For more information contact: Michael Howard 651-296-8873
Last week the House of Representatives DFL caucus introduced our budget framework to close our record $6.4 billion deficit. In these difficult times, our budget responsibly invests in the priorities that will lead us toward a strong and prosperous future.
Education is our best long term tool to bolster our economy and this budget maintains our commitment to our students and schools. Through the use of some federal economic stimulus dollars, as well as smart fiscal planning, early education, K-12 schools, and higher education all are spared the kind funding cuts that would cut teachers, increase class sizes or spike college tuition.
Deep spending cuts are required to close this deficit and it’s important to be straightforward about the impact of these cuts. We have proposed $1.6 billion in spending cuts and attempted to allocate these cuts fairly with a focus on job protection and creation. Looking inward, state government (that includes the Legislature) will receive the largest percentage cut. We attempted to minimize the damage these cuts will have on our most vulnerable citizens such as seniors and the disabled and have proposed far smaller cuts than the Governor in the Health and Human Services area of the budget.
There are several differences in the Governor’s and House proposal, but there is one critical agreement and one critical disagreement. Both the Governor and House proposal agree we cannot balance this budget deficit without the creation of new revenue. To do so would decimate the Minnesota we know and love. A “no new revenue" approach would cause job losses in the tens of thousands, including over 10,000 teachers. More school districts would move to a 4-day week and college tuition would soar. Hospitals, nursing homes, and at least one prison would close.
The critical disagreement in the two proposals is how we generate the revenue and who pays. The House proposal would raise $1.5 billion largely through a progressive tax increase on the wealthiest Minnesotans. The Governor would borrow $1 billion through a 20-year loan (to be paid off by future generations) and assumes $600 million in property tax increases through deep cuts to local government aid.
Whether or not to raise revenue isn’t the importation question – we already know the answer. The question is how do we raise the revenue? Do we raise it today, or should we ask our next generation to pay for it? Should the wealthiest Minnesotans share in the burden or should it only be lower and middle class homeowners?
From my perspective, and those of the vast majority of Minnesotans I have spoken with, these questions aren’t difficult. We should pass an honest, fair budget that asks Minnesotans to share in the sacrifices in order to responsibly position our state for brighter days.