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A statement on the February forecast
3/4/2009 8:32 AM

Figures released today show that the economic recession is going to be deeper and longer than previously anticipated and the state budget deficit will grow to 17.4 percent of the state general fund budget. This unprecedented shortfall situation calls for using every tool at our disposal, and a balanced solution of budget reductions, accounting adjustments, and revenue increases.

Even with a $6.4 billion budget deficit that is “reduced” to $4.57 billion with the infusion of federal funds, our state faces an extraordinary long-term “structural” deficit. Our budget reserves are tapped, the no-new taxes experiment has failed to produce on promises of job growth and economic strength, local and state governments already have been significantly downsized, and disinvesting in Minnesota’s people and places is diminishing our celebrated quality of life.

As legislators re-fashion tax-and-budget policy, Growth & Justice earnestly urges legislators to elevate principles of fairness and economic justice, as well as solutions that build long-term economic growth and that benefit all of our citizens. When working toward the goals of fairness and long-term growth, we encourage legislators to follow the principles outlined in our Governing with Accountability project:

  • Set goals and priorities. A clear long-term vision of what is important, and specific measurable outcomes of progress, should guide government decisions.
  • Strive for transparency, straight talk and open books. Accountability begins with an honest assessment of the total cost of government and its value to our community.
  • Maintain fiscal responsibility and fairness. Simply cutting budgets is often penny-wise and pound-foolish and we need to maintain and even enhance investments in human capital and infrastructure that pay off in the long run.
  • Focus on efficiency and effectiveness. Efficiency and effectiveness can be reached through eliminating duplication and overlap between programs and services and improving coordination among providers.
  • Demand accountability for results. Service providers and program operators should be held accountable for delivering the results for which they receive public funds.