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State Representative Tim Sanders
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4226
For more information contact: House GOP Communications 651-296-5520
NEWS COLUMN
Priorities, Needs and the Borrowing Bill
Dear Neighbor,
Last night the House passed its version of the borrowing bill. Coming in at over $1 billion, the borrowing bill contains a number of projects that qualify more as “wants” than “needs.” Over the next 20 years this borrowing will cost the state an average of $25 million per year in interest alone, making the actual cost of the bill closer $1.5 billion. Simply put, this bill places too much debt on the backs of future Minnesotans.
The borrowing bill also puts our state’s credit rating at further risk. By borrowing $1.5 billion now, we are significantly straining our future liquidity. Taking on this much new debt could drive up the interest rate on issued bonds, and result in the state spending millions more in debt service each year. We already have a projected budget deficit of $4 billion for the next biennium. Borrowing another $1 billion is not in our state’s best interest.
We need a bill that focuses on infrastructure and asset preservation. The current bill contains no money local roads, yet has $164 million earmarked for pet transportation projects. The borrowing bill’s supporters claim it will create jobs. In reality, the borrowing bill only shifts investment from private to public projects. Instead of investors looking at projects and determining which are worthy of investing in, the government makes that choice for them.
Every dollar invested in a government project is a dollar not invested in the free market and private economy. It is that free market and our hardworking Minnesota job providers who will bring economic recovery and opportunity, not government.
I am hopeful we can reduce the bill’s scope and turn it into a true “bonding” bill—one that focuses on necessary asset preservation and infrastructure improvement. I am also committed to empowering Minnesota’s free market job providers and entrepreneurs with tools including tax relief, investment incentives and research credits.
With the right priorities and by acting on the needs of Minnesotans—not the wants of politicians in St. Paul—we can achieve recovery, opportunity and growth.
Sincerely,
Tim
News Items
- March 30 Legislative Update - (Posted: 2012-03-30 00:00:00)
- March 16 Legislative Update - (Posted: 2012-03-16 00:00:00)
- March 2 Legislative Update - (Posted: 2012-03-02 00:00:00)
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