Three ways to balance a budget
The problem: $4.56 billion deficit (for the 2010-11 budget period -- July 2009 through June 2011)
HOUSE DFL PLAN:
Tax increase: $1.5 billion for 2010-11
• Unspecified taxes, but income tax increase likely
Cuts: $843 million
• No reductions to K-12, early education or higher ed
• Health care, local government aid, public safety and environment funding reduced
One-time money: $1.7 billion
• Accounting shifts
PAWLENTY PLAN:
Tax increase: None.
Cuts: $2.4 billion for 2010-11
• Health care, local government aid take sharp reductions
• K-12 schools increased, higher education spared
One-time money: $2.2 billion
• $1.2 billion in accounting shifts
• $1 billion in tobacco settlement bonds
SENATE DFL PLAN:
Tax increase: $2 billion
• No firm details, but income, sales tax boosts possible
Cuts: $1.6 billion in 2010-11
• No exemption for education, most spending areas take a 7 percent, across-the-board cut
One-time money: None
Sources: House and Senate staffs, Minnesota Management & Budget
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