The closure of Minnesota, America’s fiscal future in miniature?

July 2, 2011

Dear Washington, D.C., take a look at Minnesota on this long weekend when we Americans are supposed to be celebrating our country's independence.

Instead, folks in that upper Midwest state are having a decidedly crappy Fourth of July holiday.

And it's a picture of what could happen on a national scale if you guys and gals who ostensibly work in the District of Columbia don't get your acts together.

Here's the deal.

On Friday, many of Minnesota's government services were unavailable because state lawmakers couldn't agree on an operating budget.

A note at the entrance of the Minnesota State Capital announces its closure in Sain. Paul, Minnesota, July 1, 2011. Minnesota's state government began a broad shut down on Friday going into the July 4 holiday after Democratic Governor Mark Dayton and Republican legislative leaders failed to reach a budget deal. REUTERS/Andy King (UNITED STATES – Tags: POLITICS BUSINESS)

The problem? A partisan impasse over how to deal with the state's $5 billion budget deficit.

Political posturing getting in the way of serving the citizenry? Do tell.

Stop me if you've heard this before: How Minnesota got to this sorry state of affairs sounds way too familiar.

It began in November 2010, when Minnesota voters sent to St. Paul lawmakers with such divergent points of view that a fight was guaranteed.

Republicans gained control of both legislative chambers for the first time in almost 40 years, intent on cutting programs and opposing any new taxes or increases of existing taxes.

Meanwhile, Mark Dayton became Minnesota's first Democratic governor in two decades. He made no secret of his desire to save programs for the poor by collecting more income taxes from the state's very highest earners.

Sound familiar, Capitol Hill?

Then came budget negotiations. Minnesota lawmakers began the process civilly, examining fiscal proposals privately. The word compromise even was mentioned.

But when it got down to crunch time, political orthodoxy took over.

Hmmm. Why are signatures on no-tax pledges by current federal lawmakers and wannabe leaders at the national level coming to mind?

But I digress. Back to the North Star State.

In St. Paul, the budget clock was ticking, but neither side could find a way to bridge the divide over holding the line on spending and raising taxes to maintain services for those most in need.

Now where have I heard this argument before? Oh yeah. Washington, D.C.

So except for essential services, Minnesota has closed its governmental doors.

Everybody loses: Guess what? No one, neither among the public nor in either political party, is happy.

Optimists are holding out hope that the July 4th break will be a cooling off period during which both sides can rethink their positions.

Pessimists suggest that everyone responsible for the shutdown might want to take this time off to work on their resumes.

That point of view hasn't escaped the governor.

"I think the Republican majorities in the House and Senate and I will all suffer politically," Dayton told the Associated Press. "I told them at the very beginning of session, I told their leaders, we can either make each other look good or we can make each other look bad. Our political fortunes are kind of inexplicably tied together here."

I'll ask it just one more time, D.C.: Are you listening?

Government déjà vu: The New York Times has compiled a list of state shutdowns over the last decade caused by budget disagreements. They include:

  • Michigan, two hours on Oct. 1, 2009 
  • Michigan, four hours on Oct. 1, 2007 
  • Pennsylvania, one day on July 9, 2007 
  • New Jersey, seven days in July 2006
  • Minnesota, nine days in July 2005 
  • Tennessee, three days in July 2002

Related posts:

Want to tell your friends about this blog post? Check out the buttons — Tweet This, Reblog, Like, Digg This and more — at the bottom of this post. Or you can use the Share This icon to spread the word via e-mail and online avenues. Thanks!

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment