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| Date: | May 3, 2011 | | Contact Name: | Peter D. Winiecki | | Contact Phone: | 651-297-8077 | | Contact Email: | peter.winiecki@senate.mn | | For Immediate Release | |
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| SENATOR JULIANNE ORTMAN INTRODUCES
THE “FIRST THINGS FIRST” AMENDMENT |
(St. Paul) -- Senator Julianne Ortman (R-Chanhassen), Senator Claire Robling (R-Jordan) and Representative Joe Hoppe (R-Chaska) held a news conference Tuesday morning to announce the introduction of a constitutional amendment. The amendment calls for limiting state spending to 98 percent of available revenues, with the remaining funds going to budget reserves.
“This amendment establishes spending limits based on current law revenue sources,” said Senator Ortman. “The proposed amendment also ensures steady and reliable budget reserves by directing excess dollars into the reserve, which cannot be spent except in emergencies involving health, safety or welfare of citizens of Minnesota.”
Senator Ortman added: “This is a positive solution for Minnesota’s spending problem. State Government budgets in the 21st Century cannot maintain a 1970’s tax-and-spend mentality. We should limit spending to only 98 percent of the actual funds available, which will force prioritization of spending that is long overdue.”
The proposed amendment also institutes a savings plan which will require all unencumbered cash balances at the end of the biennium also to be transferred to the Reserve Fund. The Agencies and the Legislature would have an incentive to save, to marshal our resources and enhance available revenues needed in future biennia.
“We have more government than we can afford; this amendment will end the problem of auto-pilot growth in our state budget,” said Senator Ortman.
“If we would have had this amendment in place, we would not be in such a difficult financial situation now,” said Senator Robling, Chair of the Senate Finance Committee.
The bill will first be heard by the Senate Tax Committee. A majority vote of both the House and the Senate will be required to place the question on the statewide ballots in November, 2012. No action from Governor Mark Dayton will be necessary.
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