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State Budget CrisisAccording to State Economist Tom Stinson, Minnesota faces a never-before-seen “structural budget deficit” that reaches far into the future. The latest proof of this is reflected in the state’s latest economic forecast. The November Economic Forecast reveals a $1.2 billion deficit for the current budget biennium (ending June 30, 2011). The forecast for the next biennium (2012-13) projects a $5.4 billion deficit.
More than a decade of tax rebates and tax cuts paired with an economy unable to yield a sufficient revenue stream have left Minnesota in bad shape.
Shrinking revenues come while the needs of the state are increasing. Investments in several basic programs have not kept up with the needs: public schools, transportation and other public works, early childhood programs, job training, higher education and health care.
Because Catholic Charities values both the individual and the common good, we must ensure that food, shelter, health care and physical safety needs are met. We also must ensure that the state has the resources it needs to meet the social, educational and infrastructure costs necessary to create a healthy state.
Safety net programs for low-income people cannot bear the burden of the current $1.2 billion deficit. Many programs benefiting low-income individuals and families have been cut in recent years in order to balance the budget.
Legislative Priority:
- As the state faces this current economic crisis and budget shortfall, adequate revenue must be included as part of the budget solution
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