December 10, 2008: Legislative Report #1

State Budget Forecast

On Friday morning at 10:00 AM, December 5, 2008, the day after Minnesota's budget forecast shortfall of $5,272,000,000.00 announcement, I attended the Minnesota House Ways and Means committee meeting at the State Office Building Chair: Loren Solberg (DFL) 03B. This critical meeting consisted of a detailed forecast presentation by the Minnesota Department of Finance. The governor's representative, State Budget director and the State economist presented broad economic information on the state of Minnesota economy and budget. Not in attendance for this meeting our State Representative for House seat 50-A. 

During the December 5 meeting, the State economist stated (not a direct quote) "the issued forecast yesterday and the documents I present today at this informational meeting are incorrect. The announcement this morning of 550,000 nationally lost jobs in November requires revising downward the Minnesota forecast. Today I am not able to provide any real projections on the increased state revenue losses related to the documents and forecast we are reviewing today". 

During the election campaign, I projected 4-5 billion state revenue shortfalls. While participating in campaign debates others running for office mocked and mused my projections. Unfortunately, my projections this summer and fall were correct. Listening to the state economist during the 12/5/08 meeting, I am afraid our revised forecast when released in February may reflect an even greater 6-8 billion dollar state budget shortfall. 

After the panels presentation the attending legislative representatives were provided a Q&A period. Representative Solberg conducted an open and fair time for all representatives to ask questions. Questions on how bad the budget forecast hampers state operations changed to: where can we secure funding to balance the budget? Little attention spent on controlling state growth or spending. Most questions and comments focused on finding revenue without cutting state programs. Portions of the legislative group entertained the concept of securing a balanced budget with a federal bailout as other groups are doing. For the record, I state again, "the federal government has no money to give out". 

In conclusion, my observation is; the 2009 legislature has no clue yet Minnesota state government is out of control. They intend to continue spending and taxing Minnesota, take any handouts from whatever source possible and declare they are doing the peoples business. Like a crack-addict looking for just another fix to kill the pain and feel good about the immoral actions taken.