When I spoke with voters at their doors and over the phone during the 2012 campaign, Minnesotans told me they were tired of the budget gimmicks that left our state with perpetual deficits over the past decade.
Thanks to strong fiscal management by the DFL-led legislature this year, we turned the page on that chapter of our history and are now on a path to a brighter future because we balanced the budget in a way that is honest and fair.
For proof, look no further than our recent economic forecast.
Earlier this month, Minnesota Management and Budget announced a projected budget surplus of over $1 billion. The first $246 million of that surplus goes towards paying back the funds borrowed from our schools by previous legislatures. It’s all possible thanks to an accelerated repayment plan my colleagues and I included in the new state budget.
Paying back the school shift was one of my top priorities this year. It marks a significant victory for Minnesota’s students. I think we can all agree that providing our schools with greater financial stability and security is a good thing.
If our projected surplus holds when the next economic forecast is released in March, there is sure to be healthy debate about what to do with the remaining balance.
My top priority is repealing a new tax on warehousing services scheduled to go into effect next year on April 1. I’ve authored a bill to scrap that tax because we need to eliminate the financial burden it would put on Minnesota businesses. I also support repealing the other new business-to-business taxes and exploring our options for federal tax conformity to save more taxpayer dollars.
As we approach next year’s Legislative Session, it’s important to note that the projected surplus is just the latest sign that our state’s economy is growing stronger.
For example, our most recent monthly jobs report showed that Minnesota’s unemployment rate fell to 4.8 percent in October, the lowest it’s been since December 2007 and well below the national rate of 7 percent. In fact, our state boasts one of the lowest unemployment rates in the entire country. That’s a testament to our skilled workforce and Minnesota employers who have added nearly 50,000 jobs over the past year.
I’m optimistic we’ll continue making even more economic progress in 2014.
For starters, our new state budget cuts unemployment insurance taxes paid by employers starting January 1. The result is over $346 million in savings for Minnesota businesses over the next two years. We’re already hearing stories from businesses like Thor Construction Company, a Fridley-based firm that expects to save $500 annually per worker thanks to the tax cut.
In addition, the new budget funds voluntary all-day Kindergarten for every child starting next school year. That means significant savings for moms and dads who currently spend thousands on tuition-based Kindergarten programs.
Those are just a couple examples of what’s to come in 2014, but I will also be working hard to pass a strong bipartisan bonding bill during next year’s Legislative Session to help improve to our roads, bridges, and other infrastructure. Those kinds of shovel-ready projects will put even more people back to work and keep our economy moving forward.
As we approach the upcoming holiday, please remember to share your blessings with those who are less fortunate. One way you can help people in need is by donating non-perishable food items to your local food shelf.
Thanks in advance for your generosity. I hope you and your loved ones have a happy, safe, and memorable holiday!