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State Representative Tom Hackbarth
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-2439
For more information contact: Austin Bleess 651-296-5529
NEWS COLUMN
STATE SURPLUS – USE IT AS LAW DICTATES, FOR SCHOOLS & TAX RELIEF
By State Rep. Tom Hackbarth,
District 48A
Back in November, Minnesota taxpayers got a bit of good news. The state’s finance department projected that the state has a $1 billion-plus budget surplus. We have a surplus because we followed a simple formula: hold the line on income taxes and spend wisely on Minnesota’s priorities. We now have a stronger economy and more jobs, and more dollars coming into the state’s coffers.
It’s important to keep in mind, that by law, $700 million of that surplus money is dedicated to balancing a K-12 education “shift” account that legislators used to help bring the state out of the budget deficit of 2003. That’s great news for our schools. The shift delayed state payments to schools, sometimes causing school districts to engage in costly short term borrowing. Let’s not tamper with that money.
In addition, there’s some $317 million in a Tax Relief Account, money that was left over after closing the budget books on the 2005 fiscal year. That special account was created during the Jesse Ventura administration to funnel surplus money back to taxpayers. We should use that money to provide one-time property tax relief during a year when many homeowners have seen double-digit property tax increases as a result of higher county, city and school spending.
As you may have seen on your property tax statements and at Truth\in Taxation hearings in December, your property taxes are going up significantly. County, city and especially school levies are going up, some as a result of higher home values, but more significantly, because these units of government have chosen to increase spending. The state made tough spending choices without raising taxes; cities, counties and schools did not.
Don’t forget, homeowners already have access to two state property tax refund programs. Many are eligible for a regular property tax refund if total household income is less than $85,210. There’s also a separate refund program for homeowners (with no income limit) whose net property taxes have increased more than 12 percent. The property tax refund forms are issued alongside Minnesota’s income tax forms.
The Finance Department will release another budget forecast just prior to the start of the 2006 legislative session March 1. Many believe that forecast may project millions more in surplus dollars. But let’s not forget where that money comes from – from you, the taxpayers. It’s your tax money. We must continue to manage the state budget wisely. We must spend smartly and adopt policies that continue to grow jobs. By doing so, we also grow state revenue to fund priorities such as education and health care.
Rep. Hackbarth is the state representative for House District 48A which includes Elk River, Burns Township, Oak Grove, Bethel and East Bethel
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