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State Representative Jeanne Poppe
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4193
For more information contact: Sandy Connolly 651-296-8877
NEWS COLUMN
House releases budget target numbers
In the early days of 2007, House Democrats announced their top priorities for this legislative session. The first eight bills introduced all reflected the "stick to the basics" agenda we promised, focusing on the key issues of a great education for our kids, access to affordable health care and lower property taxes. Since that time, over two thousand bills have been introduced, many of them related to these top issues. While good ideas are easy to come by, paying for them is always the challenge. This past Friday, we released our budget target numbers, providing the framework for the finance committees.
The target package includes $919 million in new education spending; a 3 percent increase in the per-pupil formula in each of the next two years and by 2009, providing the opportunity for all-day kindergarten for every school district in the state. Recently, I met with school administrators from our district, and they told me their schools are in great need of additional revenue. These target numbers will offer a significant boost to their bottom lines.
The DFL House budget also includes a plan to "Cover All Kids" with basic health insurance. There are currently close to 70 thousand children in Minnesota who do not have health care coverage. As the direct result, they often go without preventive care and even routine medical care - until they are very sick. The benefit of health care for kids is our children learn better when they are healthy, parents are more productive when they aren't caring for sick children, and overall medical expenses are less when prevention and early intervention is the norm.
Earlier this week, the non-partisan Fiscal Analysis Department released a report that projected property taxes to take the biggest leap ever next year-over $600 million. Since 2003, property taxes have already increased by $1.7 billion. Our region will see an increase of over 9 percent, almost $20 million. The budget released today would reverse the trend of turning to property owners to pay for our schools and state services.
This budget proposal would provide $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.
To pay for this significant property tax relief, a 4th tier of income tax will be created. Couples earning more than $400 thousand, after deductions, and individuals earning more than $226 thousand, again after deductions, will be included in this new bracket. Every dollar that is generated by this 4th tier will be used for property tax relief.
In addition, we expect to capture revenue by closing tax loopholes from Foreign Operating Corporations (FOCs) and improved tax compliance. It is estimated that these two avenues could bring in an additional $220 million.
The message has been heard that all Minnesotans support education, health care and property tax reform. Over the past few years, our state has been playing a shell game, hiding the costs for critical state services, such as schools and health care, under the guise of fees, or shifting them to property taxes. The plan introduced today is clear and straightforward, as well as more equitable. While I am still waiting to see the final details of this budget plan, from what I have heard today, I believe we are moving in the right direction with regard to the needs of Minnesota.
Please feel free to contact me at any time - I can be reached by phone at 1-888-682-3180 or 1-651-296-4193, by mail at 487 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.jeanne.poppe@house.mn. If you are interested in receiving my session e-newsletter, please email me and your name will be added to our list.
News Items
- POPPE SELECTED AS AGRICULTURE POLICY COMMITTEE CHAIR - (Posted: 2012-11-16 00:00:00)
- Rep. Jeanne Poppe Encourages High School Juniors to Apply for Minnesota House of Representatives Page Program - Application Deadline is November 19th - (Posted: 2012-11-12 00:00:00)
- HORMEL INSTITUTE EXPANSION SIGNED INTO LAW - 2012 legislative session adjourns sine die - (Posted: 2012-05-11 00:00:00)
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