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| + | three aid programs for inflation and population growth would increase state spending by $20 million annually in FY 2016.* The budget reserve An often overlooked budget priority is the state budget reserve. Currently the reserve is $660 million (not including the $350 million cash flow account). Most proposed uses of surplus dollars,<a href=" " target="_blank">air jordans for cheap< a>, including the tax reductions and spending increases referenced above,<a href=" " target="_blank">cheap jordans free shipping< a>, have “tails” that reduce state revenues or increase expenditures in future years. An increase in state reserves,<a href=" " target="_blank">cheap jordans online< a>, on the other hand, does not create tails that jeopardize future budget stability. Rather a reserve increase adds stability to state finances by providing a cushion against unanticipated economic swings. In 2009,<a href=" " target="_blank">< a>, the nonpartisan Minnesota Budget Trends Study Commission report recommended a hefty increase in the budget reserve “to manage cyclical economic volatility.” In the past, increases in the budget reserve have been almost an afterthought — a place to put available state resources after all other priorities had been satisfied. Given the increased dependence on volatile income taxes and other economic uncertainties,<a href=" " target="_blank">amassdenver< a>, state policymakers should make expansion of the budget reserve a top priority in 2014. Beyond dealing with the projected budget surplus, policymakers should begin deliberations on structural tax reform. Minnesota’s tax system is riddled with exclusions, exemptions, credits and various other special provisions that add complexity and reduce efficiency and<ul> | ||
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