For more information contact: Michael Howard 651-296-8873
ST. PAUL – The 2008 legislative session adjourned Sunday night on time for the second consecutive year. Rep Gene Pelowski (DFL – Winona) was pleased the legislature passed a tax bill that will increase local government aid and reduce property taxes, but was not supportive of a budget-balancing bill.
"We have starved our local governments since the 2003 budget cuts and the result has been higher property taxes," said Pelowski. "The tax bill we passed delivers needed local government aid to the cities and counties in Southeastern Minnesota," said Pelowski.
In total, the tax bill included $60 million in local government aid to cities and counties across the state. Winona County will receive an additional $275 thousand in LGA next year, Houston County will receive an additional $103 thousand. The city of Winona will receive an additional $253 thousand, a 9.2% per capita increase. Pelowski said the aid is indexed for inflation so that our cities don’t fall behind in coming years. In addition, the tax bill included $25 million in direct property tax relief through the existing property tax refund program.
Pelowski said the bill also includes two important provisions that provide tax benefits to Minnesota military veterans. The Military Service Combat Zone Credit is doubled from $59 to $120 per month. In addition, a new Military Service Credit for Past Service is created to provide a tax credit for 100% disabled veterans or career military officers (those serving over 20 years) of $750 per year.
The state passed a budget balancing bill to close the state's $935 million budget deficit with a mix of budget cuts, closure of tax loopholes for foreign-operating companies, and budget reserves. Pelowski voted against the bill, saying it was not a responsible way to balance the budget.
"If the national economy continues to worsen, we may be in real trouble next year with another budget deficit and this bill doesn’t address those long-term concerns in any meaningful manner," said Pelowski.
Pelowski realized that cuts were needed to balance the budget, but disapproved of several funding increases included in the bill.
"When you have a budget deficit and you increase spending in one area, that means you are cutting from someone else," said Pelowski. "I am not convinced we had all our priorities in the right place."
Hospitals and higher education was cut as part of the budget balancing. $813 thousand was cut to Winona Community Memorial Hospital as well as cuts to the MnSCU system, Winona State University, and Southeast Minnesota Technical College. Nursing homes did receive a 2% cost-of-living-adjustment, but several other areas did not, such as Home & Community Options, the Occupational Resources Center, Development Achievement Center for long-term care patients.
Pelowski highlighted several other accomplishments of the 2008 session, including the passage of the Data Privacy bill and a bill requiring open public meetings. Pelowski said the bill is good public policy and will lead to more accountable government.
"The public has a right to know what is happening and that cannot occur behind closed doors without an official public record," said Pelowski. "A well-run government must be transparent and this bill makes it clear that local governments open their doors to the public."
Pelowski also authored and passed the first bill of the session related to the tragic flooding that occurred last year. The Governor signed the Natural Disaster Preparation bill, which creates uniform procedures to assist communities in their response to natural disasters.
"The floods last year illustrated the complexity and layers of an effective, timely disaster response," said Pelowski. "This new law creates a playbook for the many different state and local agencies that need to coordinate effectively in what can be a very chaotic situation."
With the session now finished, Pelowski said he looks forward to discussing the issues of the 2008 session with his constituents.
-30-