Capitol View: February 28, 2013 Archive

Forecast shows smaller budget deficit

Posted at 10:01 AM on February 28, 2013 by Tim Pugmire (0 Comments)
Filed under: MN Legislature, Mark Dayton

State finance officials say Minnesota's projected budget deficit has shrunk to $627 million.

The new February economic forecast from Minnesota Management and Budget shows a $463 million improvement from November, when the projected deficit for 2014 and 2015 was at $1.1 billion.

Better than expected revenues also mean a projected positive balance of $295 million in the current biennium. Under law, $290 million of that balance will go to pay back some of the delayed payments to school districts that were part of previous budget deals. The remaining $5 million in will go into the state's budget reserve. The state will still have $810 million in school shifts to pay back.

DFL Gov. Mark Dayton crafted his two-year tax and spending proposal based on the earlier forecast. He can now make adjustments to reflect the new numbers. House and Senate leaders will also use the latest forecast to set their budget targets. A final budget is expected by mid-May.

Minimum wage bill advances

Posted at 11:24 AM on February 28, 2013 by Tim Pugmire (1 Comments)
Filed under: MN Legislature

A Minnesota House panel has approved a bill that would raise the state's minimum wage from $6.15 to more than $10 an hour by 2015.

Members of the House Labor, Workforce and Regulated Industries Committee voted along party lines today to advance the DFL-sponsored bill. Under the measure, the minimum wage would increase in three steps until reaching $10.55 per hour. Automatic increases based on inflation would take effect after that.

Rep. Ryan Winkler, DFL-Golden Valley, said providing better wages will help boost the state economy.

"You need to have a strong middle class," Winkler said. "You need to have people who work are are able to support themselves and buy things. The economic driver is not just one. It's not just the other. But for too long our policy has focused solely on businesses and the supply side of economics. I think that's the great testament to Ronald Reagan. He made us forget all about the other half of the economy, and we need to start turning that around."

Republicans opposed the bill. They argue the increase will hurt small businesses and leave many low-wage workers without jobs.

Rep. Andrea Kieffer, R-Woodbury, said she believes it's up to individuals to improve their wages, not government.

"When someone gets a job it's up to them to become a good employee," Kieffer said. "And how do you become a good employee? You have a good education. You have a good work ethic, and then you prove yourself in a company and the employer either appreciates you or sometimes you realize you're much better than the employer thinks and you say goodbye and start your own business."

Minnesota's minimum wage was last increased in 2005.

Policast: More on the state budget forecast

Posted at 11:31 AM on February 28, 2013 by Jon Collins (0 Comments)
Filed under: MN Legislature, State Government

On Thursday's Policast, we check in on the reaction to proposed tax increases and explore the potential impact of sequestration on schools. We also talk with Capitol reporter Tim Pugmire about the state's newly released budget forecast.

Policast is a daily roundup of Minnesota political news hosted by MPR News Political Editor Mike Mulcahy. Subscribe on iTunes.