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| Date: | December 6, 2011 | | Contact Name: | Sandra Whalen | | Contact Phone: | 651-296-5238 | | Contact Email: | sandra.whalen@senate.mn | | For Immediate Release | |
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| STATE BUDGET FORECAST IS RESULT OF BUDGET RESTRAINT, SENATOR SAYS |
(St. Paul) - Restraining government spending and implementing policies that encourage private-sector business growth have helped turn around the state’s balance sheet, Senator Chris Gerlach (R- Apple Valley) said following the announcement of a forecast $876 million current budget balance.
“What this means is that, after four-years of serious budget deficits, next year’s session will not require us to reopen the budget,” Gerlach said. “It is very welcome news and validates the difficult work we did last session in controlling government spending and standing up against job-killing tax increases.”
The positive balance is due to slightly higher revenues coming into the state and significantly lower spending. This turnaround is the direct result of many difficult decisions made at the Capitol earlier this year, he added.
Gerlach said that by law the ‘surplus’ first goes to restoring cash flow and budget reserve accounts. However, he and other lawmakers are exploring using at least part of it to restore school district funding that was shifted during last summer’s special session.
Gerlach is the Chairman of the Senate Commerce & Consumer Protection Committee.
