For more information contact: Sandy Connolly 651-296-8877
Throughout the summer and fall, when meeting with groups and visiting with individuals, I gave the same message regarding Minnesota’s potential budget deficit of $2 - $4 billion. By the time session started on January 6th, we knew the deficit for 2009-2010 was actually closer to $5 billion. Depending on how strong or weak our economy is, the total number of Minnesotans who are unemployed and factoring in inflation, this number could grow to as much as $5 to $7 billion.
This historic deficit comes on top of a budget shortfall of $426 million for the 2008-2009 biennium. The Governor addressed this imbalance in December by using the process of "unallotment", which allows him to determine what funds to pull back or not release to state agencies, institutions or payees.
Already our local community has been hit. Riverland Community College has been notified it must absorb a substantial base cut during the 2008-2009 academic year. The city of Austin lost close to $300 thousand in Local Government Aid, and Mower County funding was cut by $950 thousand. These cuts are only the beginning. By May 21st, 2009, the Minnesota legislature and Governor must set the budget for the next biennium, which includes addressing this significant deficit. There is no simple way out of the budget deficit. Our debt is being attributed to revenue shortfalls not spending problems. So cutting "excess" spending is not going to be the answer to this multi-billion dollar deficit. We will need to make cuts that threaten our core services and quality of life.
To meet this economic crisis, the House DFL caucus will be introducing bills throughout the session. Our message will be Recovery, Responsibility and Results.
Recovery: Job creation and retention is key to getting out of the deficit the state and nation faces. The House will consider new ideas, including green job initiatives and research and development of bio-sciences, areas well suited to our region. We will ask and answer the questions that will lead to economic recovery, such as: how do we help small businesses grow? How do we encourage entrepreneurs to create? How do we keep fully employed people on the payroll? When should government intervene and when should we back off?
Responsibility: Balancing the budget in such harsh economic times will be difficult and painful. We must find the right balance between fixing the problem in the short term and investing for the long term. Citizens must be engaged and communicate their needs and expectations. Legislators must listen and respond. Together we will travel the journey and in the end we will know we have done the best we could do.
Results: We will balance the state budget. We will fund education. We will manage and survive this crisis. We may not agree along the way. We may be frustrated and feel as though we are challenged beyond our limits but we will seek to affirm our values and sustain our quality of life.
Throughout this process, I believe the public must be told the truth and be involved in the tough decisions that must be made. I encourage you to contact me with your questions and your feedback. I can be reached by phone at 1-888-682-3180 or 1-651-296-4193, by mail at 487 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.jeanne.poppe@house.mn. If you would like to stay more closely in touch with what is happening at the legislature, visit my website at http://www.house.mn/27B or the House of Representatives website at www.house.mn.