ST. PAUL, Minn. -- Governor Tim Pawlenty is weighing a decision that has implications for the state's bottom line and, quite possibly, his national political profile. The federal stimulus aid package that Congress approved last week will send roughly $260 million to Minnesota, but only if the governor okays it.
"By accepting this money, which will go into the cash flow account, it just gives the state a cushion," Rep. Erin Murphy, D - St. Paul told KARE Friday, "We don't have many cushions left. We're facing a $5 billion to $6 billion deficit."
Governor Pawlenty was campaigning for fellow Republicans in Oregon and Nevada Friday, but his spokesperson told KARE the governor was reviewing the aid package with an eye toward a September 24th deadline.
The only insight so far came August 10th, when Pawlenty reacted to Congress passing the legislation.
"The federal government should not deficit spend to bail out states and special interest groups," Pawlenty said, "Minnesota balanced its budget without raising taxes and without relying on more federal money. The federal government's reckless spending spree must come to an end."
Important Story Update: On September 7th, budget commissioner Tom Hanson informed lawmakers that the Pawlenty administration will apply for the $263 million in FMAP federal stimulus money. In a letter to U.S. Secretary of Health Kathleen Sebelius, Pawlenty said the appropriation was targeted to health programming consistent with how Minnesota currently structures subsidized health programs.
Originally banked on stimulus
Murphy, who is an assistant majority leader in the Minnesota House, was deeply involved last session in negotiations with the Pawlenty administration to ward off deep cuts to state subsidized health care.
"I'm surprised that he's contemplating this," Rep. Murphy said, "It's something that he has studied. It's something he's agreed to put it into his budget. I thought that was a thoughtful decision, and I hope he does that again."
