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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
NEWS COLUMN
CUTS ALONE PROVE TOO COSTLY
On the Minnesota Public Radio website, there is a link to a program called “Budget Generator", a tool that lets anyone interested try to balance the federal budget. I think it would be a very valuable exercise for Minnesotans to take a shot at balancing the state budget, as well, as it would help them understand the severity of the deficit and the tough choices that must be made.
When it comes to the state budget, most people don’t have strong ideas on what to cut, but everyone has ideas on what not to cut. Schools are usually off limit, as are programs for veterans, seniors and public safety.
The first place most people mention to cut is welfare, which is often blamed for our budget woes but actually represents just 0.8 of the health and human services spending. In fact, the federal government is rumored to be considering a multi-million dollar fine against Minnesota due to under - spending on welfare.
After the federal recovery dollars are factored in, we need to make approximately $4.6 billion in cuts (out of $35 billion) to be balanced. We did an exercise in the House that looked at what cuts of this magnitude would do. We cut 4.5% from education, 20% from tax aids and credits, 18.5% from the health and human services budget, 12% from energy, 15% from public safety and 22% from state government, to name a few. When we looked closely at the affects of these cuts, we saw they were so deep that nursing homes and hospitals would close – especially in Greater Minnesota, one or two state prisons would close and education would be decimated. We decided these cuts were too costly.
We went back to the table and came up with a budget framework that looks much like the Governor’s. Both plans include significant cuts, full utilization of the federal recovery dollars, and a delayed payment to education – which, while not our first choice, is still better than a cut. We both also fill in the gap with new revenue.
The Governor’s new revenue includes borrowing $1 billion from future state revenue, to be paid back over 20 years with $600 million in interest. He also uses money from the Health Care Access Fund (HCAF), which is funded by the medical community and meant to be used for health care spending. In addition, the Minnesota Department of Revenue estimates that his cuts to local government aid will result in over $600 million in property tax increases. His budget plan also begins 2012/13 $2.6 billion in the red, while the House plan is balanced.
Our revenue choices are currently being worked out in the various committees. Last session, we worked for tax fairness by asking the highest earners in Minnesota to pay the same rate in income taxes as lower and middle-income earners. I expect a similar proposal this time, although this increase alone will not get us to where we need to be. We will work hard, however, not to increase the burden for those Minnesotans who are least able to afford it – seniors, those living on a fixed income, hard-working families and the rising number of unemployed.
We also know that our budget is just a starting point, as is the Governor’s plan and the Senate’s. Please continue to contact me with your ideas and feedback on how we can best move our state forward. We are all in this together, and I’m looking forward to hearing from you. You can reach me at (651) 296-8237, 551 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.patti.fritz@house.mn.
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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