Just over two weeks ago, Rep. Daudt and the House GOP caucus released their “targets” for the next budget cycle. Their plan spends $42.995 billion – which, if we are using the same GOP rhetoric aimed at Democrats for the last two years, would be the "largest budget in Minnesota's history."
To be fair, the Majority's initial plan would spend about $2 billion through various tax credits/tax cuts yet to be determined, but if the very first bill introduced this year signals their top priority, we will likely see a tax bill that is largely focused on corporate and business tax cuts. It is also worth noting that tax credits and cuts have an ongoing impact to our revenue, so great care must be taken in using them. While this budget can be seen as a symbolic bill meant to set the tone for the majorities priorities, the message seems contrary to the “give it back” campaign refrain, and contrary to the $2.5 billion of addition spending proposed by just members of the majority party this session. It also is in considerable contrast with the Governor's budget and does not mirror the desires of the Senate.
Despite a $1.9 billion surplus, the House Majority budget calls for less than a 1% increase (less than inflation) in K-12 education and higher education budgets, denying needed investments in early childhood, K-12, and higher education. After freezing tuition at our colleges and universities over the last two years, their budget would mean tuition increases and a continuation of Minnesota’s student debt crisis. Another way to look at the budget might be this: For every $1 that goes to education, they propose $15 of tax credits or tax cuts.
While Minnesotans are frugal and we all appreciate a few extra dollars in our pockets, we also are practical and proud of our state. For a state that has historically valued education and capitalized on having one of the best educated workforces in the country, this change in focus seems unwise.
Consider this – even with a rebounding economy and a projected surplus, the proposed budget would cut more than $1 billion from health care services for Minnesotans, including our most vulnerable neighbors. In addition, millions must be cut from job training efforts, protections for our water and air, and capital improvement projects across the state. Cuts to job creation programs are being justified by claims that a strong economy make these programs unnecessary. But we all know that there are shortages in certain job sectors, and these programs play a crucial role in mitigating the all-too-prevalent mismatches between available skill sets and job requirements. While I'm very proud of our state’s strong, nation-leading post-recession recovery, I am also acutely aware that Rochester and Minnesota businesses need trained workers – I hope we do not stall our recovery due to a lack of long-range vision and planning. We cannot afford to revert to outdated budgeting or political philosophies that drove us into years of budget deficit cycles.
In the last two years I voted for laws that froze tuition at Minnesota’s state colleges, invested in job growth throughout Minnesota, and provided property tax relief. Minnesota’s strong economy created a sizable budget surplus. It appears the Minnesota House leadership is trying to take Minnesota in a very different direction. While Minnesota’s economy is thriving and unemployment is very low, we should be working to create stability in our state budget and for all Minnesotans. I remain hopeful that the grim budget released last week will be made more fair and robust after negotiations with the Senate and Governor before session ends.
I will push, as always, for a more balanced approach to state budgeting that puts our children, workers, and vulnerable Minnesotans first; that encourages economic development; that restores devastating cuts from the recession to programs that help Minnesotans obtain a high quality of life; and that guarantees a healthy reserve fund balance to help Minnesota withstand economic ups and downs.