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Minnesota Joins New Jersey In Insolvency, Shuts Down, Harbinger Of Debt Ceiling Negotiation Outcome?
Two down. 48 to go until Meredith Whitney is proven correct beyond a reasonable doubt. After New Jersey was forced to reach out to JP Morgan for an emergency bridge loan a few days ago, it is Minnesota's turn. From ABC: "Minnesota's government has shut down, ahead of the holiday weekend, for the second time in six years after state leaders failed to find common ground on resolving a $5 billion budget deficit. Thousands of state workers will be laid off, state parks will be shuttered, the issuance of fishing licenses will be halted and the Minneapolis zoo will be closed. Road projects will also grind to a standstill just as people hit the road for the holiday. A midnight deadline passed without an agreement as talks between Democratic Gov. Mark Dayton and top Republicans unraveled over Dayton's proposal to impose taxes on the state's top earners, a move on which top GOP officials have refused to budge...Some programs that will continue unabated include critical services including the State Patrol, prisons, disaster response and federally funded health, welfare and food stamp programs." Granted this is not a first: "Only four other states -- Michigan, New Jersey, Pennsylvania and Tennessee -- have had shutdowns in the past decade, some lasting mere hours. Minnesota's government partially shut down under then-Gov. Tim Pawlenty in 2005 over a budget fallout." However, if NJ is any indication, as predicted, expect ever more states to bypass the municipal route of funding, and appeal directly to commercial banks. Which will generously provide as much Fed-generated one and zeros...in exchange for 80% LTV collateral of course.
More:
A midnight deadline passed without an agreement as talks between Democratic Gov. Mark Dayton and top Republicans unraveled over Dayton's proposal to impose taxes on the state's top earners, a move on which top GOP officials have refused to budge.
"It's significant that this shutdown will begin on the Fourth of July weekend," Dayton said in a news conference late Thursday night. "On that date we celebrate our independence. It also reminds us there are causes and struggles worth fighting for."
Dayton said he has been clear with state GOP leaders for several months that that he is unwilling to agree on anything other than a total budget approach.
GOP leaders said the two sides were closer than Dayton is leading on, and have criticized his refusal to call a special session to pass a "lights on" budget bill, which would maintain safety funding at current levels to keep government running. GOP leaders have said that the bill is a two-page document that is ready to be passed, according to Minneapolis- St. Paul ABC News affiliate KSTP.
"I think the governor's insistence that we pass a full budget is not going to be of much comfort to Minnesotans who are going to see delays on the highways because construction projects stop," Senate Majority Leader Amy Koch said. "It's not going to comfort people who can't use our state parks, or who can't get a driver's license."
If the Minnesota impasse is any indication of the future of the debt ceiling debate, in which republican don't actually fold like a cheap suit, get your VIX, MOVE and popcorn calls ready in late July.
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And the zoo.
Won't be going to Minnesota then. What's Idaho like this time of year?
It simply doesn't get any better. ;>)
Radiated.
Away from Salt Lake into the North, it's close as you can get to heaven. Now of course all the immigrants fleeing California have also settled the area...
No matter these States are insolvent and consumer confidence is plunging...the stock market is soaring higher every day.
I am expecting another year of Record High Mega-Bonuses to be announced by His Majesty any day now.
Interesting list. If you look at the details regarding these closures, it seems like rather than saving money for the state, they will instead create more debt. For example, they will close the zoo to the public but will contiune to employ zoo keepers and care for the animals as usual. That means that while the amount they will spend on maintaining the zoo will remain unchanged, they will lose all the ticket sales. Same thing with state parks - no revenue from people visiting the parks but they will not halt the payments to all those involved in maintaining the parks. Overall this seems like a really dumb solution to being in debt.
I understand that they cannot let the zoo animals fend for themselves during the closure, but why rid the state of revenue sources???
And what's with the idea that they will keep collecting tax money for services they do not intend to provide? Seriously, if you pay for a construction project and the crew tells you that they will not work on that project, why would you be obligated to keep paying their fees?
Here are solutions that would make far more sense:
Cut the number of prison staff and no visitations or other costly rights for now.
Cut all non-emergency medical care without private reimbursement (insurance or cash). This is what medicaid should have been in the first place.
Close the schools. It's Summer anyway. Those in college, should get a job for the Summer. Those who cannot find a job, can join Americorps as volunteers and work on those road projects.
Let people buy tickets for the zoo, national parks, spend money on racetrack, buy game licenses and go hunting, fishing,...
Consider this curve ball. You can't join the Peace Corps if your debts are not current and you have no means of keeping them that way. I shit you not--Uncle Sam is the banksters' enforcer, even in his Love and Peace on Earth costume.
So, when do we start selling our state park-lands, state highways? When do we privatize the fire, police, and other social services by selling them off to the highest bidder? Sooner or later the banks will want to collect.
I suspect contracts for the mass graves are already signed with properly private parties.
Man, I guess the state should have thought of that before they went into debt.
I hail from 612 the Shutdown Impacts state parks,Horse track,lottery,The Zoo,Correction officers at state prisons are working without support staff,State tourism office,Many licensing boards for occupations from physical therapy to private detectives,Various state licensing offices, such as for driver's licenses and car registration. Grab a snickers bar it may be a while ...
Listen my friends, what's so bad about the government shutting down?
http://wisdomandword.blogspot.com/
Shut it down! I am sad that on this site of all places, we are not celebrating the closing of the beast. Let them close half the beast at their convenience. Let them close the Washington monument, and libraries and all things they think people like. After a while when sheople realize "less government = more freedom" no matter the circumstances.... think of the possibilities........ Shut it down.
So, let's see what was dragging budget talks down in Minnesota
http://minnesotaindependent.com/83578/gop-pressed-for-abortion-stem-cell-research-bans-during-budget-negotiations
CA is starting to use BofA Visa debit cards to distribute unemployment benefits.
http://www.edd.ca.gov/About_EDD/The_EDD_Debit_Card.htm
Old school 612 reporting in. Glad the MN .gov is "shut down". This whole thing is an empty parody, a side show circus to the real undercurrent that no one seems to realize. Oh well...
For the people across the planet who have no idea what the state of Minnesota is, it is called the "Land of 10,000 Lakes" and in the local vernacular, the "Land of 10,000 Taxes". Minnesota has had a long tradition of liberal values, including monstrous social safety nets. In the 1980's there was an influx of people who moved to Minneapolis from other cities because of the generous welfare, aka "Moneyapolis". Soon after, these same welfare carrion ingrained their social values into the neighborhoods and then Minneapolis was known as "Murderapolis". Thanks crack cocaine.
Now the entire metropolitan area of the Twin Cities; Minneapolis, the state capital St. Paul and the outer ring of suburbs is packed with immigrants both domestic and inter-national. There are huge Hispanic, Hmong and Somalian communities. I have nothing against immigrants, everyone should have the same opportunity to live and learn. After all, some of the fastest quality machine operators I have had the pleasure to work with have been from SE Asia.
Seriously tho, Minnesota is a great place to live but man... too many taxes. County fees I don't mind but the state level taxes combined with the berzerk entitlements and welfare state is gonna kill everything. If Minnesota were to eliminate the state income tax, property tax and corporate tax it would trigger a blitz of economic activity. Corporations and people would pile drive in. But we are stuck with Mark Dayton, Amy Koch and the inertial properties of the status quo...
meanwhile California passes budget without IOUs
I was there in front of the Capitol last night when they literally shut off the exterior lights at midnight. I failed to catch that on tape, which would have made a fine visual metaphor for you Hedgers!!
Set sail for fail -- free community dinners at Powderhorn Park 5PM every night of the shutdown. shutdownriseup.org !
is governor Dayton a man of his word? I think not, as he was against a government shutdown, then he was for a government shutdown. Mark Dayton born with silver spoon attached to his mouth has never worked a real job in his life, and he's got access to mega millions of inherited wealth. Mentally his socialist liberal guilt just cannot take it anymore, so shut it down and blame it on the conservatives who Minnesota voters overwhelmingly chose last year to manage the State of Minnesota's checkbook have already given him more than this flip flopper elitist socialist deserves.
http://www.minnesotamajority.org/Hidden/ManofHisWord/tabid/207/Default.aspx
Reposted from above
So, let's see what was dragging budget talks down in Minnesota
http://minnesotaindependent.com/83578/gop-pressed-for-abortion-stem-cell...
Ok so Im from Minnesota but got the fuck out of there and am happy in Costa Rica.
Come down and enjoy it if you can.
So anyway I wonder why the Canturbury Horse racing track is closed down. I send an email to my friend there there and he responds:
The deal with Canterbury is they need to have a person from the Gaming Commission on site and with the State shutdown, those people are on furlough.
Canterbury offered to pay for the person (they already do, but make a direct payment) and they were turned down. Over 1000 people out of jobs, for
now. Great government.
What a great system. Shut down a money making operation.
Fucking idiots.
This is nice news ...
Twin Cities Roads Starting to Buckle Under Near Record HeatTiming is not ideal with thousands of people heading out of town for the 4th of July weekend and the state government shutdown.
Traffic management cameras have been shut off making it difficult for the media to give live updates. MNDot's website, which updates traffic conditions, has not been updated since 5 p.m. Thursday and their offices have been closed.
Emergency MNDot workers are still on the job. MNDot officials told KSTP Friday, crews will be out to fix these roads, but say it could take longer than usual.
The temperature reached 97 degrees Friday, just 3 degrees shy of the record set on this day in 1883. When you factor in the heat index it feels like 107 degrees outside.
And they shut off the cable TV at the prisons and no movies there playing games up here with people's lives the prisons did lay off more then just support staff. Stay tuned things are going to get ugly ...
Let all of the "functions" grind to a halt. If they need to get done, they will get done. If they don't, they won't. Have some faith in your fellow man and otherwise, Tough sh!t.
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