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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
SHOULD STATE SPENDING HAVE LIMITS?
By Joyce Peppin
State Representative, District 32A
When the topic of state government comes up, I remind people of the recession-driven $4.5 billion budget deficit from 2003 and then ask them, How much did we reduce the budget? Few can give me a concrete answer. No wonder. It’s a trick question. The state general fund budget then actually grew by some $1.3 billion or 4.9 percent.
This past legislative session, lawmakers approved a $30.5 billion general fund budget, some 8.4 percent higher than the prior two-year budget. Prior to that, going back to 1994, budget growth averaged almost 13 percent every two years. As Minnesota’s economy has grown, it has produced more tax revenue. The legislature has chosen to spend those taxes. Perhaps it’s time to again consider putting a brake on state budget growth
In the next few weeks, I will be working on legislation that would limit future increases in state government spending. State spending increases would be held to a percentage no greater than inflation plus the percentage change in the state’s population. Any revenues collected by the state in excess of the spending limit would be returned to taxpayers or kept in reserve.
More than two dozen states have similar “Taxpayer’s Bill of Rights” (TABOR) laws on their books. The spending limits could be imposed statutorily by legislators or through a constitutional amendment asking voters if state spending should be curbed. I would prefer to go to the voters.
There has been much resistance to similar bills in the past because legislators fear such a proposal would tie their hands in making spending decisions, especially when some costs such as health care are escalating. But I think it’s time – especially in light of historical budget growth -- that we show a little fiscal responsibility. Such spending caps would also send a signal to constituencies reliant on government funding to become fiscally accountable, too.
Rep. Peppin represents District 32A, which includes the communities of Corcoran, Dayton, Greenfield, Hanover, Rogers, Hassan Township, and southwestern Maple Grove. Peppin invites anyone to share their questions or comments about state government with her. She may be reached by email at rep.joyce.peppin@house.mn; by phone at (651) 296-7806; or by U.S. Mail at 411 State Office Building, St. Paul, MN 55155.
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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