FOR IMMEDIATE RELEASE
CONTACT: Bennett Smith 651-296-6422
December 6, 2013
Minnesota Pays Back Schools – In Full
Economic Forecast reveals strengthening economy, budget surplus, and full repayment of school IOU’s
St. Paul, Minnesota — Thursday 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.
“This great budget news puts Minnesota in a strong position moving forward. We have kept our promise to Minnesotans and fully paid back our schools after years of IOUs that hurt our students,” said State Representative Jay McNamar (DFL – Elbow Lake) “Our state’s economy continues to improve, and we have a budget that has been honestly balanced for the first time in a decade. We’ve shown what responsible budgeting can do for a state’s economy- honest investments in education, job training, transportation, and property tax relief have brought us lower unemployment, stronger growth, and a $1.1 billion dollar budget surplus.”
The forecast revealed 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.
“It is hopeful to see Minnesota’s economy continue to grow. It’s a credit to the great workforce we have in this state,” said McNamar.
The forecast 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. McNamar said the focus of the next session will be to build on this momentum to grow a stronger middle class.
“As a former teacher, paying back the school shift and adequate funding in all of our rural districts was a high priority, but this coming session I’m going to be shifting some of my focus to make sure that we are keeping our farmers, manufacturers, and rural businesses competitive in a modern economy,” McNamar said. “Farming and manufacturing have been a lifeline for all the communities in our district, and I’m hopeful that this budget surplus will force legislators to look at taxes that are unnecessary, especially for ag equipment repairs and other business-to-business sales taxes.”
Rep. McNamar encourages constituents to contact him with any questions, comments, concerns, or ideas on any legislative topic. Rep. McNamar can be reached by phone at 651-296-4929 or by email at rep.jay.mcnamar@house.mn .