Wednesday, July 6, 2011

Anti Government Battle Closes Down State of Minnesota

link here to article

Minnesota is a fairly liberal state. It has a Democratic governor but it elected a GOP majority to its state legislature in 2010. Like most states it has been affected by the economic downturn. Unlike the federal government, most states are unable to run budget deficits when tax revenues decline during a recession. They must figure out a way to increase revenues and/or reduce spending. Negotiations between the legislature and the Governor have broken down so the state is unable to provide services to its citizens. The sticking point in Minnesota, as it is across the nation, is tax policy. The GOP will not accept any new taxes. It insists that the budget be balanced entirely by spending cuts.

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