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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
NEWS COLUMN
BALANCED BUDGET WILL REQUIRE FAIR AND HONEST APPROACH
The Minnesota Office of Management and Budget released a revised state budget forecast Tuesday. Due to worse than expected economic conditions, state revenues have shrunk $1.1 billion in just the last three months. As a result, the state’s budget gap has grown to more than $6.4 billion. With one-time resources provided by the American Recovery and Reinvestment Act, Minnesota’s share of that shortfall is $4.6 billion - amounting to the largest budget deficit in Minnesota’s history.
The short-term recovery funds Minnesota has received from the federal government is a welcome help in a time of severe economic uncertainty. Targeted aid from Congress will save 45,000 Minnesota jobs that would have otherwise been lost. Still Tuesday’s report provided a grim outlook for job losses in our state. With a quarter of a million Minnesotans already unemployed, this week’s forecast predicted another 120,000 people will lose their jobs before 2010 - that’s more than the population of Rochester and Winona combined.
Job losses aren’t our only problem. A $6.4 billion deficit accounts for 20% of our budget. The Recovery Act will contribute $1.8 billion to our budget solution this year. Those one-time funds do nothing to resolve the expected $5 billion shortfall next biennium. The difficult, long-term solutions are up to us at the state level.
This mid-session budget forecast is the benchmark Minnesota lawmakers have been waiting for. It gives us a clear picture of the problems we need to solve this session. With new information in hand, policymakers can begin the work of crafting a fair responsible budget solution that reflects the priorities of Minnesotans. Over the last several weeks we have discussed the revenue gap with more than 6,500 Minnesota citizens at dozens of state budget hearings from Rochester to Virginia. Now, with all pieces of the puzzle in place we know the full measure of the challenges that face us, and we understand the expectations and concerns of Minnesotans. Now it’s time to craft a solution.
Solutions won’t come easy. Substantial budget cuts will be necessary to balance the budget, requiring shared sacrifice from all Minnesotans. At the same time it is imperative we keep all options on the table in order to resolve the shortfall in a fair and responsible manner. By keeping our options open and considering the long-term consequences of every decision, lawmakers can finally begin addressing the structural problems in our budget that have led us to record deficits year after year. Crafting a forward-thinking solution to finally stabilize our budget for the future will require an open and honest budgeting process - a process and an outcome Minnesotans deserve.
In addition to balancing the budget our highest priority must be rebuilding our economy and putting people back to work. History has proven those states that take the greatest care to plan for the future come out of recessions stronger and more competitive. We can’t afford to waste that opportunity. By investing strategically to build up our infrastructure, preserving Minnesota’s world-class education system, and creating new incentives for competitive business, we can ensure Minnesota emerges from this recession stronger than ever before.
The choices ahead will be difficult, but it’s time to make them - and make them wisely. The decisions we make today will determine the course of our future, and impact the lives of all Minnesotans. I’ll continue doing everything I can to ease the pain of this deficit on Minnesota’s most vulnerable citizens, and keep Rochester strong through this deep and troubling recession. But I need your help and continued input. The testimony Rochester citizens provided at last month’s state budget hearing and responses to my legislative survey have been crucial in helping me make sound decisions for our future, and I need to keep hearing from you. I strongly encourage you to contact me directly with your questions, comments, and concerns. You can reach me by phone at (651) 296-9249 or by email at rep.kim.norton@house.mn. I look forward to hearing from you.
News Items
- Rep. Norton Selected as Vice Chair of House Health and Human Services Finance Committee - (Posted: 2012-12-14 00:00:00)
- It’s 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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