Budget Forecast For The State - 03/07/11
Last week the office of Minnesota Management and Budget released their budget forecast for the state. The current deficit sits at $5.1 billion, down from the projected $6.2 billion. This is a positive sign that the economy is rebounding. Chief Economist Tom Stinson attributes the change to the extension of the Bush Tax Cuts by President Obama. By allowing businesses to grow and expand jobs we have seen revenue increase. Now is the time to build a business friendly environment which will cultivate a solid foundation for Minnesota and put the 200,000 unemployed Minnesotans back to work. We must do the hard work now so that when the economy does fully rebound, Minnesota is poised to be a stronger, more efficient state that delivers enhanced services that improve our quality of life without compromising fiscal responsibility.
Now that we have an accurate snapshot of the Minnesota state budget, we must continue to have government live within its means. Without raising taxes, we will see an 8.8% increase in revenue. However, this positive sign is dwarfed by the projected 29% spending increase by the state. This state is a wonderful place to live and raise a family, but we cannot allow uncontrolled spending to continue. We must work together to allow the strong entrepreneurial spirit of business to flourish in Minnesota.
The Star Tribune published a great report which again echoes the very real need to make Minnesota a more business friendly climate. To read more click here.
Also this week, I am pleased to announce that Rep. Dan Fabianís bill, House File 1 has been signed into law by Governor Dayton. The bill streamlines the permitting process for businesses which hinders business development and expansion. We need to remove obstacles in state government that cause our job creators to look across the border for their business operations. Our economic recovery begins with sensible regulatory reform that will save time and cost while protecting the environment and public health.
Thank you for the honor and privilege of being your state representative.
State Representative 52A