The Taxpayers Legaue of Minnesota

FOR IMMEDIATE RELEASE

February 28, 2007

Contact: Phil Krinkie

Ph: (651) 294-3590 ext 202

$2.136 Billion Surplus: We Must Need a Few Tax Increases...

St Paul—The Minnesota Department of Finance released its February forecast today, estimating that given current State law and economic trends the State will collect more than $2 billion more than is needed to run State government over the next four years.

The State Legislature uses the February forecast numbers as the basis for their budget decisions.

Even with such a large projected surplus the momentum to raise taxes is building.

On February 27th a powerful coalition of local governments, including the Mayors of St Paul and Minneapolis, as well as powerful DFL legislators proposed a huge metro-wide tax increase for transportation. It includes a gas tax increase, a sales tax increase, the imposition of a “wheelage” tax, a totally new “transportation impact fee,” increases in vehicle registration taxes, and huge new bonding authority for state and local governments. Other counties and local governments are also looking at this approach.

“Here a tax, there a tax, everywhere a new tax increase is being proposed. It’s like a gold rush, with government raiding your wallet,” said Phil Krinkie, President of the Taxpayers League of Minnesota.

“The State is running a surplus, but all you hear from lobbyists and Legislators is how much more money they want. There is more than enough money right now—they just need to learn the difference between wants and needs,” Krinkie said.

“There is a surplus, not a deficit. Governor Pawlenty balanced the budget without raising taxes when there was a 15% budget deficit; now there is a substantial surplus but lawmakers are falling all over themselves to raise taxes.

“Does anyone wonder why folks call them tax and spend Democrats?” Krinkie concluded.

The Taxpayers League is Minnesota’s largest taxpayer advocacy organization.