On Wednesday, the Minnesota Department of Finance forecast a $2.2 billion surplus available for budget decisions in fiscal year 2008-09. Inflation on existing state government programs will reduce that surplus by about $990 million to $1.21 billion. Despite the positive forecast, state economists were cautious about Minnesota’s economic outlook.
“Minnesota cannot prosper if we continue to cut public infrastructure and undervalue public employees,” said Eliot Seide, director of AFSCME Council 5, Minnesota’s largest public employee union. “Minnesota voters sent a clear message that they want to invest in education, health care and transportation. They also want property tax relief through restoration of local government aid.”
“Contrary to what you hear from the Taxpayers League, state spending has not doubled over the past 10 years,” Seide explained. “In fact, state general fund spending has declined when adjusted for inflation and population growth.”
The revenue forecast shows that corporate profits have soared while real wages have declined. “Boosting wages is the best thing we can do to fuel our economic engine,” Seide explained. “When working families earn more, they spend more on homes, cars and food. That creates a healthy economy and prosperity for all.”
“State employees contributed to the forecasted surplus,” said Seide, who will negotiate a contract in 2007 for nearly 19,000 AFSCME members who work for state government. “We’re the 13th leanest and most productive workforce in the nation. We need to invest in the workers who take care of Minnesotans in our schools and health care facilities, on our roads, and in our communities.”
“We must help people help themselves by restoring cuts to education, health care and child care,” said Seide. “We must support economic growth by adequately funding public infrastructure like our transportation system. And we must sustain our state’s rich natural resources.”
When asked about raising taxes, Seide responded that “We must tap all the tools in our toolbox in order to leave our children a better Minnesota. Nobody likes taxes, but most folks understand that it’s the price we have to pay for public investments that enable our state to prosper. Investments in public infrastructure pay off by attracting businesses and creating jobs.”
Reprinted from the AFSCME website, www.afscmemn.org
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On Wednesday, the Minnesota Department of Finance forecast a $2.2 billion surplus available for budget decisions in fiscal year 2008-09. Inflation on existing state government programs will reduce that surplus by about $990 million to $1.21 billion. Despite the positive forecast, state economists were cautious about Minnesota’s economic outlook.
“Minnesota cannot prosper if we continue to cut public infrastructure and undervalue public employees,” said Eliot Seide, director of AFSCME Council 5, Minnesota’s largest public employee union. “Minnesota voters sent a clear message that they want to invest in education, health care and transportation. They also want property tax relief through restoration of local government aid.”
“Contrary to what you hear from the Taxpayers League, state spending has not doubled over the past 10 years,” Seide explained. “In fact, state general fund spending has declined when adjusted for inflation and population growth.”
The revenue forecast shows that corporate profits have soared while real wages have declined. “Boosting wages is the best thing we can do to fuel our economic engine,” Seide explained. “When working families earn more, they spend more on homes, cars and food. That creates a healthy economy and prosperity for all.”
“State employees contributed to the forecasted surplus,” said Seide, who will negotiate a contract in 2007 for nearly 19,000 AFSCME members who work for state government. “We’re the 13th leanest and most productive workforce in the nation. We need to invest in the workers who take care of Minnesotans in our schools and health care facilities, on our roads, and in our communities.”
“We must help people help themselves by restoring cuts to education, health care and child care,” said Seide. “We must support economic growth by adequately funding public infrastructure like our transportation system. And we must sustain our state’s rich natural resources.”
When asked about raising taxes, Seide responded that “We must tap all the tools in our toolbox in order to leave our children a better Minnesota. Nobody likes taxes, but most folks understand that it’s the price we have to pay for public investments that enable our state to prosper. Investments in public infrastructure pay off by attracting businesses and creating jobs.”
Reprinted from the AFSCME website, www.afscmemn.org