Negotiation and Conflict

Conflict: Minnesota 2011-2012 Budget Negotiations

Voters who participated in the 2010 Minnesota elections helped set the stage for the state’s impasse in attempts by legislators to agree on a budget.

The election of Democrat Mark Dayton as Governor and a Republican majority in the House and Senate, for the first time in thirty years, has created an unwieldy political monster and a mediator’s dream. Negotiations for the 2011-2013 budget split across party lines with Republicans holding firm in their resolve against tax increases and Democrats declaring that the State cannot run with no the additional funding. The 2011 regular legislative session concluded Monday, May 23, without a legislated budget agreement. As expected, Gov. Dayton vetoed the budget presented to him within twelve hours of the session adjournment. Esme Murphy, Dayton Vetoes Republican Budget, WCCO/AP (May 5, 2011), http://minnesota.cbslocal.com/2011/05/24/minn-gop-lawmakers-talk-up-incomplete-session.

At issue is the $5 billion, two-year deficit and, not surprisingly, the parties differ in their solutions. Republicans want to spend “not-a-penny-more” than $34 billion and hold firm against raising taxes, an option Gov. Dayton has called “an all-cuts budget.” Democrats want to spend $36 billion, cut $1.8 billion, and raise taxes on the wealthiest 2% of Minnesotans to cover the difference, a solution Republicans have termed “miracle money.” Countdown to Shutdown, StarTribune (June 10, 2011, 8:39 PM), http://www.startribune.com/politics/statelocal/123590039.html. At stake is the shutdown of our state government that would cost the state at least $240 million dollars in just its first month. Esme Murphy, supra. The current fiscal year ended July 1st and, with no new budget in place, the state cannot allocate money for government operations beyond that date without judicial intervention. The parties did not reach an agreement by the end of June and a July 1st government shutdown began...