FOR IMMEDIATE RELEASE                                                                                Contact: Phil Krinkie                                                                                      

Ph: (651) 294-3590

ST. PAUL – With today’s announcement of a projected state budget deficit of $5.2 billion it’s time to reduce state spending.  A deficit projection this large will require significant reductions in state spending.  With the state budget growing at an unsustainable rate of 22% in the last 5 years, Minnesota taxpayers could potentially pay the price for a lack of fiscal discipline at the state capitol if reductions aren’t implemented during this upcoming legislative session starting on January 6^th, 2009.

Governor Tim Pawlenty has stated an encouraging tone by saying that he wants to reprioritize state spending and use his authority to cut spending through unallotment, while not adding to the burden on Minnesotans by raising their taxes, in order to balance the state budget. 

There is good news on the horizon with some state legislators stating that they want to take a look at zero based budgeting, a process where all budgeting is started at zero and not based on previous spending.  Special Interests usually like to advocate increased funding for their projects by starting at what they received in the past in state budgeting.

“With the economy in a recession, now is not the time to raise taxes to solve our budget deficit,” said Phil Krinkie, President of the Taxpayers League of Minnesota.  “I’m encouraged by the Governor’s response and I would hope the state legislature follows his lead and looks at this as an opportunity to implement real reform in the state budgeting process.”

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