The Taxpayers Legaue of Minnesota

FOR IMMEDIATE RELEASE

February 28, 2008

Contact: Phil Krinkie

(651) 294-3590 ext 202

Just a Billion Dollars in the Red

Fortunately legislators just passed $6.6 billion in tax increases

ST. PAUL – Thirteen months of DFL management of the state’s budget has turned last year’s $2.2 billion surplus into this year’s projected $935 million deficit.

Today, state officials announced a projected budget deficit of $935 million – a deficit that will have to be reconciled due to the State’s balanced budget requirement. Though DFL leadership has remained virtually silent on what their plans would be when the deficit was announced, their legislative strategy to this point has centered around passing as many tax increases as possible before fiscal realities reigned them in.

“I don’t think this billion dollar deficit was really surprising to anyone,” said Taxpayers League President Phil Krinkie. “What will be surprising is how the DFL leadership balances the budget and deals with all the new spending their members want without a massive tax increase.”

“I doubt anyone believes that DFLers are going to look to spending reductions before they look to tax increases,” Krinkie added.

Within the first two weeks of the Legislative session the Democrats have passed an 8½ cents gas tax increase, a hike in automobile registration taxes, a car excise tax, an increase in the sales tax and a constitutional amendment to add another 3/8 of a cent to the sales tax. Can more tax increases be far behind? Democrats will be hard-pressed to make the compromises that fiscal restraint requires with their special interest masters looking over their shoulder.