A looming State of Minnesota budget deficit, once estimated at approximately $1 billion for the coming legislative session, could be much larger if newly-elected District 31B Representative Greg Davids (R-Preston) is peering correctly into his financial crystal ball.
Davids, who took back his House seat from Ken Tschumper (DFL-La Crescent) by 407 votes in last week's election, says he expects the red ink to mount in the next forecast.
"It's going to be tough," he said in a post-election interview. "I think the November forecast will show a larger projected deficit than what anybody has said.
"They originally said a billion dollars, but the (Stock) Market has been down so much, and the capital gains taxes are not coming in because there are no capital gains to speak of. I'm thinking it's (the deficit) going to be between $2 and $3 billion."
Despite the gloomy outlook, Davids believes Minnesota will be able to cope with the challenge he sees ahead.
"Earlier in the decade, we were able to swallow a $4.4 billion deficit. We'll make it work (this time)," he vows.
Davids says he'd like to see a "line by line" approach to existing programs, keeping the ones that are performing well and changing the ones that aren't.
Davids, who lost his House seat to Tschumper by about 50 votes in 2006, says his campaign focused on "pocketbook issues" to win this time around.
He stressed development of alternative energy sources "so we don't have to pay $4 gas," and also continued his support of schools, health care systems, and nursing homes.
Davids says he wants to make sure rural Minnesota schools are treated "fairly and equitably" in legislative funding.
"What happened in the last two years," he grumbles, "was the Metro schools got almost double what the money Rushford-Peterson and other area schools got.
While the 2006 narrow contest between Davids and Tschumper went to a mandatory recount, this year's margin was large enough not to necessitate a similar procedure.
"Ken Tschumper called me that evening (of the election) and congratulated me," recalls Davids. "That's a tough call to make when you're on the other side. I know because I made it two years ago.
"We feel very fortunate (to win) because the congressional candidate (Republican Brian Davis) got 33 percent in the district, the presidential candidate (Republican John McCain) got 42 percent, and I got 51 percent. So we're excited."
Davids, who served eight terms in the House before losing in 2006, says returning will mark the first time he will be working directly with a Democratic State Senator (Winonan Sharon Ropes) from the same district.
"Sen. Ropes very graciously called me, and we're setting up a meeting so she can brief me as to what has gone on in attempts to help our communities. I look forward to working with her, and hopefully we'll have a good two years."
