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FOR IMMEDIATE RELEASE: February 28, 2008                          
CONTACT: Jennifer Munt ▪ 651-287-0575 work ▪ 651-357-8544 cell

PUBLIC EMPLOYEE UNION RESPONDS TO STATE’S SHORTFALL
$1 Billion Deficit Requires Rainy-Day Reserves & Tax Fairness

Today the Pawlenty Administration reported that Minnesota’s budget shortfall has grown to $935 million.  With inflation, the shortfall is expected to top $2 billion for the 2010-2011 biennium.

Below is a statement from Eliot Seide, director of AFSCME Council 5, a union of 43,000 public and non-profit workers in Minnesota, including 19,000 state employees.

“Chronic disinvestment has created no new jobs and an economy that doesn’t work.  Tax fairness can raise the revenue to revive our economy and pay down three-quarters of the annual shortfall.  Let’s get the wealthiest Minnesotans, who earn over $400,000, to pay their fair share of taxes.  Let’s close tax loopholes for corporations that ship our jobs overseas.  And let’s eliminate unfair tax breaks for commercial/industrial properties.”

Based on the 2007 tax bill, tax fairness could raise revenue as follows:

“The recession is real – just ask the 33,000 Minnesotans who lost their jobs in the last six months.  It’s storming and we need to tap our billion-dollar rainy-day reserve to rescue our drowning economy.”    

“Governor Pawlenty’s no-new-tax pledge has caused real pain for real people.  Instead of putting money back in wealthy pockets, tax fairness will keep money in the pockets of hard working families, whose spending will jumpstart our economy.  The rainy-day reserve will help sustain the public services that make Minnesota a good place to live, work, and do business.”

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AFSCME Council 5, AFL-CIO
300 Hardman Avenue So, South St Paul MN 55075 • (651) 450-4990, fax (651) 455-1311
211 W 2nd Street, Duluth MN 55802 • (218) 722-0577, fax (218) 722-6802