Finding common sense solutions for our economy
Posted on 26. Jan, 2010 by Release in State Legislature, state
by Representative Bev Scalze 54B
The 2010 Legislative Session begins February 4th. This session, like last session, will be a challenging one. The highest unemployment rates in three decades and a steep drop in wages have cut another wide gap in the state budget. Recently State Economist Tom Stinson announced Minnesota will face another $1.2 billion budget shortfall this year. Adding that to the $6.4 billion deficit resolved last session makes this the worst budget cycle in state history.
According to Stinson, our recovery will be long and difficult. The recession will cause another $5.4 billion deficit in the next biennium (not accounting for inflation), and Minnesota isn’t expected to see normal economic growth again until 2015. Still, I am confident we can overcome this recession, and emerge a stronger Minnesota. To do so we need to address the causal root of these challenges: a deep and troubling deficit in jobs.
Throughout the legislative interim, I have been working with Republicans and Democrats in the House on a bipartisan Jobs Task Force to find solutions for Minnesota’s struggling economy. Our work has focused on identifying the many causes of this recession, and developing strategies at the state level that can help move us out of recession, and put people back to work.
Government can’t solve all our problems. But targeted efforts to create jobs in the last year have worked. According to State Economist Stinson the Federal Recovery Act, in coordination with the state’s strategic bonding efforts, have prevented this recession from becoming a depression – creating thousands of jobs since last February, even as employers shed thousands more jobs every month.
As Vice-Chair of the House Capital Investment Committee, I’ll continue doing everything I can to ensure this year’s bonding bill is focused on one thing: jobs. Stinson estimates another $1 billion jobs-focused bonding bill could put 10,000 more Minnesotans back to work. It won’t provide every out-of-work individual a job. But connecting some Minnesotans with employment will get people spending again, give Minnesota businesses a needed boost, and help push our economy back in the right direction.
More than a bonding bill, it will be critical to address some of the major challenges facing Minnesota’s small businesses. As a member of the Small Business Caucus, I have been actively seeking the input of small business owners in our area to identify the biggest challenges facing their businesses. I heard many of those concerns articulated at a recent Commerce and Labor Committee hearing with the White Bear Area Chamber of Commerce.
Based on that input, and the results of a small business survey of more than 1,200 small business owners from around the state, Republicans and Democrats are working on solutions that will help small businesses in this challenging economy. Together we are exploring common sense policies that will free up capital, help reduce costs, and ease unnecessary, burdensome regulations for Minnesota small businesses.
Not every concern will be met this session. But as a small business owner myself, I understand firsthand the urgency of challenges facing small businesses. I’ll do everything I can to address those challenges in order to ease financial stresses, encourage entrepreneurship, and help small business owners start hiring again.
Difficult budget decisions will again dominate the upcoming session. But my highest priority as your legislator will be putting people back to work. As before, I need your input to make the best decisions for our community and the future of Minnesota. I strongly encourage you to contact me throughout the session with your questions, concerns, and suggestions. I look forward to hearing from you.
