December 19, 2008: Legislative Report #3

The international economic news of countries defaulting on bond holdings, rising global unemployment and Central Banks around the world creating trillions of new domestic currency causes one to take stock. In America, this year alone, the Federal Reserve and Treasury have committed to lines of credit, increased money supply, and gone into debt over $9,000,000,000,000.00 attempting to stabilize our economy. By comparison, America’s Gross Domestic Product is only $13,800,000,000,000.00. Additionally the Federal Reserve is seeking authorization from Congress to expand authority and directly offer debt certificates, a first in the 90 plus years of the Federal Reserve.  

Thus far, the American economic plunge has not shown signs of finding the bottom. Just this week Best Buy announced buyout offers to 4,000 employees at the corporate office in Bloomington. On Wednesday 12/17/08 the regional Federal Reserve bank of Minneapolis updated (click links below) the district economic forecast. The economic slowdown now projected to extend into 2010, at best. During 2008, the Federal Reserve economic projections fell short of reality.

During the campaign, I projected a $5 billion shortfall (read legislative update #1) and my projection fell short by $270 million. As I observe news events, read various reports, and review legislative accounting adjustments during the 2008 session, I still see an economic tsunami for Minnesota. Unfortunately, I am now expecting the revised state budget forecast, released in February 2009, to reach $8,000,000,000.00.

For many years to come our state government faces great economic peril as our economy slows and the state continues to expand. We need powerful independent leadership at the capital. A leader with a commitment of sound constitutional governance and rule of law, not billions upon billions more dollars a year for education, universal healthcare, state wide light rail, massive state expenditures for additional lands to manage, new housing for the homeless, endless expansion of state government. Unfortunately, Carolyn Laine champions the concept of intrusive large government resulting in massive state expansion and taxation. Additionally political endorsements create specific loyalties with the likelihood of even larger government.

Carolyn's Endorsements in 2008:
http://www.carolynlaine.com/endorsements.html
Democratic Farmer Labor Party, Minnesota AFL-CIO, Minneapolis Central Labor Union Council AFSCME Council 5, Carpenters Local #87 (St. Paul), Carpenters Local #1644 (Minneapolis), Carpenters Local 851 (Anoka), Minneapolis Building & Trades Council, Pipefitters Local #539, Sheet Metal Workers #10, Laborers District Council, Amalgamated Transit Union Local 1005, International Union of Operating Engineers 49 (IUOE), SEIU (Service Employees International Union), Joint Council 32 DRIVE (Teamsters), MAPE (Minnesota Association of Professional Employees), International Brotherhood of Electrical Workers 292 (IBEW), IBEW Minnesota State Council, Education Minnesota, Minnesota Nurses Association, Minnesota Dental Association, Police Officers Alliance of Minnesota, Police Officers Federation of Minneapolis, Minnesota Professional Firefighters, Minnesota DFL Latino Caucus, Take Action Minnesota, Planned Parenthood, Minnesota Women's Political Caucus, Women Winning (Minnesota Women's Campaign Fund), NARAL Pro-Choice Minnesota, Sierra Club, Clean Water Action  

Federal Reserve Report
http://www.minneapolisfed.org/research/data/district/forecast/2009outlook.pdf
http://www.minneapolisfed.org/news_events/rel/2008/2009outlook.cfm