Dear neighbors,
Last week, Minnesota Management and Budget released the February economic forecast. The February budget forecast shows a projected budget deficit of $627 million for fiscal years 2014-15. This is an improvement of $463 million from the November budget forecast that showed a projected deficit of $1.1 billion.
Fiscal year 2012-13 is now projected to have a positive balance of $295 million. Current law directs $290 million to pay back the K-12 school shifts, leaving a balance of $801 million that is still owed to the schools.
The economic forecast shows that Minnesota is moving in the right direction. We are seeing employment growth and job recovery that is ahead of the nation. Minnesota is projected to reach pre-recession levels of employment by the end of the year.
Unfortunately, we still have a very large budget deficit to solve. Over the last ten years, Minnesota has experienced eight budget deficits and is in a cycle of having a budget deficit year after year. We have a unique opportunity at this point to correct our finances and to set our state on stable financial footing into the future.
Please contact me with your input as we work to put forth a responsible balanced budget. I appreciate hearing from Edina residents. I can be reached by phone at 651-296-4363 or by email at rep.ron.erhardt@house.mn.
Sincerely,
Ron Erhardt
State Representative, Edina