Budget week continues here at The 19th Floor. Governor Dayton released his proposed budget today and the news isn’t good for low-income families and people with disabilities. Approximately 7,200 people would lose subsidized health coverage through the MinnesotaCare program. Providers of home and community-based services, such as personal care attendants and home care nurses, would have their reimbursement rates cut by 4.5% (on top of another 2.5% cut passed in 2009). People with disabilities might have a more difficult time finding and keeping quality caregivers.
It’s important to remember that these cuts are made in conjunction with a significant tax increase on Minnesotans earning $100,000 or more. Republicans in the Legislature are already declaring the budget dead on arrival. But then Republicans must come up with a budget of their own that doesn’t rely on additional revenue. The depth of cuts such a budget will require may scare some legislators into compromising on taxes, which may be Dayton’s ultimate strategy. The problem is that much of the Republican leadership are Tea Party sympathizers who may be in no mood to negotiate. Both sides are claiming they don’t want a government shutdown, but it’s difficult to envision the road to a deal.
