February Budget Forecast
The Minnesota state budget is required by our constitution to be balanced. This means that in order for the legislature to pass a budget, we need an accurate picture of our budget balance, and how it’s predicted to change. On February 28th, MN Management and Budget Com- missioner Myron Frans, State Economist Dr. Laura Kalambokidis, and State Budget Director Britta Reitan presented the most up-to-date estimate of our budget, referred to as the Budget Forecast.
Budget forecasts are re- leased periodically, most recently in November, with another coming in April. In November, the budget forecast showed a surplus of approximately $1.544 billion. The February forecast shows a surplus of $1.052 billion, a change of approximately $492 million.
Part of this change is due to revenue collections being slightly under prior estimates, with the largest driver being the individual income tax. The change in the budget forecast is also due to expectations of slower economic growth.
The budget surplus number doesn’t tell the whole story, however, since some state spending is projected to grow by virtue of current obligations. The structural balance, which takes that into account, is $538 million for this biennium, and currently shows an $11 million deficit for the next. Ultimately, state finances are sound with over $2 billion in reserves.
While a budget surplus is certainly preferable to a deficit, this change is a reminder of how important it is that the legislature take great care in crafting budgets, and how small changes can have significant effects. Serving on the Health and Hu- man Services Finance and Policy Committee, I’ll have the opportunity to work on a significant portion of the overall budget. I’ll continue working with my colleagues in the legislature to focus on responsible budgeting that invests in the priorities all Minnesotans share.
Twitter Town Hall on Insulin Access
On Tuesday, February 5th at noon, if you’re able, I hope you’ll join me and Senator Melisa Franzen (DFL-Edina) for a Twitter Town Hall on the high cost of insulin.
I’ve written before about the stories I’ve heard, including from the parents of Alec Smith, a Richfield resident who sadly died because he was not able to afford insulin. Alecis the namesake of the Alec Smith Emergency Insulin Act, S.F. 472, that I’m the chief author of in the Senate.
You can follow the Twitter Town Hall through the Senate DFL handle (@SenateDFL) and by using the hashtags #InsulinMN and #mnleg.
Governor Walz Unveils Budget Proposal
Governor Walz unveiled his 2020-21 budget proposal last week, which features approximately $49.6 billion in total spending.
The budget makes an historic investment in education to provide every child in Minnesota with a high-quality education, regardless of their race or zip code. The Governor’s budget would close the funding gap and make sure that every child has a good teacher, receives individual attention, and has access to the materials they need to compete in today’s economy.
Every Minnesotan deserves access to quality health care at a price they can afford. The Gov-ernor’s budget includes funding to extend low- cost coverage to thousands of farmers, small
business owners, and entrepreneurs. It also pro- vides every Minnesotan with an additional health care option, encourages stability in the individual market, and makes health care more affordable in Minnesota. Governor Walz has also prioritized community prosperity as he looks to expand access to affordable childcare and housing, invest in infrastructure and broadband internet, and give local leaders the tools they need to succeed.
Following the February budget forecast, the Governor will make some revisions to his initial budget proposal. I look forward to discussing the Governor’s proposed investments over the coming weeks, and I hope you’ll keep in touch if you have questions about the budget process.
U of M Regents Election
One of the duties of the Minnesota legislature is electing members of the University of Minnesota Board of Regents. The Board of Regents is responsible for selecting the President of the U of M system, as well as overall governance.
The Board of Regents consists of 12 members from across the state, of which four members are up for appointment this year — three statewide members (including one current student), and one from the 5th Congressional District (Minneapolis and inner-ring suburbs).
The process begins with the Regent Candidate Advisory Council (RCAC). The RCAC interviewed 24 potential candidates, and moved a smaller list of names forward.
The next step in the process will be a joint meeting of the House and Senate Higher Education Committees, which will recommend one candidate for each position. The final step is a joint convention of the entire House and Senate, where each legislator gets one vote per seat.
As an alum of the University, I take this vote very seriously, and I’m committed to supporting candidates who will represent all communities well and continue the U’s mission of bold leadership.
Looking Ahead …
In the coming weeks, I’m looking forward to continuing my committee work in anticipation of the 1st Committee Deadline on March 15th. I’m also looking forward to meeting with constituents representing housing advocates, the MN School Social Work and School Psychologist Associations, arts advocates, Moms Demand Action, and advocates from the disability community. If you have time, I hope you’ll stop by the Capitol and say “Hi!” otherwise, I’ll see you around town!