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For Immediate Release - March 16, 2004
 

REP. OTTO LEADS TRI-PARTISAN CALL FOR BUDGET HEARINGS

SAINT PAUL

Rep Rebecca Otto, (D-May Township), today lead a tri-partisan group in
both house and senate in calling for "full blown" hearings into what
she describes as the "ample evidence that we are heading toward
another (budget) crisis."

"Last January I organized and moderated a bi-partisan forum, hosted
by the local Chamber," said Otto, "that brought together two former
finance commissioners: republican John Gunyou (Carlson administration)
and democrat Jay Kiedrowski (Perpich administration). As a
state-representative and a former entrepreneur, I had become concerned
about the direction our state finances appeared to be heading in. It
turns out that I was not alone."

The group's open letter to all members of both the house and senate
follows.


March, 2004

Dear Colleagues:

Attached is a copy of an article by former Finance Commissioners Jay
Kiedrowski and John Gunyou. We find it disturbing and sincerely believe
we owe the public and ourselves the opportunity to listen to them and
question them in a public forum.

What bothers us is that the State's financial problems have been
going on now for some four years and we have engaged in an enormous
amount of borrowing, shifting, and utilizing other techniques that are
questionable. The worst part is that "fixing" has become an annual
event.

What is equally disturbing is the fact that the Governor does
anticipate another deficit next year somewhere in the range of $300
million. The Star Tribune and the two former Finance Commissioners
suggest that it will reach in excess of $1 billion. Either way, that
news is hardly comforting.

What is alarming is the fact that the lower number is predicated on
reducing funding for K-12 as well as higher education and also
anticipates no inflation. To make matters worse, many school districts
will actually have a decline in pupil population thereby further
lowering their ability to pay.

In other words, there is ample evidence that we are headed toward
another crisis. Anyone familiar with history knows full well that we
are always better off paying attention to early warnings than simply
ignoring them in the hope that things will get better.

Our wish is that legislative leaders on a bi-partisan basis will start
to hold some full-blown hearings on the budget with the understanding
that we can deal with it more effectively today than be "surprised"
tomorrow.

We very much appreciate your assistance in this matter.

With regards,

(SIGNED)
Rep Rebecca Otto (D-May Township)
Rep Dan Dorman (R-Albert Lea)
Sen Sheila Kiscaden (I-Rochester)
Sen Linda Scheid (D-Brooklyn Park)