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Hello from St. Paul,
State spending could be reduced by billions of dollars under a new budget framework compromise reached by leadership in the Minnesota House.
Minnesota is facing a future budget crisis thanks to tax and spending decisions enacted into law last session by a legislative Democrat majority and Governor Walz. Their choice to spend an $18 billion surplus, raise taxes by more than $10 billion, and grow state government spending by 40% has left Minnesota facing a projected $6 billion budget deficit for the state’s next budget cycle.
This is a reality check, as the state is projected to spend far more than it will have in available revenue. If we do nothing, we are likely to see the largest deficit in our state’s history.
The framework reduces state spending by $3.9 billion when compared to the 2024-25 budget and is $1.159 billion below the 2026-27 budget base. For the 2028-2029 projected budget, more than $2.6 billion in spending would be eliminated.
If approved, this framework would represent the largest total spending cut in state history. But it’s also important to remember that Democrats agreed to increase state spending by 40 percent last session, so Minnesota would continue to have a spending problem even if the entire framework becomes law. More work needs to be done before Minnesota is out of the woods, but this is a start.
The House must agree with the Minnesota Senate on budget spending decisions before session ends in mid-May.
LOCAL PROJECTS HEARD IN CAPITAL INVESTMENT COMMITTEE
This week the House Capital Investment Committee heard two of my bills that would provide bonding proceeds for local construction projects. The first would provide $16 million to allow the City of Trimont to improve its drinking water, wastewater and sewer infrastructure. The second would allocate $6.7 million for the City of Alpha’s wastewater, water treatment and street reconstruction needs.
The bills were held over for possible inclusion in a comprehensive capital investment proposal that could be unveiled later this session.
LOCAL VISITORS
I was glad to see Jamie Salina and Kris Hohnsee with Forward Worthington recently as they were taking part of Minnesota Chamber of Commerce Day at the State Capitol!
Have a good weekend,
Marj
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