 to 37 days in 2008, and there’s just no more room in either shelters or public housing. The recession has brought more violence at home. The statewide domestic abuse crisis line has seen calls rise from an average of 500 a month in 2006 to 900 a month now. Many victims remain in dangerous situations because there is just nowhere to go.
MN Job Watch The stimulus package will increase unemployment benefits by $25 per month, across the board, as well as extending the federal Emergency Unemployment Compensation (EUC) through December. A federal Emergency Unemployment Compensation (EUC) program extended benefits by 13 weeks in July, and by an additional 20 weeks in November. The 20-week extension was due to expire in March, but will now run through December.
The MN Green Jobs Task Force wants a new Green Enterprise Authority to coordinate state agency efforts to attract new green-collar jobs, reports Tim Pugmire on MPR. The task force also wants tax incentives and bonding for renewable energy projects.
Stimulus and MN deficit MN Management and Budget Commissioner Tom Hanson said that MN will get up to $2.8 billion to bolster the state’s general fund, paykng for health care, education and state stabilization aid, reports Tim Pugmire for MPR. The money may make up some of the increase in the state budget deficit, which is expected to grow from the current $4.8 billion to as much as $7 billion when the next state economic forecast comes out on March 3. The federal money comes with strings attached. T-Paw will have to restore proposed cuts in health care programs and might have to give up an accounting shift for education funds.
But that still leaves most of the MN budget carnage in place. Sheila Regan writes in the TC Daily Planet about the impact of the T-Paw proposal to basically dismantle the Perpich arts high school and arts education center.
Could be worse? Kansas is suspending income tax refunds, reports AP, and may miss this Friday’s payroll for 42,000 state employees, as the legislature and governor fight over the state deficit. And in California, reports BBC, Gov. Arnie Schwarzenegger ordered layoff notices for 20,000 state workers after CA legislators failed to approve a $40 billion budget. This on top of two-day-a-month unpaid furloughs already in place for state workers and delayed tax refunds for everybody.
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News Day 2/12/09: Between bailout and stimulus / $7 billion MN deficit? / MN Job Watch / Housing prices, and more …
Between bailout and stimulus Sick of reading about it / thinking about it / worrying about it? So am I, but I still keep trying to understand how and why we bail out the bankers and bash the poor. One of today’s better analyses:
Steve Perry, writing in MinnPost collates a number of analyses of the latest bailout and concludes: “Thanks to the ways the money is being used–to keep the banks in private hands and their shareholders out of harm’s way–the chances that these unthinkable sums will actually prevent continuing disaster appears to diminish by the day.”
And the sums are truly unthinkable: Bloomberg reports that the total amount of bailouts, and government loans and pledges to banks, and stimulus is close to $9.7 TRILLION — “enough to send a $1,430 check to every man, woman and child alive in the world … almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve.”
Meanwhile, Congress continues to quibble over the economic stimulus package, now nibbled down to $790 billion by cutting such unworthy projects as $20 billion in school construction funding and additional amounts in Medicaid spending, according to the Washington Post.
And back to Perry:
The ultimate peril of our monstrously overgrown financial sector–which, pre-crash, accounted for about 20 percent of GDP and 30-40 percent of U.S. corporate profits, proportions that are absolutely unprecedented in U.S. history-is that government has a very hard time seizing control of the banking system when the banking system, for practical purposes, has seized control of the government.
A billion here, a billion there Gov. Pawlenty said that MN’s $4.8 billion deficit could grow to $6 or $7 billion by March. That’s almost 20 percent of the state’s budget, notes the Strib. Meanwhile, the Federal Reserve Bank in Minneapolis predicted that the recession will last through 2009 — not exactly a surprise. The Fed predicts MN unemployment rates of 7.8 percent, but the hardest-hit part of the region will be the Upper Peninsula of Michigan, with a predicted 14 percent unemployment rate.
MN Job Watch Toro cut 100 salaried and office jobs Wednesday, three-quarters at its Bloomington HQ, reported the Strib. The company earlier accepted 50 voluntary retirements.
More than a thousand Minnesotans are applying for unemployment benefits each month, and four out of ten will be unemployed for 26 weeks or more, exhausting their benefits, reports Annie Baxter on MPR. For most of them, a federal extension will give them up to an additional 33 weeks, and possibly another three months after that. Lee Nelson, the state’s head unemployment benefits attorney, told MPR that, “Minnesota paid out a whopping $45 million in jobless benefits and extensions the week before last,” and payments are likel to keep increasing at about a million dollars a week.
According to the Washington Post, more employers across the country are contesting worker applications for unemployment benefits, claiming employee wrongdoing or quitting, in an attempt to keep their claim level and rates down. Department of Labor figures show record highs of just over 25 percent of claims being contested.
The play’s the thing Penumbra became the latest TC theater to announce budget woes Wednesday, cutting its operating budget by 24 percent, but maintaining plans for a half-million dollar renovation and keeping all staff on board, reported Rohan Preston in the Strib. Penumbra will postpone production of August Wilson’s “Radio Golf” from May to October.
Revise, not recount Secretary of State Mark Ritchie proposed changing election laws to require fewer automatic recounts and to allow voters to vote early and in person, and to register online. Meanwhile, the recount court is considering Coleman and Franken arguments on what categories of absentee ballots should be considered, and the end is not yet in sight.
Buyer’s market? The median home price in the Twin Cities fell 24 percent in January, writes Christopher Snowbeck in the PiPress. The St. Paul Area Association of Realtors reported a median home price of $155,000.
More on the local housing market: Lenders discriminate. Housing is segregated. Communities of color are hit harder by the foreclosure crisis than anyone else. That’s the ugly face of racial discrimination in the Twin Cities revealed in a 54-page report released by the Institute on Race and Poverty at the University of Minnesota Law School.
Flowers for sheep Sheep will eat most of the flowers raised by Gaza farmers again this year, but Israeli authorities have agreed to allow the export of 20,000 carnations to Europe for Valentine’s Day. According to BBC, “Cut flowers, along with strawberries, were some of Gaza’s main exported raw goods, providing a valuable source of income to thousands of families in the Gaza Strip” before the Israeli blockade stopped almost all exports in June 2007. Before the blockade, exports brought in half a million dollars a day.
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News Day – February 2: Health at risk, MN not-so-nice for minorities, Punxsatawney Phil and more
Health at risk No, not salmonella this time — the bigger health risk comes from lack of money. Kathlyn Stone, writing in the TC Daily Planet, tells the story of Jean Bender, who “is worried about the next round of Health and Human Services cuts that will make it harder to afford the care needed by her developmentally and physically disabled child.” Chen May Lee reports in the Star Tribune that more than a thousand local health care employees have been laid off since last year, and big construction projects have been postponed as the recession means people just can’t pay for health care.
“In the past, people were delaying vacations or new automobile [purchases],” said Steve Hine, director of labor market information at the Minnesota Department of Employment and Economic Development. “This time around, they’re even cutting back on their health care.”
Meanwhile, the Daily Planet reports on the debate in the legislature over single-payer health care reform.
Minnesota not-so-nice “Economically, Minnesotans are blessed with a Lake Wobegon, above-average life. As long as they’re white,” writes Richard Chin in the PiPress. In appalling and statistically-backed detail, he goes on to describe a state where whites are better off than the rest of the nation as measured by income, unemployment and poverty levels, and black Minnesotans are worse off, and where the gaps between white and black Minnesotans continue to grow. Read the whole article for an alarming wake-up call.
Punxsutawney Phil: ONLY six more weeks of winter! I’ve never understood why the groundhog seeing his shadow was so bad. Here in the northland, ending winter on St. Patrick’s Day, instead of suffering through another round of March blizzards, sounds pretty good.
DTV or no TV? If the scheduled switchover to all-DTV goes ahead as planned on February 17, more than six million U.S. households will see nothing but snow on their screens, according to the latest Nielsen figures. After Senate voted unanimously to delay DTV until June, the House voted down the delay, but now is scheduled to take a second look later this week. Funds for the $40 coupon to apply toward the cost of a digital converter box ran out weeks ago. (And then there’s the whole problem of antennas and of which wall in which room of your home a converter box/antenna set-up must be situated in order to work.) Martin Moylan reports on MPR that MN broadcasters are split on whether the delay is needed, and that some think it will cost them up to a thousand dollars a day to delay the switch.
Nullifying the amendment Conservation and arts advocates succeeded in getting the Clean Water, Land and Legacy Amendment passed to guarantee additional funding, because, they told voters, the legislature and governor couldn’t be counted on to maintain commitments to the outdoors, clean water, parks and arts projects. Now, reports Dennis Lien at MPR, they charge that Gov.Tim Pawlenty is about to slash arts adn conservation funding so that the amendment, instead of bringing new funding, will substitute for traditional funding sources. They point to a 50 percent cut for the State Arts Board and regional arts councils, a $1.9 million cut from MPCA clean water funds and $1.3 million from the DNR division of waters, along with a $5.5 million cut from the DNR’s fish and wildlife division. In the Strib, Doug Smith writes that DNR Fish and Wildlife funds will be cut, losing all of the $2.8 million general fund dollars previously allocated. That leaves the division funded “almost entirely” by hunting and fishing license fees, reducing funds for research on fish and wildlife populations and habitat, land and water habitat management, environmental review, shoreline restoration funds, and conservation officers.
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News Day – January 29: Stimulus heads for MN; St. Paul “cutting the bone”
Economic Stimulus – despite GOP no votes President Barack Obama’s economic stimulus package passed the House without a single Republican vote, despite his outreach efforts. Paul Krugman, Nobel-prize winning NYT economics columnist asks, “Aren’t you glad that Obama watered it down and added ineffective tax cuts, so as to win bipartisan support?” The Daily Kosexcoriates the eleven Dems who voted against the stimulus, and especially Blue Dog Jim Cooper (D-TN) for “his FU to Obama” after getting the Pres to agree to a February “fiscal responsibility summit.”
Back in MN, the Strib and both pick up an AP report saying that MN will get more than $477 million from the plan to upgrade highways and bridges, as part of the $30 billion national transportation package.
Cutting the bone “Anticipate park and library closures, and public safety reductions.” That’s the message from St. Paul, in light of reductions in Local Government Aid under the Pawlenty budget plan. The PiPress reports that city’s entire budget is about $200 million annually, and that Mayor Coleman says the city has to cut $43.8 million. That, says council member Melvin Carter, means cutting the bone. For example, closing all libraries and eliminating all 34 rec centers would save only $36 million.
And — big surprise here — Tom Scheck at MPR reports that business groups like Pawlenty’s tax cut plans, which would reduce business taxes by $268 million over the next two years.
Goodbye, Challenge The MN Housing Finance Agency said it will cut $8.5 million from the Challenge Program, which funds new affordable home construction, in response to the governor’s budget cuts. Session Daily reported that the agency plans to focus on rehabilitating existing housing stock and subsidizing rentals, and wants $1.5 million transferred from the state Disaster Relief Contingency Fund to help 80 families currently living in shelters, which would require declaration of a federal disaster.
MN Job Watch U.S. union ranks are growing, reports the Washington Post, showing “the first significant increase in 25 years.” The numbers are still small, with union membership growing from 12.1 percent in 2007 to 12.4 percent in 2008, according to the BLS. In the 1950s, union membership was about one-third of the work force. Union leaders said most of the growth came in government workers, as private employers continued to use union-busting tactics to intimidate employees. The BLS report says only 7.6 percent of private-sector employees are unionized, compared to 37 percent of government employees. According to an AP report, Minnesota union membership dropped from 16.3 percent of the work force in 2007 to 16.1 percent in 2008, with the number of union workers dropping from 400,000 in 2007 to about 392,000 in 2008.
In other MN job news, the Rochester Post-Bulletin reports that IBM laid off workers yesterday, but has not released number son how many, and may be making more cuts.
Bad news drives bank stock prices higher That’s right. Financial stocks rose even as banks showed bigger losses. Wells Fargo stocks went up 31 percent, reported Chris Serres in the Strib, despite its announcement of “a multibillion-dollar loss, falling revenue and a doubling of bad loans.” The Strib says that investors thought the news would be even worse. And they may also be reacting to hopes for more bailout money. To be fair, Wells Fargo’s losses have something to do with a one-time event:
Wells Fargo executives, by contrast, appear to be preparing for the worst by taking dramatic steps to shore up its balance sheet after buying Wachovia, which is saddled with many exotic mortgage loans that are going soar as the housing market deflates. On Wednesday, Wells Fargo said it took $37.2 billion in credit write-downs Dec. 31 related to Wachovia’s loan portfolio. The bank also increased its allowance for loan losses — money banks set aside to cover bad loans — to $21.7 billion in the fourth quarter from $8 billion as of Sept. 30.
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News Day – January 15
“What part of justice do you want us to stop doing?” That’s the question posed by MN Supreme Court Chief Justice Eric Magnuson in a highly unusual news conference making the case for increased state funding for the court system. “Flanked by county attorneys, sheriffs, public defenders and district judges, Chief Justice Eric Magnuson said the entire court system in Minnesota is already $19 million short and will suffer under a 10 percent budget cut,” reported MPR’s Elizabeth Stawicki.
“Trespass, worthless checks, traffic and ordinance violations, juvenile truancy, runaways, underage drinking, consumer credit disputes, property related and small civil claims. Imagine we take all that off the table because we can’t do it,” Magnuson said. Dakota County Attorney Jim Backstrom spoke on behalf of Minnesota prosecutors and said in addition, the courts won’t be able to process harassment cases, putting many people in the state at risk of harm.
In the Strib, Rochelle Olson reported that Magnuson pointed out that courts account for only two percent of the state budget and that judges are not getting raises, though union employees will get contractual raises. He said the courts need an additional $43 million, not the cuts that the Pawlenty administration has asked for.
Pawlenty spokesperson Brian McClung responded that courts need to “reexamine their priorities” and cut budgets.
“Report says security at RNC was a success” Ya think? While the Strib headline makes nice, Grace Kelly at the Minnesota Progressive Project blog pulls no punches, noting that “Over $100,000 of St Paul money was spent on an RNC Commission consisting of carefully government-connected people,” to produce what she terms “a whitewash.” Over at the Minnesota Independent, Paul Demko offers “What a riot: Outside panel presents mild critique of RNC policing. Read the report on the St. Paul city website
Preventing the next recount? Instant Run-off Voting, approved by Minneapolis voters by a 65-35 margin in 2006, won again yesterday in court. Implementation has been delayed by a MN Voter’s Alliance court challenge, but Hennepin County District Judge McGunnigle ruled that they “have failed to demonstrate that IRV is either unconstitutional or contrary to public policy.” MVA said it will appeal.
Jeanne Massey, chair of FairVote Minnesota, which has backed IRV, said:
There is now great awareness about the need for runoff elections in our state contests that are highly competitive, because we have a strong third party presence in the Independence Party, and we no longer have majority winners in our high-stake elections.
In St. Paul, the Strib noted, the Better Ballot Campaign petitioned for a referendum on IRV, but decision on the referendum was postponed, pending the outcome of the Minneapolis lawsuit.
IRV provides that if no candidate gets a majority of the votes, the lowest candidate is eliminated and those voters’ second choice candidate gets their vote. If that doesn’t result in a majority, the next-lowest candidate is eliminated and their votes redistributed. The process is repeated until one candidate gets a majority of the votes.
Ice-cold electricity Grand Meadow Wind Farm started selling electricity December 4, reports the PiPress, and is now fully operational. Xcel Energy’s first wind energy facility is a 100.5 megawatt wind farm east of Austin. The Minnesota Municipal Power Agency and Avant Energy of Minneapolis also have projects under development. By 2020, MN law requires at least 30 percent of power from renewable resources.
MN Job Watch Ecolab announced a thousand layoffs yesterday, including 100 in Minnesota. Jessica Mador at MPR reports that the MN cuts will be divided equally between Ecolab international HQ in downtown St. Paul and a research center in Eagan.
[Company spokesperson Michael] Monahan said the restaurant and hotel-related segments of the company’s business have been hardest hit by the downturn. He said the company is still growing in health care, pest elimination, and fast food industries, as well as in Latin America.
A SCHIP in time? Congress passed a bill to expand the Children’s Health Insurance Program on Wednesday. The bill, previously vetoed by King George II, has the “enthusiastic support” of President-elect Obama, reports the NYT, which says Obama will likely sign the bill soon after his inauguration. First, the Senate must sign the bill. The main point of difference between Senate and House, says The Daily Kos, is the Legal Immigrant Children’s Health Improvement Act (ICHIA), eliminating the current five-year waiting period for legally residing immigrant children.
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Mary Turck