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State Representative Michael Beard
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-8872
For more information contact: Jodi Boyne 651-296-0640
HOUSE BRIEFS
WEEK EIGHT EMAIL UPDATE
Friends and Neighbors,
The biggest news item from the State Capitol this week was that the projected budget surplus remained well above the $2 billion mark, even though it dropped a fraction of a percent from earlier forecasts. Earlier this session I explained how “a fraction” in state budget terms can actually be a huge amount of money, and that is true in this case. State economists lowered their surplus projection by $7 million, which to any of us is a fortune. But in terms of a $31.5 billion state budget, it’s relative pocket change.
How will this affect the rest of the session? Probably not a whole lot. The forecast is that we will have just shy of $34 billion to spend, and that is the number we will use to set the state budget. The economists warned that there is still an amount of uncertainty in the economy (witness this week’s unexpected fall in the stock market) and we need to be prudent with spending and not leave ourselves in a tough situation if the economy takes a sudden downturn.
Of course, the good news is that half the surplus is already in the bank – it won’t change. I’m of the opinion that we should use that money to fund things that result in real and immediate economic growth. Boosting our state’s economy will help prevent a sudden downturn. We need to even out our economic rollercoaster so future generations do not have to deal with the volatile surplus-deficit-surplus cycle we have dealt with for the last 30 years.
Thank you again for taking the time to read my update and stay informed!
News Items
- 2013 Legislative Survey Results - (Posted: May 14 2013 9:07AM)
- State Budget Round Two: Increased taxes, spending on the horizon - (Posted: May 3 2013 10:27AM)
- Tax increases unnecessary with positive budget news - (Posted: Mar 11 2013 12:00AM)
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