Is there really a government shut-down in Minnesota?

Last night at midnight, our state government in Minnesota shut down. You may have already heard about why; the Republican legislature is fighting to avoid a tax hike on the 7,700 Minnesotans who make over $1 million a year (approximately 0.3% of the population) in order to deal with the $5 billion deficit left to us as a parting gift from former Governor Tim Pawlenty, who thinks the shutdown is a good idea.

It really is a microcosm of what is happening on the national level...Republicans blow up the debt and then hand it off to Democrats screaming that we have to "drown government in the bathtub" in order to deal with the crisis.

So now the battle begins to convince the public that the other side is responsible for the deadlock and the consequences people feel as a result of the shutdown.

The talk all over the state is to try and discern what is shut down and what is still functioning. Other than the fact that 23,000 State workers will be without a job or a paycheck, here's how the local paper is breaking it down. Much of the discussion in the news has focused on the fact that highway rest stops and the Minnesota Zoo will be closed. Of course, all state parks will be shut down as well. And that's a big deal in a state that depends a lot on the tourist industry "up north" in lakes country as we say around here - especially on the July 4th holiday weekend.

But that listing in the paper is a bit misleading. Here's one section:

Medical Assistance, MinnesotaCare, food stamps, welfare benefits, child support payments, county child protection services, refugee assistance, supplemental aid and some services for disabled people will continue. Child-care assistance, services for the deaf, Senior and Disability linkage lines, criminal background checks and food shelf distributions will stop. Licensing for food, beverages, lodging and swimming pools could be interrupted.

Medical Assistance (Medicaid) will continue - but it will not be because the providers will receive reimbursement from the state. It will be because they will continue to provide services and cover the loss of cash flow out of reserves until the shutdown is over. I know this because we receive Medical Assistance and are facing a cash shortfall of over $30,000 per month for the duration. How long our reserves will last is the question we've had to answer.

The other services they claim will continue are provided by Counties in Minnesota with reimbursement from the State. As a contractor with our County, I can say that we have been told that they will cover the cash flow out of their reserves for continuing services for 30 days. Then what? Who knows?

The number of services that the State, Counties and contractors/providers are having to fund out of reserves should be a testament to how important government is to the citizens of this state. The layoffs would be enormous and the number of important activities that wouldn't happen if we really shut down would be overwhelming. That's the bind Democrats are in...we care too much about the economy and people in need to let them really feel the wrath of it all. But there's a limit to how long we can do that.