Accessibility menu
State Representative Michael Beard
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-8872
For more information contact: House GOP Communications 651-296-5520
OP/ED COLUMN
CAPITOL COMMENTARY THE DEBT BILL
By Representative Mike Beard
District 35A
Coming into the 2010 legislative session House leadership made their top priority clear: pass a bonding bill quickly. On Monday night they moved the ball down the field a bit and sent the House bill to the conference committee. After four hours of debate, my better judgment compelled me to vote against the bill for a couple of key reasons: the priorities are not what I think they should be, and it is way too expensive.
I think a more accurate name for the bonding bill would be debt or borrowing bill. As the state borrows money to pay for projects around Minnesota, the debt service for the loan is paid out of the state’s general fund. The bill that passed the House on Monday is for approximately $1.2 billion (that number should look familiar because our current budget deficit for 2010 is also $1.2 billion). While I agree that there is a proper role for government to bond for projects of statewide significance, it must be fiscally prudent—that means it should be a much leaner and more focused bill.
Minnesota government must be more fiscally responsible. It seems reckless to borrow so much money with such a large hole in our current budget, especially with a future deficit of more than $5 billion facing the next legislature. We should be tackling this deficit before we even think about piling more debt on taxpayers.
This ever-growing debt is having an effect on our credit rating as well. On February 9, Moody’s changed Minnesota’s outlook from stable to negative. The reasons listed include: the large budget deficit, lower than expected state revenue, depleted budget reserves and continually using one-time resources to balance the budget. Borrowing another $1.2 billion is going to further impact our outlook in a negative way.
House leadership argues that this bill will provide jobs for Minnesotans, especially in construction, and that we must move quickly to take advantage of the full construction season. The trouble is most of these jobs are short-term, and the vast majority of these projects won’t even get off the ground this year. In fact, we already have more than $2 billion in authorized bonds that haven’t been spent yet. No stimulus jobs there!
We cannot borrow our way to prosperity. More spending and further government expansion is not the answer. We need to enact reforms and reduce the corporate tax rate to empower area businesses to bring on new employees and achieve long-term growth.
To be clear, there are some beneficial projects in this bill, but now is not the right time. It is also far too large, and its priorities are out of whack. We need to maintain roads and bridges, fund higher education and make sure the public is safe, but now is not the time to spend millions on shade tree programs and volleyball courts. The government cannot continue on with business as usual. Minnesotans everywhere are cutting back, reducing spending and living within their means. It is time for the government to do the same.
--30--
News Items
- Less Government Regulation Encourages Economic Growth - (Posted: 2012-02-27 00:00:00)
- MNDOT Awards Funding for Highway 101 Bridge Replacement - (Posted: 2012-03-30 00:00:00)
- Reform a Priority in 2012 - (Posted: 2012-01-25 00:00:00)
- Archived News Items
- Subscribe to RSS News Feeds
- Read more about RSS.