St Paul Pioneer Press reporter Bill Salisbury, in his “Cut, Cut, Cut,” article today, affirms what most of us have known for quite some time: conservative gubernatorial aspirants insist Minnesota should only budget cut its way out of the state deficit.

That approach, implemented last summer by Governor Pawlenty, isn’t working. Minnesota revenue is stagnating because the economy is stagnating. Conservative public policy leaders and advocates, without exception, insist Minnesota only has a spending problem rather than a revenue problem. Profligate, out-of-control government is solely to blame. Reducing government, they insist, will solve all problems.

Perhaps, I’ve been too harsh, too dismissive of this policy argument. For the sake of experimentation, let’s pursue the conservative suggestion. Let’s immediately curtail all state monies flowing to the districts and/or home communities of State Representatives Tom Emmer and Marty Seifert; former State Representative Bill Hass; former State Senator David Hann; former State Auditor Pat Anderson; and businessman Phil Herwig.

This means no more state highway or public safety funds, no education money, no more MNDOT service center hours, no more state health inspectors, and no Met Council utility and infrastructure expansion projects. We’ll have to close Southwest Minnesota State University, of course, because it’s in Marshall, Rep. Seifert’s home town. Milaca, Mr. Herwig’s home town, wouldn’t be able to have the nursing home without state financial assistance. I can’t imagine that Eagan’s Thompson-Reuters, BCBS of Minnesota, Coca-Cola Bottling and UPS hub will function without state transportation infrastructure but perhaps Ms. Anderson will successfully explain to Eagan residents that a government-free greater good is worth embracing.

I suspect that true government-free zones will look like the financial equivalent of grossly contaminated Superfund clean-up sites, incapable of supporting life. This conservative anti-government attacks seems untenable, with residents losing far more than they gain. Unless, of course, conservatives really want other constituencies to bear budget cuts while they and their supporters continue to enjoy Minnesota’s rich opportunities and investments.

I believe that Minnesota’s rewards should flow to every Minnesotan. We contribute differently but we contribute. I’m reluctant to harm hard-working Minnesotans because of the blind ideological precepts of a few gubernatorial contenders but, maybe, we should let their home communities test the painful waters first.

I await Seifert, Emmer, Hass, Hann, Anderson and Herwig’s enthusiastic, voluntary response.

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What does it cost to create or save a job in Minnesota under the $787 billion federal stimulus package, AKA the American Recovery and Reinvestment Act?

Gov. Tim Pawlenty’s spokesman says it’s more than $135,000 for each one of the 11,800 jobs counted this week. Pawlenty’s commissioner of management and budget says it’s less than $20,000 for each of those same jobs, barely half that if you count another 9,300 estimated positions indirectly supported by the program.

Who ya gonna trust?

I’ll go with the finance guy, Tom Hanson, who actually signs the checks. He reported that the state has spent $1.6 billion of an estimated stimulus total for Minnesota of $8.9 billion over two years. But of the $1.6 billion out the door so far, only $231 million went to programs for which jobs were counted, Hanson told Minnesota Public Radio. The remaining more than $1.3 billion boosted unemployment and medical assistance — money that helps the needy and circulates throughout the economy — but doesn’t directly create many jobs.

A total of $4.2 billion in ARRA  funds is expected to go directly to Minnesotans, employed or not, in the form of individual tax benefits. That’s the kind of stimulus Pawlenty outspokenly approves of. He’s less sanguine about other stimulus programs that have preserved 5,900 jobs in schools and 1,200 in public safety while creating at least 900 of them rebuilding the state’s tattered transportation infrastructure.

That means, in addition to thousands of folks doing the public’s work instead of collecting unemployment benefits, Minnesotans get better educated children, more protection from crime and improved roads, bridges and transit. Tax breaks can’t do that.

By the way, the Pawlenty administration is no stranger to self-serving job-creation numbers. It claimed that the governor’s pet economic development program, JOBZ, had cost taxpayers only about $5,000 per new job created. The nonpartisan Office of the Legislative Auditor, however, found that the administration had overstated the actual increase in employment attributable to JOBZ while understating the tax breaks given to businesses.

The actual cost of each JOBZ job, according to the auditors, was $26,900 to $30,800. That’s five or six times the administration’s estimate — and two to three times the real cost of each Minnesota public and private sector job supported by the federal stimulus plan.

Who you gonna trust? Seems like an easy call from here.

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Here’s what’s making news in Minnesota today:

Minnesota 2020 headed to Austinand Rochester to promote our latest report.

Austin Daily Herald: Stimulus key in bridge project

“Rep. Jeanne Poppe (DFL-Austin) and members of think tank Minnesota 2020, which has produced a report of the state’s transportation recovery projects, explained at a press conference Wednesday how one Austin project will begin this month.

The “flyover” bridge on Interstate 90, exiting onto Oakland Place Northeast, will be replaced, as well as a Dobbins Creek bridge and two Turtle Creek bridges, also on I-90. A mill and overlay project on I-90 will be funded by stimulus dollars as well.

John Van Hecke, executive director of Minnesota 2020, said the report is the first complete examination of how stimulus funding is benefiting Minnesota. The press conference was held on Oakland Place, near the “flyover” bridge.”

Rochester Post-Bulletin: Think tank praises stimulus projects

“A St. Paul-based progressive think tank is praising the American Recovery and Reinvestment Act for spurring needed transportation projects in Minnesota, including bridges on Interstate 90 in Austin, but says gas tax increases are needed to keep road work rolling.”

Rochester Post-Bulletin: 4th Street S.E. bridge over Bear Creek might be replaced soon

“It was at that bridge Wednesday that representatives of Minnesota 2020, a St. Paul-based progressive think tank, praised the American Recovery and Reinvestment Act for helping to spur needed transportation projects in Minnesota.

But stimulus money will only help for a couple of years, they argued, saying a gas tax increase indexed to keep pace with inflation is among the measures that should be considered to continue funding road work around the state.

“Unless we do that, we have tax cuts on autopilot,” said Minnesota 2020 fellow Conrad deFiebre.”

MinnPost: Cutting through the baloney on unallotment

MN2020’s Jeff Van Wychen puts the Taxpayers League in their place.

“To hear Taxpayers League President Phil Krinkie describe it (“Stop the whining about Pawlenty’s unallotment decisions,” June 24), one would think that the state budget had been on an unbridled growth course for years. The fact of the matter is that real (i.e., inflation-adjusted) per capita state general-fund spending has fallen 9 percent from fiscal year 2002-03 to FY 2008-09. It is in this context that Gov. Tim Pawlenty’s $2.7 billion unallotment needs to be considered.”

Star Tribune: Lori Sturdevant: Pawlenty’s ‘unallot’ reasoning doesn’t hold up

“One of the reasons Pawlenty cited for opting for unallotment, rather than signing a DFL-backed $1 billion tax increase, is that tax increases would be detrimental to job growth. State economist Tom Stinson said that Pawlenty is correct: The DFL tax increase likely would have cost the state 1,000 jobs over the next two years. But the spending cuts in Pawlenty’s plan will lead directly to 3,300 to 4,700 lost jobs, Stinson said. Indirectly, the cuts could eliminate several thousand more positions.”

Workday Minnesota: Teamsters organize school bus drivers at First Student

This will ensure well-paid, professionals will drive these school buses.

“It’s nice to have a group of 400 workers improve their working conditions with two strong votes,” said Brad A. Slawson, Jr. president of Teamsters Local 120.

MSP Business Journal: Report: Recession hurting MN housing situation

“The recession is making it increasingly hard for Minnesota households, especially low-income families, to keep their homes, according to a report out from the Minnesota Housing Partnership.”

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