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State Representative Jeanne Poppe

487 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4193

For more information contact: Sandy Connolly 651-296-8877

Posted: 2007-04-06 00:00:00
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NEWS COLUMN

PAST CHOICES BROUGHT HARMFUL CONSEQUENCES


Earlier this week, I participated in a Legislative Forum hosted by the Austin Chamber of Commerce. Other participants included Rep. Robin Brown from Albert Lea, Rep. Steve Sviggum, the former Speaker of the House, and Sen. Dave Senjem, the Senate Minority Leader. The state budget was a key topic, and as the discussion progressed, it became apparent we had differing opinions on how to best move our state forward. The former Speaker likes to remind everyone there are always consequences for the choices we make. I couldn't agree more.
First, let's consider the choices of the past few years. In the face of a deficit, Governor Pawlenty made the choice to balance the budget without raising taxes. Instead, he began a systematic series of cuts – to schools, Early Childhood Education, higher education, hospitals, nursing homes, Local Government Aid, county and township funding, transportation…the list goes on and on.
Now, let's consider just a few of the consequences of those choices. Our schools have been forced to lay-off teachers and staff, classroom sizes have increased and class offerings have decreased. College and university students have faced year after year of double-digit tuition increases, hospitals and nursing homes, in Greater Minnesota especially, are losing money and even closing, and our roads and bridges are in the worst condition they have been in for over 20 years.
And what about taxes? Of course they have gone up! Property owners have stepped up to the plate and paid $1.7 billion in higher property taxes in just the past five years. Fees have gone up by over $1 billion - and that doesn't even count the cigarette "fee".
Now we are being faced with more choices. The Governor claims there is a $2 billion surplus and no need to generate new revenue. In reality, half of that is eaten up with inflation, and the other half is one-time money that can't be used for any continuing appropriations. It appears the choice the Governor is making is to once again ignore the need to adequately fund our schools, offer relief to over-burdened property owners, or extend health care coverage to the 68,000 children in Minnesota who are currently not covered under any plan.
The new DFL majority in the House is making different choices. We have offered proposals to cover all kids with health insurance, increase the funding formula for public schools, end the double-digit tuition increases at state colleges and universities, and provide significant and permanent tax relief to property owners.
To offer this relief, the choice the Property Tax Committee made is to bring increased tax fairness to the state. Under their proposal the highest earners will be asked to pay a closer percentage of their income in taxes to that being paid by the middle-earners in our state. Currently, the state's top earners are paying over 3 percentage points less than that paid by middle-earners. The change will affect married couples making $400 thousand a year, after deductions, and single filers who make more than $250 thousand a year, again after deductions. They won't be asked to pay a larger percentage of their income on taxes than middle-earners, just a closer percentage. Every penny of this 4th tier will be spent on property tax relief.
The consequence of this choice is that instead of the Governor's projected 7.3% property tax increase next year, the average Minnesota homeowner will see a property tax cut of 3.4%! This 4th tier will also free up general funds for basics such as education and health care.
It can be easy to get caught up in rhetoric, but most Minnesotans know the reality – we are all paying more, and getting less for our money. The choice we are proposing is that our state tax burden be spread fairly to earners at every level. The consequence will be tax relief for every Minnesota property owner, as well as improved funding for education, health care for every child, and lower tuition increases. It seems like a fair trade.
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.

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