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Legislative News and Views - Rep. Sondra Erickson (R)

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Budget forecast shows a surplus

Thursday, December 1, 2011
Dear Neighbors, The state budget received a bit of good news today with the announcement that there is an $876 million surplus in the current two-year budget. This is a turnaround from previous estimates and a huge improvement from the $5.1 billion deficit that was predicted last February. Seeing this news, I am glad we fought to keep spending under control last session against calls from Governor Dayton to raise taxes and spend more. Already people are rushing to spend this unexpected money, but I believe we should take a more cautious approach. The last thing we want to do is spend more money only to have the next forecast show another deficit. Let’s use this news to make positive steps toward fixing the budget instead of making it worse. I also believe we should continue on our path of reforming the way government works. Just because budget pressures have eased doesn’t mean we should abandon those efforts. Our goal has to be to put the budget on sound structural footing so our economy can create jobs and permanently reforming government is a key part of achieving that. Here is more information from Minnesota Management and Budget about the forecast:
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