So Minnesota has a state budget surplus again. Apparently, this improving economy President Bush is always talking about finally got talked into showing up. So the state now has about $1 billion in surplus funds over the next two years. Or maybe not.
See, in 2002 two majority leaders in the Legislature were running for office and the state budget was tanking big time. Instead of actually solving the problem, they found a neat way to make the budget look better - take out inflation! In fact, to really help out, only take out inflation calculations on the expenses side, but leave it in on the revenue side. To an economist, this is like legislating that gravity should take a break. Inflation doesn't stop because you tell it to.
Anyway, all kudos for the Star Tribune editorial staff for riding the Legislature on this one. Obviously, even before the state pays back schools for delaying their payments, it needs to restore good fiscal management. And that means putting gravity...er, inflation, back in the budget.
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