ST. PAUL, MN –  Today Senate Democrats passed a bill that would assume automatic increases in government spending and limit the amount available for a tax cut in the case of a surplus.  

“This bill puts government spending on auto-pilot to increase every single year,” said Sen. Eric Pratt, (R- Shakopee) who serves as the Ranking member on the Senate Finance Committee. “Some increases may be warranted to follow inflation, but we shouldn’t start there. The legislature should be responsible for deciding whether we should increase funding for existing programs, recognize efficiencies that can be made, or whether to transfer funding to more effective programs. Because this change will be to artificially decrease surpluses and increase projected deficits, the impact will be to overstate how much the state will spend and lower the amount that can be targeted to reducing taxes for hardworking Minnesotans.” 

Inflation is already included as a footnote in the budget forecast, and the bill passed today doesn’t clarify which inflation estimate should be used and leaves it to the discretion of the Commissioner of Management and Budget.  The next budget forecast is scheduled for Monday, February 27.