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State Representative Kelby Woodard
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7065
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OP/ED COLUMN
State budget plan must have an eye on the future
By Rep. Kelby Woodard
Gov. Mark Dayton revealed his long-anticipated budget plan for 2012-2013 this week. His plan contains a surprising and breath-taking increase in the tax burden on the citizens of Minnesota.
Unfortunately, the governor ignores the negative economic impact of implementing the highest income-tax rate in the nation. While we anticipate a 5-percent increase in revenue during the next biennium, we face a $6.2 billion shortfall if we allow 27 percent in automatic spending increases to go in to effect. Instead of setting spending priorities, reforming government and addressing structural budget flaws, the governor proposes a tax-and-spend approach that inhibits economic growth and increases state spending by 22 percent, or $37 billion.
This budget proposal includes approximately $4 billion in taxes. His plan translates to $8 in tax increases for every $1 of spending reductions. Among other new taxes, Minnesota would have the country's highest income-tax rate with two new tiers (13.95 and 10.95 percent).
The governor's budget plan lacks any meaningful change in the way our state prioritizes spending. So what happens if our economy is still recovering from the recession and we face another shortfall in the future? The great state of Minnesota needs to live within the means of its citizens. Even a proposed tax hike of such historic proportions will not solve our structural budget issues until we acknowledge our levels of available revenue and spend accordingly. Families and businesses across our state are living within their means during this recession and our state should follow their lead.
The upcoming debates will center on reforming and streamlining government to protect taxpayers and bring sustainable fiscal responsibility to our state. The House has set March 25 as the deadline for its own budget targets. The resulting budget plan will acknowledge Minnesota's current projected revenues, include structural reform to streamline government, bring education into the 21st century, and improve our small businesses climate. We must keep an eye to the future and ensure our state's budget model is sustainable in the long run.
The debate over this budget has begun and will continue over the next few months. The solutions to our current budget issue will not be easy, but I am confident the result will be a plan that will reflect the vision Minnesotans had in mind when they sent us to St. Paul. I look forward to your thoughts and ideas as we move forward with a workable budget solution.
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Rep. Woodard can be reached at the Capitol by calling 651-296-7065. He is also available by email at rep.kelby.woodard@house.mn. His office is located at 539 State Office Building, 100 Rev. Dr. Martin Luther King, Jr. Blvd., St. Paul, MN 55155.
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