Dear Neighbors,
State economists released the February budget forecast yesterday, revealing more positive news for our economy. For the fourth budget cycle in a row, Minnesota has a surplus, this one amounting to $295 million.
From February 2011 to February 2013, we have bridged a significant gap. We started with a $5 billion deficit and now have a $2.8 billion continued surplus. With these dollars we have paid down a significant portion of the 2010 K-12 school shift, and we have successfully filled our budget reserve and cash flow accounts.
Our current operating budget was implemented in 2011 by Republican majorities who faced a historic $5 billion budget deficit. By streamlining government and protecting Minnesota from increased tax burdens, we delivered positive results for the state economy.
The results are encouraging: unemployment has dropped to 5.5 percent (well below the national average), and 55,000 jobs were created and 61,000 businesses were registered last year alone.
Looking to the future, the once-projected $4.4 billion deficit for 2014-15 has been significantly reduced to $627 million. As you know, Governor Dayton is proposing to increase taxes by a historic $3.7 billion and to grow government by $2.5 billion, all to remedy this $627 million problem. However, state economists say that, if the current budget were still in effect for 2016-17, we would have a $782 million surplus. Essentially, the economy would slowly but surely recover on its own, without need for government interference or tax increases.
I am hopeful that after yesterday’s good news, the governor and the new legislative majorities will amend or eliminate their proposed tax increases—we need a state government that lives within its means, just like our hardworking Minnesota families and business owners do every day.
For more information, click here to read a forecast summary from Minnesota Management and Budget.
My door is always open to the people and priorities of Blaine. Please contact me at any time regarding matters of state government. You can locate my contact information on the left-hand side of this email, or feel free to follow me on Twitter.
Have a great weekend,
Tim