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State Representative Denny McNamara
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-3135
For more information contact: Jason Wenisch 651-296-2317
NEWS COLUMN
NEWS AND VIEWS WITH REP. DENNY McNAMARA
Hi everybody,
On December 2, several of my House colleagues and I attended a meeting with state economists to discuss Minnesota’s financial situation. I admit I wasn’t expecting much holiday cheer from these folks, but I also wasn’t expecting this large of a deficit.
The expectation was that Minnesota might have a budget deficit that ranged between $500 and $700 million. The reality is that lawmakers must solve a $1.2 billion deficit by the end of session.
State economists noted that the current recession is the worst in 60 years, and that Minnesota wages and employment have fallen more than previously forecast.
While corporate taxes are $54 million above forecast, state income tax revenues are $827 million below the previous projection, while sales taxes are $32 million lower and all other combined taxes are $351 million under projection.
Incoming revenues simply are not coming close to keeping pace with state expenses.
More grim numbers: Minnesota is expected to lose 150,000 jobs between the first quarter of 2008 and the first quarter of 2010. If that forecast hold true, more than a decade of job creation will be lost.
The experts also say these job losses have been accompanied by record declines in total wages paid to our workers. Minnesota wages and salaries had not declined on an annual basis since state wage data was first reported in 1970. Through mid November, wages were on pace to decline by 5.5 percent.
In other words, it’s likely that you or some of your neighbors are having difficulty buying some Christmas presents this year due to significantly reduced salaries or a family member being unemployed.
What a mistake it would be to raise taxes.
Like the citizens of Minnesota, it’s time for the state to live within its means. Though this economic news is disappointing, we should use it as a way to improve government and improve Minnesota’s future. There’s never a better time to reform government than during times of economic crisis because you are looking for ways to do more while spending less.
As you look to balance your personal budget this holiday season, I’d like to know how you think the state should balance its books. How would you solve this economic problem? Which government options should be left off the table? Feel free to contact me any time at the office at 651-296-3135, at home 651-437-2597, or email me at rep.denny.mcnamara@house.mn.
Keep in touch,
Denny
News Items
- NEWS AND VIEWS WITH REP. DENNY McNAMARA - (Posted: 2012-05-09 00:00:00)
- NEWS AND VIEWS WITH REP. DENNY McNAMARA - (Posted: 2012-05-02 00:00:00)
- NEWS AND VIEWS WITH REP. DENNY McNAMARA - (Posted: 2012-03-23 00:00:00)
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