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State Representative David Dill
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-2190
For more information contact: Ted Modrich 651-296-5809
NEWS COLUMN
THE LONG, SLOW ROAD TO RECOVERY
The last few weeks at the Capitol have been filled with discussion, debate and activity revolving around Governor Dayton’s budget proposal and the February forecast from the Minnesota Management and Budget Office.
The February forecast showed the deficit falling from a projected $6.2 billion to slightly over $5 billion. This was due mainly to an increase in capital gains tax collections. This would also indicate a hint of a recovery. A $1.2 billion reduction is a lot in a short period of time and shows just how powerful our economy can be.
As many people like to say, the first thing to go down in a recession is the stock market and then it’s the first thing to recover. On the other hand, unemployment tends to be the last thing to spike during a recession, and the last indicator to recover. We’ve seen the stock market recover remarkably well over the last couple years and an increase in capital gains is another hint that our economy is on the way to recovery. Another encouraging jobs report released during the first week of March showed a dip in the unemployment rate and an increase in private sector job growth and consumer confidence. All of these are positive signs that point toward a recovery.
Unfortunately, the situations throughout the Middle East have caused an increase in fuel prices, which threatens to stall our economic recovery. This could also have a negative effect on Minnesota’s budget, causing our deficit to go right back up. The high commodity prices were seeing right now, especially for gold, indicate concern about our uncertain economy.
Governor Dayton’s Budget
Governor Dayton’s initial budget proposal created a new income tax bracket at 10.95 percent for singles making $85,000 in taxable income (around $120,000 before deductions and credits) and couples making $150,000 in taxable income (around $200,000 before deductions and credits). His proposal also contained a 3 percent surcharge on incomes over $500,000 and increases property taxes on homes valued over $1 million. The governor’s plan also closes dozens of tax loopholes.
Very importantly for our district, Governor Dayton’s budget fully funds local government aid. The cuts to LGA over the last eight years have caused property taxes to rise by $3 billion across the state. By funding LGA, the governor’s budget holds the line on property taxes, protecting the middle class and those on fixed incomes.
The governor’s budget adds $52 million in K-12 funding, with $33 million specifically for optional all-day kindergarten. Governor Dayton’s budget continues valuable health care and government reforms as well. His initial proposal also contained cuts to nursing homes, long-term care, MinnesotaCare, and transit.
With the reduced budget deficit however, Governor Dayton immediately revised his budget proposal, reducing those cuts to nursing homes, long-term care, MinnesotaCare and transit, while completely eliminating the 3 percent surcharge on incomes over $500,000.
The governor’s budget still makes some painful choices. In these difficult economic and fiscal times, even with a compassionate governor, who is pained by every cut and revenue raise he proposes, still has some incredibly tough decisions to make. Thankfully though, when there was a little daylight with the improved forecast, Governor Dayton quickly changed his proposal to remove some of the painful cuts.
Overall, while the picture is a bit brighter, we still face challenges. As your Representative, I’ll continue to work on those challenges, and work to strengthen our community and economy to create a more prosperous Minnesota.
As always, on any issue, please contact me with any questions, comments, or concerns. I can be reached by phone at 651-296-2190 and by email at rep.david.dill@house.mn. You can also send mail to my office, 273 State Office Building, St. Paul, MN 55155. You can monitor activities at the House, track bills, watch live video and sign up for my email update list by going to http://house.mn.
Thank you for the opportunity to serve you in the legislature.
David Dill
State Representative
District 06A
News Items
- NEWS RELEASE: Dill agrees with cancellation of moose hunting season - (Posted: Feb 12 2013 3:41PM)
- Budget Forecast: Good news for this year, bad for the coming two Fiscal crisis in Washington creates uncertainty and concerns - (Posted: Dec 7 2012 12:00AM)
- MOLPUS LANDS STATUS QUO FOR NOW - (Posted: 2012-10-18 00:00:00)
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