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State Representative Paul Anderson
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4317
For more information contact: House GOP Communications 651-296-5520
LEGISLATIVE UPDATE
News From Representative Anderson
There were smiling faces all around the Capitol complex yesterday morning when news of a state budget surplus became known. It was a bit surprising as early rumors had the state mired in a several hundred million deficit once again. But, when the announcement by Minnesota Management and Budget came that we expect a surplus of $876 million at the end of this current two-year budget cycle, it was good news, indeed.
Right away, there were blogs and e-mails with suggestions of what to do with what some see as "excess money." That's not really the case, as this surplus will be used to re-fill the state's checkbook and budget reserves. That is automatic; it's the law that we do those things first before anything else is done with these funds. The cash-flow account, which basically serves as the state's checking account, has been increased to $350 million, which should avert any need for short-term borrowing. The budget reserve, which acts like a savings account, will be replenished up to $648 million.
Even though a surplus is projected, a closer look at the numbers reveals that there still are concerns. Yesterday's positive number is not the result of increased revenue to the state, it's because of reductions in spending. The reforms we passed during last year's session are beginning to work. We have slowed the spending curve increase and, as a result, the state's revenues and expenses are now in much better balance than they were just a year ago.
On another front, the troubling call for a unionization vote by certain day-care providers in the state is moving ahead. A lawsuit attempting to stop the upcoming vote was filed by a provider organization in Ramsey County earlier this week. Hopefully, it will be heard soon as the ballots are scheduled to be mailed out Dec. 6th.
As it stands now, fewer than half the state's licensed day care providers will be eligible to vote. That's because only those who receive the state child care subsidy will be given ballots. Allowing only 4,000 to vote on a topic this important, and one that will affect all 11,000 providers, is totally and completely wrong.
We are following this situation closely. Yesterday, a group of House members signed a letter requesting an administrative law judge rule on the legality of the Governor's executive order in calling for the vote. So, even though the union vote is still set to be held this month, several legal challenges have been filed against the action.
Paul Anderson
News Items
- Still no budget as session winds down - (Posted: May 10 2013 12:00AM)
- MUCH WORK REMAINS IN SESSION’S WANING WEEKS - (Posted: May 6 2013 12:00AM)
- Results of online survey are telling - (Posted: May 3 2013 12:00AM)
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