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State Representative Pat Garofalo
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-1069
For more information contact: House GOP Communications 651-296-5520
GUEST COLUMN
BATTLING THE BUDGET
State Representative Pat Garofalo
District 36B
Anyone who has picked up newspaper in the last month knows about the Minnesota budget situation. It’s ugly. We face a $1.2 billion deficit in 2010, and that number is expected to increase to $5.4 billion in the next budget. We need to make dramatic structural changes to bring our spending back down to sustainable levels and balance the budget.
Why the $1.2 billion deficit? The answer is quite simple really; we spent more than we made. The budget is initially crafted around revenue projections rather than actual revenue. This can cause major headaches when unemployment rates rise, and the state brings in less income tax revenue than projected. According to a recent report from an independent investment firm, nearly $1.1 billion of the current shortfall is due to the lack of income tax revenue.
I have spoken with many of you looking for work, struggling to make your next mortgage payment. Your government simply cannot go on with business as usual. Setting spending limits is a great start, but we need to spend less, much less. Minnesotans are cutting back and saving as much as they can. Lawmakers need to do the same thing. This means making difficult decisions and restructuring government to operate more efficiently.
We must also create more private sector jobs. Legislative leadership has made passing a billion dollar borrowing plan their top priority for the session. The goal is to take advantage of lower construction prices and provide jobs, mainly in construction. The problem is these jobs are mostly short-term. Our top priority should be figuring out how to fill the $1.2 billion hole in the budget before we borrow another billion.
More spending and further government expansion is not the right way to create jobs. We need to make Minnesota a more business-friendly state. According to the Tax Foundation, Minnesota’s business climate ranks 43rd, and the state has the 3rd highest corporate income tax rate in the nation. This must change. We have created a climate of uncertainty keeping job providers from expanding and also causing them to leave. We need to remove burdensome regulations to facilitate job growth in our state. We should empower local businesses by putting the money back in their hands.
The budget deficit is a significant challenge but is one we can overcome. Legislators must work together to promote job growth and bring spending down to sustainable levels.
News Items
- GAROFALO ANNOUNCES BILL TO RIGHT-SIZE MINNESOTA LEGISLATURE - (Posted: Mar 7 2013 2:06PM)
- GAROFALO ISSUES STATEMENT ON GOVERNOR DAYTON’S BUDGET PROPOSAL - (Posted: Jan 23 2013 3:47PM)
- GAROFALO PREPARES FOR NEW TERM - (Posted: Jan 9 2013 3:00PM)
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