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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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MINNESOTA JOBS DEFICIT WREAKS HAVOC WITH STATE BUDGET
St. Paul, MN – Minnesota's projected budget deficit for the remainder of the 2010/11 budget cycle is another $1.2 billion, according to the November budget forecast released on Wednesday by the Minnesota Department of Finance. This follows on the heels of a $6.4 billion deficit announced last February. The structural shortfall for the 2012-13 biennium could run as high as $5.4 billion.
State Rep. Patti Fritz said the details of the report reaffirm the need to create good-paying jobs in Minnesota.
“We learned today that Minnesotans are currently working fewer hours per week than any time since the Great Depression," said Fritz. “As a result, not only are Minnesota families hurting, but we’re experiencing the biggest two-year drop in state revenue since WWII.
There can be no doubt that every group needs to work together if we want to succeed: business, labor, urban, rural, Democrats and Republicans need to unite for the good of our state.”
Fritz said she was concerned to learn that the first pot of money the Governor will consider for cuts is Local Government Aid (LGA). $400 million is designated to be disbursed to cities at the end of this month; if this money is cut, local governments will have two choices – cut services or raise property taxes. Since 2003, cuts in aid to cities and counties have contributed to a 63% increase in property taxes – over $3 billion.
“Our local homeowners are already struggling to keep their homes, another round of property tax increases could be the final straw for some,” said Fritz. “I believe I speak for most homeowners in our district when I say I hope we can find a different way to address this deficit.”
Governor Pawlenty has indicated the only option he will consider to fill the budget shortfall is spending cuts. Fritz said she hopes the Governor will provide the legislature with his proposed cuts as soon as possible so they can be considered by both the House and the Senate. She also expects House members to begin work soon on where they believe cuts can be made.
“We have to be careful not to cut off our nose to spite our face, however” said Fritz. “Sometimes what looks like a good idea at first creates bigger problems in the long-run, like cutting hospital funding that ends up closing the hospital, or school funding that cripples public education.
It is also critical that we map out a long-term plan to get Minnesota off this deficit roller coaster in future years.”
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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