Americans for Prosperity Issues Statement on November Budget Forecast
Smart Legislative Budgeting Created Surplus and Should Be Used to Improve Fiscal Outlook
State’s Leading Organization on Economic Freedom Responds to Budget Forecast
MINNEAPOLIS –Americans for Prosperity-Minnesota, the state’s leading advocate for economic freedom and prosperity, today issued a statement on the December budget forecast from the Minnesota Office of Management and Budget (MMB).
“Today’s update on Minnesota’s budget situation confirmed there is a surplus for the current biennium of over $1 billion which, by law, will be used to partially repay Minnesota schools for the $2.4 billion borrowed from them during Governor Dayton’s government shutdown of 2011,” said John Cooney, Minnesota State Director of Americans for Prosperity. “Smarter spending habits paired with restructuring of revenue sources helped the state get its fiscal house in order in 2011-2012 and those same principles ought to be used to reduce the forecasted $1 billion deficit in the coming biennium.”
Only after dozens of new job-killing tax increases proposed by DFL leaders were defeated and spending reigned in was Minnesota able to achieve a balanced budget in the last two years. One major observation from budget leaders is the huge unemployment growth due to possible tax increases from the federal “fiscal cliff” which could bring down income revenue and increase the deficit in years to come. Those that are unemployed cannot pay income tax for the services they consume from state government.
“Higher taxes kill jobs and reduce government revenue, an absolute lose-lose scenario for the people of Minnesota,” said Cooney. “Taxes on the middle-class such as higher fuel taxes, license fees, or sales taxes mean less money in the pockets of Minnesotans and decreased competitiveness for our already ailing business community during a slow and unimpressive economic recovery.”
A recent study by the Brookings Institute found that Minneapolis/St. Paul ranked 243rd out of the world’s top 300 metropolitan economies due to slow economic growth and the decreased employment over the last four years. Minnesota also ranked 45th among the states in a 2013 study of business climate due to taxes.
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