Pawlenty’s Choices Send Minnesota into Recession

01/18/2008

Presented with Multiple Opportunities to Solve Minnesota’s Problems, Pawlenty Clung to National Ambitions and Did Nothing


St. Paul, MN (January 15, 2008) The Minnesota Department of Employment & Economic Development today reported that Minnesota is officially in a recession, confirming that the state lost 23,000 jobs in six months. The Minnesota DFL Party said today that, faced with opportunities to solve the state’s problems, Governor Pawlenty chose instead to do nothing.

“Six months ago, when the state seemed to be falling into a recession, Governor Pawlenty could have done something about it, but instead he chose not to,” said Minnesota DFL Chair Brian Melendez. “Whether it was a tax bill or a transportation bill, Governor Pawlenty chose his veto pen over every other available option.”

“Now fully in a recession, Minnesotans are left to deal with the consequences — job loss, skyrocketing property taxes and crumbling roads and bridges,” continued Melendez. “Will the Governor please join the rest of us in our search for solutions to the real problems Minnesotans are facing? Obstruction isn’t real leadership, and vetoes aren’t real governing.”

Pawlenty’s Choices Send Minnesota into Recession:

Minnesota in Recession; Loses 23,000 Jobs in Six Months. “Minnesota's unemployment rate climbed to 4.9 percent in December, up from 4.4 percent the month before. The loss of 2,300 jobs last month capped a string of job losses, 23,000 in all, over the last six months … That's the worst string of jobs numbers since the 2001 U.S. economic downturn. ‘Minnesota is in a recession,’ said Minnesota state economist Tom Stinson. "I don't see how you can label it anything else.’” [Star Tribune, 1/15/08]

Minnesota Unemployment Rate Increases 15 Percent over One Year. According to the Minnesota Department of Employment and Economic Development, “Over the past year, the number of unemployed people in the state has risen 15 percent as the rate increased from 4.2 percent to 4.9 percent.” [DEED, 1/15/08]

Pawlenty Rejects Special Session to Pass Bonding Bill, Create Jobs. “Gov. Tim Pawlenty on Monday rejected a special session to consider a proposed bonding bill that would create jobs, legislative leaders said…The legislative leaders had pitched a $320 million bonding proposal that would be used for construction on bridges and other infrastructure, for higher education and for roads around a new steel plant on the Iron Range.” [Star Tribune, 12/4/07]

Department of Transportation Will Run Billions Short for Road Projects. According to a report by KARE-TV, MnDOT “is already reporting that current funding projections show they will be a $23 billion shy of what they need to hit performance goals in Minnesota over the next 23 years.” Counties, Cities and the Minnesota Department of Transportation have identified over $1.07 billion in needed transportation projects for each of the next ten years. “’We have to get going now or we’re going to have a crisis on our hands,’ Schreiber says. ‘For some people with very difficult commutes, they’d say the crisis is here today.’” [KARE 11, 11/27/07; Woodbury Bulletin, 11/28/07]

Property Taxes Increasing Across State of Minnesota. “The mayors, who held a Capitol news conference, said tax relief is needed to offset double-digit levy increases expected for 300 cities, including hikes greater than 20 percent in 122 cities…Mayors said they fell behind on police patrols, road maintenance and meeting other costs in part because of reductions in state aid in 2003…” [Star Tribune, 11/15/07]