Um, point of information: It has actually been the DFL caucus that has been complaining about the overly optimistic revenue forecast. Namely because Republican leaders pulled the nifty stunt of ignoring inflation when preparing the budget last session.
It's one thing to assume that state employee wages won't rise, but that only represents about 10% of the budget. It's quite another to assume that the costs of the various other goods and services that are purchased by the State of Minnesota will remain flat for the entire 2004-2005 biennium. If including inflation would only increase the shortfall to $400M, we'd probably be OK since the reserves are set at around $600M. However, from what I can recall, those who live in the real world have estimated that including inflation could increase the shortfall to as much as $1 billion (that would be based on an annual inflation rate of approximately 3.5% if I'm remembering how to do the math correctly). So yes, it's quite likely that there will be a further need to balance the state's checkbook and I'm sure it's also quite likely that Minneapolis will take on on the chin yet again. Mark Snyder Windom Park On 12/10/03 10:46 AM, "LEE EKLUND" <[EMAIL PROTECTED]> wrote: > Good news for Minneapolis, the recent State of Minnesota revenue forecast > shows only a deficit of $185,000,000 for 2004. Unless you believe the > conservatives (heaven forbid) that the deficit could swell to $400,000,000 by > February 2004. Minneapolis, being the slowest moving political target (years > of experience) in the state, is in a prime position to have it's Ox gored to > assist in resolving the deficit. Social spenders or property owners, be aware, > the bill is in the mail. REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
