March 1, 2019
Friends and neighbors –
The big news of the week this week was the announcement of the annual February revenue forecast. This report tells legislators precisely how much money we have to work with as we construct the next state budget.
This year’s forecast is a mixed bag.
On one hand, it shows the state has a little more than a $1 billion budget surplus. While it is better to be in surplus than in deficit, a surplus that large also means we collected far too much money from taxpayers.
In addition, the budget forecast contained several warning signs. According to the office of Minnesota Management and Budget (MMB), which produces the forecast, our economic outlook has weakened. Projected revenue projections are lower through 2023, economic growth is projected to slow down, and labor market indicators have tightened significantly. In fact, during the forecast announcement, MMB officials acknowledge that once inflation is taken into consideration, the surplus is effectively eliminated.
You might ask what this means for you and your family.
In short, it means a lot. Legislators and the governor will use this forecast to construct a budget, and those decisions directly impact you.
For example, recently Gov. Walz announced the details of his budget proposal. He wants to significantly increase spending and raise billions of dollars in taxes. These are not taxes on “the rich” either; these are regressive taxes that most hurt the families who can least afford it, like the gas tax, license tab fees, and the sick tax.
In light of a forecast that has so many storm clouds on the horizon, it would be a mistake to raise taxes and spending so substantially. Think about it: if you knew you were about to lose your job, would you take out a second mortgage? Would you buy a new boat?
When I read the forecast, one word keeps coming to mind: caution. We have to exercise caution.
The Senate is beginning the process of putting together our own budget offer, and as we do I would love to hear your feedback. Please feel free to contact me at 651-296-5981 or sen.bruce.anderson@senate.mn.
Constituent Visits
Meeting with Students from Students United, including Andrew Weinzierl of Delano!
Had a good chat with Debbie Uecker, Karen McDougall, Mark Hoffman of the Minnesota Association of Townships.
Keep in touch,