Expanded surplus is great news, lawmakers should invest with caution

Today, Minnesotans learned the state’s financial health continues to improve. Finance officials announced that Minnesota’s budget is running a $1.23 billion surplus, a $400 million improvement from November. Minnesota AFL-CIO President Shar Knutson issued the following statement:

“Thanks to smart leadership from Governor Dayton and DFL majorities in the House and Senate, Minnesota is bouncing back from a decade of deficits, cuts, and economic stagnation. We’re creating new jobs, incomes are growing, and we’re investing in middle class priorities again.

Having said that, it’s important for lawmakers to use caution when deciding how best to invest this surplus. Just one year ago, our state was facing down a large deficit after decades of painful cuts to education and services the most vulnerable Minnesotans depend on. We also don’t know what future outside economic events could do to our budget in the future.

Lawmakers can, however, further strengthen our economy by taking action on measures that will create even more jobs and include more Minnesotans in our economic recovery. 

A large bonding bill would create tens of thousands of family-sustaining jobs and make much needed infrastructure upgrades.

Additionally, while Minnesota’s economy continues to improve, many low wage workers are being left out of that recovery. 357,000 Minnesotans still make less than $9.50 per hour. Lawmakers have thankfully begun conference committee hearings on raising Minnesota minimum wage. It is vital that the final bill raise the wage to at least $9.50 per hour by 2015 and ensure the minimum wage keeps its value by indexing it to inflation.”