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State Representative Joyce Peppin
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7806
For more information contact: Austin Bleess 651-296-5529
NEWS COLUMN
BALACING THE BUDGET THE RIGHT WAY
By Joyce Peppin
State Representative
When my family sits down at the kitchen table to plan our budget, we have one main goal: don’t spend more than we earn. This week the Governor proposed a state budget which achieves that same objective. His budget is based on the revenue the state will collect with current receipts without raising the tax burden on Minnesota families.
The Governor’s budget would focus on making strategic investments and preserving K-12 funding while erasing the state’s projected budget shortfall of $4.8 billion. His budget for fiscal year 2010-2011 would spend $33.61 billion, a 2.2 percent reduction from current fiscal year 2008-2009 general fund expenditures of $34.36 billion, and would not include any tax increases.
While some of the proposed spending reductions make tough choices, I’m encouraged by the Governor’s long term focus, which balances the budget and brings about reforms that will provide us with budget stability in future years.
Highlights of Governor Pawlenty’s budget include:
• Spending an additional $41.45 million on K-12 education in 2010-11 by expanding the state’s pay for performance program, Q Comp, to every school in the state. The additional Q Comp funding would be comparable to a five percent increase in the general education formula for districts not currently in the program.
• Investing in Minnesota businesses through the Minnesota Jobs Recovery Act, which is designed to bring more jobs into Minnesota by reducing the business tax rate from 9.8 percent to 4.8 percent over six years. The initiative would provide an upfront exemption of the sales tax for purchases of capital equipment and a new reinvestment tax credit for small businesses that reinvest in assets such as machinery and equipment. When we have more jobs the state sees an increase in revenue in all forms, including income, business, and sales tax. This is preferable than increasing revenues by simply increasing taxes.
• Slowing down the rate of spending growth in health and human services programs but preserving core services for children and the most vulnerable.
• Cutting state agencies. Each state agency will be expected to take a cut in funds that will average about five percent – including the legislature. These cuts may mean a delay in some upgrades in areas like technology, but in a time when every family in the northwest suburbs is prioritizing its budget, so must the state.
The budget proposal also looks at places where we can cut programs that are underperforming. Last week the Legislative Auditor released a report saying auditing for various government entities is very lax. The governor is correctly proposing to eliminate programs that audits have shown to be ineffective.
Government spending is growing faster than inflation, faster than our state’s ability to pay for it. While the Governor’s proposal is by no means perfect, it is a starting point and would bring spending down to a rate that won’t further drain taxpayers’ wallets. The legislature will be debating it and looking at every proposal very carefully. Full details about Governor Pawlenty’s budget plan are available at www.mmb.state.mn.us.
I invite you to contact me with your feedback on the Governor’s budget suggestions and ways you believe the budget can be balanced. You can reach me via email at rep.joyce.peppin@house.mn or 651.296.7806. U.S. Mail should be sent to Rep. Joyce Peppin, 279 State Office Building, 100 Martin Luther King Jr. Blvd., St. Paul, MN 55155.
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News Items
- PEPPIN REPORT: NW SUBURBAN FAMILIES WILL BE HIT HARD UNDER DAYTON AND DFL BUDGET - (Posted: May 28 2013 4:35PM)
- Rep. Peppin’s bill would lessen unfair fiscal disparities tax burden on Rogers - (Posted: Apr 3 2013 9:36AM)
- PEPPIN REPORT: FEBRUARY FORECAST REVEALS FOURTH CONSECUTIVE STATE SURPLUS - (Posted: Feb 28 2013 12:00AM)
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