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State Representative Joyce Peppin
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7806
For more information contact: House GOP Communications 651-296-5520
NEWS COLUMN
State of the State, Governor's Budget and More
Dear Friends,
The last week has seen quite a flurry of activity in the Legislature, with job growth and the budget continuing to take center stage. While the Republican-led legislature is pursuing reforms and fiscal responsibility, the Governor remains fixed on higher taxes and increased government spending. My bill to repeal the ban on new nuclear power plants also passed the Minnesota House after many years of hard work.
In this update:
1. State of the State
2. Early action budget bill passes house, vetoed by Governor Dayton
3. Governor Dayton’s budget proposal: raise taxes, increase spending
4. Nuclear moratorium repeal passes House
1. State of the State
Last Wednesday, Governor Mark Dayton delivered his first State of the State address. While I appreciate the Governor’s recognition that we need to grow jobs in Minnesota, his proposed tax increases run against our goal to create a stronger Minnesota. The Governor’s speech was also short on specifics for balancing the budget and improving the economy, while his calls for higher taxes and more government spending would perpetuate the very problems driving state government’s fiscal mess.
Governor Dayton was right in pointing to the budget crisis left to us by previous legislatures. As I’ve said before, our state cannot afford the status quo and our people deserve better. That’s why we need to focus on positive initiatives and real reforms to reduce spending, balance the budget and improve Minnesota’s economy. Read on for more…
2. Early Action Budget Bill – Final Passage, Vetoed by Governor
Last week the Republican-led Legislature passed our first budget bill to reduce the current projected deficit by $900 million. We understand that the key to a sustainable budget lies in stopping the auto-pilot spending increases of the past several decades. This bill would have done exactly that.
Unfortunately, Governor Dayton vetoed HF 130 and its fiscally responsible approach. The Governor may remain adamant on tax increases and more spending, but as session moves forward my Republican colleagues and I will continue to advance our bills for reforming the state workforce, sunsetting out-dated agencies and eliminating non-essential or duplicative programs. Our focus remains on promoting fiscal responsibility, protecting Minnesota priorities and putting Minnesota back on track.
3. Governor Dayton’s budget
Following the State of the State and his veto of our early action budget bill, I was expecting to hear about taxes and spending in the Governor’s budget proposal. I nevertheless remained shocked that the Governor would propose the largest tax increase in state history. Rather than moving our state forward, the Governor’s budget would only serve to perpetuate the unsustainable status quo and risk Minnesota’s future.
The core of Governor Dayton’s budget is over $4 billion in higher taxes. Small business could see their taxes increase from 7.85% to 13.95% over the next two years while families making $150,000 or more will see an increase to 10.95%--the third highest tax rate in the country. With an additional proposed surcharge, higher income earners would face a 13.95% tax rate, the highest in the country.
As if tax increases were not enough, Governor Dayton’s budget would also raise state spending by an unsustainable 22 percent. At the same time, the Governor’s budget features tax hikes on health care providers, cuts home and community-based services by 4 percent and cuts nursing homes by 2 percent. For every dollar of spending reductions in Governor Dayton’s budget, it raises four dollars in new taxes.
The reality is that Minnesota is projected to see a five percent increase in revenue under existing tax levels. Instead of raising taxes and increasing spending, by prioritizing funds and implementing thoughtful reforms we can deliver the services our citizens rely upon within a sustainable, balanced budget. Stay tuned for more updates on our work to bring responsibility back to government and job growth back to Minnesota.
4. Nuclear moratorium repeal passes House
This Thursday my legislation to repeal the moratorium on new nuclear power facilities passed the Minnesota House after many years of work. Following much debate and discussion on the House floor, the bill passed on a 81-50 vote.
For the last 17 years, the nuclear moratorium has only served to hold our state back, preventing Minnesota from considering all of its opportunities. While renewable sources of energy can continue to be worked on and utilized, they won't be enough to provide for future needs. As residents of our area know, nuclear is a safe, cost-effective energy solution that brings power to our homes and quality jobs to our communities.
I’m hopeful the Governor will approve this legislation. Expanded nuclear power has support from many other officials, including Congressman Erik Paulsen and President Obama. By lifting the ban, we can empower Minnesota to be a leader in this country’s renewable, independent energy future.
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As always, if you have questions or comments on any legislative issue, please do not hesitate to contact me.
Sincerely,
Joyce
News Items
- PEPPIN REPORT: NW SUBURBAN FAMILIES WILL BE HIT HARD UNDER DAYTON AND DFL BUDGET - (Posted: May 28 2013 4:35PM)
- Rep. Peppin’s bill would lessen unfair fiscal disparities tax burden on Rogers - (Posted: Apr 3 2013 9:36AM)
- PEPPIN REPORT: FEBRUARY FORECAST REVEALS FOURTH CONSECUTIVE STATE SURPLUS - (Posted: Feb 28 2013 12:00AM)
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