Accessibility menu
State Representative Jeanne Poppe
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4193
For more information contact: Charlie Vander Aarde 651-297-8406
Column/LTE
BUDGET CUTS MEAN JOBS LOST
Minnesota’s economy is subject to many factors. These include employment, commodity prices (think gasoline, corn, hogs, soybeans), weather and the national economy. Minnesota does not operate in a vacuum, we are subject to external considerations. However, we should not be held powerless due to the events that swirl outside our borders. Minnesotans cannot afford to be passive and just wait for the national economy to turn around and pick us up.
Legislators should be setting the table for the private sector to grow and hire. Government can be a partner with business, collaborating on growth opportunities as well as improving the human capital they need to be productive. Democrats and Republicans both have said this session that government does not create jobs but it nurtures the programs that help small and medium sized businesses expand. This is good policy for now and in the future.
Unfortunately, the budget bills in front of the legislature are troubling on several fronts. They raise property taxes on businesses, homeowners and renters; cut investments in human capital; and make reductions in the proven programs that help Minnesota businesses succeed. The result of all these policies is job loss in both the public and private sectors.
There is no question that cuts need to be made to balance the state budget. But the lack of focus on jobs, the key to any economic recovery, is troubling. Minnesotans from across the political spectrum should agree that a supply of good jobs is the best recipe for strong communities.
The House majority has now passed eight funding bills that will result in losses of nearly 30,000 jobs. This isn’t a reduction in future jobs. These are 30,000 currently employed people who will be out of work; two-thirds of this loss will be from the private sector.
Here are the public and private job loss numbers from omnibus finance bills the Minnesota House has passed this year: The tax bill will result in 1,735 job losses. The transportation bill will result in 608 job losses. The environment, energy and commerce bill will result in 194 job losses. The higher education bill will result in 1,221 job losses. The public safety bill will result in 232 job losses. The so-called jobs bill does not create any jobs. It results in 754 job losses. The state government agency bill results in 4,987 job losses. The health and human services bill, approximately 30% of the state budget, will result in 20,968 job losses, most in the private sector health care industry.
In a time of recession, every middle class job matters. According to the state finance agency, Minnesota employs fewer workers in 2011 than ten years ago. Minnesota has the 10th leanest state government workforce in the country, according to the Census Bureau, and spends 7.8 percent of general fund dollars on its state workers. Employees, like the state, do not live independently from others. There is an economic multiplier effect that must be considered. According to a recent study by the Economic Policy Institute, for every 100 public sector jobs cut, 30 private sector jobs are lost. Across the state, communities have faced job losses and the resulting fallout from lower consumer spending.
It does not take an economics professor to tell us we are moving backwards. The state is falling far short of its goal and much more needs to be done. With less than two months left of this legislative session our work has to focus on passing laws that fund and support working Minnesotans and job creation.
Please continue to let me know what you consider to be the priorities of the State and the solutions you recommend at the state legislature. If you would like to be on my email update list, please send your email address to rep.jeanne.poppe@house.mn. I also hope you will continue to contact me with your questions or suggestions regarding our state budget. I can be reached by email, or at 1-888-682-3180 or 1-651-296-4193, and by mail at 291 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155.
News Items
- 2013 Legislative Session Wrap Up - (Posted: May 22 2013 2:49PM)
- Rep. Poppe: New Funding for Education Builds Well-Educated, Competitive Workforce - (Posted: May 22 2013 2:23PM)
- Rep. Poppe Praises 2013 Session for Focus on Education, Jobs, and Property Tax Relief - (Posted: May 21 2013 12:32AM)
- Archived News Items
- Subscribe to RSS News Feeds
- Read more about RSS.