Column: Legislature should focus on smarter spending

Published 12:00 am Saturday, March 10, 2007

By Laurie Lewandowski, Guest Column

The debate on tax and spending decisions is under way following last week&8217;s financial forecast for 2008-09. Minnesotans now know that the state treasury has a $2.2 billion surplus, and there is no need to raise taxes to supplement our $35 billion two-year general fund budget.

Still, some lawmakers persist in their belief that the government is short on money. They adopt the philosophy that all existing programs and services must be on auto pilot instead of having the legislators we elect set priorities for spending every two years. In perfect political double-speak, they tell you they don&8217;t really want to increase taxes, but they might have to because the state&8217;s needs are too great.

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Senate leaders, in particular, are poised to increase the statewide property tax, which falls almost exclusively on commercial/industrial and utility properties. At the same time, they want to raise taxes on Minnesota companies that are competing in foreign markets and bringing those profits back to Minnesota, a measure that would discourage companies from using Minnesota as a base for their worldwide operations.

In other words, in a time when Minnesota state budget revenues are growing and employment numbers becoming more encouraging, some legislators want to tax Minnesota employers. This is not the time to raise anyone&8217;s taxes or fees &8212; especially the companies that employ millions of Minnesota workers. Upward of 600 business leaders will deliver that message personally to legislators March 14 during Business Day at the Capitol.

The budget forecast underscores that Minnesota is not short on money; it projects a $2.2 billion surplus. Gov. Tim Pawlenty has proposed a 2008-09 budget nearing $35 billion, which represents a 9-percent spending increase over the current biennium.

Candidates campaigned in 2006 on a theme that property taxes are too high. Count my business among those ranks. The facts are:

&169; Business property tax burdens are three times that of homes of the same value.

&169; Business property tax burdens are still high compared with the rest of the nation. According to the latest Minnesota Taxpayers Association study, a $1 million commercial property located in the largest urban city had the 14th highest property tax burden in the nation. For a similar rural property, the tax burden was seventh highest in the nation.

Both homeowners and businesses need property tax relief. With $2.2 billion in the bank, we should be able to provide property tax relief to both employers and employees &8212; after all, they are the ones who worked to bring us this great surplus.

Lawmakers should be focusing on squeezing every dollar out of the surplus, and not squeezing more from the taxpayers. The state has plenty of money to spend on quality health care, property tax relief and student achievement &8212; if lawmakers spend the money wisely.

Laurie Lewandowski is chief executive officer of SJE-Rhombus Controls in Detroit Lakes and chair-elect of the Minnesota Chamber of Commerce board of directors.