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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
MAMMOTH TAX INCREASES HIGHLIGHT GOVERNOR’S BUDGET PLAN
The two sides pledged to work together, but it’s looking more and more likely that the legislature and governor are going to battle each other when it comes to solving our state’s budget crisis.
Less than one week after telling lawmakers he wants to reform government and change the way it operates, Governor Dayton submitted a balanced budget proposal that not only resumes the status quo, but would also make Minnesota one of the highest taxed states in the nation.
Governor Dayton attacked Minnesota’s $6.2 billion budget deficit as we all thought he would by raising taxes. However, few of us would have predicted just how significantly he wants to increase them. By requesting $4.1 billion in new taxes, Dayton handed down the largest proposed tax increase in history. But more troubling to me was the lackadaisical effort to control government spending, as he identified only $485 million in net budget reductions.
What’s more puzzling is the amount he wants to spend over the next two years. Dayton wants to increase state spending by 22 percent for the 2012-13 budget cycle. That means if his plan were to become law, our current $32 billion budget would skyrocket to $37 billion a proposed $5 billion spending increase in the face of a $6 billion deficit.
It’s clear the legislature and the governor have a fundamental disagreement in policy. Projected revenues are likely to increase by nearly $2 billion for our next budget cycle, meaning state spending could increase from $32 billion to almost $34 billion with no problems. To me, that means we have a spending problem, not a revenue problem, but with these record setting tax increase proposals, the governor obviously disagrees in a big way. So much so, that he proposes that we become the highest taxed state in the country.
What bothers me is that the legislature has been doing a good job of finding efficiencies through government reform, so why stop now? The governor’s budget proposal basically suggests there’s no need to reform government, and that the taxpayers can just continue paying more for an ever expanding government.
I’ve not heard the call from constituents to have taxes raised. I’ve heard them say their pay has been frozen or reduced, and that their health insurance premiums are rising, but I’ve not heard any requests to raise their taxes.
Maybe, as a state government, our policies should reflect that. Isn’t it time we be responsible and find ways to curb government spending rather than increase it by $5 billion and deal with another budget deficit two years from now?
For too long, government made promises it can’t keep with money it doesn’t have. We have to set priorities for spending the $32 billion we do have by living within our means, not raising taxes. Government needs to change the way it operates to be more effective and more efficient.
I can only hope Governor Dayton isn’t married to this proposal, because it stands no chance of becoming law. The sad part of it is, had the governor identified realistic budget cuts, we would have worked with him and found common ground. Instead, he has fulfilled his obligation of submitting a budget, unreasonable as it is, and will now wait for the legislature to make the tough choices.
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- 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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