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PiPress Editorial: Minnesota Legislature: Collaboration would have helped

Monday, June 3, 2013

Jim Abeler: Minnesota Legislature: Collaboration would have helped

This is the largest operating budget in state history, and it is dependent on grand and hopeful assumptions.

 

As printed in the St. Paul Pioneer Press, May 29, 2013

Minnesotans elect their legislators as their voices in St. Paul. The people of our great state ask them to work together to make government accountable, effective and sustainable, providing the best value for their precious taxpayer dollars.

But this year, for the first time in 22 years, only one party, the DFL, had a say in the final budget deal. Only one voice represented all Minnesotans, and only one philosophical viewpoint prevailed as to how the state should spend taxpayer money.

Their all-spending approach to budgeting will result in long-term challenges for our state's budget and economy. Looking at the new numbers from the just-concluded 2013 legislative session, it is clear that the new budget is already at risk to generate billions in deficits.

It didn't have to be this way. Business leaders and Main Street citizens across the state asked us to work together and go line-by-line though the state budget before we asked them for more money. Sadly, that didn't happen. Instead money got added to every department to continue spending as usual. In fact, even a number of the reforms that Gov. Mark Dayton agreed to over the past two years were repealed.

Under the celebrated all-DFL plan, over the next four years state government spending will increase by about $5.5 billion -- or 15.5 percent -- while revenue, padded by increased taxes and fees, is projected to grow to a record $41.5 billion. This is the largest operating budget in state history, and it is dependent on grand and hopeful assumptions.

The concern is that costs are often higher than anticipated and revenues don't always come in as predicted. Plus this budget heavily depends on the un-interrupted biennial flow of $20 billion in federal money, while the feds continue their reckless deficit spending. They recently reneged on $180 million in promised funds. If those federal billions don't come through, we have no backup plan.

In order for this budget plan to have a chance, GDP (gross domestic product) must grow at 3.3 percent. While I hope this optimistic goal comes true, this level of growth hasn't been achieved in years.

Testimony from all quarters of Minnesota's businesses -- from agriculture to technology to Zamboni maintenance -- warns that the package of $2.1 billion in new taxes will have a chilling effect on the job climate and the economy. This puts those rosy growth projections at risk. In addition, the 2014 impact of the ACA/Obamacare includes higher insurance taxes, higher premiums and continuing uncertainty. The medical device tax has already been felt by Medtronic, which just announced the layoff of 500 Minnesota workers. Many feel this is just the beginning.

Despite the claims of a "new day for Minnesota," there is little wiggle room in this budget. If revenue growth comes in at 98 percent--that's an 'A' at any school--of estimates, that means that we will be short $830 million and Minnesota would have a deficit in the next biennium. A deficit that could have easily been prevented.

I challenge legislative leaders to look at the big picture next year and strive toward workable solutions with input from all voices. Both sides of the aisle have good ideas. The best and most sustainable product includes the best ideas from each. Let's break the cycle of the partisan status quo and start to make promises we can keep with real, long-term sustainable solutions.

Jim Abeler, R-Anoka, is the state representative for Minnesota House District 35A, which includes Anoka and Ramsey. He is the former chairman of the Minnesota House Health and Human Services Finance Committee and currently serves as its ranking minority member.