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Minnesota House of Representatives

State Representative Denny McNamara

359 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-3135

For more information contact: Jason Wenisch 651-296-2317

Posted: 2008-12-04 00:00:00
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NEWS COLUMN

NEWS AND VIEWS WITH REP. DENNY McNAMARA

Hi everybody,

For many months, people around the Capitol had been predicting that the
Legislature would be facing a budget deficit when lawmakers returned to
St. Paul in January. But few would have guessed the actual projection
would be the largest in the history of the state.

State economists released the staggering figures on December 4, and
they are unbelievable. Minnesota is now projected to face a $4.8
billion budget deficit for the 2010-2011 budget period, as well as a
$426 million deficit for the current budget cycle, meaning we have a
$5.2 billion gap to fill.

To say eliminating this shortfall is going to be a difficult task is an
understatement.

What has caused our economy to sink? Declining tax revenues.
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.

To put it in more clear language, the state is spending roughly $2
million per day more than it is taking in. And the longer we wait to
solve the problem, the worse it is going to get.

Our options our slim, as there is only $155 million left in state
budget reserves. Which means we’ll either be raising taxes or cutting
spending.

I’m a strong believer in keeping all of our options on the table as
we work to balance the books. But the first place we should be looking
to save money is through spending reductions. Minnesota’s families are
already struggling to make ends meet and are forced to make tough
choices every day regarding how to spend their money. There’s no
reason state government shouldn’t operate in the same fashion and
learn to live within its means.

I am hopeful that a majority of lawmakers will join me in trying to
turn this negative into a positive. Now is the perfect time to reform
the way state government operates.

With a $5.2 billion hole in the budget, we need to analyze the way
government does business and find new ways to create more efficiency.
We need to find ways to do more with less money. And we need to do this
while protecting Minnesota’s core priorities - education,
transportation, health care, and the environment.

We have many innovative minds at the Capitol, and I’m confident we
can solve this financial crisis if we brainstorm, stay positive, and
work together in a bipartisan way. There’s no doubt we have a
significant challenge ahead of us, but we’ve been through it before,
and we’ll get through it again.

MET COUNCIL OPENING
I recently learned that Brian McDaniel, who represents District 16 (or
Dakota County) on the Metropolitan Council is resigning effective
January 1, 2009. If you live in District 16 and are interested in
applying, you’ll need to complete an Open Appointments Application
Form from the Minnesota Secretary of State’s website at
www.sos.state.mn.us, or by calling 651-297-5845. Applicants are asked
to attach a current résumé to their application. The deadline for
receipt of all application materials is Tuesday, December 23, 2008 at
4:30 p.m.

Keep in touch,

Denny

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