Minnesota Chamber of Commerce

2012 Legislative Priority: Innovate

By Rebecca Paulsen

Minnesota lawmakers face unfamiliar – and welcome – territory on the state's finances as they get down to business this session. For the first time in many years, the checking account has a projected surplus for the current biennium. It's a genuine opportunity for policy-makers to adopt smarter budgeting for better results – one of the Minnesota Chamber's priorities for the 2012 Legislature.

Policy-makers received good news in the November budget forecast. The state's general fund is projected to have an $876 million surplus for the biennium ending in June 2013. Under current law, the surplus will be used to replenish the state's cash flow account and budget reserve. The next forecast will be released at the end of February.

We may breathe a collective sigh of relief for the short term, but foreboding news is on the horizon. The state budget still has a structural imbalance with a $1.3 billion shortfall already predicted for FY 2014-2015. The forecast underscores the urgency of re-engineering the process so the budget is focused on priorities and outcomes rather than inflationary increases and formulas that might not deliver the results that Minnesotans want and deserve.

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	2012 Legislative Priority: Innovate By Rebecca Paulsen Minnesota lawmakers face unfamiliar – and welcome – territory on the state's finances as they get down to business this session. For the first time in many years, the checking account has a projected surplus for the current biennium. It's a genuine opportunity for policy-makers to adopt smarter budgeting for better results – one of the Minnesota Chamber's priorities for the 2012 Legislature. Policy-makers received good news in the November budget forecast. The state's general fund is projected to have an $876 million surplus for the biennium ending in June 2013. Under current law, the surplus will be used to replenish the state's cash flow account and budget reserve. The next forecast will be released at the end of February. We may breathe a collective sigh of relief for the short term, but foreboding news is on the horizon. The state budget still has a structural imbalance with a $1.3 billion shortfall already predicted for FY 2014-2015. The forecast underscores the urgency of re-engineering the process so the budget is focused on priorities and outcomes rather than inflationary increases and formulas that might not deliver the results that Minnesotans want and deserve.