|
|
Location: Blogs Dan's Blog |
 |
| Posted by: Dan McGrath |
12/4/2008 |
 Minnesota’s next biennium budget deficit is now projected at $4.8 billion, with a new revelation today that we’ve run out of money for the current biennium. That immediate shortfall is nearly $500 million. There’s only about $153 million in the budget reserve fund, so we have a big problem – now.
All told, Minnesota is $5.2 billion into the red ink, which represents 14% of the entire budget. Drastic measures will be required to patch this record-setting budget hole. Either huge tax-hikes, deep budget cuts or both are in the very near future. With the exception of possible federal deficit spending for state bail-outs, there are no other options. Governor Pawlenty has already come out against federal deficit spending to close state deficits.
The 2004-2005 biennial budget was $28 billion. In the course of 4 years, the legislature has increased spending at a head-spinning pace. The next biennial budget is $36 billion. That’s a spending increase of $8 billion, or 29% since just 2004. It’s no real wonder that we’re facing a record-setting deficit now. That kind of spending growth isn’t sustainable.
The historical pattern in government is to grow spending during boom years and raise taxes to cover the unsustainable new spending during bust years. This is a deadly cycle that inevitably catches up to the taxpayers. Growth in Minnesota’s government spending has drastically outpaced inflation for years. The time to take a stand against the reckless spend-and-tax cycle is now. Covering a deficit this large with tax increases will accelerate the spend-and-tax cycle out of the stratosphere.
Take Action: Click here to contact your representatives and remind them not to make matters worse with tax hikes when we can least afford them.
|
|
| Permalink |
Trackback |
Comments (1)
Add Comment
|
Re: 14% of State Budget in the Red |
By Barb on
12/31/2008 |
| Get rid of everything that is not a benefit to all...EVERYTHING. Those that may lose their bias government job can be introduced to a real job in the open market. |
|
|
|
|
 |
Featured Book
|
|
 |
|
 |
 |
 |
 |
 |
"Green Hell explains why Americans can't afford to fall for Al Gore's `the debate is over' line on global warming. While we're all for the environment, Green Hell explains why we need to oppose the environmentalists."
--Fred Barnes, Executive Editor, the Weekly Standard
"Green Hell is the `inconvenient truth' on extremist, growth-killing environmentalism. A must-read for those interested in keeping America free and prosperous."
--Steve Forbes, President and Chief Executive Officer of Forbes
"Regardless of whether you believe global warming is a fraud, the fact is that the current depression, the past spike in oil prices, and the coming technology of electric cars are all going to solve whatever problem exists. Liberals want to use climate change as an excuse to take over the economy and regulate everything and this book exposes their plans."
--Dick Morris, FOX News commentator and former political consultant to Bill Clinton
"This book describes why the world can't afford to fall for global warming alarmism and environmental hysteria. Steve Milloy shows how to avoid the environmentalists' vision of our future."
--VACLAV KLAUS, President of the European Union and President of the Czech Republic
"Free market capitalism is still the best path to prosperity. Green Hell is a must-read for anyone who wants to keep America on that path and away from Soviet-style command-and-control environmentalism."
--Larry Kudlow, Host, CNBC's The Kudlow Report
|
 |
|
 |
|