American Experiment Releases Budget Recommendations
A new report published by Center of the American Experiment, Preparing for an Even More Demanding Future, outlines recommendations to balance the budget in ways that maximize economic growth in Minnesota. The retirement of Minnesota’s baby boomers is leading a demographic change that will place increasing burdens on government programs while at the same time reducing the tax revenues collected to fund those programs. To get ahead of these trends and keep future budgets in balance, lawmakers must make substantial changes to how the state operates. In Preparing for an Even More Demanding Future, Peter Nelson urges lawmakers to pursue four key objectives as they work to balance the budget.
While there are certainly other important objectives for lawmakers to consider, these four objectives support economic and fiscal priorities that lawmakers too often neglect. Indeed, voters rarely pound on lawmakers’ doors complaining about big-picture budget issues, such as tax revenue volatility and long-term spending trends. Yet, today, the current recession and budget crisis draws top-level attention to these otherwise mundane policy issues, which gives lawmakers a rare opportunity to address them more squarely. The report analyzes the governor’s budget recommendations based on how well it meets the four objectives. It finds that “the budget moves Minnesota in the right direction by prioritizing job growth, improving the business climate, not raising the tax burden, and making certain government programs more efficient.” However, it also uncovers some “misfires and missed opportunities.” Altogether, the report offers 25 recommendations for improving the state budget. It’s a wide-ranging group—including recommendations on tax policy, education, government efficiency, and health care—that provide lawmakers with powerful tools to keep budgets balanced in the coming years. The report is available at www.americanexperiment.org or by calling 612-338-3605. ### |