Frontpage -> Commentary -> Letters to the Editor -> Minnesota still facing serious budget challenge

Minnesota still facing serious budget challenge

Written by Senator Tony Lourey

Letter to the Editor;

Minnesota finance officials recently released the November Forecast, which is one of two reports that lawmakers receive each year on the state’s economy. The forecast shows that Minnesota is still facing a serious budget challenge, as a $1.2 billion shortfall is projected for the current two year budget cycle. The report states that lower than expected income tax revenue – caused by the lagging economy and high unemployment – is responsible for 70 percent of the shortfall.

Even more troubling, the forecast indicates that Minnesota’s fiscal problems will only worsen in the next biennium. Lawmakers are expected to face a budget deficit of $5.4 billion for fiscal years 2012-13, even before considering inflation. When you factor in inflation and other spending pressures, the projected deficit rises to $8.1 billion. In perspective--this amounts to nearly a quarter of Minnesota’s current General Fund spending.

Just as families are hurting and businesses are suffering, the state too is struggling to pay for even our most basic priorities. When folks don’t have jobs, they aren’t paying income taxes, so the state is feeling firsthand the effects of our weak economy. Moving forward, the path to a balanced budget needs to focus on creating jobs and rebuilding our state’s economy.

Although the November Forecast was just released, lawmakers have been hard at work tackling Minnesota’s budget crisis for many months, and will continue to do so until the 2010 Legislative Session begins. In September, the Legislature hosted the Minnesota Leadership Summit, which brought together a bipartisan group of former Governors, legislative leaders, and state finance experts to discuss potential solutions to Minnesota’s financial situation. By and large, the opinion emerging from the Summit was that the state’s structural budget problems were so great they could not be solved through spending cuts or tax increases alone. This point was further hit home during the November Forecast when State Economist Tom Stinson told lawmakers that the state cannot expect to grow its way out of its budget problems, saying that Minnesota “must make permanent structural changes in both spending and revenue” to fix the shortfall.

Now is the time for long-term solutions that will bring stability back to Minnesota’s budget—and its going to require cooperation between the Governor and the Legislature. Last session, rather than finding this compromise, the Governor opted to use the unallotment process to make one-time cuts and accounting shifts to temporarily resolve the shortfall. Clearly, that didn’t provide a lasting solution to Minnesota’s budget woes, as we again face monumental deficits. For the economic health of our state, we must work together, make these tough decisions, and develop a balanced and sustainable budget solution.

The Senate Tax Committee has begun this dialog with the Governor’s office by holding a hearing regarding options for balancing the budget. Although the Governor has said he won’t unallot December aid payments to local governments, future state aid to cities and counties remains at risk as a solution to the current $1.2 billion deficit is sought. The Committee also received testimony on the Governor’s proposal to constitutionally limit the level of state government spending.

Before the next session is convened on February 4, 2010, you can rest assured that the Legislature will be focused on economic recovery and diligent in crafting our proposals. A month or so ago, I wrote a column about our area’s local projects that are competing for state funding. Passing a bonding bill is a key priority for the 2010 session, as doing so creates immediate construction jobs and completes important infrastructure projects across the state. The Legislature will also work on new and innovative ways to spur economic development.

I encourage you to contact me with your questions or comments on any issue. You may call me at (651)-296-0293, send an e-mail to This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or write to 303 State Capitol, St. Paul, MN 55155.

Senator Tony Lourey

Comments

RSS

Only registered users can write comments!

Star Gazing

"Dix" Reunion

The 27th Anniversary

Reunion of Dix Cafe will be at 11:30 a.m. Thursday Aug. 5th at Lakeside View Restaurant Barnum.
All former employees and fiends invited. For info call Lou at 218-372-3504

Library on Wheels,

ALS Bookmobile Schedule

The 2010 summer reading season is here. Visit your library on wheels, the Arrowhead Library System bookmobile. Local stops and times include:
Tuesday; August 10, 31; September 21
Wright - School    1:15 - 1:45
Cromwell - Main Street    2:00 - 2:45
Mahtowa - Store    3:45 - 4:30

Hope Nursery School

Minnesota’s longest running private preschool program, currently has openings for children age 3-5 for the 2010-2011 school year. Classes are Tuesday & Thursday from 9:00 - 11:30. Please contact Emily at 218-391-0797 for more information.

Our Lady of Fatima

100th Anniversary

August 15, 2010 Our Lady of Fatima in McGrath, MN
100th Anniversary 11:00 Mass Luncheon to follow.
Historical displays available

BHS CLASS OF ‘80

30 YEAR REUNION Aug 13 - 15

If you have not received any info on the reunion, please send a note to barnumclassof80@hotmail.com and we’ll let you know the details!

Winter Texan Annual Jam

Moose Lake City park. Aug. 2nd & 3rd 8: a.m. to dusk and Aug. 4th 8: a.m. to noon. Music, dancing, all welcome. Come and join the fun.

Barnum Kinder-Camp

Barnum school is offering a three day mini-camp for children entering kindergarten this fall. August 3rd - 5th from 9 to 11 a.m. at the elementary school. Instructors will be Kindergarten teachers. Pre-registration is necessary. Mini-camp is free of charge and great way for your child to get familiar with the new surroundings. Sign up by calling 389-0180 or 389-3001 or email: sraisane@barnum.k12.mn

City-wide garage sale

August 7th, call the Depot to list your sale at 485-4234

Donations

wanted for Depotfest.

Needed good clean items. No clothes or electronics. Please call 485-4234

MLAHS Depotfest

14th annual will happen on August 7th from 9:00 a.m. - 3:00 p.m. Music by Pinewoods Landing with White Elephant sale and silent auction. Brats, Polish and hot dogs served from 10:30 a.m. to 1:00 p.m. Depot and Annex open free of charge.

To our Classmates,

Class of 1950:

Your reunion committee is reminding you of the reunion Friday, August 20, 3:30 p.m. Gamper’s in Moose Lake. Ordering from the menu, so don’t send money, Please RSVP to:
Betty Weske PO Box 71
Moose Lake, MN 55767 or
fabweske@yahoo.com

Hwy. 61 Folks Festival

Friday August 6th thru Sunday August 8th. Featuring singer/songwriter contest on Saturday. Family friendly in Mahtowa, of course!

Mahtowa Farm Market

Every Sunday, 10: to 2:, downtown Mahtowa. Demos, food, large variety of vendors, fun.

Classic Car Rendezvous

Every Sunday, 10: to 2:, downtown Mahtowa. Free brat for every driver.

Brickyard Days

Wrenshall Fri-Sat, Aug. 6-7th! All class reunion on Fri. nite. Organizations, vendors, booth operators, or volunteers wanted. Call 384-9929, brickyarddays@msn.com or attend open meetings on Mondays thru May at 6:00 p.m., Wrenshall City Hall.

A look inside

Stats report: click here email: Webmaster

!joomlacomment 4.0 Copyright (C) 2009 Compojoom.com . All rights reserved."