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<br />1- . ~ <br />I Page 2 <br />I- <br /> As chief executive of the state of Minnesota, it is my duty to guide Minnesota through <br /> these challenges. Toward that end, I have already taken four steps. I have: <br />I Created a $200 million budget reserve. As a condition of closing the 1995 <br /> . <br />I Legislative Session, I insisted upon a $200 million "rainy day fund." This fund is a <br /> downpayment on closing our:~erging budget shortfall. <br /> " <br />I . Taken broad. based tax increases olT the table. As long as I am Governor, there <br /> will be no budget deal that raises sales or income taxes to reduce a budget <br /> ~hortfal1. 1 wiil jn~.dsr {:'~H rhe budget be bal:::.nced t1uCugh iliuits in ~pending <br />I mcreases. <br /> . Commissioned the Weber-Brandl report. I have asked former U.S. <br />I Representative Vin Weber and former state Senator John Brandl, both now <br /> affiliated with the University of Minnesota, to make comprehensive <br /> . recommendations for government reform and restructuring. Please be aware that <br />I the Weber/Brandl report could well recommend dramatic changes in the <br /> operation of state government and the delivery of state services. In addition, my <br />I- Administration will collect additional advice from "creative teams" of experts in <br /> each major government spending area. <br /> . Initiated a comprehensive study of public salaries. Salaries and benefits of <br />I employees on the public payroll consume a huge share of the annual state budget. <br /> I have asked the Depanment of Employee Relations to conduct a comprehensive <br />I review of the salaries of public employees, local governments, school officials, and <br /> quasi-government units. The Department will be charged with recommending a <br /> fair and cost-effective system of compensation for all those on the public payroll. <br />I These items comprise my plan for managing the state's finances. But to be successful, all <br /> rvfinnesurans -- e~peci:;:,lly these who o~~'ersee public spending decisions - must iliu 3hare <br />I that responsibility. Toward that end, I offer three recommendations for your <br /> consideration. <br />I First, I urge you to hold the line on public compensation. We must strive to treat <br /> everyone fairly and to attract top people to the public sector. At the same time, we <br /> cannot ignore the tremendous costs associated with ever-increasing salary and.benefit <br />I demands. Second, I urge you to set aside money and reduce costs now, or face even <br /> more difficult and painful choices down the road. Good financial management has never <br /> been at a greater premiurn. Third, I ask for your recommendations for ref<?rm5 and <br />I innovations that will deliver better government services at a lower cost. Specifically, <br /> :-lease direct your ideas to: Weber/Brandl Creative Teams, Office of Strategic Planning. <br />I. ",vO Centennial Bldg., 658 Cedar St., St. Paul, MN 55155. <br />I <br />