Dear Neighbor,
This week we received an updated state economic forecast from Minnesota Management & Budget and it projects a $1.65 billion surplus through the 2018-19 budget period. That is an increase of about $250 million over the previous full forecast issued in December. Overall, Minnesota's budget is structurally balanced, with a $2.1 billion surplus projected for the 2020-2021 budget period.
Now the real work begins in assembling a responsible new state budget. I have been meeting with chairs of House finance committees to discuss budgeting in their respective areas. These preliminary meetings will help us set our spending levels – aka, targets – for various sections of our budget. For instance, we will need to take a look at how potential changes in health care programs at the federal level could impact the state so we can determine the best approach.
This uptick on the bottom line is good news, but it really doesn’t change anything as far as the House majority’s priorities. It will make it easier to provide tax relief and improve our roads and bridges, for example. As I said during an appearance on WJON this afternoon, it would be good if we can finally end Minnesota’s status as one of only a few states to fully tax social security income our senior citizens receive.
In any case, look for the House plan to provide more tax relief than the governor proposes. We also will aim for a more affordable spending total than the 10-percent increase he is seeking. Those details will come together over the next few weeks as we construct House budget bills and bring them through the committee process so they are ready for floor votes in early April.
On another note, the House this week passed the Uniform Labor Standards Act on a bipartisan vote of 76-53. The bill would ensure consistent employment regulations across the state. It would mandate a uniform minimum wage throughout the Minnesota and also prevent employment standards from being imposed on employers in their jurisdiction beyond what is required in state statute. Regulatory proposals in Minneapolis and St. Paul brought the latter issue to the forefront.
A patchwork of city ordinances discourages job growth and business expansion in Minnesota and creates enormous administrative headaches that cost employers time and money that could otherwise be used to increase wages or benefits for their employees. These inconsistencies would be a logistical nightmare for companies such as Spee-Dee Delivery Service, a locally based company which does business in the Twin Cities.
Lastly, the House this week provided final approval for a bill allowing Sunday liquor sales. It is now in the hands of the governor for enactment.
Watch for more news from St. Paul soon, especially as the House’s budget plan starts coming together.
Sincerely,
Jim