For more information contact: Charlene Briner 651-296-5809
St. Paul, MN – The House DFL Majority released their budget target numbers on Friday, fulfilling a promise to deliver on property tax reform, education and health care.
"Earlier this week, we learned that property taxes are expected to go up by a record amount next year, all to fund the things that should be the state's responsibility," said Hilstrom. "The House budget proposal provides fairness and balance, and focuses on the priorities that matter most to Minnesotans."
Highlights of the plan include:
· $535 million in significant, permanent statewide property tax relief and reform, including school levy reductions, market value credits, property-tax refunds and increased local government aid.
· $919 million in new education spending, including voluntary All-Day Kindergarten across the state.
· A Cover-All-Kids health care initiative that will provide coverage for the approximately 70,000 Minnesota children currently without health insurance.
"Cuts to Local Government Aid have threatened our ability to maintain essential public safety services," said Hilstrom, Chair of the Local Government and Metropolitan Affairs Committee, and one of the leading public safety proponents in the Legislature. "This proposal will restore some of those cuts and help keep our communities safer."
The proposal generates revenue to cover the budget numbers in three ways, according to Hilstrom. Tighter tax compliance aimed at collecting every available tax dollar due the state, and closing tax loopholes from Foreign Operating Corporations will generate a significant portion of the revenue. In addition, a fourth income tax tier for the state's wealthiest citizens will be created for couples earning more than $400,000 thousand (after deductions) and individuals earning more than $226,000 after deductions.
"Every dollar generated by this new tax bracket will be used for property tax relief, said Hilstrom. "We're finally seeing a responsible budget that doesn't fall on the backs of property tax payers, and promotes fairness in the way we fund our highest priorities."