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Minnesota shutdown could be more severe than other states’ past disputes

Minnesota is the only state to face the possibility of a government shutdown this year, but at least twenty states have had late budgets since 2002.

Jul 31, 2020
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Minnesota is the only stateto face the possibility of a government shutdown this year, but at least twenty states have had late budgetssince 2002.
Here are some states that have shut down over budget disputes:
Michigan, October 2007
Dispute: Lawmakers disagree how to close a $1.75 billion deficit
Resolution: Sales tax expandedto cover variety of services, income tax increase on wealthy
Length: Four hours
Pennsylvania, July 2007
Dispute: After not having a budget since July 1, Gov. Ed Rendell orders 24,000 government workers to stay home on July 9
Resolution: Governor dropsplan to plan to institute utility surcharge to fund clean energy
Length: 24 hours
New Jersey, July 2006
Dispute: Governor Jon Corzine’s budget includes raising the state sales tax from 6 to 7 percent to close a $4.5 billion budget gap. Assembly Speaker Joseph J. Roberts disagrees, along with the Democratic Caucus. 45,000 non-essential workers furloughed, Atlantic City casinos closed and casino workers stay home.
Resolution: Assembly Democrats agreeon sales tax increase and increases on car rentals, luxury cars, cigarettes and other goods, with half of the proceeds of revenue from sales tax going to property tax relief — New Jersey property taxes are highest in the nation.
Length: Seven days
Minnesota, July 2005
Dispute: State lawmakers and Gov. Tim Pawlenty reach an impasse over healthcare, education and taxes. Partial shutdown happens when 9,000 state workers are furloughed.
Resolution: On July 9, Gov. Pawlenty signs budget dealthat includes increases in cigarette and property taxes.
Length: Eight days
Tennessee, July 2002
Dispute: Republican Gov. Don Sundquist supports instituting a state income tax to close an $800 million budget gap in a $9 billion budget, while the state legislature opposes instituting an income tax.
Resolution: Legislators agreeto raising sales taxes, business taxes, and alcohol and tobacco taxes.
Length: Three days
The National Council on State Legislatures writesthat the Pennsylvania shutdown cost $3.5 million in lost wages, while the State of New Jersey missed out on over $3 million in revenue a day from the closure of casinos and lottery.
Minnesota Public Radio listswhat kind of services would be open or closed if the state government shuts down. However, this shutdown is likely to be worse than the past one — and many others — since many more workers will be furloughed, fewer services will be deemed essential, and the state is in economic recession.
Dexter Cooke

Dexter Cooke

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Dexter Cooke is an economist, marketing strategist, and orthopedic surgeon with over 20 years of experience crafting compelling narratives that resonate worldwide. He holds a Journalism degree from Columbia University, an Economics background from Yale University, and a medical degree with a postdoctoral fellowship in orthopedic medicine from the Medical University of South Carolina. Dexter’s insights into media, economics, and marketing shine through his prolific contributions to respected publications and advisory roles for influential organizations. As an orthopedic surgeon specializing in minimally invasive knee replacement surgery and laparoscopic procedures, Dexter prioritizes patient care above all. Outside his professional pursuits, Dexter enjoys collecting vintage watches, studying ancient civilizations, learning about astronomy, and participating in charity runs.
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