Rep. Persell wants legislature to ensure ordinary Minnesotans aren’t left behind
St. Paul, Minnesota — Today the Office of Minnesota Management and Budget announced a forecasted state budget surplus of $1.87 billion for fiscal years 2016-17. After $665 million is put into state reserve accounts, as required by law, that number shrinks to $1.206 billion. State Rep. John Persell said that the forecast is good news, but that many ordinary Minnesotans haven’t felt the economic recovery.
“The growing budget surplus announced today confirms what we’ve been seeing all year – that Minnesota’s economy continues to grow and recover, but that recovery is stronger in some areas of the state than others,” said Rep. John Persell (DFL – Bemidji). “It’s been rare that we have an opportunity to make such strong investments in Minnesota’s workforce, but we do have that opportunity in 2016.”
The forecast revealed that Minnesota’s economy continues to strengthen, even as surveys show confidence in economic outlook weakens. This lack of confidence can be attributed to a strong US dollar internationally, weakening markets for US iron ore and steel. Prices for Minnesota agricultural products also remain low, blunted by record harvests in 2015. Minnesota’s unemployment rate is down to 3.7 percent, but unemployment remains higher in Northern Minnesota’s Iron Range.
Rep. Persell said his main focus in 2016 will be priorities to expand incomes and grow economic opportunity for working families, citing the lackluster results from the 2015 session. The Republican-led House insisted on a budget that increased property taxes on Minnesota homeowners, raised tuition on college students, and increased health care costs for low-income working Minnesotans. Meanwhile, they pursued massive tax cuts for the largest property owners in the state.
“The forecast says we’re growing, but it also highlights some of the specific challenges we’re facing up here,” said Rep. Persell. “We’ve got companies that want to expand but they can’t because they need workers with the right skills, or their employees can’t find housing, or they have to move to the metro for higher incomes to pay the large student debts their taking on.”
Rep. Persell said the details outlined in the forecast highlight ways the surplus can be used to help strengthen Minnesota’s workforce.
“It tells me a few things; we can use this surplus to lower housing costs by increasing funding for LGA and keeping property taxes lower. We can give students more freedom to stay in Northern Minnesota by continuing the tuition freeze the DFL passed and lowering their debt burden. And we can do a better job of preparing our students to go into jobs that are ready for them right here, but that requires our schools have the tools to address worker shortages, and that requires money.”
The next economic forecast will be in late February 2016. The 2016 Legislative Session begins on March 8th. Rep. Persell said the focus of the next session will be to pass a robust bonding bill to create jobs in every corner of the state and to help local communities stop property tax increases on middle-class homeowners, farmers, and small businesses.
“We need to commit ourselves now to fair and balanced budgeting, and use this surplus to invest in transportation, education, and property tax relief that helps working people find prosperity, not hand-outs for corporations,” said Persell.
Rep. Persell encourages constituents to contact him on any legislative issue. He can be reached by email at Rep.John.Persell@house.mn or by phone at 651-296-5516.