Published July 02, 2009 09:40 am -
DFL budget plan would have cost fewer jobs, state economist says
Economist: Unallotment will cost more jobs
Up to 4,700 jobs lost with governor's plan
By Bill Salisbury
St. Paul Pioneer Press
State Economist Tom Stinson estimates the spending cuts Gov. Tim Pawlenty will start making today will cost Minnesota 3,300 to 4,700 jobs.
By contrast, Stinson told the Legislative Advisory Commission on Tuesday, the $1 billion income tax increase that the Democratic-controlled Legislature passed and Pawlenty vetoed in May would have cost the state an estimated 1,000 jobs over the next two years.
In other words, "Governor Pawlenty's budget proposal is going to cause three to five times as many job losses in the state as the legislative proposal," said House Majority Leader Tony Sertich, DFL-Chisholm.
He scored that political point during a scrappy, two-hour meeting of the commission made up of the Democratic chairs of the House and Senate budget committees. The panel continued reviewing the Republican governor's plan to reduce spending by $2.7 billion to balance the state's next two-year budget.
Pawlenty is required by law to run his budget-balancing plan past the commission, but the lawmakers can only advise him; they can't change his proposals.
"I believe the governor has abused his power, but we can't do anything about it," Sertich said.
In response to his charge that Pawlenty's approach is killing more jobs, state Management and Budget Commissioner Tom Hanson said a tax increase would have made the state less competitive for jobs. He said reducing the size of government would put Minnesota in a better position to grow when the recession
ends.