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State Representative Leon Lillie

371 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-1188

For more information contact: Michael Howard 651-296-8873

Posted: 2008-03-07 00:00:00
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NEWS COLUMN

Financial Shortfalls and Philanthropic Surpluses



The Minnesota Department of Finance released an updated state budget forecast last week that showed a larger than expected state deficit of $935 million.

This is a large and imposing number, but it is certainly manageable when compared to state deficits of the past. My colleagues and I are prepared to work with Governor Pawlenty to resolve this problem with a reasonable and responsible solution.

It is clear that some cuts will be necessary to balance the budget. That being said, we will not sacrifice the most vulnerable members of our communities to achieve a balanced budget. We will not cut funding to our children's schools and cram them into overflowing classrooms where overworked and underpaid teachers struggle to provide a high-quality education with little to no help. We must act with the state's short and long-term future in mind.

One of the largest reasons for the deficit is the state's loss of jobs. Minnesota lost 23,000 jobs in the last six months of 2007. Our job growth last year was zero. That is the worst run of Minnesota job declines since the 2001 recession. There is an estimated $313 million shortfall in the state's single largest source of revenue: individual income tax receipts. This accounts for 33% of the state's $935 million deficit. Fewer people working means less income tax money is coming into the state's general fund.

The recently passed transportation bill will create over 30,000 new jobs in the state and the bonding bill should add another 10,000. These jobs should ease the shortfalls in the individual income tax receipts and created a more balanced budget.

We will be forced to make some difficult decisions in the coming days but we will do so with the best interests of you and all Minnesotans in mind.

I recently had a chance to attend an event at North High School. The Coffee House Acts Program event showcased music and a variety of other talents. The reason I mention this is because we often hear only about controversy and bad news despite the many good things going on in our communities. I think it's important to step back every now and then and look at the good around us. Over $4,000 was raised at the event for Autism research and support. In addition to the talent show and Autism fundraiser, a Locks of Love donation was arranged at the program. Around twenty kids and adults donated their hair to the Locks of Love program, which will turn the donated hair into wigs for people suffering from cancer, alopecia and other medical conditions resulting in hair loss. Thank you to Marquis Salon for offering free haircuts to the participants and congratulations to everyone who helped out with the event. It was wonderful to see so many kids involved in a selfless effort to help others. I am proud of you all.

Please feel free to contact me with questions and comments. It is important for me to hear from you so that I can accurately represent you. I can be reached by phone at (651) 296-1188, by mail at 353 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd, St. Paul, MN 55155 or via e-mail at rep.leon.lillie@house.mn.

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