Rep. Shannon Savick
NEWS RELEASE
Minnesota House of Representatives
FOR IMMEDIATE RELEASE
CONTACT:
Matt Privratsy
(651) 296-6800
December 5, 2013
Minnesota Pays Back Schools – In Full
Economic Forecast reveals strengthening economy, budget surplus,
and full repayment of school IOU’s
St. Paul, Minnesota — Today Minnesota Management and Budget announced that the budget forecast shows a projected budget surplus of $1.08 billion for fiscal years 2014-15. The first $246 million of the surplus will be used to completely re-pay the billions that have been borrowed from schools by previous legislatures. After paying back these shifts, the balance is $825 million.
“One of the main reasons I wanted to serve in the Legislature was to make sure we paid back our schools,” said State Representative Shannon Savick (DFL – Wells). “I’m happy to see that after less than a year at the Capitol we’ve been able to pay back our schools in full.”
The forecast reveals that Minnesota’s economy continues to strengthen. Minnesota’s unemployment rate is down to 4.8 percent and in August, the state finished recovering all the jobs lost during the recession. During the first three quarters of 2013, businesses announced 112 expansion projects statewide. Those expansion projects will create an estimated 5,600 new jobs in Minnesota over the next two years.
Today’s progress builds on the momentum started with the passage of the budget this session. The legislature made historic investments in jobs, all day kindergarten, higher education, and passed a fair and honest budget.
The next economic forecast will be in late February 2014. The 2014 Legislative Session begins on February 25. Rep. Savick said the surplus should allow the Legislature to address several sales taxes that were put in place this year. Savick had authored a bill to repeal of the farm equipment repair tax and signed on to a bill to repeal the warehouse tax during the special session this past September, but they failed to receive bipartisan support.
“This surplus really puts us in a positive position to make changes this upcoming session,” said Savick. “If the February forecast has the same kind of numbers, we should be able to repeal the farm equipment repair tax and the warehouse tax. That should only help our economy to grow even further.”
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