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State Representative Patti Fritz
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-8237
For more information contact: Sandy Connolly 651-296-8877
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STATE FACES BUDGET DEFICIT
St. Paul, MN – The Minnesota Department of Finance released their November budget forecast today. According to their projections, Minnesota is facing a budget deficit of $383 for the next biennium. This represents a $773 million decline in projected revenues, minus $400 million that was not spent in the 2007 legislative session.
State Representative Patti Fritz said that while the state budget reserves are adequate to prevent serious cuts, the change in direction is a reflection of the lack of job creation in the last session.
"Last session, we passed a bonding bill, tax bill and transportation bill that together would have created well over 10 thousand jobs – all of which were lost when the Governor vetoed those bills," said Fritz.
"Today, Finance Commissioner Tom Stinson said that clearly what this state needs is more jobs. I couldn't agree more."
Factors that had an impact on this forecast include the cost of oil, the slump in the housing market, and the credit crunch in the financial sector. While these factors have negatively impacted the national budget forecast, as well, the state's forecast is even worse than the national outlook.
"Minnesota has always out-performed the nation in job growth and personal income growth," said Rep. Fritz. "As the result of budget decisions made over the past few years, we have now fallen behind the national average."
State Economist Stinson said Minnesota is creating about 12 thousand jobs a year; if the state was tracking with the national trend, that number would be closer to 30 thousand.
"People need to work, and when they work, they spend money," said Fritz. "One of our top priorities next session has to be passing legislation that will create many, many jobs for Minnesotans."
News Items
- STATE REP. PATTI FRITZ PARTICIPATES IN START OF LEGISLATIVE SESSION - (Posted: Jan 9 2013 3:32PM)
- Rep. Fritz: Homeowners, Farmers Need Property Tax Relief - (Posted: 2012-05-01 00:00:00)
- Rep. Fritz: Let’s Vote on a Bonding Bill that Benefits All - (Posted: 2012-04-19 00:00:00)
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