State budget deficit is too big for merely cuts
Published 5:00 pm Saturday, December 12, 2009
Two weeks ago, I had the honor of participating in the Freeborn Area Cancer Auction. They continued a tradition started two years ago of auctioning off my yellow campaign jacket, which this year raised $550. Toward the end of the bidding process, individuals were adding fives, 10s, and 20s to the winning bid.
At the conclusion of the bidding, my campaign jacket was returned to me so that it may be used for another cancer auction and another campaign. These acts of kindness and generosity brought tears to many eyes, and I’m humbled if I played even a small part in an evening that raised more than $30,000 — all from a town of just 320 people!
This demonstration by people from different political parties, different religions, and different age groups joining together for the betterment of the common good is the essence of what makes America and Minnesota tick. Throughout our district there are people and organizations committed to improving the lives of their neighbors, and I sincerely thank them for their efforts.
Last week, we learned that our state is facing an additional $1.2 billion budget deficit for this biennium, with a projected shortfall of $5.4 billion for 2012-14. The primary reason given for this shortfall is a historic drop-in income tax receipts.
In fact, Minnesota workers are currently working fewer hours per week than at any time since the Great Depression. As a result, not only are Minnesota families hurting, but we’re experiencing the biggest two-year drop in state revenue since World War II. It is clear there are difficult choices ahead.
We will face decisions on which programs to fund and which to eliminate; which tax breaks to fund and which to eliminate. We also know that even though our schools, hospitals and local governments may need and certainly deserve additional funding, increases will be hard to come by. Every decision will be weighed carefully, and always with an eye to doing the least amount of harm. We need to once again ask ourselves: Is it necessary? Can we afford it? Is it fair?
Last session, I supported a combination of budget reductions, tax decreases, tax incentives and progressive tax increases. I am convinced that a combination of these approaches will be on the table again next year.
Most Minnesotans believe that higher income earners with an adjusted gross income of $250,000 or more should pay the same rate or more than a middle income wage earner.
Republican President Teddy Roosevelt was one of the first leaders to propose a progressive income tax. Sadly, our state has been moving toward more regressive taxes over recent years — asking those who can least afford it to pay more than their fair share.
In other words, middle class wage earners pay a higher percentage of taxes than wage earners who have an adjusted gross income of $250,000 or more. This is a trend I believe must be reversed. I will continue to support legislation that makes Minnesota income taxes more fair.
Property taxes are another regressive tax that are not based on a person’s ability to pay. Too many people have experienced an increase in their local property taxes at a time when they have witnessed a decrease in their property values.
This is a direct result of recent actions by Gov. Tim Pawlenty to cut local government aid and delaying school aid payments, forcing schools to borrow millions and pay interest just to meet their payroll. As State Economist Tom Stinson said again this week, we cannot simply cut our way out of this budget deficit; too much serious and permanent harm will be done to the core values of our state.
As we enter another legislative session, I hope we can stay focused on goals that unite us instead of issues that divide us. In my fourth year representing Freeborn and Mower counties, I will continue to focus on the quality-of-life issues that make our state a great place to live and raise a family. I will support a return to fair taxation and promote efficient and effective government at all levels.
I believe that Minnesota is a wonderful state because we have demonstrated our willingness to pool our resources toward the common good. We understand there are no easy solutions, but we also know that past generations have come through worse and were stronger because of it.
Your continued ideas and suggestions are always welcomed as we prepare for a difficult and challenging legislative session.
Robin Brown, DFL-Moscow Township, is the state representative for District 27A. She can be reached at (651) 296-8216, or by e-mail at rep.robin.brown@house.mn.