Column: Rich Murray, Capitol Conversations

Once again, Minnesota lawmakers have received greater-than-expected news from state economic experts. On Feb. 29, budget officials projected that Minnesota now has $323 million more than previously anticipated.

This $323 million surplus is in addition to the $876 million surplus Minnesota received in early December.

You’ll recall that state law dedicated the previous $876 million to Minnesota’s rainy day account and budget reserves, so it probably won’t surprise you that the $323 million is already spent as well.

Of this amount, $5 million will be added to budget reserves, bringing that total to $653 million. The $318 million that remains will be used to reduce the school aid shifts that have been enacted by the current and previous legislatures — which is good news.

It’s clear that by showing spending restraint and not raising taxes, Minnesota’s economy is improving and so is the state’s budget.

In the past three months, forecast revenues increased by $93 million. $71 million of this amount came from increased income and sales tax forecasts. Had we raised taxes by billions of dollars, this positive economic news would have been severely jeopardized.

The naysayers will note that the next budget cycle shows a projected $1.1 billion shortfall. There are a few points to note.

First, in the eight months since the budget was signed, the outlook for future budget years has improved by $800 million, meaning we are clearly headed in the right direction. Second, even the economic experts note that federal policy unknowns, such as post-election fiscal policy, could impact our future budget.

This is one of the issues critical to reforming state government — being prepared. Minnesota needs to be prepared with a contingency plan if expected payments from the federal government don’t arrive. As usual, state money is already spoken for, so we need to have a sensible plan of attack in case the unexpected happens.

This is part of the reason why we reformed government last year, and it’s why we continue to push forward with our Reform 2.0 plan this year — to prepare Minnesota for the economic ebbs and flows that can occur for any reason.

Last January we faced a $5.1 billion budget deficit, and one year later we have turned it into a $1.2 billion surplus. Our work to rein in government spending is working, as shown by our improved economy.

 

Local bills heard in committee

Also on Feb. 29, I was joined by members of the Shell Rock River Watershed District to help present a bonding request before the Minnesota House Environment Committee. It, along with Albert Lea, seeks $7.5 million in state funds to dredge Fountain Lake to improve its water quality, fishery and recreational opportunities. The bill received good response from the committee, and I am hopeful this bonding proposal will be selected for approval.

This session, I’m also working on several different job-related initiatives. On Tuesday, I presented one of them before the Minnesota House Jobs and Economic Development Finance Committee. It deals with the distribution of angel investment tax credits.

Currently, the Twin Cities area gets a significant percentage of these funds, and it’s clear that Greater Minnesota is not getting its fair share. My goal with this legislation is to stand up not only for our district but for all of Greater Minnesota, and make sure we continue to grow jobs and help companies expand by attracting more of these dollars.

As always it is a pleasure to serve as your state representative. I am honored to be in this role and look forward to hearing from you.

Have a question or concern? Constituents in District 27A including communities in Freeborn and Mower counties can write to me at 439 State Office Building, 100 Rev Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155. Or call me at 651-296-8216 or e-mail me at rep.rich.murray@house.mn.

 

Rich Murray, R-Albert Lea, is the state representative for House District 27A.