MinnPost - Pawlenty has become Minnesota’s perpetual-deficit machine

But isn’t Pawlenty just a victim of being a governor during a recession?  Partly, but half of the projected deficit in the upcoming biennium is not from the declining economy but from a holdover projected deficit he refused to deal with in earlier years. He has consistently vetoed bills that would have restored revenues to bring budgets into balance into the future.

Pawlenty has taken to chiding the federal government for deficit spending, saying it should learn from governors who have to enact balanced budgets.  Hopefully his phone will be busy when the feds call for advice, for Pawlenty is famous for producing budgets that allow the books to balance in the short run by creating larger deficits in the future.

Read the complete article here.

MN2020: JEFF VAN WYCHEN STATEMENT ON BUDGET FORECAST

Excluding one-time federal recovery dollars, the state’s revenue situation went from bad to worse today. The state is projecting a deficit for the upcoming FY 2010-11 biennium of a staggering $6.6 billion (approximately), up from the $5.5 billion previously projected. This deficit includes the impact of inflation on state revenues and expenditures.

The February forecast provides even further proof that Minnesota has a revenue problem. Minnesotans should understand that the enormous state budget deficit is not primarily the result of growth in state spending. From the FY 2002-03 biennium to the FY 2010-11 biennium, real (i.e., inflation adjusted) per capita state general fund current resources are projected to fall by 16.3% percent. (Excluding one-time federal recovery dollars)

With a huge deficit still projected for FY 2010-11, state policymakers must consider spending reductions. While federal recovery dollars are a big help, the deficit is primarily the result of a dramatic decline in state revenue. General state tax increases must also be on the table.

Smith: Worsening structural deficit magnifies need for fairer revenue and accountability in Minnesota

Dane Smith from Growth and Justice wrote about the budget deficit in the St. Paul Legal Ledger today.

First, a new revenue proposal, preferably a reasonably higher state income tax rate for those who can most afford it, needs to be plopped on the table, sooner rather than later. We need to be clear that we will avoid reckless damage to public investments that provide a foundation for long-term prosperity. These include education, transportation, community infrastructure, public health and environmental protection.

Read the complete article here.

We’re number 8!

According to figures released by the National Conference of State Legislatures, Minnesota has the 8th highest deficit per person ($480), based on the November 2008 forecast.