For more information contact: Matt Swenson 651-297-8406
To the Editor:
With a quarter-million Minnesotans unemployed in the worst recession since WWII; the economic crisis caused a $6.4 billion state budget shortfall.
Working together, lawmakers balanced the budget responsibly to help guide our economic recovery.
Based on your input we passed a balanced budget that protected students, minimized cuts to hospitals and nursing homes, and helped maintain jobs in our communities. My work on the Legislative Audit Commission led the legislature to cut waste and make needed reforms in state government.
The legislature made $2 billion in cuts and agreed with the governor to utilize $1.8 billion in federal funds and $1.8 billion in delayed school payments to resolve 5/6 of the deficit. We also agreed the last $1 billion gap needed new revenue to avoid further damaging cuts to state services including hospitals and higher education. We disagreed how to pay for it.
Governor Pawlenty wanted to borrow $1 billion. That would cost $800 million in interest and take two decades to pay off. Borrowing for operating is not a budget practice I support. Borrowing for capital assets is.
The legislature passed a pay-as-you-go solution that dedicated $1 billion in new, ongoing revenue to protect hospitals, nursing homes, and schools from deeper, damaging budget cuts. The governor vetoed it.
Minnesota is now going to venture on an uncharted path with the governor making significant unallotments. We need to work together to protect our most vulnerable, implement job creation dollars from the stimulus package, and maximize the return on our capital investment initiatives.
Throughout the summer and fall I encourage you to contact me with your questions and concerns. My role serving our community doesn’t stop when the gavel falls on the last day of session. Working together we can speed our economic recovery and build a better future for Minnesota.
Rick Hansen
State Representative
District 39A
(651) 296-6828
rep.rick.hansen@house.mn