Sen. Dan Hall: Concern Over E-Pull Tabs Grows

The following is a column from Sen. Dan Hall, D-District 56.  

E-pull tabs, Budgets, and Taxes 

Bipartisan concerns continue at the Capitol over the growing gap between initial and updated projections of electronic pull tab revenue—which is a key funding source for the new Vikings stadium. During this week’s inaugural hearing of the Legislative Commission on Minnesota Sports Facilities, members of both parties called for an expedited hearing on why Governor Dayton’s revenue projections have so far been significantly off the mark. As widely reported, initial pull tab revenue for FY 2013 was projected to be $35 million, while updated projections have been scaled back to $1.8 million, a 95 percent reduction. 

Officials from the Minnesota Sports Facility Authority note that initial stadium costs have been covered by a $50 million up-front contribution from the Vikings. However, a number of legislators believe a review of the Department of Revenue's projections is a high priority in advance of the stadium ground-breaking expected later this year. 

If gaming revenues continue to fall short of expectations the general obligation bonds used to construct the stadium would need to be paid for from the state’s general fund. This scenario is problematic because it would place the professional’s sports venue in competition with the state’s Health and Human Services, K-12 and other budgets. 

In a related note, DFL legislators will begin rolling out more specific tax proposals next week, filling in the details of their anticipated $2 billion tax increase budget. I expect their proposals to include a combination of income, business, cigarette, and sales tax increases. 

Before the legislature asks for another cent from hardworking taxpayers, we need to go line-by-line through Minnesota’s budget to ensure that our current spending is as efficient and effective as possible. We can’t afford for government to waste money. Minnesotans deserve better.