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State Representative John Persell
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5516
For more information contact: Sandy Connolly 651-296-8877
Press/News Releases
STATE BUDGET FORECAST INDICATES RECESSION WILL CONTINUE
ST. Paul, MN – – Minnesota's projected budget deficit will hit $6.4 billion for the 2010-11biennium, according to the February budget forecast released today by the Minnesota Department of Finance. This follows on the heels of a $4.8 billion deficit announced last November.
When the Medicaid money appropriated in the federal recovery bill is factored in, the shortfall that will need to be resolved during this legislative session becomes $4.6 billion.
“While the one-time federal money is certainly welcomed and helps address our short-term needs, it cannot hide the fact that our recession is deepening and not expected to end anytime soon," said State Rep. John Persell. “We learned today that we will continue to lose jobs and state revenue – making the budgeting decisions we will make over the coming weeks even more difficult.
It will be important that we keep in mind the values that have made our state great, cut where we can, reform programs that aren’t effective, and increase funding where we must. Every option is on the table.”
Persell said that the state has already lost 50,000 jobs and is projected to lose another 70,000 by the end of the next year. Without the federal recovery dollars, it is estimated an additional 45,000 jobs would be lost. By contrast, when the economy is healthy, 40,000 jobs are added to Minnesota payrolls annually.
“Minnesota families are feeling the pain of our economic downturn daily,” said Persell. “They are losing jobs, homes, their retirement funds, and the opportunity to send their kids to college.
We need to keep all of this in mind as we work to protect the Minnesota way of life and restore long-term economic stability to our state.”
If you have questions on the state budget forecast, you can contact State Rep. John Persell at (651) 296- 5116 or by email at rep.john.persell@house.mn.
News Items
- Rep. Persell: We Must Come Together to Help Citizens, Businesses Affected by Disaster - (Posted: 2012-08-16 00:00:00)
- Rep. Persell: Today’s Hearing an Important First Step - (Posted: 2012-08-07 00:00:00)
- Rep. Persell: Omnibus Tax Bill Exemplifies Irresponsible Budgeting - (Posted: 2012-05-01 00:00:00)
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