A challenging 2008 legislative session became even more difficult Feb. 28 with the forecast of a $935 million state budget deficit for the 2008-09 biennium. The projected shortfall, caused by a faltering economy and a sharp decline in estimated state tax revenue, is $562 million larger than state officials had predicted last November.
Moreover, the Minnesota Department of Finance predicted the deficit would reach $1.086 billion by the end of the 2010-11 biennium – or more than $2 billion if inflation is added in. However, state economist Tom Stinson added that there is “an enormous amount of uncertainty” in the economy, and the actual outcome could be lower or higher than predicted.
The announcement is expected to provoke heated debate over taxes and spending cuts. Education Minnesota President Tom Dooher said the forecast makes it all the more important for the Legislature to focus on its top priorities, including education funding.
Because lawmakers didn’t do what needed to be done last year, he said, funding decisions are increasingly being shifted to property taxpayers through local referendums. The result is that some school districts are able to maintain their educational programs, while others have been forced to make drastic cuts in essential services to students.
“We can’t allow the quality of a child’s education to depend on their ZIP code,” Dooher said. “Basic school funding is clearly the state’s responsibility. Fulfilling that responsibility will certainly be a greater challenge this year, but it simply must be done, and lawmakers need to be accountable.”
At a minimum, he said, the Legislature should provide funding to ensure a highly qualified teacher for each classroom, up-to-date instructional materials and small class sizes that make it possible to teach and learn successfully. Dooher said that will require at least an inflationary increase in per-pupil funding.
The 2008-09 biennium encompasses the 2007-08 and 2008-09 school years. The following biennium includes the 2009-10 and 2010-11 school years.