For more information contact: Matt Swenson 651-297-8406
During the last legislative session, Minnesota faced a record $6.4 billion state budget shortfall brought on by the worst nationwide economic recession since World War II. Massive layoffs and home foreclosures meant Minnesotans were earning less, buying less, and paying fewer taxes. And that means a big hole in the state budget.
Our economy is beginning to show signs of improvement. But as recessions go, the stock market is the first to bounce back, then unemployment begins to plateau, jobs rebound, and last of all, the state budget falls in order. We are somewhere in the middle of that cycle right now, meaning Minnesota’s budget challenges are not over yet.
In fact, recently State Economist Tom Stinson, Minnesota’s most trusted budget expert, announced that because of the ongoing recession, the state will face another $1.2 billion shortfall in the 2010 Legislative Session and another $5.4 billion deficit the year after. There is still a chance Minnesota’s long-term budget outlook may be better if the economy recovers more quickly than expected. But much of that depends on what the Legislature does this year to grow jobs and enact budget reforms aimed at long-term fiscal solvency.
Surely the most concerning deficit Minnesota is facing right now – and the causal root of our budget challenges – is a serious and troubling shortage of jobs. More than 130,000 Minnesotans have lost their jobs since the recession began, bringing the number of unemployed Minnesotans to over 220,000. That’s enough people to fill up the Metrodome four times. Clearly our highest priority must be putting Minnesotans back to work, and doing so as quickly as possible.
State Economist Stinson recently reported that efforts made last year at the federal and state levels prevented the recession in Minnesota from becoming a full-blown economic depression. The Recovery Act (ARRA) put nearly 14,000 Minnesotans back to work since last February. State bonding efforts created jobs for thousands more.
Every even year of the biennium, like the upcoming 2010 Session, is largely focused on a major capital investment, or bonding bill. According to Stinson, passing a large, jobs-focused bonding bill early in the session is one of the best things state lawmakers can do to give our economy the boost it needs during these difficult economic times. By tailoring the bill for shovel-ready projects that can get underway when the ground thaws this spring, we can get people off the bench and back on the job as quickly as possible.
A bonding bill won’t put everyone back to work. People in every industry have been laid off in Minnesota, from accounting to manufacturing to engineering. But getting construction workers back on the job will get more people spending in our local businesses, more people off the unemployment rolls, and begin moving our economy back in the right direction.
State government won’t resolve the many challenges of this recession single-handedly. But partnering with the private sector, and the federal and local governments, we can and must make coordinated efforts to work our way out of this recession, one job at a time. Strategic economic reforms, smart business incentives, and maintaining our investments in education and workforce training will be some of our most important tools in that effort.
But my strongest tool as your state representative is the input and guidance I receive from you throughout the legislative session. Your questions, concerns, and suggestions help me make the best possible decisions for our community and state, no matter how difficult the challenges we face together.
The legislative session begins February 4th. Please continue contacting me in the months ahead. As always, I look forward to hearing from you. Working together, we can make Minnesota an even better place to live, work, and raise a family.
Leon Lillie
State Representative
District 55A
rep.leon.lillie@house.mn
(651) 296-1188