Minnesota’s legislators will be looking down the fiscal barrel of an anticipated $1.1 billion budget deficit before they are even sworn into office.
Having regained control of the Minnesota House and Senate, Democrats received word Wednesday, Dec. 5 from Gov. Mark Dayton that the state collected enough revenue to pay state school districts $1.3 billion of the $2.4 billion borrowed by the last legislative term. That’s the good news. The bad news is that the state will still face a $1.1 billion shortfall, according to Gov. Dayton.
Minnesota is one of several states that forces the state Legislature to balance its budget. Accomplishing that for 2014-15 may be impacted by the nation’s fiscal battle. Tom Stinson, a state economist suggested that if the nation goes over the fiscal cliff, it would require tax hikes on the national and state levels, along with cuts in programs currently funded by the federal and state governments. Stinson predicted that it could mean that around 130,000 fewer jobs could be created in the next two years, which would see the state unemployment rate jump to 7.1 percent.
Stinson predicted another recession in Minnesota and throughout the nation, with possible ramifications on the world’s economic future.
On the brighter side, the state’s financial outlook for the remainder of the current two year cycle has improved significantly. State income, sales and corporate tax collections have checked in at $810 million higher than officials had projected. And spending on programs such as health and human services checked in some $262 million lower than anticipated.
Minnesota’s macro-economic consultants, Global Insight Inc., is forecasting the national economy to grow at a rate of 1.9 percent for 2013, 2.8 percent for 2014 and 3.3 percent growth is anticipated for 2015. Global noted that the growth rates are lower than predicted in February.
So, what are the prognosticators seeing for Minnesota’s economy? They are predicting $35.8 billion in revenues, but the state is anticipating expenditures of $36.9 billion. In addition, state money crunchers are projecting an additional $1 billion more for inflation. That boils down to a $2.1 billion shortfall that the governor and the Democratic Farmer Labor controlled Minnesota Legislature will have to fill. That’s a tall order.
Keith Hansen
Comments (16)
Add commentAwkward headline
Grapples with what? Oh, a deficit.
Broaden the Tax Base...And Wondering Keith...
During the decade in the 2000s, Property Tax Payers took the brunt___
It's not Fair, Nor Balanced, to tax folks out of their homes___
Fortunate enough to keep up__
And not lose the Homestead since 1879___
However, many folks on fixed Incomes in the Lakes Region, perhaps not___
These folks have worked all their lives, paid their taxes, and now getting SLAPPED in the FACE___
Local government units have had to rely on this pattern___
And___
Accounting Gimmicks___
Borrow from the School Districts, which in general, are yet again___
Property Tax Payers___
Why_?_
An essential element of local government is to___
Provide basic services and solutions to the folks in their area___
How to resolve, perhaps_?_
Broaden the tax base is a fairly acceptable solution___
...
And wondering Keith...
...
New Career Opportunity...
...
Jim DeMint...
http://www.rollingstone.com/politics/blogs/taibblog/jim-demint-the-firem...
Opportunity Knocks Keith...
Any interest.?.
Thanks.....
Thanks republicons!
Good quote, Dutch
"DeMint's departure was not exactly mourned on the Hill. ("He's the biggest douchebag in Washington," is how one congressional aide explained it to me, "and this is the douchebag capital of the world.") The writing was on the wall for DeMint and his Tea Party cronies when Boehner whacked four Tea Party-aligned Republicans from committee assignments earlier this week."
Read more: http://www.rollingstone.com/politics/blogs/taibblog/jim-demint-the-firem...
I tink...DeMinty...Just joined the over 250K Klub, ya.?.
Welcome to Clinton Era Tax Rates, oh NEW Leader of the Heritage Foundation...
Then There's this
I think Boehner replaced them with some more Tea Party types. But, I admit that I could be wrong as I haven't looked that up myself.
BTW Southie, did that congressional aide say that to you?
Or did I read that wrong? I do agree that they are ALL
d bags.
Also, there are new Senators coming in Jan. that can replace
Mr. DeMint. Jeff Flake- Arizona and Ted Cruz - Texas.
Sadie
The author is Matt Taibbi in Rolling Stone Magazine.
When one puts quotes around words, then follows it up with an attachment, that allows the reader to go to the original source.
And new Senator Deb Fischer of Nebraska is backed by the Tea Party.
"Despite defeats in states like Indiana and Missouri, the Republican
Senate caucus gained three new Tea Party-backed members with the
addition of Ted Cruz of Texas, Jeff Flake of Arizona and Deb Fischer of
Nebraska. In the House, the Congressional Tea Party Caucus had 60
members before election day. Of those 60, six did not seek re-election,
seven lost their races and 47 were re-elected. In addition, candidates
endorsed by former GOP presidential hopeful Rick Santorum’s
conservative PAC — Missouri’s Ann Wagner and Montana’s Steve Daines —
also secured victories for the right."
Read more: https://www.sodahead.com/united-states/tea-party-vs-progressive-liberal-...
Net Tea Party loss in the House looks like about 13. Gain in the Senate was one. Whom will the new members Caucus with?
Tea
I do understand attachments and the quotes, but was surprised that you would type d bag. I don't keep up on tea party people, all I heard is about the new people and the
few that JB replaced. I think Boehner is a non factor.
I just want reps that are fiscally conservative and by that I
mean spend only what you take in. I don't think that should
be too much to ask. I don't care what they call themselves
as far as party or caucus.
I wonder how many cauci there are in the House and Senate.
Jeff Flake was in the House so he may be figured in one of those numbers. I know he is against pork and good for him.
All this typing about Tea, I think I will have some tea.
But, of course southie would type that.
Nasty left wing profanity and un-politically correct words are allowed to an elite few posters on here. If a conservative had typed that word and the retyped it the flags would have been thrown and the abuse warning launched.
Oh Fair...Check your Wallet...Got one of these BIZY cards...
You're right, Scribbles!
Sen. DeMint will make a million/yr. as national spokeman at Heritage, brewing up tea-party think-tank level ideas to slash the social safety net and stick it to the middle class even more. But a guy has to make a living, right, and Senators are only paid a paltry $174,000 -- plus generous benefits/per year.
The Heritage Foundation is certainly signaling a change by recruiting a tea party leader, known for challenging the Republican party's more moderate folks with far-right ideologues. Many of DeMint's picks in last election cycle didn't win, however.
http://www.huffingtonpost.com/2012/12/07/jim-demint-heritage-foundation_...
Gosh Fubby
You have become the biggest crybaby on this forum, seriously
Oh Oh,
I must be turning liberal!
Fair
It's the "new normal" don't you know?
How can abnormal people
create a normal? I would think that is scientificly impossible.
I guess our soon to be former State Lawmakers were focused on
The wrong stuff !
What a surprise.....