The Minnesota Government Shutdown

As you may know in Minnesota, the Republican led Legislature and the Democrat-Farmer-Labor Governor have not been able to agree on a 2-year budget.  The deadline is today, June 30, 2011 for an agreement to be made.  If it is not made by this deadline Minnesota is facing a government shutdown. 

According to the Business Insider, the impasse centers around how to close a $5 billion two-year budget deficit.  The Governor's position has been to increase taxes on the wealthiest 2% and the Legislature's plan has been to balance the budget entirely with cuts.  Although both sides have been meeting, no agreement appears on the horizon.  MinnPost.com takes a look at this problem and the problems facing the other states.

In 2005, Minnesota was embroiled in a partial government shutdown.  Although there are some similarities between 2005 and 2011, the impact of this government shutdown may be greater mainly because the 2011 deficit is approximately 10 times larger.

The discussions of late have been related to its impact.   According to the Governor, his shutdown plan is to have essential employees remain on the job.  The question is what is "essential".  Yesterday, June 29, 2011, the Ramsey County District Court ruled what is essential.  Basically, it comes down to those government services that are for providing security, services providing a benefit payment in the performance of contract obligations and conducting essential activities to  the extent to protect life and property.  Minnesota Public Radio had a segment on the impact of the order.