How to balance the state budget

Bob CollinsBob Collins Jan 2, 2009
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While we were paying attention to the Franken-Coleman recount, the start of the Minnesota legislative session snuck up on us. It starts on Tuesday and, of course, slashing a state budget deficit is job one.

The Legislature has set up a Web page to accept suggestions, unfortunately they’re not letting us see the submissions.

In many cases, people submit proposals to eliminate that which they already had a philosophical disagreement with, and the suggestions aren’t always practical.

In Northfield, the Locally Grown blog has been kicking this around with area residents. Most of it is purely philosophical and the discussion lays bare the fact that talking philosophy is easier than talking specifics.

Former state Rep. Ray Cox has suggested the Legislature eliminate the spending it increased last year, or at least roll back the per diem increases legislators gave themselves. That, of course, is purely symbolic. But not all of the suggestions have been. Consider these:

  • Tax Internet purchases. The tax moratorium doesn’t affect sales tax. The problem is the seller doesn’t always withhold the sales tax and the Supreme Court ruled in a North Dakota case that they can’t be compelled to. You’re supposed to voluntarily submit them.
  • Toll bridges and toll roads. You’ve got I-90 just sitting there waiting to be Illinoisized.
  • Assess the sales tax on food and clothing, but provide a earned-income credit for sales tax paid on food and clothing to the most at risk.

    But what to cut? That’s the hard part and something will be cut.

    The legislative session by constitution ends on May 18. If history is any indication, final decisions will be put off until around then.