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State Representative Duane Quam
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-9236
For more information contact: Jason Wenisch 651-296-2317
NEWS COLUMN
MINNESOTA’S PROJECTED DEFICIT LOWERED IN LATEST BUDGET FORECAST
Minnesotans received some good news recently, when state economists told us our projected budget deficit isn't as bad as originally feared. According to the experts, Minnesota collected nearly $1 billion more than previously expected thanks to increased revenue through capital gains, and income and sales tax growth.
I'm pleased that our revenue numbers are improving, and actually, I’m not surprised by this positive development. When Congress decided to extend the Bush tax cuts, it gave consumers and businesses the confidence that their government wasn't going to take more money from them through tax increases. The result was more spending in the private sector, and greater revenue.
The problem is that a $5.1 billion budget deficit remains. Here’s what’s troubling to me: Minnesota spent $30.5 billion on government programs in our last budget. The November projection said we could spend $32 billion for the next budget cycle. The latest projection noted we could spend $33.5 billion. Now combine these totals with the $1 billion in budget reductions the Legislature made in February that were vetoed by the Governor. That's $4 billion, a figure that includes the increased revenues and the easiest low hanging fruit to remove from our fiscal tree. All we needed was an agreement to hold spending flat and to enact the $1 billion in cuts that were approved by the previous Democratic-led legislature and Republican governor during the last budget discussions.
In the meantime, Governor Dayton continues to insist that we need to raise taxes by $4 billion and increase government spending across the board. This is especially troubling when you consider Democratic governors from other states - even in liberal states like New York and Massachusetts - calling for freezing or lowering state tax rates as they deal with their own budget deficits. If Dayton is truly serious about forcing our business men and women to pay more taxes for state government, how then can Minnesota not lose a competitive business edge if we raise taxes by $4 billion?
With the volatility of gasoline and energy, I believe a portion of this new revenue should be put into a budget reserve. It’s important that we aren't caught having to cope with revenue shortages again without having some available funds on hand. As for the rest of it, we need to be prudent, and use it to help fund some of the most critical items that were on the cusp of reductions during these difficult economic times.
News Items
- Legislative Update from Rep. Duane Quam - (Posted: Jan 11 2013 3:55PM)
- CLARIFYING MISCONCEPTIONS ON SEVERAL BILLS - (Posted: 2012-04-05 00:00:00)
- SIGNIFICANT BILLS BEING PASSED OFF HOUSE FLOOR - (Posted: 2012-03-30 00:00:00)
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