Government of Minnesota shuts down on a budget impasse - Los Angeles Times

The State Government closure had an immediate effect on the Minnesota Zoo, who was among several government entities, pleading for a special dispensation. (Andy King, Reuters / July 1, 2011)In a year of political confusion of budget deficits deep, Minnesota Friday became the first State to close his Government after the Republicans and the Democrats remained in disagreement over whether to raise taxes for the rich or to reduce government spending.

Democratic Governor Mark Dayton and the GOP controlled legislature failed to solve the deficit of $ 5 billion of the State at the beginning of the exercise Friday. Without a budget in place, the State largely operations cease, stopping payroll for approximately 20,000 employees of the State and State Parks form just before the end of busy holiday week.

Dayton wants to increase taxes for individuals earning more than $ 1,000,000 per year, while Parliament provides for deeper cuts in government programs.

"We divided the Government and a Governor who believes that he has mandate to raise taxes and increase spending, and we have a legislature who believes that we should cut taxes and reduce expenses, said House Leader of the majority Matt Dean." "It is a sort of microcosm, in country, of what is happening in the whole of the nation".

Democrats and Republicans fought way across the country on how to fill deficits. In some States, budget negotiations went to the wire of the financial year ended.

In Connecticut, Parliament early Friday approved a budget that allowed Democratic Governor Dannel P. Malloy to lay off thousands of workers of the State for a deficit of $ 1.6 billion. In California, after the first budget that sent the legislature veto Governor Jerry Brown has signed a budget Thursday that deep cuts in higher education and elsewhere and has assumed billions of dollars in new revenues to avoid spending reductions, perhaps including trimming days of the school year.

In Washington, D.C., the political divide on the national deficit is similar. Republicans who control the House of representatives refuse to raise the debt ceiling unless Democrats agree to a package of cuts and not these increases in spending. Many economists believe that failed to raise the ceiling by 2 August could send the country into a new recession.

Party leaders quickly released Minnesota statements Friday blaming each other of the closure.

"Republicans put of millionaires in Minnesota and he has led our Government of the State of judgment to protect a handful of rich residents of our State, said Ken Martin, President of the democratic-Farmer-Labor Party." "Their choice to force a closure is myopic, self-centered and shameful".

Chairman of the Republican Party of Minnesota Tony Sutton shot back: "what a piece of work is Governor Dayton." It is committed not to close the State on an increase in the tax on the campaign trail. Tonight he breaks that promise, making the closure of its closure. »

The retired judge who was appointed master special to oversee the closure decided that all non-essential operations must cease until a budget is approved. Prisons of the State and execution and the fire-fighting agencies remain operational. Institutions such as shelters for battered women and the Minnesota Zoo pleaded Friday for a special stay open exemption.

Dayton Office told journalists to Minnesota was unlikely, that he could negotiate with the Republicans until after the end of week of vacation, a time when lawmakers are sure to receive a say scandalised constituents.

"People are angry," said Kathryn Pearson, political scientist at the University of Minnesota. "But the political bases are not necessarily urging compromise." They urge their representatives to hold firm. »

Republicans offered a two-page budget draft "lights on" which would have kept the operational state for 10 additional days. Dayton has rejected this, saying that he wanted a full budget. In a late-night Thursday press conference, the Governor has blamed Republicans for the impasse. The two parties are spaced $ 1.4 billion.

"Instead of the imposition of their friends, they would prefer highly damaging cuts to health care, K - 12 and higher education, State and local public safety, transportation and other essential services," Dayton said GOP lawmakers.

Dayton was closely won the election year last on a platform of more taxes for the rich. Republicans took the statehouse at the same time, committing step of new taxes and deep reductions in government spending.

Pearson said that Dayton can have the upper hand, only because it is not for his re-election until 2014 and legislators must face voters in next year. "More that goes," she said, "the more it will be an issue in the November of 2012".

Nicholas.Riccardi@LAtimes.com

Budget Impasse hardening despite the decision by the Senate to cancel break - Fox News

The Senate has pencil in extra time to work on a large budget before a period of 2 August, but instead to move to the workplace both sides are digging hard on their conditions of deficit reduction.

Tension threatens to keep the negotiations collapsed when the Republican negotiators left last week offline. GOP lawmakers want major budgetary expenditure under an agreement to raise the ceiling of the debt-to-something that the administration of Obama, said should occur before the August deadline to avoid the risk of failure - and left the discussion out of concern that the Democrats were pushing too hard for tax hikes.

But while Democrats said they were ready to accept certain budgetary expenditure, the Obama President clearly at his Wednesday Press Conference that he will continue to push for the increase of taxes under an agreement.

The Senate had acceded to a request presidential Thursday - the House set aside its July Fourth recess and ready to return to session from Tuesday, after that Obama complained that Congress was not so sharply that he was.

But there was no indication that both parties had made progress in the resolution of their Chief disagreement.

When the Senate Leader of the minority Mitch McConnell, R - KY, invited Obama to meet with legislators on Capitol Hill GOP on Thursday afternoon, the White House pushed back.

A not only Obama topic in Philadelphia Thursday to attend democratic fundraising activities, press attached White House Jay Carney rejected invitation McConnell, saying: he had "guest simply the President to hear what would not pass.". This is not a helpful conversation. »

Later, donor, Obama reiterated its call for spending cuts and new tax revenues.

"The truth is that you could be on the back of a napkin how to get this thing done," he said. "The issue is political will."

Legislators could even not so much time to reach an agreement as the administration. A democratic official with knowledge of the debt talks said an agreement is necessary in two to three weeks to allow procedural hurdles.

"If the markets are beginning to respond to, and then we waited a day too long," said official Fox News, noting that the House led the GOP has a rule for three days for the success of the Bills.

The official said an agreement is needed by July 22, nearly two weeks earlier than the date limit of the Treasury Board, although some on Capitol Hill have called date Treasury a tactical scare to push an agreement.

The Secretary of the Treasury Tim Geithner has extended the time three times in the past.

The issues of the debate was underlined at the Executive a Standard & Poor said the credit rating agency would give the Government its rating lowest legislators should fail to agree on the debt limit lift and cause a federal default.

Should that works, that s & P would decrease the rating U.S. AAA to D, John Chambers, CEO of sovereign ratings for the company, said Bloomberg Television.

Obama said that in the talks, the Republican and democratic negotiators found over a potential $ 1 trillion in spending cuts over the next decade, including reductions driven by the two parties.

The White House also offers approximately $ 400 billion higher tax revenues. The Republicans do not want to tax increases and cuts in spending more important than the Democrats have proposed.

Increase the current limit of debt by about $ 2.4 trillion was to carry the Government until the end of 2012, thus avoiding another vote of the Congress on the issue until after the next presidential and legislative elections. Republicans insisted on any extension of coupling at least an equal amount of budgetary savings.

The Associated Press contributed to this report.