Last week, MNGOP leaders caved on spending, agreeing to meet Governor Dayton’s figure and pass a $35.7 billion budget after pledging to keep the budget to $34 billion. Their price, though, was that we had to borrow that new “revenue” irresponsibly rather than asking millionaires to pay their fair share. Yes, they chose stealing from our children over taxing millionaires.

Now, you might wonder, how will they explain to their base that they agreed to a compromise that spends almost $2 billion more than they had pledged ? As it turns out, the GOP’s irresponsible accounting gimmicks have provided them the perfect out. 

In their June offer that was the basis for the eventual compromise, GOP leaders clearly pitched their borrowing plan as “new revenue” (you can see a copy after the break). There would be $640 million in new money from tobacco bonds, and we would free up $700 million in new spending money by taking it from our schools, but still promising to eventually pay them their full appropriation.

As it turns out, though, that’s not how the official accounting [PDF] works (you can see a copy of this after the break as well). Officially, the $640 million in tobacco bonds is a “debt service savings,” while the school shift is classified as “shift savings.” That leaves us with a $34.3 billion budget after $1.4 billion in “savings.”

Our government has specific accounting standards it needs to follow, but we can all recognize that the accounting doesn’t match the reality here. That’s the whole point of this budget — it’s an accounting gimmick to shift money around and make the budget appear to balance on paper. That $1.4 billion isn’t a “savings” in any way — it’s borrowing. After accounting for the borrowing, this is a $35.7 billion budget.

Of course, that didn’t stop the GOP from pouring out press releases and letters to constituents, loudly proclaiming that they had held the line on spending. For example, here’s an excerpt from an email I received from the state party:

Forecasted spending was $39 billion; Gov. Dayton originally proposed $37 billion. The final figure signed into law was $34.3 billion – in line with the Republicans “first, last and best offer.”

Incredible. They’re not only trying to pretend that they didn’t offer $1.4 billion in borrowing as “new revenue,” which they did in black and white, they’re trying to pretend they didn’t compromise at all! We have a word for that, and it’s called a lie.

In a letter to constituents, Rep. Glenn Gruenhagen (R-Glencoe) repeated the absurd claim:

We passed a package of 12 budget bills last night and the governor signed them into law today. Our General Fund budget will be $34 billion. That is more than I thought we should spend, but it is still far less than the $39 billion we were projected to spend. It also is more palatable than the $37 billion Gov. Mark Dayton proposed.

There are more like that, but you get the idea. Trying to hide the fact that they caved on spending, and that their lone victory was maintaining special privileges for millionaires, the Republicans turned to trying to deny reality. And you can expect them to continue trying this trick all the way through the 2013 legislative session. It’s our job to keep them honest about their irresponsible borrowing.

Compromise Offer to Governor Dayton from Minnesota Legislature 20110630232030082

Senate Fiscal Staff Summary of Changes by Bill