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State Representative Dean Urdahl
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4344
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LETTER TO THE EDITOR
Good news: We have a surplus
To the editor,
Recent news of our state's $876 budget surplus shows the benefit of being fiscally responsible and not spending more money than the state expects to receive.
We faced some incredibly difficult decisions in the Legislature this year as we sought solutions to eliminate the $5 billion budget shortfall our new majority inherited. Our state had just suffered through four consecutive years of shortfalls and all our reserve accounts had been tapped to keep our state afloat during those tough times.
Many of us believed Minnesota had a spending problem, so we focused on containing costs and improving government to maximize the effectiveness of our tax dollars. Indeed, our surplus is not attributable to new taxes, but rather to a state economy that is showing signs of growth. The Minnesota Management & Budget report which revealed our surplus indicates our state is outpacing the nation in lifting its economy from our deep recession.
I was confident the tough choices we made in 2011 would put us on a better path, but even the most optimistic projections did not foresee a turnaround this significant, this fast. Keep in mind, our new budget was just enacted in July. It will be interesting to see what is revealed in the next forecast set to be issued in February.
State statute mandates this surplus revenue be used to replenish our depleted reserves. This will be split between the state’s cash flow account ($255 million) and the budget reserve ($621 million). If the balance were larger, we could direct the additional dollars to accelerate the K-12 education shift. This may be something we maybe can visit when the next forecast is issued in February.
I am proud of the strides we made in our first year as a majority and it looks like our state is again pointed in the right direction. We must stay on task, however, because plenty of work remains and the perilous condition of the global economy is something we must acknowledge. Our approach must remain establishing a fiscally responsible plan to state spending and making long-term structural reforms.
More improvement is needed and I look forward to advancing new ideas as the co-chair of the House Redesign Caucus, a panel established with the charge of identifying systemic reform necessary to fix our structural budget flaws. Please continue providing me with your input on how our state can do things better.
Sincerely,
Rep. Dean Urdahl
News Items
- Mid-session review - (Posted: Mar 19 2013 12:00AM)
- State continues budget turnaround - (Posted: Feb 28 2013 12:00AM)
- Education issues at the forefront - (Posted: Feb 22 2013 12:00AM)
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