Rep. Tim Faust
Letter to the Editor
Minnesota House of Representatives
FOR IMMEDIATE RELEASE
CONTACT:
Matt Privratsy
(651) 296-6800
December 11, 2013
To the editor:
Just last week, the Minnesota Management and Budget Office announced a budget surplus of $1 billion after conducting their November economic forecast. The surplus is a result of both increase revenues from a growing economy and reduced state spending from our 2013 Budget. This is very positive news for our statewide economy, but it’s also very positive news for our schools.
These surplus revenues will immediately pay off the remaining $246 million owed to our schools as part of the school shift put in place two years ago. Along with the new state support our local districts received as part of the budget passed earlier this year, these funds will help put our schools on solid financial footing after years of declining funding.
The surplus also puts us in a good position to address the farm equipment repair tax that went into place this year, as well as the new warehousing tax. I supported legislation to remove these taxes during a special session of the Legislature in September, but both bills failed to receive bipartisan support. I will continue to push for the repeal of these taxes when we return to the Capitol this February.
These new funds may also give us flexibility to address other issues, but we won’t know the final amount until the February economic forecast is released. The best thing we can do to ensure strong economic performance is support our local businesses. That’s why we increased our investment in job creation by nearly $100 million in this year’s budget. Those funds will be used to offer grants, loans, and other incentives to local businesses who want to set up shop or expand their operations. To lower the cost of doing business, we cut the Unemployment Insurance Tax by $346 million. That will mean an average savings of $150 per employee for all Minnesota businesses.
We’re investing in job creation because we want to ensure our economy continues to improve in all areas of the state. This budget surplus is a good first step in that process.
Tim Faust
###