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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
STATE GOVERNMENT’S ROLE IN MINNESOTA’S ECONOMIC RECOVERY
The Minnesota Legislature reconvenes Thursday, February 4th. State lawmakers will return to St. Paul this week to face another large budget deficit with hundreds of thousands of Minnesotans still unemployed.
Our work ahead over the next four months will be difficult, and it will test our resolve as state leaders to make Minnesota an even better place to live. But working together, I am confident we can address our state’s many challenges, and begin the work necessary to move Minnesota out of recession and into a new era of prosperity and opportunity.
Still, Minnesota’s many challenges cannot be understated. Unemployment has improved since last summer, shrinking from 8.4 percent in June to 7.4 percent in December. But that is no consolation for the more than 10,000 St. Paul residents without a job right now, not to mention the 217,000 Minnesotans out of work statewide.
Without those thousands working, all Minnesotans are paying the price for this deep and difficult recession. As Minnesotans work, earn, and spend less, state government takes in less revenue – giving us less spending power to provide the basic services Minnesotans have come to expect and rely on.
Even after settling last year’s $6.4 billion deficit, the ongoing recession has caused another $1.2 billion revenue shortfall that must be resolved this year. State Economist Tom Stinson tells us that even after we resolve this year’s deficit, Minnesota faces another $5.4 billion budget deficit next session – due to the lagging, ongoing effects of this recession.
That’s why lawmakers can’t afford to make short-sighted political calculations any longer. In addition to finding solutions for our near-term budget deficit, we need to consider Minnesota’s future in every decision made at the Capitol. Yes, more difficult cuts will have to be made to balance the budget. But our decisions must run deeper than dollars and cents. Economic recovery and a stable fiscal future won’t come if we don’t focus on putting Minnesotans back to work.
State government can’t restore Minnesota’s economy single-handedly. State Economist Stinson has warned that much of Minnesota’s economic fate will rely on what happens globally. Congressional action, the work of private industry and business leaders, and the enduring strength of Minnesota’s small businesses will also play an important role.
That doesn’t mean the Legislature should sit back and do nothing. State lawmakers have a responsibility to do what we can to bring our economy out of recession and put Minnesotans back on the job as quickly as possible.
According to Stinson, one of our best tools in that effort is quickly passing a jobs-focused bonding bill in the first weeks of session. Passing the bill quickly will allow for the bids to be let before the ground thaws this spring, getting projects up and running and people back to work as soon as possible. A $1 billion bonding bill is expected to put as many as 8,000-10,000 Minnesotans back on the job. That’s 10,000 more people working, spending money in our local businesses, and paying taxes – it’s a step in the right direction.
In addition to a strong, jobs-focused bonding bill we need to do what we can to adopt common sense policies that will help our small business community get back on its feet. Freeing up needed capital, eliminating unnecessary regulatory barriers, and connecting small businesses with existing state resources will help small business owners begin hiring again. And when 97 percent of Minnesota’s businesses have fewer than 100 employees, lifting up small businesses will give a boost to the very foundation of our state’s economy.
Not all of Minnesota’s problems will be solved in the session ahead. The work, and the decisions that come with it, won’t be easy. But Minnesota is stronger, and our future is brighter, when Minnesotans work together toward a common cause.
That’s why I need your partnership this session more than ever before. You input helps me represent you better, and your ideas make a difference in the legislative process. Please contact me in the months ahead as we work together to meet Minnesota’s many challenges with common sense, responsible solutions. 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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