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State Representative Tim Kelly
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-8635
For more information contact: Jason Wenisch 651-296-2317
NEWS COLUMN
TAX HIKES AND EDUCATION CUTS FOUND IN SENATE DFL BUDGET PROPOSAL
Several days ago, Minnesota Senate Democrats unveiled their ideas to solve Minnesota’s projected $6.393 billion budget deficit for Fiscal Years 2010-11. After weeks of hashing over Governor Pawlenty’s budget plan, I was pleased the Senate majority provided some insight on how it wants to eliminate our record shortfall.
It’s worth noting that a new law makes this task slightly more difficult. This new statute forces lawmakers to balance not only the current term (Fiscal Year 2010-11) but the following budget cycle (Fiscal Year 2012-13) as well.
In other words, by the time Legislature adjourns in mid-May, Minnesota’s budget must be balanced for the next four years. With a $5 billion shortfall projected for 2012-13, both deficits - totaling $11 billion if you don’t include federal stimulus funding - must be eliminated.
Minnesota Senate Democrats would meet this goal largely through tax increases and across-the-board cuts in every state government program.
Senate majority leaders want to create $2 billion in new revenues this biennium, and likely another $2 billion next biennium, for a grand total of $4 billion, by raising yet-to-be determined taxes over the next four years.
The Senate majority would also cut state government spending by $5.1 billion over the next four years. This amounts to a 7% cut to every program, including K-12 education, health and human services, and public safety.
I do find it interesting that Senate Democrats would like to make a $1 billion cut to our local schools when Governor Pawlenty is proposing significant increases despite our budget woes. However, we have to remember that this is a first look and I appreciate the fact that it’s a start to the discussion and the process.
As always, I am open to suggestions on how to solve this deficit and feel we need to keep our options open to any potential solutions. House Democrats will likely present their budget proposal in the coming days, and I am eager to review their plan and share it with you.
News Items
- CONFERENCE COMMITTEES SHAPING IMPORTANT BILLS AT LEGISLATURE - (Posted: 2012-04-05 00:00:00)
- TAX RELIEF AND JOB CREATION BILL APPROVED IN MINNESOTA HOUSE - (Posted: 2012-03-22 00:00:00)
- MORE GOOD NEWS FOUND IN LATEST STATE BUDGET FORECAST - (Posted: 2012-03-06 00:00:00)
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