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State Representative Tim O'Driscoll
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7808
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OP/ED COLUMN
Gov. vetoes set stage for special session
By Rep. Tim O'Driscoll
The 2011 legislative session has concluded and I am pleased to say we sent Gov. Dayton a balanced budget which erases our $5 billion shortfall and sets spending for the next biennium without raising taxes.
Unfortunately, the governor vetoed our budget plan, setting the stage for a special session.
The Legislature’s proposal is a $34 billion budget for the upcoming biennium, which fits within our projected revenue. This is a 6-percent budget increase over what we currently are spending, allowing us to accommodate for natural growth and fund our priorities without raising taxes.
The governor continues to push for an additional $2 billion in spending and is proposing tax increases on the wealthiest Minnesotans to pay for this. His plan has failed to gain traction in the Legislature and members of both parties voted it down in committees and on the floor.
The 6-percent spending increase the Legislature proposes should be enough for government, especially as we work to recover from the worst economic downturn in 60 years. Most of us have been living on flat or reduced incomes lately and would jump at the chance to get a 6-percent raise. Government must acknowledge today’s economic reality and respect the hard-working taxpayers.
There some things worth noting regarding the governor’s plan to tax our top earners. First of all, the top 2 percent of wage earners currently pay over 41 percent of our state’s income taxes, according to the most recent Tax Incidence Study.
Also, other states have raised taxes on their top earners only to have it backfire. Maryland and Oregon each passed tax increases on top earners, only to end up collecting far less revenue than anticipated. Both states lost approximately one-third of their high-income filers, who relocated to tax-friendly states. That scenario leaves middle-class workers to pick up the tab.
Furthermore, raising taxes on our job creators would be passed on to us in the form of reduced wages for workers and higher prices for consumers.
Our focus should remain on adopting key reforms to help our state make the best possible use of our existing tax dollars. Another $1.8 billion should be enough to support government and to say we need to spend even more is an indication we need improved money-management skills.
I remain optimistic we will find a budget solution soon, but a plan I can support needs to have an eye on the future instead of just filling a hole today. The bills the governor vetoed included many worthy reform proposals that would have helped put Minnesota on a more sustainable budget path. I sincerely hope they will be retained in the final budget plan; otherwise we are likely to soon find ourselves staring at more budget troubles.
I wish to thank all the people who continued providing me with input throughout the session and I welcome your correspondence as we consider more difficult choices in a special session.
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