Senator Gary Dahms (R-Redwood Falls) today made the following statement and released a video in response to a bill that looks to add inflation to Minnesota budget forecast expenditures.
“Adding inflation to our state’s budget forecast expenditures is concerning. This would mean that the current percentage of inflation would automatically be built into the new requests for expenditures. And this approach raises an important question: What will we do when there is a deficit? I see only two ways this can be answered.
“Either the budget amount allocated for each agency must be reduced, or taxes would have to be automatically raised. That is why I see this auto inflation statute ultimately locking in the increased spending every biennium. And it’s going to eventually lock in taxes increases that would reflect the same amount as inflation.”
Senator Dahms is in his fifth term representing Senate District 15 which includes communities in Blue Earth, Brown, Chippewa, Lac qui Parle, Lyon, Redwood, and Yellow Medicine Counties. He also serves as the Republican Lead on the Senate Commerce and Consumer Protection Committee and is a member of the Agriculture, Broadband, and Rural Development Committee and Finance Committee.