Capitol Review: Wright County Team Reacts to Budget Surplus

Maybe the oft-criticized shutdown of 2011 was actually worth it?

After a tedious and combative 2011 session over the state's bi-annual budget led to a complete shutdown of state services back in June, the state is coming out the other side with an additional $1.2 billion in savings, according Minnesota Management and Budget Commissioner Jim Schowalter's announcement Wednesday.

Schowalter said the state would have a surplus of about $320 million, on top of the more than $870 million it announced late last year, heading into the next biennium.

Appropriately, that money is already earmarked to pay back the state's "rainy day" fund of more than $650 million, and state aid shifts from schools back to the state Legislature made in 2011 to keep the budget rolling.

The state rebounded from a projected $6.2 billion defecit heading into the 2011 budget process.

Still, the news is proof the economy is "slowly rebounding," according to Gov. Mark Dayton.

"We can't celebrate anything yet," he said, noting there was more work to be done.

Sen. Amy Koch, in her last session as the Republican from Wright County's Senate District 19, said reforms made by last year's Legislature are largely responsible for the economic rebound at the state level.

"Our work isn’t done yet," Koch said. "I remain committed to policies that promote private sector job growth and measures that reduce the tax burden on hardworking Minnesotans. We can and will do better for the great state of Minnesota."

The state was able to make the turnaround without raising taxes on the richest 1 percent of residents, Rep. Joe McDonald said, something Dayton had proposed in his first budget as governor last year.

"It was not necessary to increase taxes in Minnesota because we did not have a revenue problem, we had a spending problem," McDonald said. "If we can eliminate inefficient government programs – and streamline other worthy programs – we can reduce dependency on our tax dollars. This will help Minnesota citizens and businesses keep more of their money to do with it what they choose. That could mean anything from creating more jobs, to hiring more people, or spending more money in the community."

Rep. Joe McDonald – To date, McDonald has authored three bills this session and signed on as a co-author to a total of 15 bills.

Some highlights include:One-time budget transfers for a handful of school districts, including Monticello and Delano, who have been hit by the school aid shifts. Those funds should be repaid by the new surplus.

McDonald has also signed on to a couple of pro-gaming bills, including the so-called "Racino" bill, which would allow video gaming (slots, etc.) at Canterbury Downs near Shakopeee.

Sen. Maj. Leader Amy Koch – Koch has been relatively quiet in this, her final session. She announced she would not run in District 29, which covers her home area of Buffalo and Monticello. She has a total of six new bills this session, and has revisited a handful of issues from last session. 

She continues to press for reforms in the nuclear power industry, as she attempts to get the moratorium on expanding the energy source in Minnesota lifted.

Her bill last year to lift the moratorium received a thumbs-up in the Senate, but was denied action because of issues with nuclear waste storage, an issue that has to be handled at the federal level. She's approaching that subject with a resolution this session.