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State Representative John Ward
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4333
For more information contact: Sandy Connolly 651-296-8877
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WARD: NOW THE REAL WORK BEGINS State lawmakers will begin work immediately on budget deficit
ST. PAUL, MN – State Representative John Ward (DFL-Brainerd) said the state budget forecast that was released today confirms what most Minnesota families fear – this recession will not end anytime soon.
“What we learned today is pretty much what we expected," said Ward. “Our deficit has grown from $4.8 billion to $6.4 billion; thankfully, the federal recovery act that was just signed into law by President Obama will cushion some of the blow – at least for the short-term.”
As a result of $1.8 billion in federal relief that can be counted now, the shortfall that will need to be reconciled this session is $4.6 billion. Ward cautions, however, that this one-time money does not bring long-term stability to the state budget.
”Our state is in a financial bind, one that will continue to get worse if we don’t think long-term about fixing this problem,” said Ward. “There’s a $6.5 billion deficit projected for 2012-13; we need to put partisan politics aside and do the right thing for the people of Minnesota.”
The forecast released today shows that Minnesota has already lost 50,000 jobs and is expected to lose another 70,000 by the end of next year. Without the federal recovery dollars, 45,000 additional jobs would have been lost. The current unemployment rate is 7.6%, and could grow to as much as 9.4% before things turn around. During strong economic times, Minnesota creates 40,000 jobs annually.
The forecast also indicated that state revenue has dropped by almost $1.2 billion since November; Ward said this disputes the notion that Minnesota has a spending problem.
“If our problems were simply the result of too much wasteful spending, we could cut our way out,” said Ward. “As Dan McElroy, the Commissioner of Department of Employment and Economic Development stated in committee, however, “We ran out of resources before we ran out of priorities.” Cuts alone cannot make up for our significant drop in revenue.”
The Governor is expected to release his new budget about two weeks from now. According to Ward, the members of the House will begin working on their budget immediately.
“Now the real work begins,” said Ward. “We know what we’re dealing with and everything is on the table. I know this budget will be painful, but through hard work and shared sacrifice, Minnesota will recover from this shortfall.”
If you would like to contact Rep. Ward, he can be reached at (651) 296- 4333, or 1-800-683-4205, by mail at 533 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.john.ward@house.mn.
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