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State Representative Leon Lillie
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-1188
For more information contact: Matt Swenson 651-297-8406
NEWS COLUMN
HOUSE BUDGET TARGETS STICK TO THE BASICS
After pledging to "Stick to the Basics," my DFL colleagues and I in the House have delivered on that pledge by unveiling budget targets for the next biennium that focus on the key issues of significant property tax relief, fair funding for Minnesota schools, and health care reform.
Highlights of the 2008-2009 Budget proposal 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.
We have been working hard throughout the session to provide meaningful property tax relief for tax payers, secure fair funding for Minnesota schools, and make health care more affordable for all Minnesotans. I am very encouraged that these new budget targets will address these key issues of concern.
Last week, we learned that property taxes are expected to go up by a record $603 million next year. This was shocking news especially considering that property taxes have increased by $1.7 billion over the last five years. Rising property taxes have weighed heavily on taxpayers across the state for far too long – especially seniors, young families, and small business owners. For the sake of all Minnesotans, we cannot stay on this course. That is why I am so encouraged that the House budget proposal provides tax fairness and balance, and will benefit every property tax payer in Minnesota, while investing in our future.
To help pay for these significant, statewide property tax cuts, the budget resolution would create a fourth state income tax bracket for couples earning more than $400,000 (after deductions) and individuals earning more than $226,000 (after deductions). All of the revenue from this new tax bracket will be used exclusively for property tax relief. By doing so, it makes the tax system in Minnesota fair – alleviating the regressive tax burden on senior citizens, young families, small business owners, and others.
I am also encouraged that these budget targets demonstrate our commitment to improving K-12 education. By adequately investing in our schools, the future of our children and the future of our economy will benefit significantly. I am proud to be a part of this effort that will finally deliver Minnesota schools the funding they need to put our children on track to success.
These budget targets also address the need for health care reform. Currently, 70,000 children in our state are denied access to medical care because they lack health insurance. By addressing this pressing need, I believe the state is taking a step in the right direction.
Additional revenue to fund these initiatives will come from the closing of tax loopholes from Foreign Operating Corporations (FOCs) and improved tax compliance.
These proposals have not been made into law yet. There is still a lot of work to be done in the coming weeks to get Minnesota back on track by addressing these basic needs. However, I am extremely encouraged by the progress we have made thus far this legislative session. I am hopeful that by May 21, when everything is all said and done, we as a legislature will have delivered fair funding for our schools, significant property tax relief, and health care reform for our state.
Please continue to contact me by phone at (651) 296-1188 or by email at rep.leon.lillie@house.mn with any questions, suggestions, or concerns you may have regarding this or any topic. Together we can make our community and the state of Minnesota a better place. I look forward to hearing from you.
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