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

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Notes on economy

Friday, December 11, 2015

Dear Neighbor,

 

Yesterday’s announcement from Minnesota Management & Budget that November revenue coming into the state was $9 million below forecast was the first time since August of 2014 that collections had come in under estimates.

 

It breaks a string of 14 consecutive months of above-forecast revenue collections. Although the shortfall represents a small portion (0.6 percent) of the revenue total, and one month doesn’t make a trend, it is reason for some degree of concern about the economy. Click here for more details on the November report from MMB.

 

I have said for some time that agriculture has come off its heyday of the past few years and is facing a real cost squeeze. It’s not just farmers affected by this downturn, but all those who supply them with the inputs and machinery they need to conduct their business. Low prices of corn and soybeans are well documented, but it seems that nearly all sectors of production agriculture are facing extremely tight margins.

 

And, since ag accounts for upwards of 20 percent of our state’s economy, it’s not surprising that the slowdown on the farm will eventually become evident in the statistics collected by the state. I also think that the rapidly rising premiums people are paying for health insurance will also put a damper on the economy. It’s also interesting to note that these aren’t old numbers as the recently released November budget forecast was the basis for the shortfall reported in the month of November.

 

On a much different topic, I hope you received the news reports of the outstanding work done by law enforcement in the wake of the tragic shootings in California. They risked their own lives to help those caught inside the building. One officer matter-of-factly told a reporter that even though he was in harm’s way, it was his duty to help get people out of the building.

We sometimes take for granted the job these men and women do on our behalf. So, to all those who work to keep our lives safe, and that includes police and firefighters and also those who serve on ambulance and EMS crews, Thank you for the work you do every day.

 

Sincerely,

Paul