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State Representative Bob Barrett
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5377
For more information contact: Jason Wenisch 651-296-2317
NEWS COLUMN
Minnesota’s Economic Outlook Is Improving
St. Paul – State economists last week revealed that, after years of bad news about the state budget, Minnesotans have reason to be extremely optimistic! The new state budget forecast showed that Minnesota is projected to experience its second consecutive budget surplus after six years of continuous state budget deficits.
When I was elected to my current position in November 2010, our state faced a $6.1 billion deficit. Taking together the November 2011 forecast and the February 2012 forecast, we now have a $1.2 billion surplus. That’s a $7.3 billion improvement in just 15 months. In other words, what we’re doing is working!
These projections are based on the hard work of Minnesota taxpayers and business owners in addition to the work we did in the last legislative session to curb unsustainable government spending. This out of control government spending was set to increase 22% last year alone and 180% over the decade. We slowed the growth of government and withstood the visceral attempts by the opposite side to expand government at any cost including shutting down government for three weeks last July.
Since November 2011, when the previous budget forecast was released, the state’s budget has seen revenue increases of $93 million along with $230 million in cost savings. We didn’t raise taxes to get these results, and the reforms we accomplished are still paying dividends in the way of significant cost savings.
Critics will claim that a surplus doesn’t exist because there are still bills to be paid. I would argue that we have money in the bank – we have replenished our budget reserves and cash flow account (in other words, our “savings”) with money left over. We will start paying off the education shift from last session and then work on paying off the larger education shift left over from the DFL-led 2010 legislative session which produced the $6.1 billion deficit that we faced last year.
The private sector economy in Minnesota is growing, and this is evidenced by the recent state unemployment rate of 5.6% (down from 5.7% last month) compared to the 8.5% national average. Minnesota added 15,500 private sector jobs in January. This job growth would not have happened had we raised taxes by billions as some proposed last year, and it was achieved without tax-and-spend stimulus plans.
Our Reform 2.0 initiatives are the first step to ensuring we keep the economy on track. Several bills are moving through the committee process, and I look forward to debating them on the House floor. Please visit our Reform 2.0 website (www.reform2.mn) for more information.
As always, it is a pleasure and a privilege to serve District 17B in the Minnesota House of Representatives. Please feel free to contact me at any time. Together, we can craft the government we deserve.
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Barrett can be reached by phone at (651) 296-5377. He can also be contacted via e-mail at rep.bob.barrett@house.mn, or via U.S. Mail at 413 State Office Building, St. Paul, MN 55155.
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