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State Representative Greg Davids
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-9278
For more information contact: Jason Wenisch 651-296-2317
NEWS RELEASE
REP. DAVIDS: ECONOMIC FORECAST IMPROVES SLIGHTLY, BUT DEFICIT REMAINS
ST. PAUL – Is Minnesota’s economy turning the corner?
State economists say Minnesota’s current budget deficit has improved, dropping from $1.2 billion to $994 million. But State Representative Greg Davids (R-Preston) said residents should read this news with caution.
“The budget deficit for 2010 certainly is better than expected,” Davids said. “But when you analyze the deficit projection for the next budget cycle you’ll find the problem is getting worse.”
Davids said that budget planning estimates for Fiscal Year 2012-13 now show a shortfall of nearly $5.8 billion, which is $363 million more than projected in November.
Declining income tax collections continue to hamper Minnesota’s budget. Economists say employment growth and wage growth in Minnesota continue to be remain a concern, as total wages paid in Minnesota are not expected to return to pre-recession levels until late in 2011 and Minnesota employment does not return to its prerecession level until 2013.
“These numbers are very concerning,” Davids said. “We are going to have many rough days ahead trying to eliminate our current budget deficit as well as taking a chunk out of next year’s projected shortfall.”
“Governor Pawlenty has already made his budget recommendations to eliminate the current problem, and I’m hopeful the majority party will soon unveil its budget plans so we can begin tackling this significant fiscal problem,” Davids concluded.
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- REP. DAVIDS SUPPORTS VOTER IDENTIFICATION AMENDMENT PROPOSAL - (Posted: 2012-04-05 00:00:00)
- REP. DAVIDS’ TAX RELIEF AND JOB CREATION ACT APPROVED BY MINNESOTA HOUSE - (Posted: 2012-03-22 00:00:00)
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