Harry's Gang: Spending spree bites back

I swear I didn’t run for state representative just to get out of writing for the Pine Knot News this past year. In fact, I’m pleased Jana, the editor, asked me to start writing “Harry’s Gang” again. It’s nice to be back.

It’s also nice to know that I was right. Just after the election, we heard the state is facing a possible budget deficit in two years of nearly $6 billion. That’s precisely the amount I had been advocating that we save from the $18 billion budget surplus of a couple years ago. As you may recall, my plan was to save a third of that surplus for future needs; spend $6 billion on needed projects; and return the rest, almost $6 billion, to taxpayers.

Instead, the legislature spent the entire amount, and then some. And while some people blame the DFL (myself included), I also blame our Republican elected leaders who didn’t do anything about it. Sure, they yelled a lot but they didn’t propose any real solutions, even after it was apparent the majority was planning to spend the entire surplus. It’s as if the Republicans just rolled over and hoped to use the issue to gain power in the next election. Which is exactly what they did.

We saw that at the national level, too. Congress had arrived at an agreement to address the immigration problem at the border. Instead, their candidate for president asked them to reject the agreement, so he could campaign on the issue. Which he did.

In other words, the political parties are willing to sabotage the good of our state and country to further their political power and agendas. We are becoming a nation of two political parties, rather than “One Nation under God.” It’s despicable.

Politicians might learn something from my kids. From early on, I’ve taught my children that a benefit to one of them is not a detriment to the other. If Tommy gets a cookie, I want Patrick to be happy that his brother got a cookie; not angry that he didn’t get a cookie, too. Of course, such jealously and self-centered mentality is common among children. It’s too bad our politicians haven’t grown out of that mindset. In politics, it’s no longer enough that they win on an issue. They have to see the other side destroyed, too. As Patrick once said, “If we keep following ‘an eye for an eye,’ eventually everyone will be blind.”

Regarding the upcoming budget deficit, basic common sense should tell you that there is a certain level of taxation that a society can absorb. If we tax more than that, we start to see diminishing results, like losing businesses and people. The opposite is true, too: if taxes are too low, we can’t afford to sustain the quality of life we expect in Minnesota: good schools, good infrastructure, good police, and other emergency protections. If that happens, we’ll see people and businesses leave our state. It’s a delicate balance.

As sure as tax revenue rises during good economic times – as it did during the post-Covid recovery – we’ll certainly see an economic bounceback eventually. Once we spent that entire surplus, the money is gone. It’s like getting a Christmas bonus. If you spend all of it (and more) on Christmas presents, you may not have enough to pay the rent in January. And the rent always comes due, no matter how big the bonus was.

Sure enough, just a couple years after a record surplus we’re expecting a deficit. The headlines should have been different than “State Is Prepared For Projected Budget Deficit.” My choice would be: “Radosevich Was Right!” but I doubt any papers would have put it quite that way.

It’s been said that we don’t have a budget problem. We have a spending problem. I couldn’t agree more.

Pete Radosevich is the publisher of the Pine Knot News and an attorney in Esko. His opinions are his own. He is willing to speak at your meeting or event. Contact him at [email protected].