2010-03-05

Legislative Update, March 3, 2010

This week we learned that Minnesota government faces a deficit of $994 million.  The situation looks worse for the next budget cycle with a projected deficit of $5.8 billion.  The first month of session has focused on government borrowing in a bonding bill full of misguided priorities.  My hope is the majority will finally let us get down to the business of the budget and long-term structural reform.  

Minnesota government must focus on needs rather than wants.  This deficit shows the need to renew the commitment to sensible government and focus the state’s efforts on core priorities.  Balancing the budget will help relieve the uncertainty causing job creators and small businesses to hold back on expansion and growth.  We need to achieve a balanced budget by reforming and streamlining government. This will help Minnesota’s job providers and families by freeing them from the burden of unnecessary bureaucracy.

While addressing Minnesota’s budget problems, we must also recognize the needs of job providers.  Today, Minnesota ranks in the bottom five of the Small Business Survival index and is far below average for business climate.  Our home-grown corporations are building in locations around the world instead of expanding in Minnesota.

We owe it to Minnesotans to reverse this trend.  Successes from Medtronic to the start-up on Main Street are proof of our state’s tremendous workforce.  We want to give birth to leading job providers and facilitate their growth.  A first step is for more legislators to simply listen to small business owners and job creators.  

The House Small Business Caucus survey showed that a majority of small businesses see tax reform as the number one thing the legislature can do to help them succeed in Minnesota.  Attendees at my small business forum last fall conveyed the same message.  A combination of tax and regulatory relief, research credits and incentives for investing in small business will empower Minnesota job creators to achieve renewed opportunity and prosperity.

While the state’s budget situation is certainly negative, the challenge facing the legislature is also an opportunity to achieve positive results.  With common sense reforms to balance the budget and by opening the door to economic opportunity, I know that the hardworking people of Blaine and all of Minnesota will achieve growth and prosperity.  




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