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Minnesota House of Representatives

State Representative Paul Anderson

225 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4317

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Posted: 2010-12-06 00:00:00
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E-mail update

Spending increase puts us on track for significant budget shortfall

Neighbor-

We recently received a new budget forecast and it shows a significant increase in state spending has us on track for a $6.2 billion budget shortfall in 2012-13; our state's revenue is expected to rise by 5 percent by then, but that figure is overshadowed by a 28-percent spike in spending that's in store.

It's obvious our budget course is unsustainable and our path to a solution should start by having our state live within its means just like small businesses and families throughout Minnesota have done during the recession. This will involve setting priorities, showing leadership and making tough decisions, especially since our "easy fixes" like one-time reductions, delayed payments and federal stimulus money already have been tapped. Those options not only are exhausted but they now leave us in a tougher spot because our state is committed to spending more than we can afford.

Here are the major factors contributing to our $8.3 billion in spending growth for the next biennium:

Replacing federal stimulus money: $2.3 billion
K-12 funding: $1.9 billion
School shift buyback: $1.4 billion
One-time reductions: $660 million
Government program growth (HHS, etc): $2 billion

This budget crunch may not be good news, but it presents us with a fantastic opportunity to re-evaluate the way our state conducts business. I am eager for the 2011 legislative session to begin Jan. 4 so we can get to work on legislation that will help us gain fiscal responsibility and a string private-sector workforce. It will not be an easy process, yet I am confident we will display the long-term vision and strong leadership necessary to turn around our economy, state tax revenues and end our continual budget deficits.

Your input is always welcome and I will especially appreciate it as we continue preparing for the upcoming session. I am honored to remain your voice at the Capitol and look forward to bringing prosperity back to Minnesota.

Sincerely,
Paul

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