When I took office in January of 1991, I immediately inherited a $2 billion deficit left behind by the Perpich Administration. During the 1990 Legislative Session, Rudy Perpich and legislative leaders like then State Senator Mike Freeman decided to throw caution to the wind and give Minnesotans a temporary property tax cut. While Republican candidates for Governor criss-crossed the state warning of an impending deficit, the DFL figured to risk Minnesota's economic fortunes to preserve their electoral hopes.
Less than four years later, my Administration proved to the Democrats that government can live within its means and still get important things done. Today we can boast about a balanced budget, substantial cash reserves and count health care reform and major anti-crime legislation among our successes.
How have we rebounded so quickly? In large part the rebound results from the streamlining and cost-saving activities I directed state agencies to undertake back in 1991. Because of that type of government reform, and our willingness to make the hard choices when it counted, state spending has increased less than five percent annually between fiscal years 1991 and 1995--that is below the increase in personal income. We will remain financially secure WITHOUT raising personal income taxes in 1994, '95 and '96.
Thanks to our determination, not only do we enjoy a healthy surplus, but we have won back the state's AAA bond rating, and can now count Minnesota as the third best managed state in the country. Keeping Minnesota in such strong financial condition is the major goal of my Administration. In this way we will be able to create and retain good jobs for Minnesotans and preserve our quality of life for years to come.
Prepared by the Carlson/Benson Volunteer Committee
Wheelock Whitney & Chris Fritsche, Co-Chairs