11-30-05 For Immediate Release
Laura Knudsen, Public Relations Chair (651) 283-1166
Jim Moore, State Party Chair (612) 306-6563

PRESS RELEASE

Pawlenty’s fuzzy math misleads Minnesotans on the budget

Earlier today, amidst a fanfare of unprecedented political spin, the Pawlenty Administration announced a budget surplus for the fiscal year ended 6/30/05 and a projected surplus for the current 2006-2007 biennium. Those without the time to read the entire 71 page report will be astonished to learn that the current budget forecast admits a major deficit for biennium ended 6/30/05 and a deficit for the current biennium when the accounting shifts from past education expenses are included. Here’s the true picture:

  $337.0  million Surplus 6/30/05
($370.4) million School aid payment shift from previous years
($761.7) million Property tax recognition shift from previous years
($795.1) million Deficit 6/30/05

   $701 million  Projected Surplus for 2006-2007 biennium
($94.1 million)  Deficit 6/30/07

One must keep in mind that the 2006-2007 projection deliberately excludes inflation and assumes a huge 10.9% increase in corporate tax revenue.  Additionally, rising health care and heating costs could dampen the forecast.

Unquestionably, Governor Pawlenty did indeed inherit a massive $4.5 billion dollar deficit in 2003…from himself.  As House Majority Leader, he was the architect of the shoddy budget that:

• Took over $1 billion in education funding while blocking Governor Ventura’s plan to pay for it.
• Imposed mammoth expense shifts into future budgets ensuring that any surpluses would have to pay off past due bills.
• Instituted budget projections that anticipated revenue increases but omitted inflationary pressures on expenses.

All of these shenanigans occurred despite Governor Ventura’s vehement veto over which House Majority Leader Pawlenty and Senate Majority Leader Roger Moe, both gubernatorial candidates, orchestrated an override.

“Governor Pawlenty’s Enron style accounting continues to mislead Minnesotans about the true financial condition of Minnesota” stated Jim Moore, Chair of the Independence Party. He continued, “We are still paying for the mess he created over the last 4 years. Any surplus we do see is still needed to pay past due bills on education funding.”