For more information contact: Chris Shields 651-296-8873
We recently heard great news about Minnesota's state finances. The finance department is projecting that for the first time in 5 years, the Legislature will be crafting a budget without having to deal with a deficit. They're even projecting a surplus. Minnesotans should be proud of themselves for making this happen.
While a budget surplus is a welcome change of pace, we should be cautious. It was only a few years ago that large surpluses quickly changed into even larger deficits.
There are already many ideas being tossed around, including issuing one-time rebate checks. While every idea deserves a fair debate, we already know from experience that rebates aren't a permanent solution. Minnesotans are facing a history of cuts to our schools, cities, and counties that have sent property tax increases through the roof. There isn't much good in getting a check one year and then having your property taxes increase by twice that amount the following year.
Experience shows that previous rebates didn't benefit Minnesotans equally. The largest checks ended up going to people wealthy enough that a rebate didn't make much of a difference, while working Minnesotans had to settle for much smaller amounts. There isn't a one-size fits all solution to bring down property taxes, but there are a better ways than a rebate to ensure all Minnesotans benefit permanently.
The largest chunk of the projected surplus comes from money that will likely be left over when the current budget cycle ends next July. It's considered one-time money. Instead of rebating this money or going on a one-time spending spree, let's stretch it out. One plan could be to provide permanent property tax relief by buying back local school levies and restoring cuts to local governments with state money. We could spread that relief out over a few years; take budget stress off our schools, cities, and counties while not burdening Minnesotans with higher property taxes. When I was mayor of Dilworth there was a similar federal plan that allowed us to hire additional police officers, when the money eventually phased itself out we ended up avoiding having to make any cuts or painful property tax increases.
When the Legislature reconvenes in January, let's hear all the proposals on the table. However, let's be sure that whatever we do, all Minnesotans benefit for years to come.
State Representative Paul Marquart of Dilworth is the incoming Chairman of the Property Tax Relief & Local Sales Tax Division of the House Taxes Committee.
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