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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
Column/LTE
MOVING FORWARD IN A CHALLENGING LEGISLATIVE SESSION
Just over a week ago I voted against the House Omnibus Tax Bill. It was a $1.5 billion collection of revenue raising strategies, some progressive, some regressive. The bill is in conference committee working out differences with the Senate tax bill.
Now with just over a week left in this legislative session, another opportunity to consider revenue raising strategies came before us. House File 885 addressed specific funding needs and gave spending direction designed to meet the priorities identified by most Minnesotans. The Governor’s approach to this budget shortfall included adding nearly $1 billion in revenue to close this historic deficit. The Governor’s plan is to use bonding (borrowing) to fill that gap.
If we are going to balance the budget responsibly by the constitutional deadline for adjournment, both the Governor and Legislature will need to compromise. Consequently, the Legislature has decided to meet the Governor half way by taking his preferred revenue number. H.F. 885 would raise a little less than $1 billion to help balance the deficit. However, rather than requiring future generations to pay for Minnesota’s current budget deficit, H.F. 885 would make sure we pay as we go.
The Legislature proposes to raise revenue through four provisions. The bill includes a 4th income tax tier of 9 percent for married joint filers who earn more than $250,000 of taxable income (single filers who earn more than $141,250, and heads of household who earn more than $212,500), an increase in alcoholic beverage taxes, a lender tax surcharge on interest collected at an annual percentage rate greater than 15 percent, and tax compliance initiatives. The 4th tier provision will sunset in tax year 2014 if state economic conditions stabilize.
H.F. 885 takes the revenue raised through these four provisions and directs it to safeguarding essential program areas. H.F. 885 would set up three accounts: $585.8 million would go to E-12 education, $287.6 million would go to nursing homes and long-term care facilities, and $114.1 million would go to hospitals.
Local constituents have told me to protect our hospitals and nursing homes, to support our schools, and to offer a fair tax plan as a part of the solution to this problem. Is HF 885 the best or final solution to fill the gap in our budget shortfall? Perhaps not but it does match the Governor in the amount of the gap and offers choices to allow us to fund what Minnesotans have told us are their priorities. These are difficult times for our state, and tough choices must be made. I take my responsibilities as a legislator seriously and finding a responsible solution to balance the state’s budget continues to be my top priority this year.
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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