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Minnesota House of Representatives

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: 2005-06-10 00:00:00
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NEWS COLUMN

Negotiations continue at the State Legislature

As we finish our third week of the Special Session, talks between the Governor and the House and Senate leaders continue. As in any process of negotiation, both sides must lay their proposal on the table, opening the way to discussion and compromise. On Thursday, the Senate presented the Governor and House leadership with their plan for funding the remaining state budget items. It is unreasonable to believe that this plan would be accepted in its entirety. Instead, the Governor and his supporters will now consider what parts of this plan they like and what parts they won't accept, and will, hopefully, continue to move toward a middle ground from there.
The Senate plan accepted 55 cents of the Governor's proposed 75 cents cigarette tax, as long as it is dedicated to avoid the cuts to MinnesotaCare and other related health care costs. With this change, the Health and Human Services bill could be completed immediately.
To resolve the Agriculture/Environment/Jobs bills, the DFL leaders proposed a halfway compromise between their original proposal and the Governor's. If this was agreed to, it is believed that the Conference Committee could work out the specifics quickly, leading to passage of the bill within a few days. Resolution of this bill would also mean that there is no danger of state parks closing or disruption of the sale of fishing licenses.
Another element of the proposal was to spend 5% on education in both 2006 and 2007, and restore childcare funding for 18 thousand Minnesota children. The specifics of the funding would be worked out by the education Conference Committee, with strong emphasis on no new property taxes.
This plan would generate revenue, in part, with a temporary income tax surcharge on the state's highest earners. In the spirit of compromise, the rate was reduced from the original proposal.
Statistics show that under the current tax plan, Minnesotans who are making $32 thousand a year and under are at a tax rate of 11.3%, while those who make $700 thousand a year and above have a tax rate of 7.9%. No one likes to see a tax increase, but there should be fairness. The proposed cigarette tax will hit the poorest Minnesotans the hardest; this temporary tax increase is designed to spread the burden to the highest income earners, as well.
It is believed that this temporary income tax increase on the wealthiest would pass in both Houses if the money were dedicated to funding education.
The proposal also closed some corporate tax loopholes for about $30 million.
In terms of spending, the Governor's plan and this Senate plan are actually not that far apart. The questions remain, how are we going to pay for increased funding for education, and are we going to cut 30,000 working Minnesotans off of MinnesotaCare?
I am hopeful that the Governor and House leaders will give thoughtful consideration to this proposal and come back to the table with a new, revised plan of their own. We need to have meaningful negotiations continue so that these critical state funding issues can be resolved.
Please continue to call or write if you have ideas or concerns you want to share about state or local issues. I can be reached by phone at 1-888-682-3180 or 1-651-296-4193, by mail at 231 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at the above address. If you are interested in receiving my e-newsletter, please email me at rep.jeanne.poppe@house.mn and your name will be added to our list.

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