Budget forecast and jobs show improvement
Published 6:06 pm Saturday, March 6, 2010
When the budget forecast and job numbers were released this Tuesday, there was some positive news. Our deficit has decreased by $209 million, and Minnesota employers added 15,600 jobs in January — the largest one-month gain in state employment since April 2005. A day later, we learned that initial claims for jobless benefits, considered to be an indication of companies’ willingness to hire new workers, fell by 29,000 for the week. After many months of rising job losses and increasing deficit, any good news is welcome news.
State economist Tom Stinson said he believes these reports indicate our state has bottomed out, and he expects job recovery to begin as early as next month. His sobering news is that the climb back to recovery will be long and slow. In fact, Stinson indicated we won’t see any real job recovery until the spring of 2012, which he called a testament to how deep and long this recession has been.
When asked about the bonding bill, Stinson said the sooner we can create new jobs, the better. Negotiations are continuing between the Legislature and the governor on this jobs bill, and I remain hopeful they will move quickly so these important jobs can be created as soon as possible. As Stinson said this week, “We’ve lost 25,000 construction jobs. The sooner we get them back to work, the sooner they start purchasing things and paying sales tax and paying income tax.”
Without a doubt, the biggest challenge of this session remains addressing the remaining $984 million budget deficit. Since 2002, our state has been in deficit every year but two. Each time, budgets were cut or payments were delayed, leaving schools, hospitals, nursing homes and local governments reeling. The various House finance committees are closely examining their budgets, looking for any inefficiencies or places to cut that won’t eliminate jobs or vital services.
There is no doubt the decisions we will be making over the next week or two will be very difficult ones. It is more apparent than ever that we must find ways to end the ongoing cycles of budget deficits and get Minnesota back on track. To that end, I support the work being done by the Redesign Caucus, a bipartisan effort that is looking across the entire range of state government for ways efficiencies can be increased.
A “Redesign Comment Line” has been created, designed to gather ideas from citizens across the state on what areas of government can be reformed for improved efficiency and lower costs, and how. The Web site can be found at www.house.mn/redesign.
Ideas can also be submitted through the Redesign Hotline, at (651) 297-8391 or (800) 551-5520. The top six ideas considered to be the strongest and most promising will be rolled into redesign legislation.
This time of the legislative session is marked by negotiation and compromise. Our three top priorities — bonding, the state budget, and finding a solution to the General Assistance Medical Care veto are all being worked on by various committees and with representatives from the governor’s office. Despite our differences, I believe if everyone involved — legislators from both parties and the governor — remains focused on doing what is best for the people of our state, we will succeed in solving the challenges at hand. Minnesota families, businesses and local governments are all feeling the pinch of our economic downturn and state budget cuts. Now, more than ever, I look forward to partnering with you as we move forward.
As always, it is an honor to serve. Please continue to contact me with your questions and suggestions addressing our state budget shortfall. I can be reached at (651) 296-8216 or by e-mail at rep.robin.brown@house.mn. I look forward to hearing from you.
Robin Brown, DFL-Moscow Township, is the state representative for District 27A.