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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
Column/LTE
TAX VETO WAS A MISTAKE
To the Editor:
Minnesota, the first inflation-free state? Being the “first" to do something can be exciting…but is this false budgeting scheme really what Minnesota should be known for?
I was very disappointed to learn last Wednesday that Governor Pawlenty vetoed the tax bill. There are many good components in this bill, including over $800,000 in increased Local Government Aid for Rochester, and important tax credits for veterans and farmers, and property tax reform that accounted for income.
The Governor indicated he supported much of the tax bill. In fact, several provisions that he specifically wanted were included. However, he vetoed the bill in its entirety because of a requirement to include inflation in the budget formula.
Several years ago during the budget deficit, inflation was taken out of the budget formula leaving the state with fictitious budget forecasts. This is a bad accounting practice that creates an unrealistic expectation for this and future legislative sessions. This type of forecasting confuses Minnesota citizens and provides a false picture of the state's financial status.
Recent budget forecasts not accounting for inflation have indicated that the state will enjoy a $2.2 billion surplus over the next biennium. However, when inflation is taken into account, this budget "surplus" is cut in half. The remaining $1billion is one-time money, not a continuing amount that can be used for ongoing programs like education, health care, and the like.
As with our personal budgets, the state budget should include the actual dollars available to spend, as well as the actual cost of goods and services – it's the fiscally responsible thing to do.
The Governor has not served the people of Minnesota well with this veto – it's time to restore a sound budgeting policy in the state of Minnesota and offer tax relief to property owners, farmers and veterans.
Sincerely,
Kim Norton
State Representative
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