February 27, 2004
NEWS RELEASEState Representative Al Juhnke rep.al.juhnke@house.mn
281 State Office Building, St. Paul, MN 55155
651/296-6206
3951 Horizon Hills Circle, Willmar, MN 56201
320/235-4442
JUHNKE: PERSISTENT DEFICIT SHOW RURAL MINNESOTA NEEDS NEW DIRECTION
Minnesota's persistent budget deficit shows the need for the state to take a new direction, especially when it comes to promoting jobs and development in the rural economy, Rep. Al Juhnke said following release of a new state budget forecast Friday.
"We're looking at a billion-dollar landmine in the next budget," Juhnke said. "This new forecast is based on the most optimistic economic outlook in 20 years, yet it still shows a deficit of $160 million today and more than $1 billion in the following two years. Even the Pawlenty Administration's Finance Department admits we can't grow our way out of budget deficits. That's why we need a
new direction and new, success-oriented policies to bring growth and jobs to rural communities."
While the Finance Department is anticipating strong economic growth in 2004, the growth hasn't been closing the economic gap between Rural Minnesota and the Twin Cities, Juhnke noted.
"We're still just as far apart as ever, and the Republican policies that led to higher property taxes, higher college tuition, less school aid and less health care have not helped Rural Minnesota catch
up," Juhnke said. "We need to adopt policies that will move us toward one prosperous, strong, Minnesota."
The economic outlook, which forms the basis for the forecast of state tax collections, shows that job growth has been slow and that the number of people on unemployment has not declined.
"We can change that by investing in biotechnology, ag-based biofuels like ethanol and biodiesel, windpower and other rural-based industries that will create good-paying jobs and business opportunities in Rural Minnesota," Juhnke said. "It's not good enough just to have minimum-wage, no-benefit jobs. Jobs like that don't help people be successful and support their families or communities."
Juhnke said Gov. Tim Pawlenty is expected to release deficit-related budget recommendations in the next week. "If his recommendations don't address the long-term needs - creating jobs, improving schools, and bringing up the rural economy - then they'll only be a band-aid," Juhnke said.
