Publisher’s Perspective

By Tim Douglass, Publisher of the Pope County Tribune

Minnesota’s budget agency last Wednesday predicted that the Legislature next session will sit on a $2.4 billion surplus, but that came with a caveat: if current trends continue, the state government will spend more than it takes in during the two-year period beginning July 1, 2025.

Minnesota Management and Budget Commissioner Erin Campbell said in news reports that the state’s latest budget forecast shows that the Legislature should be thoughtful about any new spending that could propel the state into a deficit.  Makes sense.  Legislators should always be thoughtful about spending money.

“There’s positive news in this forecast. Revenues are expected to grow — but having said that — with increasing spending, it appears policymakers should exercise caution when making budget decisions,” Campbell said.

MMB predicts there could be a $2.3 billion deficit in fiscal year 2026 if legislators aren’t more thoughtful in toning down requests for new spending.

The MMB also pointed out that Fiscal year 2026 doesn’t begin until July 2025, however, and a lot of unknowns could affect the economy and the state’s budget in the coming years.

Still, the partisan rhetoric began in earnest almost immediately.  As the minority part, Republicans quickly pointed out that the state could be facing a deficit and blamed it on the spending that went on in the recent legislative session.  After the session, Republicans were quick to use the terms “extreme” and “irresponsible.”

It should be pointed out that giving tax breaks is also “spending down” a surplus and are usually done with no timeline so budgets continue to reflect lower revenues until the state is in deficit.

That’s probably the plan anyway.  I just wish a few politicians would come out and say it.

Anyway, fiscal restraint is something legislators should be concerned with whether there is a surplus or not.  Tax breaks that go on and on are the same as spending programs that never suset.  Both can bring about deficits and can force both party’s legislators into being more fiscally responsible.    Much of the spending done last session was “one-time money” based on a large (record setting) surplus of $17.5 billion.   But there was some major spending on education (meals for all children) and long-term care that will move into the next biennium.

Whether you prefer short-term tax cuts or government spending on education, roads and bridges, long-term care, childcare and other issues, likely depends on your personal economic situation.

We hope legislators on both sides remember that as they consider spending issues in the future.  The state budget for this biennium was decided last session, so we shouldn’t have to hear much of the partisan rhetoric on spending or taxing this session… But we live in divided political atmosphere and there are elections on the horizon.

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It was heartening to see how many area residents used the unusually warm weather to get their outside Christmas lights and decorations installed.  A quick drive around the community after dark and the transformation was dramatic.  It’s a great time of year and those Christmas lights make dealing with more than 12 hours of darkness so much easier.  Thanks to all who decorate.  You add to the spirit of Christmas.