As Minnesota continues to digest just what the budget deal will mean for us, we have gotten a few new pieces of news.
Moody’s has downgraded the state, stating that our reliance on one time cuts and borrowing meant that investors should be more worried about our ability to repay bonds.
American Crystal Sugar has locked out workers over increased health care costs.
Austin, MN has just released their property tax levy: they will have to seek 15% more than last year.
We were all told by legislative leaders this year that if we could avoid increases to income and state taxes, that job creators would be freed up to increase prosperity. But it just seems so clear to us that not only is a lack of new revenue hurting people around the state who have lost services, it isn’t even preventing tax hikes or job losses.
As Moody’s told us, we face a structural deficit. We can cut spending such as LGA or the grants to counties that fund mental health services. But those choices have costs. In good times, we lowered taxes instead of saving for a rainy day. Now, the bank is empty, and we face difficult choices. But we think that it is increasingly apparent: we can’t cut our way out of this mess.