After reaching an agreement with Governor Pawlenty late on Sunday, the legislature went into a brief special session to formalize the terms. The good news is that Pawlenty’s insistence on no new taxes won the day; the legislature had to find the funds within the existing revenues. Moreover, most of the “unallotments” made by Governor Pawlenty in 2009 that were disallowed by the Minnesota Supreme Court have been enacted (but not made permanent). Like many businesses and families, our elected officials had to figure out how to live with less. The state is still left with a projected deficit of about $5.8 billion for FY 2012-13. That number will be higher if the nearly $2 billion shifted from K-12 education in 2011 is not repaid.
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Minnesota Budget Solutions Coalition; Balance Minnesota’s Budget Without Raising Taxes
The Minnesota Free Market Institute is a proud member of the the Minnesota Budget Solutions Coalition. The Coalition is an informal alliance of non-profit organizations formed to solicit ideas from the public and members of the coalition on the state budget.
The Minnesota Budget Solutions Coalition released a brief in 2009 demonstrating that the budget can be balanced without raising taxes (for a copy go to http://www.mnbudgetsolutions.com/) . Now more than ever, innovative ideas are needed in St. Paul to balance the budget and get us on the road to recovery and prosperity. Raising taxes during an economic recession will have dire consequences. As our legislators debate in St. Paul, employers all over the state are deciding whether to hire (or fire) a new employee, invest in new equipment, or leave the state for a friendlier business climate. Minnesota already has one of the highest per-capita tax burdens in the nation. Taxing the so-called “rich” will not solve our budget problems. Every time we raise taxes on individuals and business, we are showing people the door. Our policy brief contains creative ideas that both parties can embrace if they are serious about living within our means. It also contains some strong medicine that will be hard for any politician to swallow. Please share these ideas and encourage our leaders to return Minnesota to economic health.
Note: The Coalition is busy updating the policy brief with figures from the current budget. Watch for its release this summer.
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