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Legislative News and Views - Rep. Paul Anderson (R)

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Update re: economic forecast & more

Friday, December 4, 2015

Dear Neighbor,

 

 

The big news this week came from Minnesota Management & Budget, which issued an updated state economic forecast that calls for a $1.87 billion surplus for fiscal years 2016-17.

 

 

Things can change between now and when the next forecast comes out in February, but this information will give us a ballpark idea of where things stand as we ramp up to start the 2016 session in March.

 

 

This is good news, yet it is important to proceed with caution since there are some clouds on the horizon, especially in regard to the agriculture economy. It is important to note state law will direct one-third of the $1.87 billion surplus toward reserve accounts so, for now, there is around $1.2 billion that can be appropriated.

 

 

That remaining balance needs to be used very wisely. Our top priorities should be providing Minnesotans with tax relief and directing additional funding toward transportation so we can improve our roads and bridges.

 

 

One of the most interesting developments since we received the forecast Thursday was Gov. Mark Dayton declared during a press conference that his proposal to raise the gas tax is dead. A majority of Minnesotans opposed raising the gas tax earlier this year and that plan was unlikely to gain momentum now in the face of a growing economy.

 

 

That could eliminate a major obstacle as we work on a long-term plan for our roads and bridges. The House passed legislation that would provide $7 billion for roads and bridges over the next decade without raising taxes, but it ultimately stalled over the insistence by some that we raise the gas tax.

 

 

We will see how things unfold, but the important thing to remember is this surplus is not just a free pot of money. It came from taxpayers and they should be the priority as we consider courses of action in the Legislature.

 

 

On a separate note, the Minnesota Agricultural Education Leadership Council recently awarded more than $3 million to eight Minnesota State Colleges and Universities Farm Business Management programs including Alexandria Technical and Community College.

 

 

These grants are intended to help address a concerning shortage of instructors in farm business management. They were funded through this year's agriculture legislation I worked closely with this as chairman of the House Agriculture Policy Committee.

 

 

As always, your input is welcome on these and other issues.

 

 

Sincerely,

Paul