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Minnesota House of Representatives

State Representative Kelby Woodard

221 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7065

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Posted: 2011-03-02 00:00:00
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LETTER TO THE EDITOR

Budget shrinks, structural reform still imperative

To the editor:

This week we received some good news that will help us shape our next budget. The February forecast by the Minnesota Management & Budget office projects additional revenue of $1.2 billion for the next biennium.

The result is revenues totaling $33 billion for the upcoming budget cycle. This revised forecast shrinks the projected budget deficit from $6.2 billion to a still-daunting $5 billion shortfall yet to be resolved.

The unexpected rise in revenue of nearly 9 percent was attributed to a slight increase in overall tax revenue and the anticipated capital gains tax income stemming from the extension of the Bush tax cuts. While that is good news, it still falls well short of compensating for the projected 29-percent hike in state spending. The result of these automatic increases would be a $38 billion budget paid for with money we simply don't have.

We will spend the next few months working to resolve our budget issues. The House is on track to issue its budget targets by the March 25 deadline. It is safe to assume that Gov.Mark Dayton will revise his plans as well, taking the new forecast into consideration. The Minnesota Constitution clearly states we must have a balanced budget by the time our fiscal year ends in June and we are focused on making that happen.

We will accomplish our mission of passing a responsible budget by demonstrating fiscal responsibility and improving the state's business climate. These are the proven fundamentals that will ensure a return to economic prosperity in our state.

I will continue to keep you posted as we make progress in St. Paul on the budget as well as the other issues we face as citizens of Minnesota. As always I welcome your feedback as we face these difficult decisions. You can reach me by e-mailing rep.kelby.woodard@house.mn.

Sincerely,
Rep. Kelby Woodard

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