We turned a $6.2 Billion Deficit into a $1.2 Billion Surplus-
The Republican plan is working. Good fiscal management by Republicans in the Minnesota Legislature has turned the state’s bleak economic outlook from a year ago into more positive news.
The February forecast estimates a $323 Million dollar surplus in addition to the $876 Million dollar surplus that was forecast in November. The total budget surplus is now predicted to be $1.2 Billion.
Republicans reduced projected government spending from automatic 22% to more realistic 6%-
While today’s budget forecast shows an additional $323 Million surplus, it does not negate the need to further control state spending and stop the growth of government. A growing private sector economy and sustainable state is our priority, unlike Governor Dayton and the DFL who want to take more dollars from job creators and taxpayers to feed government growth.
Repayment of the K12 Shift-
Any additional surplus is applied to repayment of the K12 shift. As a result of the February forecast, $318 Million is applied to the repayment leaving $2.4 Billion to be repaid. (The 60/40 shift is now 64.3%/36.7%).
What accounts for the Surplus Increase?
Living within our means.
- Reduced spending
- Limiting government growth
- Defeating tax increases
- Private sector job growth
- Improved economic growth rate
- Lower than average unemployment rate
As a result of sound fiscal management and responsible long-term planning, our budget and economy are showing signs of improvement. In the 8 months since our budget was signed, the outlook for future budget years has improved by $800 Million. Since Republicans took control of the legislature, we turned a $6.2 Billion deficit (inherited from the previous DFL legislature) into a $1.2 Billion surplus.
This is a remarkable turnaround.
Making government accountable to the People it serves.
Restraining government spending and promoting policies that encourage private sector economic growth are the key factors to getting and keeping the state’s finances in order. Reform 2.0 will restore confidence in our economy, improve education for our children, and reform government services to make them more effective to the people it serves and cost-efficient to the taxpayers who pay for it.
The Long-Term Solution:
More Jobs & Continued Fiscal Responsibility.
The best remedy for the state budget is a strong economic recovery in the private sector. Investment and private sector jobs must be encouraged, not chased away by high taxes and excessive regulations. State revenue growth is absolutely not attributable to new taxes, but is due to a thriving economy that allows hard-working families and employers to succeed. Any attempt to raise taxes hinders our economic and personal prosperity.
Moving forward with the Republican Reform 2.0 agenda will create a business and entrepreneur friendly climate by decreasing regulation, lowering taxes, and reforming government bureaucracy.
As always, I welcome your calls at 651-296-0518 or your emails @ email@example.com.