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State Representative Sheldon Johnson
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4201
For more information contact: Matt Swenson 651-297-8406
NEWS COLUMN
PUTTING JOBS FIRST
The challenges facing Minnesota are unprecedented, and this week, the problem just got worse. State Economist Tom Stinson announced Wednesday what many were already expecting - the deficit got even bigger. After a record $6.4 billion state budget deficit last year, the state now faces another $1.2 billion budget gap in the months to come. But that’s not all. Another massive $5.4 billion shortfall is waiting in the following biennium.
Minnesotans everywhere are asking the same question: what happened?
According to Stinson, the state’s most trusted budget expert, this sudden drop in revenue is due in large part to the worst economic recession since World War II. In the last twelve months, Minnesota workers have seen the largest wage drop in recorded history. Nearly a quarter of a million Minnesotans are out of work. Many fortunate enough to have jobs have had their hours reduced dramatically.
All of this has created a perfect storm that has wrenched the budget into fiscal crisis. People are working less, earning less, and buying less - creating an even deeper hole in the state budget.
The new deficit is sobering news. It means more programs must be cut, and difficult decisions will need to be made in order to resolve Minnesota’s ongoing structural revenue shortfall. But in my opinion, the budget deficit pales in comparison to the jobs deficit we have in this state.
Stinson clearly stated this week that job growth alone won’t pull Minnesota out of this recession, and it won’t solely solve our budget problems. Deep cuts to programs may hurt our economy more than it could help, and taxes alone won’t resolve the whole problem either. Instead, it will take a concerted, balanced approach that aggressively pursues all three solutions; and one that explores new, innovative ideas that will spur economic growth and narrow the budget gap.
But our efforts must begin with jobs first. The economy has to be our main concern; and my highest priority is putting people back to work.
Federal and state job creation efforts made last year are beginning to work. State Economist Stinson told lawmakers this week that without Recovery Act funding and Minnesota’s bonding bill, this recession would have been the first depression since the 1930s. Stinson says another jobs-targeted bonding bill is one of the best things we can do to push our economy back in the right direction. I couldn’t agree more. I’ll do everything I can to put that bill on the Governor’s desk as quickly as possible this session so we can get people working again.
I have full confidence we can overcome these challenges and make Minnesota an even better place to live. Please contact me with your questions, concerns, and suggestions. I look forward to hearing from you.
Sheldon Johnson
State Representative
District 67B
(651) 296-4201
rep.sheldon.johnson@house.mn
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