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~~~~~ ~~ ~~~T~~~~r ~~m ~~~~~~.t~~ .~ ~~~~ St~te~ ~~~itt~I ~ ; ~ ~~~~: ~3~. Itilart-in lbttt~£~r ~i.n j~•. ~c~t~l~~l ~r~,~ ~ ~L~~r7t P~t~~, ~~i_ ~~"1 February 18, 2003 To the people of Minnesota and their 2003 Legislature: This letter conveys my recommendations for the State's budget for the next two years. The message is both somber and hopeful. We have done what the critics said was impossible; this budget fulfills our constitutional duty to propose a balanced budget-eliminating the $4.5 billion shortfall projected in November-without raising taxes. The Pawlenty-Molnau Administration holds the fundamental principle that Minnesotans are not undertaxed. Minnesota is consistently one of the highest-taxing states, and I don't believe we can help jump start our shaky economy by raising taxes. We made a promise to people that we-would not solve the budget crisis by raising taxes, and with this budget, we've delivered on that promise. The only way to do this is to rein in the growth in government spending. While the November forecast projected increased spending of 14.3 percent, this budget holds the growth in spending to 3.8 percent. This achievement is unprecedented in recent years: the average rate of biennial spending growth over the past 20 years is 12.9 percent. However, in spite of the spending discipline required by this budget solution, this will still be the largest budget in state history, increasing by one billion dollars over last biennium. Balancing the budget and controlling state spending will not come without some sacrifice. All Minnesotans will feel the budget pinch in some way. But just as every Minnesota family must spend less when they earn less, so too must state government. This budget spends $28.1 billion from the General Fund, and we've focused our investments on the highest priorities. In my view, our most important budget responsibility is to provide funding for quality schools that are accountable to parents, students and taxpayers. We have done our best to shield K-12 classrooms from reductions and maintain school revenue per student at current levels. We have done our best to shield K-12 classrooms from reductions; in fact, this budget results in a 2.2 percent increase in school revenue per student. One of Minnesota's greatest challenges over the next few years is to make progress on building a transportation system to meet the demands of the 21st Century. We begin the process in this budget by reducing overhead spending in the Department of Transportation to reinvest that money into an accelerated road construction program. In the coming weeks, the Administration will release the details of our plans to increase investment in this infrastructure that is so critical to our state's economic growth and quality of life. (more) • ~'c~z~:c: t~~l? ?~?is-3331 ~a~ (~C; j 6~:r-,.~; l r" 1=azx: f~;i1. ~ 2~i~-'~(l~~? '"L~I~: f~;>1 j 29~-Jtliw or (~il~t ~;~i-.~s~9 Lt;l,-~ Nate: htt1~: t ,~ ~~f~}~~.~overnz~:°.yt~tc.n~tt~.~s~ ~,r ~q~s.al "~17port~aa~at~= l~rnplc~.>c~~ ~`'C1T?T£.'Ct d)i: Pi:Ct"~~C:d'7 ~?Y.~'t'T` C471:~i31T11Ti=; ~J':%o C7C)SI S°i75?S!11T'TE'i" T3'ili~L:x"1~~