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~ 9.3% increase in funding without raising taxes; reserves at historic levels ~ Saying that government should stop paying for good intentions and start paying for better performance, Governor Tim Pawlenty today unveiled his FY 2008-09 budget proposal that includes key investments in K-12 and higher education, renewable energy, health care reform, tax relief and other areas. The $34.4 billion balanced budget is 9.3% more than the previous two-year budget cycle and is funded through the growth in state revenue, not tax increases. “We have come from a historic $4.5 billion deficit to a $2.2 billion surplus by setting priorities, spending smarter and holding government accountable,” Governor Pawlenty said. “Minnesota taxpayers deserve fiscal discipline and better results for their investment in our state’s future. My proposed budget is focused on better government, better energy, better education and better health care to make Minnesota an even better place in which to live and work.” Governor Pawlenty’s budget proposal directs funding to the highest priorities while increasing the budget reserve to a record $700 million and maintaining a positive structural balance in FY 2011, even after accounting for inflation.
* figures in millions K-12 and higher education initiatives account for 52 percent of new spending in the Governor’s proposed budget, 12 percent is targeted for tax relief and local aid, and funding is also provided for the Governor’s NextGeneration Energy initiative, Healthy Connections health care reform, and Military and Veterans Support Package. NEW BUDGET INITIATIVES FOR FY 2008-09 Better Education: In an effort to raise student achievement from nation-leading to world-competing, Governor Pawlenty proposes to enhance pay for performance initiatives, invest in reforming and reenergizing Minnesota high schools, and targeted early childhood funding. New initiatives in K-12 and higher education include:
Better Energy: To move Minnesota to nation-leading energy independence through policies and investments in more renewable energy, more energy conservation, and lower carbon emissions, the Governor has proposed his “NextGeneration Energy Plan.” New initiatives in energy policy include:
Better Health Care: To drive down costs, improve quality, and increase access to affordable health care for the uninsured. New initiatives in health care include:
Tax Relief and Reform Reiterating that “Minnesotans are not undertaxed,” Governor Pawlenty is proposing tax relief for Minnesota families, businesses and communities. New initiatives in tax relief and reform include:
Honoring our Military Heroes In his State of the State address, Governor Pawlenty said, “We need a surge of support for our military families and we need it now.” The Military and Veterans Support Package will assist veterans, active military members, and their families. New initiatives for military and veterans include:
Ensuring Safe and Vibrant Communities New initiatives in public safety, transportation, housing, and environment include:
Maintain Minnesota’s Healthy Economy New initiatives in economic development include:
Other Key Issues Addressed
“We live in a changing world, with changing technology, changing culture, and changing economies," Governor Pawlenty said. “This budget will make our state more competitive, stronger financially, and more accountable to Minnesota taxpayers. I look forward to working with legislators to set our course during this important budget session.” Budget documents can be found on the Governor’s Office website at www.governor.state.mn.us and the Minnesota Department of Finance website, www.finance.state.mn.us. --30-- |