By Rep. Tom Hackbarth
The next state budget forecast will be issued Feb. 28. That report will provide the Legislature with numbers necessary to put together formal budget proposals.
The unemployment rate is falling and revenue is on the rise in Minnesota. We are in much better position now than we were in 2011, the last time we framed a budget. That budget enacted by Republicans last biennium has generated surpluses in each of the last three forecasts from Minnesota Management & Budget. Combined, those reports have shown approximately $2.5 billion in surplus revenue.
This money has been used to replenish state reserve accounts and to pay down delayed funding to our schools. We have fully repaid the funding shift enacted as part of the 2011 budget compromise to eliminate a $5.1 billion shortfall. We also have paid off half of the school shift enacted under the previous Democrat majorities and former Gov. Tim Pawlenty. This is outstanding news and I am pleased we are making good progress in squaring this debt so quickly.
The challenge for the new Democrat majorities will be to build on the new efficiencies we enacted in 2011-12 as a new budget is drafted this year. The most recent budget forecast predicts a $1.1 billion shortfall for 2014-15.
The predicted shortfall is not for a lack of money because revenue is projected to increase. The problem is spending is projected to rise at a faster rate. Our shortfall could be resolved without raising taxes if we can keep spending at or below the projected increase in revenue. The shortfall also could shrink without us lifting a finger if forecasts continue to reveal surplus funds.
While budget news will dominate headlines, we do have important work in other areas. I will continue to be deeply involved with issues regarding the environment, natural resources and energy, per my committee responsibilities.
Here are a few important topics we are addressing in those areas:
Wolf-hunting season
Minnesota’s first early and late wolf-hunting seasons have closed. The total harvest was a handful more than the projection of 400 pelts. Now, we need to assess what worked well in the first season and identify where we can make improvements.
Carp barriers
We are discussing ways of preventing Asian carp from infiltrating and damaging our state’s waterways. Discussions are taking place to examine placing a barrier at the Ford Dam in St. Paul. Some people favor a barrier made of bubbles, lights and noise. Other people prefer an electric barrier. New technology is available to calm concerns over safety issues to boaters, etc.
Fracking
A special type of sand is being mined in southeastern Minnesota to assist in extracting oil and natural gas from underground rock, in a process called fracking. Some citizens fear this will damage the environment. Top concerns include ground pollution, destruction of river bluffs and excessive wear and tear on local roads. Others identify the positives of tapping into vast amounts of fuel beneath our soil.
I will keep local citizens in the loop as these issues develop. You can sign up to receive email updates from me by logging on to www.house.mn/31b.
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