Steve Gottwalt

Recently, Representative Paul Thissen (DFL Minneapolis) argued in the St. Cloud Times that we should enroll poor people in the early Medicaid (MA) expansion program offered under ObamaCare. He suggested it would be foolish for us not to leverage the $1 billion Minnesota already spends on Medicaid to get more of those juicy federal dollars to help people in need.

But it is wrong to suggest we should prop up broken and increasingly expensive systems with money we do not have, making promises we cannot keep.

If Minnesota accepts the early Medicaid expansion, as Rep. Thissen suggests, we will short circuit needed reforms of public programs in our state, and push 100,000 Minnesotans onto a fiscally unstable program that will increase total health care spending, and cost Minnesota an additional $1 billion to implement. To make matters worse, the federal funding Rep. Thissen is so eager to grab is not assured after 2014, potentially leaving Minnesota taxpayers holding the bag. The early MA program also has virtually no asset limits, and no residency requirements, leaving Minnesotans to foot the bill for people beyond our borders.

Minnesota is already struggling to meet its share of Medicaid program costs, and Medicaid fails to pay hospitals and health care providers adequate reimbursement rates. As a result, more and more providers refuse to accept Medicaid patients, limiting their access to necessary care and making everyone else’s health care more expensive.

Medicaid costs are skyrocketing. Last year, Congress had to kick in $87 billion more in deficit spending to help states cover the rising costs. But it was not enough. Congressional Democrats are now pushing for another $24 billion in deficit spending to help states cover Medicaid costs for another six months. The Congressional Budget Office (CBO) cites federal health care spending as “the single greatest threat” to the nation’s budget stability in its report, The Budget and Economic Outlook: Fiscal Years 2010 to 2020. CBO Director, Doug Elmendorf, recently stated that putting the federal budget on a sustainable path would require a significant reduction in the growth of federal health care spending.

As chair of the Minnesota House Health and Human Services Policy Committee on which I serve, Rep. Thissen has presided over major expansions of state public programs while offering little in the way of real reform or cost containment. Instead, he and the Democrats in charge of the legislature have blocked real reforms I and others have offered that provide needed health care coverage while saving the state hundreds of millions of dollars.

Minnesota faces a projected $5-7 billion budget deficit next year, yet Minnesota’s health care and human services spending is set to increase another 30% in the next biennium. It is time to say “no” to making more Minnesotans dependent on broken government programs we cannot sustain, and “yes” to real reforms so we can keep our promises to those in need.

Rep. Steve Gottwalt
House District 15A
St. Cloud, Waite Park, St. Augusta and Rockville

NOTE: Sign-up for Rep. Gottwalt's E-Newsletters at http://www.house.mn/15a

Dear Neighbor:

The 2010 Legislative Session, and the brief special session, are over -- "sine die." Your State Legislature and Governor Pawlenty were able to reach agreement on a proposal that eliminates Minnesota’s $3 billion budget deficit for this year without tax increases, and without extending our time in St. Paul. I'm sure that's the result most Minnesotans wanted.

While I'm pleased we balanced the budget for this year, the deeper concern is for next year when we expect to face a state budget deficit of $7 billion. Unfortunately, the majority in charge of our legislature again managed to ignore our long term budget problems. This year's budget settlement does little to help grow private sector jobs, downsize government, reform state programs, or cut spending long-term.

The deal, reached just before midnight Sunday night, balances the budget primarily by shifting $2 billion of K-12 education funding to the next biennium, and approving Governor Pawlenty's unallotments for this year only.

It also includes a controvercial option for the next governor to put more than 100,000 Minnesotans into Medicaid through the ObamaCare federal health program. As I have mentioned before, tieing ourselves to ObamaCare is deeply concerning, especially since there is no assurance of federal funding for this after 2014. The entire cost would then fall on Minnesota taxpayers!

This year's budget settlement is a missed opportunity to reform government, and spend tax dollars more efficiently and effectively. Instead of working hard to set good priorities and live within our means, the majority in charge kicked the can down the road to next year when the challenge will be bigger than ever.

Again, for those who believe the solution is higher taxes on "wealthy" Minnesotans, the facts suggest otherwise. Minnesota's spending has grown at a double-digit rate for decades, while our economy and revenues have not. We cannot continue to grow government at the expense of jobs and job creators. It's killing the "goose" that lays Minnesota's "golden eggs."

The need for true reform could not be clearer! But this year, the legislature chose to ignore future liabilities for Minnesotans, and continue to deficit spend. (Frankly, that's the same approach driving our crippling federal deficit.) By permanently reforming government spending, we could have taken a significant chunk out of next year’s projected budget deficit. Instead, we’ve taken care of only the current problem, and will leave the future shortfall to a new legislature and new governor.

I have to admit, it's been great to get home after this session and see my beautiful family, enjoy the wonderful weather, and focus more energy on my "regular" job. I also know we have much more work to do! This summer, I will participate in legislative discussions aimed at reducing and streamlining the legislature and government, and moving forward with common sense health care reforms for state programs. We have a great deal of extremely challenginmg work ahead, and I appreciate your confidence in allowing me to represent you at our State Legislature.

Thank you, and please keep in touch!

Rep. Steve Gottwalt
House District 15A
St. Cloud, Waite Park, St. Augusta and Rockville

NOTE: Sign-up for Rep. Gottwalt's E-Newsletters at http://www.house.mn/15a

Dear Neighbor:

Today, we are on the House floor debating a budget proposal that only nibbles at the state budget, and still leaves it grossly unbalanced. Half way into our 2010 session, the majority has no plan for balancing our budget for this year or next biennum. Worst of all, this is expected to be the first of three steps the majority will use to box our legislature into a false choice between tax increases or K-12 education cuts. It is unfortunate such tactics are used when what we need is a global budget solution that sets good priorities and lives within our means instead of raising taxes and killing jobs.

Today, as I and others on our side of the aisle offer numerous common sense amendments to save real money toward balancing our state budget, the majority is rejecting nearly every single amendment, and using parliamentary rulings to avoid voting on many others. It is this kind of blind partisanship that stands squarely in the way of real solutions to our state budget deficit. We need a global budget solution -- not only for this year, but going forward. The minority has not offered any such road map, and they have done nothing to cover the $2.7 billion additional deficit we will deal with if they succeed in their lawsuit against the governor's unallotments from last year

Among the amendments I supported was one offered by Rep. Marty Seifert that would direct the state Attorney General to file a lawsuit challenging the federal government's authority to implement, and the constitutionality of, Obamacare. The amendment was budget neutral, and reflects the deep concerns of so many people over the massive government takeover Obamacare represents. The unfunded mandates to our state contained in Obamacare will add significantly to Minnesota's budget woes. Unfortunately, the majority used a parliamentary ruling to avoid voting on the amendment.

I have also joined members from both sides of the aisle, and both houses of the State Legislature, in directing the Attorney General to file a lawsuit against the imposition of Obamacare. The states of South Carolina, Virginia, Florida, Idaho, Alabama, Nebraska, Texas, Oklahoma, Pennsylvania, Washington, Utah, North Dakota and South Dakota have already declared their intent to file such lawsuits. The 10th Amendment to the U.S. Constitution protects the sovereign rights of states and of the people: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."

The unfunded mandates contained in Obamacare (HR3590) alone are considered a serious violation of the 10th Amendment. When I took the Oath of Office as your State Representative, I swore to uphold the U.S. Constitution. This destructive health care bill is a massive change, but it does not represent the common sense reforms we need.

I continue working on state legislation that would reform state health care programs to cover people in need by helping them afford market-based health care coverage in a sustainable, cost-effective manner. These reforms are estimated to save hundreds of millions of dollars at a time when we need to balance our budget. I will continue working to include these common sense reforms in this session's legislative action.

Thank you for staying informed about what is happening here at your State Legislature. It is an honor and privilege to serve as your State Representative. Please keep in touch, and continue to let me know how I can help!

March 19, 2010

(St. Cloud, MN) -- Local Republicans last night unanimously endorsed State Representative Steve Gottwalt to run for reelection in House District 15A, including the communities of St. Cloud, Waite Park, St. Augusta and Rockville.

Gottwalt is currently serving his second term as state representative for the district. In accepting the endorsement, Gottwalt said he is honored to serve local residents. "This is a critical time for our state and nation," he said. "Local residents are experiencing real difficulties making ends meet, and state government should follow the Hippocratic oath: First do no harm. We must rein-in government spending, and rebuild our economy by focusing on jobs creation. We do that by setting good priorities and living within our means instead of raising taxes."

Gottwalt recently participatd in listening sessions with area employers. "These are the hard working job creators we need to boost our economy," said Gottwalt. "Their unanimous message has been, 'Get out of our wallets and out of our way, and watch what we can do!" Gottwalt noted the property tax burden on Minnesota businesses is second only to Illinois, and our corporate income tax is the third highest in the world. "We cannot grow the jobs we need with a business tax and regulatory climate ranked among the ten worst in the nation," he said.

Gottwalt said he looks forward to an enthusiastic campaign focused on the issues of sustainable job growth, fiscal responsibility and government reform. "People are not happy about the unsustainable growth in government, and they're looking for a return to common sense leadership," he said. "We need to get Minnesota back to work!"

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