GOP taking undeserved credit for a temporary surplus? What about the looming deficit?

It is funny that Republicans are taking credit for a surplus — a surplus that is almost guaranteed to quickly turn into a deficit within a year — when the surplus is largely related to what Democrats did here in the state, and to President Obama’s Health Care reform pushed through by Democrats in 2010.

State Rep. Tina Liebling recently wrote a Letter to the Editor in Rochester that pointed out that almost all of the surplus is a result either the budget passed by the DFL controlled house and senate before the current crop of “no-it-alls” were elected, or by savings in Health and Human Service costs thanks to the federal health care reforms enacted by President Obama and Democrats, including Senators Klobuchar and Franken. 

Since Republicans are so quick to take credit for the short-term surplus, I assume they will gladly take credit when a big deficit looms again next year since the new crop of “no-it-all” Republicans wouldn’t compromise this year?  Let’s hold them to that when it happens.  They are taking undeserved credit for the surplus, let’s give them the credit they deserve for the deficit.

Advertisements

One thought on “GOP taking undeserved credit for a temporary surplus? What about the looming deficit?”

  1. Jeez … my opinion does not matter but I can think of three other opinions that matter — Fitch, Moody’s and Standard and Poors.

    Is it not correct that the budget compromise was based on delaying payments (i.e. school districts) and reworking the property tax credit ?
    How did those credit agencies react to Minnesota’s politicians solutions ?

    All three of these credit rating agencies have officially downgraded Minnesota’s credit rating.

    The reduction in credit rating has not only a financial impact on the view of the state’s ability to repay loans (albeit at a higher interest rate) but also influences decision-makers on creating, relocating or sustaining jobs in Minnesota. Ultimately the inability to maintain jobs and the tax revenues produced from jobs, will mean lower infrastructure investment, reduced public support for education, and fewer jobs.
    To make matter worse, the economic fact, that interest rates tend to move in sync with other interest rates. The downgrade in the state’s rating, therefore, does not just increase the interest rate on Minnesota’s government bonds but also impacts Minnesota families other loan needs — student loans, auto loans, and home mortgages.

    The Republicans are clearly peddling a line that their supporters want to believe, but until the credit rating agencies change their formal opinions, Minnesota has a problem … and those elected officials are clearly not confronting reality.

    As just someone who is unaffiliated with any political party, acknowledging fiscal obligations seem to be a consistent problem for the Minnesota GOP.

Comments are closed.