Dave Minderman over at mnpACT! wonders why the headlines about the state budget ignore the fact that Governor Tim Pawlenty’s budget proposals use accounting shifts and "borrowed" money to give the appearance of not raising taxes, while actually increasing tax payer liability and forcing state and local governments to raise property taxes:
But here is the headline you never see:
Pawlenty Budget Increases Taxpayer Liability by $2.2 billion
You can break it down:
1. Borrowed money (tobacco bonds) from future revenue sources: $985 million
This is budget money "stolen" from budgets that we and our kids will have to pay for. That revenue has to be restored and taxpayers will be doing that.
2. Interest on the "stolen" money: $600 million
When you use a credit card to pay bills, you have interest. That money has to be paid….and guess who pays?
3. LGA Cuts equals Property Tax Increases: $626 million
Now, add those figures up and we get $2.2 billion in tax money.
But, wait, I’m not finished.
Pawlenty also relies on a huge education payment shift of $1.29 billion. This will cause school districts to borrow money in the interim and that will require interest to be paid. Who pays the interest? Local property tax payers.
And because of the draconian cuts in Health and Human Services (which allows Pawlenty to make his claim of Education increases), more low income people will be forced to go without health insurance, which, in turn, increases unpaid emergency room visits. Paid for by the taxpayers of Minnesota and insured Minnesotans.
Pawlenty may have the press fooled. He may have is own caucus fooled. And he can make the claim that he doesn’t raise taxes. Yes, he can say it over and over.
But it just isn’t true.