The release of the November state budget forecast on Wednesday (Nov. 29) brought to mind the glowing fiscal days of the Ventura years — big surpluses, Jesse checks. (Photo by T.W. Budig, ECM Capitol Reporter)
by T.W. Budig
ECM capitol reporter
Checks in the mail — maybe.
The release of the November state budget forecast on Wednesday (Nov. 29) brought to mind the glowing fiscal days of the Ventura years — big surpluses, Jesse checks.
During the Ventura Administration billions were rebated.
At least part of the dreamscape touches reality.
Budget forecasters on Wednesday projected more than a $2 billion state budget surplus for the upcoming two-year budget cycle — a blend of one-time and on-going dollars.
Ingison calls it good news
Still, Ingison and State Economist Tom Stinson cautiously appraised the state’s financial health.
For one thing, adjusting for inflation in the upcoming two-year budget cycle would add more than a billion dollars in spending.
They don’t know how that will affect consumer spending, Stinson noted.
Although individual state income tax revenues have increased — more than $800 million above projections for this budget cycle and next — Stinson said the extra tax dollars don’t seem to be coming wage increases.
Ingison recommended lawmakers, if intent on increasing spending, stick to one-time spending items.
She further suggested the state budget reserve be increased — it’s currently about 3.2 percent.
“Don’t pin me to a dollar amount,” she smilingly said at a Capitol press conference.
Still, by state law, the fact a surplus is projected for the end of the upcoming spending cycle has Ingison designating the money as available for rebate.
Diligent use of surplus dollars
Gov. Tim Pawlenty spoke of the diligent and wise use of the surplus dollars. “We were all a little, positively and pleasantly surprised by the size of the surplus,” said Pawlenty, who still cautioned against “irrational exuberance.”
By law the administration is required to prepare for the Legislature a tax rebate proposal of the one-time dollars, Pawlenty explained.
Pawlenty, in recent comments, indicated that he did not favor a tax rebate approach.
But Pawlenty’s tone on the rebate Wednesday sounded brighter — the rebate is bigger than generally anticipated, he noted.
A property tax rebate could be considered, he explained.
Property tax relief was the buzz phrase of the day.
At the beginning of a DFL press conference on the forecast House Speaker-elect Margaret Anderson Kelliher held aloft a property tax statement.
Hope is on the way, said Kelliher
“For Minnesotans who have sticker shock when they open a property tax statement like this, hope is on the way,” said Kelliher.
“Clearly this budget forecast provides the opportunity for us as legislators to bring some property tax relief to Minnesotans,” she said.
While House and Senate DFL leaders didn’t embrace the idea of a property tax rebate, nor did they reject it.
Sen. Tom Bakk, DFL-Cook, newly elected Senate Tax Committee chairman, noted that Pawlenty has to propose a tax rebate plan but his heart doesn’t have to be in it.
Rep. Tony Sertich, DFL-Chisholm, newly elected House Majority Leader, said nothing at this point has been taken off the table.
Even the new House members haven’t been sworn in yet, he quipped.
Seifert spoke favorably of putting surplus money into the hands of taxpayers, not the hands of government.
“But certainly I think we’re going to be looking to taxpayers first, special interest second,” he said.
(Photos by T.W. Budig, ECM Capitol Reporter)
| < Prev | Next > |
|---|
