State budget surplus offers bright spot, but families still struggling

On Thursday, Minnesota Management & Budget Commissioner Jim Schowalter released the November budget forecast which shows an improvement in the state’s fiscal position. An estimated $876 million dollar surplus is projected for the 2012-13 biennium.

By law, the extra money will go into the state’s reserve fund, he said.

"This is obviously good news and a helpful break from recurring budget gaps. It’s also a reminder that Minnesota still has some significant strengths – above average economic performance and the discipline to quickly stabilize its finances. Future risk remains, but at least we now have a cushion," Schowalter said.

Union leaders praised Governor Mark Dayton for his role in balancing the state’s budget, but said much needs to be done to help the majority of Minnesotans who face higher property taxes, difficult job prospects and a stagnant economy.

“Today’s budget forecast is a promising sign that Minnesota, under the leadership of Governor Mark Dayton, is recovering economically. Unfortunately, as promising as the news is, there are many Minnesotans who are still struggling. It is time to work together to reverse this course,” said Jim Monroe, executive director of MAPE, the Minnesota Association of Professional Employees.

“Therefore, for the 2012 legislative session, we call on the GOP legislative majority to pass legislation that will lower property taxes on businesses and residents, to make school funding a priority and to refrain from further cuts to essential state services by gutting the ranks of state government employees. We also call on the GOP legislative majority to focus on bread and butter economic issues that will create jobs and lower unemployment rather than divisive social amendments meant to drive a wedge between the citizens of our state.”

Minnesota AFL-CIO President Shar Knutson said any celebration of the surplus should be tempered by the knowledge of how it was achieved.

“While Republican legislators pop champagne bottles over a balance sheet that shows the state budget in the black, they should remember how they insisted on begging, borrowing, and stealing that money from school children, middle class families, vulnerable Minnesotans, and seniors; all to protect millionaires,” she said.

“The fact that thousands of Minnesotans are still unable to find work, schools have to borrow money to cover state IOUs, and property taxes are increasing on seniors and the middle class is nothing to celebrate.

“The only things the GOP accomplished this year were protecting millionaire CEOs, placing more burdens on middle class families and moving our state backwards.

“The state budget will be back in deficit in the next biennium; hopefully legislators will work with the Governor in the upcoming 2012 session to begin addressing that deficit fairly instead of just protecting millionaires and work to create the family-sustaining jobs Minnesotans still need.”

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