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By Rep. Tom Hackbarth
I am proud of the work we have done the last two years at the Capitol. We created a leaner government, paved the path for more jobs in Minnesota and dramatically improved our budget outlook.
The budget outlook and increased number of jobs in our state go hand-in-hand. Through March, there are 41,700 more jobs in our state than before the new majority took over in January of 2011. That is a substantial improvement over the two years prior to that, when Minnesota lost nearly 49,000 jobs. Our unemployment rate is down nearly 1 percent in the last year and is 5.8 percent.
Our bottom line also is showing healthy growth as the improvements we made continue to produce results. We entered the 2011 session with a $6.1 billion state budget shortfall and now have a $1.2 billion surplus. Income-tax receipts are up and spending decisions we made are reducing costs. The budget we inherited had us on a path to spend $39 billion this biennium, but we brought that down to a more sustainable $33.8 billion.
We have spent a lot of time the last two years working on finding ways our government can make the best use of our tax dollars. We established the Sunset Commission, which already is identifying areas of inefficiency and recommending improvements or that we cease the practice altogether. Two ineffective government bureaus were canceled this year.
We also continue focusing on making Minnesota a better place to do business; the Tax Foundation ranks our business climate the 45th worst nationally. We improved our cumbersome permitting process to help prevent businesses from becoming discouraged by the process, but more work remains in this area.
Disappointingly, the governor vetoed a number of other bills we passed this session to make Minnesota a better home for businesses. Among them were two versions of the Tax Relief and Job Creation Act. This would have included property tax relief, a job credit for veterans and a research-and-development credit for business. There also was incentive to invest in start-up companies through an “Angel Credit.”
These are the things we need to help inspire private-sector businesses to invest, grow and create jobs on Main Street Minnesota. Small businesses are what drive our economy and can lead our full recovery from the recession. Work in this area should remain a top priority in the 2013 session. I encourage the governor to be more receptive to ideas that will help make Minnesota stronger.
Before I close, I want to congratulate Maggie Ewen of St. Francis for breaking her own state record by tossing the discus almost 173 feet. Good luck in the postseason, Maggie, and I hope you add to the three state championships you already have earned in field events.
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