Conventional wisdom says the sign of a good compromise is when neither side feels happy about a resolution.  Unfortunately, the compromise that ended Minnesota’s government shutdown is the exception to prove that rule.  Now, as the federal government engages in its own game of “political chicken” around the debt ceiling, Minnesota’s experience can serve as a cautionary tale.

It’s hard to imagine anyone feeling good about the way the budget “negotiation” played out here.   We endured the longest shutdown in history, and we walk away without anything to show for it.  We have no vision… no direction… no sense for what Minnesota stands for and what our path for the future will be. 

Our Democratic Gov. Mark Dayton and our Republican leaders unfortunately seem to be continuing in the footsteps of Gov. (and presidential candidate) Tim Pawlenty, kicking budgetary problems down the road like an old tin can.  Minnesota is no longer the “State that Works.”  We've become a “State of Denial.”  

Governor Dayton had the best intentions going into this debate.  He ran for office saying he was going to increase taxes on the wealthy, and he seemed to be sticking to his guns.  The Republican legislature drew a line in the sand against ANY new revenue, and the shutdown was born.  In the end, the two sides agreed on some accounting tricks to pass the budget deficit on for others to solve.  In return, the Republicans agreed to drop a number of social initiatives they were pushing for around abortion rights and stem cell research, etc.

In the spirit of trying to learn from mistakes (and it pains me that Minnesota has become a national example for this) I offer a few guiding principles that may help federal negotiations and other states facing fiscal crisis.  If lawmakers can stick to these simple rules, maybe we can have an honest discussion, and we can rediscover the spirit of innovation, compassion, and community that is necessary for any healthy, thriving community.

Rules for a productive budget negotiation:

1.      Do your homework

The large number of freshmen legislators in Minnesota this session yielded a significant learning curve.  That was to be expected.  The problem was, many legislators seemed to operate on the assumption that they were there only to teach, not to learn.  They refused to listen to those who had been through these battles before (see the harsh reaction they had to an attempt by former Republican Governor Arne Carlson and Vice President Walter Mondale to help come up with a compromise plan).  The new guard demonstrated an arrogance, as if they had nothing to learn.

We can only hope that the newer members of Congress can be a little more humble, and a lot more intellectually curious.

2.      Don’t be afraid of creativity

One of the stumbling blocks in this negotiation from the very beginning was that the Republicans painted themselves into an absolute:  no tax increases of any kind.  Yes, their constituents spoke loud and clear about fiscal responsibility, but that doesn’t excuse legislators from having to think in nuance, and it doesn’t mean they can’t get creative in the name of meaningful compromise.

The Republican Party has a long history in Minnesota of looking for creative, targeted ways to balance budgets using a combination of revenue and cuts.  It wasn’t until Gov. Pawlenty that revenue was taken off the table.  The Republicans need to get back to finding ways to stay true to their ideals, without locking themselves into a simple catch phrase like “no new taxes.”

3.      Stop the "rich people are overtaxed" myth

The argument against taxing the wealthy often hinges on the fact that the wealthiest five percent of the population pays 50-60 percent of the income taxes in the United States.  On its surface, the argument seems to make sense.

But it’s also true that the top five percent control the vast majority of the wealth in our country.  (By many estimates they control 70-80 percent of the wealth, leaving the other 95 percent of us fighting over 20-30 percent of the money).  In that light, shouldn’t they be asked to pay a similar proportion? 

I’m still amazed and confused by the number of low and middle income people who fight the idea of tax increases on the rich (when many wealthy Americans are open to the idea).  Honestly, the wealthy don’t need us to defend their interests.  And if you still believe in “trickle-down economics” you need to ask where the trickle down from the Bush tax cuts has been landing.

4.      Stop the "rich people will pack their bags and leave to avoid taxes" myth

Do we really think our wealthiest citizens will move away if they are asked to pay more taxes?

Minnesota has always been a relatively high-tax state.  Despite this, we have built a disproportionate number of Fortune 500 companies.  We have produced millionaires and billionaires who love the state, appreciate the quality of life here, and give back generously. 

5.      Focus on the real problems

One of my issues with the Minnesota “compromise”is Gov. Dayton’s insistence that social issues and proposals by the Republicans (abortion issues, voter ID, etc.) be dropped in exchange for a no new taxes “solution.”  This contingency makes no sense other than as a way to alleviate political headaches.  In essence, it rewards the Republicans for raising these sidebar issues in the first place when the focus should have been on the budget and nothing but the budget.

I can already imagine the attempts to line up even more “social ammo” for the next negotiation, under the theory that it can be used as political capital once again.  Let’s hope we can avoid these distractions and become laser focused on our economic future.

The political brinksmanship of a government shutdown threat should not be taken lightly.  In Minnesota, it’s unfortunate that our Governor didn’t stick to his guns through the shutdown to finally force movement on revenue/taxes. 

I hope President Obama doesn’t look at Minnesota as an example.  It’s time for a leader to draw a new line in the sand, and to finally force open discussion about revenue, rather than just cuts.