February 2020 Budget Forecast Released
On February 27th, MN Management and Budget (MMB) released their February
It’s important to remember that the vast majority of this positive balance (over $1.1 billion) is one-time money—not ongoing. That means that any decisions that the legislature makes need to be thought through very carefully as we consider the impacts to future years. Our budget process also does not factor in inflation, and doing so actually would result in a budget deficit in the next biennium.
Additionally, as part of the final budget agreement last year, $491 million was taken from the reserve fund. I believe we should replace those funds in order to be prepared for an economic downturn and ensure that our budget reserves are at recommended levels.
We enjoy a high quality of life here in Minnesota, and that’s due in large part to the work that has been done to invest in our state. If we want to continue making meaningful investments in education, health care, and economic development, we need to protect the strong state economy we’ve worked so hard to build. We also need to remember much of this budgetary balance is not available for ongoing spending. While a positive budgetary balance is good news and Minnesota’s economic outlook is stable, a slowdown remains in the forecast.
The small budgetary improvement continues into the next biennium, but budget challenges remain. We should not let poor budgeting decisions jeopardize Minnesota’s economic future. My first year in the Senate, we were dealing with substantial deficits, and I’m not eager to do so again.
Committee Work Continues
With the First Deadline almost two weeks away, committees are working
In Local Government, we heard a bill related to expenses incurred by cities educating citizens on proposed charter amendments. In Commerce, we heard a bill that would prohibit health plans from removing coverage of a particular brand of insulin, or equipment or supplies, during the contract year. In HHS, we heard a bill that would provide medical assistance coverage for routine costs related to clinical trials, as well as continuing work on insulin affordability.
Constituent Groups Visit
I’m always pleased by how many of our neighbors in Richfie
- Certified Public Accountants (CPAs)
- Occupational Therapists
- Chiropractors
- The Humane Society
- Beacon Interfaith Housing Collaborative
- Clean Energy Businesses
- Bicyclists • Bankers
Next week, I’m looking forward to meeting with constituents for Disability Day and Mental Health Day, as well as beer wholesalers, and advocates with the Minnesota Coalition for the Homeless.
Although I meet with a large number of groups, you certainly don’t need to have a group to meet with me. If you’d like to find a time to talk about anything, I’d encourage you to get in touch with my office—particularly if it’s regarding an issue that’s currently being debated in St Paul. There’s no better way for me to know what’s on your mind than you telling me directly!
Richfield Bonding Request Introduced
The Underpass has regional significance as a multi-modal connection through the City of Richfield to the International Airport, Mall of America, Metro Transit South Garage, and the City of Bloomington all of whom actively support the project. Its potential as a bike trail has also earned support from the Three Rivers Park District. The MTC estimates that over 100 trips per day will traverse the Underpass.
This important regional transit and transportation asset has the potential to spur development and job growth in Southeast Richfield and beyond, and will provide additional capacity to ease congestion on I-494 by lessening local traffic on the freeway.
The project is the culmination of 20 years of collaborative work between the cities of Richfield and Bloomington, as well as the Department of Transportation. I will continue to engage my colleagues on the Capital Investment (Bonding) Committee on this important investment.
Looking Ahead…
The First Committee Deadline is March 20th. In order for a bill to remain active for this legislative session, in must have been heard in all relevant committees in the House or the Senate by that day. I’m also looking forward to meeting with constituents from the Girl Scouts, Moms Demand Action, and the MN Nurses Association. If you have time, I hope you’ll stop by the Capitol and say “Hi!” otherwise, I’ll see you around town!