For more information contact: Sandy Connolly 651-296-8877
On Wednesday, the Minnesota Department of Finance released the November budget forecast. For the first time in three years, they are projecting a surplus. While this is a very nice Merry Christmas for the state, let's hope it is also a Happy New Year for property owners.
For the past three years, the state budget has been balanced through a series of cuts and shifts. Most notable were the cuts to Local Government Aid (LGA) and the flat funding, cut and delayed payments to schools. As the result of this, Minnesotans across the state have been asked to pay more out of their own pocket; more property taxes, higher fees for basic state services, higher child care costs and college tuition. More and more, the average homeowner, farmer and small business owner is expected to pay for the basic needs of our state. This is a disturbing trend that cannot continue.
When the school shifts were passed in the 2002 legislative session, it was mandated that any future budget surplus be used to pay back the schools first. This is like the state's credit card bill, and full payment is due. There has been some discussion by the Governor to change that law and not give all of the surplus money to the schools. We all know what happens when we only pay the minimum balance due on our credit cards; the costs, and the pain, continue to rise. Our schools deserve their full compensation, and if the state ever wants to use shifts as a budget tool again in the future, this commitment needs to be kept.
There are also some other statewide indicators that are troubling. For the first time in decades, Minnesota is lagging behind the rest of the country in the creation of new jobs. We are also paying record high prices to heat our homes, health care costs continue to rise and property taxes are expected to increase statewide by another 10.2 percent. In the past three years, property taxes in Minnesota have increased by more than $1 billion, another increase cuts into all of our family budgets.
Another state budget forecast will be released in February, just before the State Legislature goes back into session. If there continues to be a surplus, I am hopeful that we can use the money wisely and address many of the growing concerns in our state. Property tax relief, heating assistance, school funding, increased funding for hospitals and a solid transportation package are a few that come to mind. We have all worked hard for this surplus; let's turn it into really good news for the entire state.