To the Editor,

It’s no secret that Minnesota’s budget is in bad shape. At the end of last year, we knew we were looking at a $5.1 billion deficit. That was already disappointing, but not surprising. Considering Democrats took the 2023 session to pass a number of spending bills that ran through the entire $19 billion surplus, news of a deficit was not a shock. Unfortunately the February forecast painted an even worse picture: the new deficit now totals $6 billion. This is alarming on all fronts. Given the circumstances, Republicans took a hard look at areas of potential waste, and we’ve put together a plan that not only cuts out that waste, but also puts forward a series of good government proposals to ensure future budget mismanagement like what we’ve seen never happens again.

Our first cost-saving suggestion is to undo the budgetary earmark of $21 million to fund a public option health care plan. Given the economic state of our budget, this just doesn’t make sense. It’s an incredible waste we can easily avoid.

The second area of waste comes from pointless transportation spending projects. The Northern Lights Express alone would cost the state $194.5 million, and that doesn’t even count the federal dollars that would be required to complete it. The Blue Line Extension is also a wasteful project, amounting to $30 million. Not to mention the fact that it has constantly endured delays and cost overruns. Cancelling the NorthStar Rail could also save taxpayers about $22 million per biennium. In fact, a recent study showed how low ridership numbers were for this passenger rail – it just doesn’t make sense to keep throwing money at something folks don’t use. We could also easily point to the Reconnect Rondo project. We could easily save the remaining $500,000 that is left over from the original $6.2 million appropriation. All of these projects have been heavily scrutinized for good reason – they have all faced questions regarding cost, feasibility, and ridership numbers. If we cut out all this wasteful transportation spending, we could immediately save taxpayers around $250 million.

There are also a number of expensive benefits that are being funded for undocumented non-citizens. We could save taxpayers about $220 million alone just by cutting MNCare for undocumented non-citizens. This is something Democrats advocated for in recent sessions, and it’s coming at an incredible cost to families in the state. While Governor Walz is proposing over $200 million in cuts to nursing homes, Democrats are championing expanded MNCare funding to those here illegally. The North Star Promise is another great program that was intended to help Minnesota families who were seeking college options for their kids, but Democrats opted to expand it to include non-citizens. This comes at a cost of $86,000 per funded student. Democrats also have passed controversial tax credits for non-citizens, totaling up to $158 million. Every single dollar going to an illegal citizen in this state is a taxpayer dollar that is not supporting taxpayers. If we cut these programs, savings could easily total about $378 million. 

As a final portion of our plan, we have a series of proposals designed to prevent future budget mismanagement, therefore ensuring greater accountability in state spending. For starters, we’d require legislators to disclose any financial ties to entities seeking state funding. We also want to impose restrictions on grants to non-profits where officers and employees receive excessive compensation. Additionally, we’d like to see a report on vacant state office spaces, sunsets for commissions and working groups, and zero-based budgeting. 

Folks, this is a commonsense plan – it involves cutting waste in the most obvious areas and implementing minor changes that would keep our budgeting responsible and transparent as we move forward. Being that we have a $6 billion deficit on the horizon, it’s long past time for us to make these changes. The state of our budget and those we serve demand it. 

By Sen. Paul Utke,

Park Rapids, Minn.

Small Business 

Series: 

Understanding Credit

To the Editor,

Credit is a tool that lets you borrow money or access goods and services with the promise to pay later. It’s essential for personal and business finances, enabling large purchases like homes or cars and helping small businesses grow. Lenders use credit reports and scores to decide whether to approve loans and set interest rates.

What is a credit score?: A credit score is a three-digit number (300 to 850) that measures your credit-worthiness based on your financial history. It helps lenders predict how likely you are to repay a loan. Your personal credit score is tied to your Social Security number, while a business credit score is linked to an EIN and evaluates your business’s financial health. 

Why credit scores matter for small business owners: Although personal credit and business credit are different, your personal credit score can still impact your small business. From securing lower interest rates to building trust with potential investors or partners, your personal credit score could help with:

Securing loans. Lenders may use personal credit scores to approve business loans and offer lower interest rates.

Building trust. A good score helps establish credibility with suppliers, investors, and partners.

Managing cash flow. Access to affordable credit provides flexibility during slow seasons or emergencies.

Where can you check your credit score?: Many banks and credit card providers offer free credit scores. You can also use services like Credit Karma or buy scores from bureaus like Experian, Equifax, or TransUnion.

How to build or improve your credit score: Pay bills on time, keep credit utilization below 30% or lower, maintain older credit accounts, limit new credit applications, and diversify your credit mix responsibly.

Good credit opens doors to financial opportunities. By being proactive, you can strengthen your credit and secure your financial future.

Jessica Caban,

loan specialist, 

Center for Rural Affairs