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State Representative Tony Cornish
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4240
For more information contact: Jason Wenisch 651-296-2317
NEWS RELEASE
REP. CORNISH DISAPPOINTED WITH LATEST STATE ECONOMIC PROJECTIONS
ST. PAUL – The number is $4.8 billion. And it represents the largest state budget deficit projection Minnesota has ever faced.
“This is exactly why I’ve been preaching for fiscal responsibility at the Capitol over the past six years,” Cornish said. “We continue to spend money faster than we can collect it, and now that we’re in a recession we are going to face some significant consequences. People should be very upset that we are currently spending roughly $2 million per day more than we are taking in.”
The Governor’s Office also noted that Governor Pawlenty has the authority to trim some portions of the budget on his own through a process called unallotment. However, that can only happen once the remaining $155 million in state budget reserves is spent.
“I would support Governor Pawlenty trimming the budget before the first of the year,” Cornish said. “Somehow we have to derail the overspending train.”
Economists say tax revenues are down across the board, with income, sales, corporate, and motor vehicle taxes all seeing significant declines. Overall, spending is increasing by 6.1 percent, but revenues are falling by 1.8 percent.
In addition to the $4.8 billion deficit projected for the 2010-2011 budget cycle, Minnesota also faces a $426 million deficit for the current budget cycle, which must be eliminated by June. Cornish said raising taxes or cutting spending are basically the only options left to solve this economic problem.
“Minnesota’s families are already feeling the financial crunch, they do not need more money taken from them in order to fund additional state government programs,” Cornish said. “On the other hand, $4.8 billion is a significant amount to reduce from the state budget, so this will be quite a chore!"
“As your representative, I’d like to hear how you think we should put the state’s finances back in order, and encourage you to contact me with your thoughts and ideas.”
Cornish said comments can be emailed to him at rep.tony.cornish@house.mn, or you can reach him on his cell phone 507-380-5018.
Cornish also invites residents to learn more about the massive growth in state government spending over the past 20 years. Visit the website www.MNSpendingFreeze.com, and if you believe we should freeze spending to deal with the deficit, there is a petition to sign if you wish.
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