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Wednesday, November 29, 2006

Budget forecast

So the word is that Minnesota has about $1 billion left over from this budget, and will have an additional surplus of about $1 billion for the next two years. If you ignore inflation in the spending side, though; if you pay attention to it, the surplus drops significantly.

Which is reason enough for people to keep their expectations realistic, as everybody is cautioning. Doing away with "some inheritance taxes"? Please. Rewarding state workers? Well, that depends on what the rest of the economy is doing. Raising some revenue, like closing loopholes, is just fundamentally right and should be done regardless of the budget situation.

No going crazy, though.

5 Comments:

At 11:46 AM, November 30, 2006, Anonymous Anonymous said...

Big Pile of Surplus Money

Such baloney.

If we factor in the inevitable inflation the $1 billion of the PREDICTED surplus that comes from the next biennium goes away.

Which is to say "The budget for the next biennium is exactly in balance" - at the moment.

Before anything bad happens like a housing-bubble collapse...

So how did it happen that a law was passed in this Great State in 1999 to PROHIBIT the consideration of inflation in budget forecasting? That is just nuts.


The other half of the Big Pile of Surplus Money is
the $1 billion PROJECTED budget surplus AS OF JUNE 2007. This exists as we have not restored the cuts to cities and schools that were made to balance the budget.

So rather than reverse some of the cuts to some very needy school districts we are all agog with visions of sugar plums.

I heard one member of state government (I think she might even been a DLFer) say we should have PERMANENT property tax relief. How could anyone use a word like that?

 
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