Shutdown in Minnesota racking up expenses

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Mark Dayton. | AP

Updated: July 8, 2011 4:56AM

Minnesota’s government shutdown is costing the state millions.

The shutdown began July 1 after the Republican-led legislature and Democratic governor could not agree on a way to fix the $5 billion budget deficit.

Gov. Mark Dayton wants to increase taxes on the upper class and has suggested a $1-a-pack tax on cigarettes. Both ideas were rejected by the Republican-led legislature, which wants to cut spending.

As the governor and the legislature butt heads, Minnesota residents go without state parks, lottery tickets or even a department of human rights. A hundred construction projects have been put on hold. Only departments deemed essential to citizen safety are operating.

Some 22,000 state workers have been laid off and are collecting unemployment and health benefits. The cost of notifying all 36,000 employees of possible layoffs cost $20,000.

The total cost of the shutdown will not be known until after it ends, but John Pollard, spokesman for the Minnesota Management and Budget department, estimated the known expenses of not operating, including:

† $52 million a month in uncollected tax revenue.

† $1 million a week in lost camping fees, gift shop and concession sales at closed state parks.

† $1.25 million a day in lost lottery ticket sales.

Pollard said the cost of not being able to collect parking fees will be considerable, but estimates for that and other functions of government aren’t known — because employees in those departments aren’t working.

Contributing: AP