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State Representative Kim Norton
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-9249
For more information contact: Matt Swenson 651-297-8406
Press/News Releases
FEBRUARY BUDGET FORECAST REVEALS NEED FOR FISCAL CAUTION
ST. PAUL The February Budget Forecast released Wednesday revealed that the state's budget situation is not as bright as many had hoped. Minnesota is not bearing the burden of a deficit, but after accounting for inflation the state budget is flat meaning there is no additional long-term revenue available.
"The need for fiscal caution this session is real," said Rep. Norton. "I will be sticking to the issues my constituents told me were important and work toward progress in education, health care, and property taxes."
Several years ago, inflation was taken out of the budget formula leaving the state with fictitious budget forecasts. Forecasts not accounting for inflation show that the state would have a $2.2 billion surplus over the next biennium. However, when inflation is accounted for, the state's budget situation looks far less promising.
While the budget itself is flat, after inflation there is an excess $1.1 billion in one-time money. This one-time money is revenue that will be available this session, but cannot be counted on for long-term needs. The state has the opportunity to use these funds for one-time investments like technology grants for schools, small transportation projects, research grants for scientists, or to refill the state's dwindling budget reserve that was raided during the budget deficit of 2003.
"To achieve progress while maintaining a balanced budget, we need to adopt a fiscally responsible approach to addressing the concerns of our state," said Norton. "While these are not easy tasks, I am certain that we are up to the challenge and hopeful we will get the job done this session."
After years of dramatic budget cuts, lawmakers are working in a Legislature of many new faces and ideas, committed to making significant progress on the many pressing issues Minnesotans are currently facing. However, the reality of today's forecast has left the Legislature with fewer tools to do so. Nonetheless, like Norton many remain hopeful that the needs of Minnesotans will be met this year through a creative and steadfast commitment to progress.
News Items
- Rep. Norton Selected as Vice Chair of House Health and Human Services Finance Committee - (Posted: 2012-12-14 00:00:00)
- Its Time for Legislature to Get Back to Basics, Balance the Budget Honestly - (Posted: 2012-12-11 00:00:00)
- Second Saturday Coffee Meeting Date Changed to December 9 - (Posted: 2012-12-03 00:00:00)
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