Forget the weather, all attention is on Minnesota's new budget forecast today. Â Why? It is anticipated to show a $1 billion surplus.
How would you work with Minnesota's general fund money? Which state services would you focus on: schools, health care, prisons? Would you roll back fees or try to maintain a secure, stable safety net for changes in the economy?
On MPR's Midday 11/29/06, "Some of the lawmakers who hold the purse strings discuss their plans for that money."Â Tune in or catch the audio archive where Key lawmakers discuss the budget forecast
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Julia Schrenkler
Minnesota Public Radio Interactive Producer




Comments: 8
On closer inspection the $2.17 billion quickly becomes about $900 million of almost exclusively one time money, which is great, but not enough to either declare a spending spree or offer rebates.
First, the state calculates inflationary growth on the income side of the ledger and not the spending side (except for some parts of the human services budget where the feds demand actuarially sound accounting practices). If you adjust for a modest 2% inflationary growth, that takes ~$1.1 billion off the table.
The remainder is a combination of spending less that projected, an increase in corporate tax collections fueled by record-setting corporate profits and $737 million left on the table at the end of the 2006 legislative session.
$900 or so million in one time money is still alot of money, but it's about 1/8 of one percent of the bienniel budget--and it's only one time--not unlike a holiday bonus from an employer. Any major new spending will require finding new revenue to sustain it -- which always takes the fun out of a capitol spending spree.
Are we talking new programs which will give us an obligation to fund in future budgets or giving current programs some additional funds?
If we have all this money, there is no need to raise taxes. Right?
Is it virtuous to be compassionate with someone else's money?
If we start a bunch of new programs won't we just have trouble paying for them in future years?
Should we try to get as many people as possible addicted to a government program?
What responsibility do we have for our future generations who have to pay for the growth of government?
If we have so much excess money doesn't that mean that we are taxing too much?
Raising or cutting taxes is a simplistic and divisive subject that does not touch upon the true issues. When fiscal conservatives want to stir up the waters and whip their base into a frothing frenzy, "tax and spend liberals" is the tired old phrase they regurgitate. If moderates and liberals truly want to take that weapon away from the conservatives, they need to make government spending transparent at every level and take away the legislator's ability to hide increases or cuts with creative accounting and the shell games they currently employ. If moderates and liberals cannot show that the taxes we are already paying are being spent responsibly, it makes it that much more difficult to talk people into funding new programs.
It is easy and probably quite cathartic to repeat "cut taxes" without having any reasonable or realistic alternative to the current situation, especially when you know that 90% of those reading your post have no better access to information than you do. If it is common knowledge that certain taxes pay for specific services, for example, cigarette taxes going to health care and cancer prevention programs. If state and federal budgets showed exactly which tax money goes to which programs, it would allow for much more meaningful, logical, and productive conversations about taxes.
Until then saying you want to raise taxes or cut taxes doesn't really mean anything.