[chambernews] Fw: Budget shortfall poses huge challenge
Kanabec Area Chamber of Commerce
karen at kanabecchamber.org
Fri Dec 5 13:16:44 CST 2008
Budget shortfall poses huge challengeDear Members,
When you get an opportunity, please read this article from the President of the MN Chamber of Commerce as your input is requested. If you send your responses to me, I will forward a compilation down to the Minnesota Chamber.
Thank you all and have a nice weekend.
Karen.
Budget shortfall poses huge challenge
Minnesota Chamber of Commerce members, more than ever, are insisting that state government run efficiently. Without a doubt, the dire circumstances as outlined in today's budget forecast demand that state government look for ways to restructure the delivery of essential programs and services without raising taxes on Minnesotans. The 2009 Legislature convenes January 6, but our work - and your work - begins today. It is imperative that legislators understand that government has to change.
The numbers released by Finance Commissioner Tom Hanson and State Economist Tom Stinson underscore the state's predicament. The general fund for FY 2010-2011 - beginning July 1, 2009, and ending June 30, 2011 - shows a projected shortfall of $4.8 billion. On top of that, the state faces a deficit of $426 million in the current biennium.
Restructuring spending will be a challenge; some legislative leaders already are saying the budget gap is too big to close without raising taxes. Rest assured, businesses - the constituents without a "vote" - will be targeted. No one knows better than you the impact that higher taxes will have on the bottom lines of your businesses and the pocketbooks of your employees.
It's important to give our lawmakers guidance in balancing the budget. Our Board of Directors is compiling and will be advancing specific recommendations. We will not only include spending cuts, but also will identify areas where state government can be more efficient, producing the same or better results for less money.
How can you help?
No. 1, we need our legislators to understand that a competitive business environment is the foundation of a healthy state economy. In that regard, we welcome your ideas and encourage you to answer this survey question:
. What one thing could state government do - that does not cost any money - to assist your business through these difficult times? Click here to submit your answer
No. 2, we must send a collective message that government, this time, must restructure so its work is done within the expected resources. Failure to do so will mean more ineffective services and/or higher taxes, and some businesses will certainly respond by cutting Minnesota jobs and/or reducing employee wages and benefits. All Minnesotans are affected by this budget challenge. Together, we can find a way out that solves the problem and builds the economy for all.
. Help your legislator with the task ahead. Many businesses have responded to changing economic conditions by restructuring their operations to provide better value. Identify one of these strategies that could be applied to government operations, and share it with your legislator.
Thanks in advance for your support. We need it more than ever. We have a big job ahead of us in 2009. I'm confident that by working together we can keep Minnesota an attractive place to do business.
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