Greetings from the Capitol-
Budget Forecast
We recently received our fourth consecutive positive economic forecast from Minnesota Management & Budget. Minnesota’s projected budget deficit for 2014-2015 is now $627 million, a small fraction of the original estimate of $4.4 billion two years ago. We saw today the impact Republican fiscal policies from 2011 have had on Minnesota’s economy and our overall budget situation. Just two years ago, Republican majorities in St. Paul took on the difficult task of balancing the state’s massive budget deficit while not impeding the economic growth necessary to refill state revenue accounts. Minnesota is once again on the right path thanks to sound management of the state’s finances and a commitment to keeping taxes low. Our policies have delivered steady, consistent improvements to the budget outlook. I spoke with the St. Cloud Times yesterday about the news.
I am also proud to report that another $290 million from the updated budget will be directed to buy down the K-12 school shift, leaving a balance of $801 million remaining. All in all, the Republican budget has paid back the entire school shift enacted in 2011 and is now being directed towards the DFL school borrowing that occurred in 2010.
Minimum Wage
On Thursday, our Labor, Workplace and Regulated Industries Committee heard HF92, Rep. Winkler’s bill to raise the state’s minimum wage by over 40% from $7.25 to $10.55 per hour. Currently, most low-wage Minnesota workers make at least the federal minimum wage of $7.25 per hour, and well over half (59.7 percent) of those making the minimum wage are teenagers and young adults (15-24). A third of all those making the minimum wage also receive overtime, tips and wages.
Imposing a drastic minimum wage increase will make it more difficult for our state to sustain its fragile recovery. Small businesses, especially family-owned restaurants or non-profits that help employ vulnerable populations, will have to cut back on workers or increase the cost of their goods and services. In fact, many of Minnesota’s small business owners have said they will go out of business or cut jobs if this wage hike becomes law.
Do you have unclaimed property?
Sometimes Minnesotans lose financial property because of a change of address, death, or forgetfulness. What happens to these forgotten funds? The Commerce Department is responsible for holding unclaimed property until the rightful owner or heir is found. One in 20 Minnesotans have unclaimed property, typically dormant bank accounts, un-cashed checks, unclaimed wages, safe deposit boxes, stocks, or insurance policies.
The state of Minnesota is here to help return your money to you. Go to www.missingmoney.com or visit the Commerce Department’s Unclaimed Property website. It takes less than 30 seconds to check to see if you may be 1 of 20 Minnesotans who have missing money.
Minnesota Health Insurance Exchange
Looking forward, next Monday the full House of Representatives will debate HF5, the bill creating the expansive and powerful Minnesota Health Insurance Exchange. At a cost of $200 million, this exchange officially brings Obamacare to Minnesota and offers no guarantees for improving health care quality or lowering costs. I will have more details early next week when the House takes action on this measure.
Sincerely,
Tim