Dear Neighbors,
I hope that this email finds you and your families well. The 2016 Legislative Session starts next Tuesday, with many issues for us to take on in a very short period of time (10 weeks). I’d like to update you on a couple of the major topics that the bulk of our discussions will focus on.
Budget Forecast
Last Friday, the February Economic Forecast was released giving us a new snapshot of the budget framework within which we must work. A budget surplus of $900 million is now projected, down from the $1.2 billion in November. This lower number is largely due to global factors, including a trade gap and weakening returns on oil-related investments. The forecast notes that the Minnesota economy remains steady, and unemployment is low.
In my view, the revised number highlights a couple of approaches we must take to the state budget. First, we need to recognize that it would be irresponsible to take action which could put us in a fragile fiscal position down the road during any unexpected economic downturn. After the November forecast, $600 million was shifted to the state budget reserve as required by state statute and I supported this measure. Massive tax cuts and long-term new spending commitments this session could jeopardize this position down the road.
Instead, I support targeted, wise investments which will continue our growth and give all Minnesota families what they need to get a leg up toward sustained economic success. These investments include lower property taxes for homeowners, renters, seniors, and our small and medium sized Minnesota businesses, a tuition freeze at our public colleges and universities along with student debt relief, expanded early learning scholarships and early childhood education, and repairing our roads and bridges as well as providing for a robust transit system.
Bonding Bill
The other substantial task before the Legislature is to pass a bonding bill, which funds capital improvements at our higher education institutions, parks and trails, correctional facilities, and other public assets. This year there are approximately $3.7 billion in requests – $2.7 billion from state agencies and just under $1 billion from local units of government. Considering our debt capacity and strong credit rating, a final package will likely be in the neighborhood of $1 billion and will require a three-fifths supermajority of both houses of the Legislature as well as the Governor’s signature. The House Capital Investment Committee met yesterday to hear pitches from many of the agencies seeking requests. You may know that I am the chief author of the bill to bond for the state's share of the cost of building the SouthWest Light Rail line.
Minnesota House Public Information Services just released a short video outlining the legislative bonding process. I invite you to click here and watch it, and take a look at the statewide map of the bonding requests here.
With session just days away, I’d like to remind you that I always welcome your input. Please feel free to email me at rep.yvonne.selcer@house.mn or call me at 651-296-3964 with your questions or comments. It’s an honor to represent you.
Best Regards,
Yvonne Selcer
State Representative