Greetings,
The updated economic and budget forecast we received this week projects a $1.65 billion surplus through the 2018-19 biennium – an increase of about $250 million over the previous full forecast issued in December. Just a couple of other things I want to mention before we get into more on that.
First, congrats to Dan and Crystal Ley of Richmond for being named the Stearns County Soil and Water Conservation District’s Outstanding Conservationists for 2016. The Leys run a dairy farm and are recognized for their excellent conservation practices on the 257 acres of fields they manage.
On another note, hats off to Nick Warne of the Rocori wrestling team for getting his 157th career win, breaking a school record by Tom Faber that had stood for 20 years. Way to go, Nick, and best wishes for continued success among our local athletes this winter.
As for the economic forecast, this continued revenue surplus is further evidence that tax relief is in order this session. The fact we have a surplus largely is the result of Minnesotans being overcharged on their taxes and it’s time to put money back in the people’s pockets. Tax relief will be a core priority of the budget House Republicans draft this session.
The information from this forecast will serve as parameters as we set up a new two-year state budget. While it is nice to see a strong bottom line, we do need to be cautious as we set an overall spending total. The report indicates significant risks remain, including uncertainty in international trade and health care that could impact our state.
In the end, the new budget should thread the needle between providing tax relief and supporting other priorities without overspending which could leave us vulnerable in the future. Our state’s spending already has been growing at an unsustainable rate and we need to get a handle on that trajectory so our children and grandchildren aren’t left holding the bag.
The biggest news from the House floor this week is that we approved a bill that would bring uniform labor laws in Minnesota. I am a local-control guy and this bill represents local control at the most basic level: Main Street commerce.
Decisions Minneapolis and St. Paul both made at the city level created problems when they made changes to their labor laws that extend beyond their jurisdiction. The broad net they cast regulates not only businesses physically located in their cities, but also extends to impact businesses simply working in their cities. This would open the door to so many logistical headaches and employers inadvertently breaking the law, it’s beyond comprehension. Beyond that, without the uniformity this bill provides, we could see cities and counties establishing right-to-work areas.
So, for those reasons and more, we needed to pass this bill to provide some continuity instead of allowing our state to become a checker board of labor laws.
Look for more news soon.
Good luck,
Jeff