Rep. Simonson wants legislature to ensure working families aren’t left behind
St. Paul, Minnesota — Today the Office of Minnesota Management and Budget announced a forecasted state budget surplus of $1.87 billion for fiscal years 2016-17. After $665 million is put into state reserve accounts, as required by law, that number shrinks to $1.206 billion. State Rep. Erik Simonson said that the forecast is good news, but that many ordinary Minnesotans haven’t felt the economic recovery.
“These budget surplus numbers look really good and match what economists have been saying all year about the recovering economy, but that recovery is pretty spotty in different areas of the state – including parts of Duluth,” said Rep. Erik Simonson (DFL – Duluth). “A lot of folks I talk to feel more positive than they did a few years ago, but there’s still not a real strong sense of long-term economic security. I don’t think these numbers make a strong case that we need to give tax breaks to corporations instead of helping families.”
The forecast revealed that Minnesota’s economy continues to strengthen, even as surveys show confidence in economic outlook weakens. The lack of confidence can be attributed to a strong US dollar internationally, weakening markets for US iron ore and steel. While Minnesota’s unemployment rate is down to 3.7 percent, unemployment remains higher in many Northern Minnesota communities.
Rep. Simonson said his main focus in 2016 will be priorities to expand incomes and grow economic opportunity for middle class families, citing the lackluster results from the 2015 session. The Republican-led House insisted on a budget that increased property taxes on Minnesota homeowners, raised tuition on college students, and increased health care costs for low-income working Minnesotans. Meanwhile, they pursued massive tax cuts for the largest property owners in the state.
“I’m proud we have a stable, balanced budget. That’s good, but this surplus should be seen as an opportunity to help Minnesotans prevent the devastation of another economic downturn, not a tax cut ‘gimme’,” said Rep. Simonson. “We need to be helping families dig out, and this surplus provides ample opportunity to do that if we make the right choices. We can increase LGA and lower property tax burdens. We could continue the tuition freeze to lower student debt burdens. We can invest in proven economic development programs that bring good jobs to Duluth and keep jobs in Duluth, but we need to have the courage to do it.”
The next economic forecast will be in late February 2016. The 2016 Legislative Session begins on March 8th. Rep. Simonson said the focus of the next session will be to pass a robust bonding bill to create jobs in every corner of the state and to help local communities stop property tax increases on middle-class homeowners and small businesses. He also expects a debate about the best ways to improve infrastructure throughout the state.
“This positive forecast should highlight the need for fair and balanced budgeting, and commit legislators to use this opportunity to invest in transportation, job creation, education, and property tax relief that helps working people find prosperity, not hand-outs for corporations,” said Simonson.
Rep. Simonson encourages community members to contact him on any legislative issue. He can be reached by email at rep.erik.simonson@house.mn or phone at 651-296-4246.