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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
NEWS COLUMN
BEARD: Budget forecast shows the depth of government’s spending problem
State economists revealed the most up-to-date budget forecast on December 2 and, to no one’s surprise, it shows state government facing a significant deficit over the next three years. Adding in this budget and the next, the deficit tops $6.6 billion through 2013.
Those are startling figures because of their size, but the real surprise comes when looking at why we have such large deficits. State government spending is expected to jump by more than $7 billion in the next three years – an increase of 20 percent. That simply is not sustainable or in line with what the rest of the economy is experiencing. Government can’t keep spending more and more without regard to the economic reality citizens are experiencing.
And that reality is increasingly grim according to the forecast. More people are out of work and significant numbers of those who are still working are seeing their wages reduced. Economists expect employers will hold back hiring throughout 2010 as they wait to see if an economic recovery is sustainable.
Another reason employers are hesitant to hire is the looming threat of tax increases and energy costs because of potential cap-and-trade legislation. We can put those fears to bed right now if we assure them up front that we will not raise their taxes and will not support energy laws that drive up the cost of buying fuel and electricity. That is a commitment I am willing to make. With wages down and unemployment up, we cannot double down on bad news by telling people they aren’t paying enough taxes. Nor should we be passing laws that drive up the cost of heating their home and driving their car.
We also have to get serious about restraining government spending. With businesses and families cutting back by 10 percent, 20 percent, or more, I think it is reasonable to expect government to be able to cut back by 5 or 6 percent.
Much of what we hear in the economic forecast sounds like bad news, and there’s no debating the fact that it could certainly be better. But it is important to keep in mind that we have faced tough times before and made it through to see the other side. We will make it through these times as well, and what we create coming out of them will be the legacy we pass on to the next generation. We owe it to them to leave them a future with every opportunity for success, and I am confident they will take the world and make it better.
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