Minnesota’s budget deficit is not the state’s only financial problem.  Not unlike many American families, the state is also suffering from cash flow issues.  The timing of state expenditures does not necessarily line up with the timing of revenue influxes, which causes dips in the state’s coffers throughout the year. Think of it as your auto loan payments coming due on the 12th of the month, but you don’t get paid until the 15th.  And just like you might need someone to float you a loan for that three day gap, the state is considering short-term borrowing to cover their cash flow gaps. Read More...

Speaker of the House Margaret Anderson Kelliher’s (DFL-Minneapolis) gubernatorial campaign has been racking up the good publicity lately, winning numerous endorsements, but now her campaign was at the center of a campaign finance controversy.  Kelliher’s campaign, working off of advice from the state DFL Party, believed they could direct contributors who had already reached their annual maximum donation limit to give money directly to the DFL Party to help Kelliher pay for the use of a database.  The arrangement became an issue when another DFL Gubernatorial candidate, Rep. Tom Rukavina (DFL-Virginia), sought information about the agreement’s legality under Minnesota campaign finance law.  In response, Party officials asked their attorneys to review the arrangement and it was the opinions of the attorneys that it was illegal. Read More...

Earlier this month State Senator Dick Day (R-Owatonna) announced he was resigning his Senate seat of 19 years to become a lobbyist. Day will be working to pass a “racino” proposal to authorize slot machines at Minnesota’s two horse racetracks, something he actively supported while in the legislature. The move has reignited the debate on whether there should be controls on lawmakers moving directly from the legislature to lobbying. In past sessions some legislators, including State Senator and DFL Gubernatorial candidate John Marty (DFL-Roseville), have pursued legislation that would require legislators to wait 2 years after leaving the legislature before doing any paid lobbying work. Marty issued a press release after Day’s announcement saying Day’s move clearly illustrates why the bill is needed.  We can expect to hear more on this issue during the 2010 session. Read More...

The House will have one day of bill filing prior to the start of session in February. Bills will be introduced on January 7th and should be available online on that date. House bill introductions can be found at www.house.leg.state.mn.us/cco/introductions.asp.  Hearings may be held on the pre-filed bills, but as with any bill no action can be taken until session begins on February 4th. The Senate has no plans to pre-file bills at this time, although that plan could change. Read More...

The House Jobs Task Force, a panel created earlier this year to examine possible ways the state could help spur Minnesota’s lagging job market, released a list this week of 41 suggestions they received from various testifiers throughout their hearings.  The Task Force held three all-day meetings, two in St Paul and one in Milaca, MN, and heard from dozens of Minnesotans, including unemployed workers, small business owners and academics. Read More...

Minnesota’s latest economic forecast was released this morning showing a $1.2 billion deficit for fiscal years 2010-2011. This is especially grim news as it comes just months after Governor Pawlenty unilaterally cut $2.7 billion from the budget to balance the state’s books. Most of the shortfall, about 70%, is due to the decline of income tax receipts because of unemployment and declining wages. Read More...