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State Representative Tom Anzelc
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4936
For more information contact: Michael Howard 651-296-8873
Press/News Releases
House Passes Revenue Bill to Save Schools, Hospitals and Nursing Homes
ST. PAUL – The Minnesota House of Representatives aimed to strike a balance to solve our budget shortfall on Friday with a plan raise $1 billion in new revenue and direct those resources into two accounts to offset deep budget cuts to Minnesota schools, hospitals and nursing homes. The bill passed on a wide margin by a vote of 86 to 45. Rep. Tom Anzelc (DFL – Balsam Township) said he voted for the proposal to save the most important priorities for the state of Minnesota – quality education, health care, and care for our seniors, disabled and mentally ill.
“A cuts alone budget approach will decimate our public schools, nursing homes and hospitals. It would severely damage the quality of education in our schools and the quality of health care we all receive." said Anzelc. “We need to protect the quality of life of all Minnesotans by raising responsible revenue.”
Without new revenue, Minnesota hospitals and nursing homes would face about $1 billion in cuts and schools would face about $600 million in cuts, trigger over 20,000 job losses statewide. In Anzelc’s district, over $7 million would be cut from hospitals and area school districts. According to Anzelc, for every $1 million in spending cuts to hospitals and nursing homes, an average of 20 jobs are lost. Hospitals in Big Fork, International Falls, and Baudette would have received harsh cuts without this bill.
“Our economy in Northern Minnesota is struggling and we are taking the appropriate steps to prevent serious job losses in the health care industry and in our schools,” said Anzelc.
Under the bill passed today, a new fourth-tier income tax rate of 9 percent would be created for the state’s highest income earners (married couples filing jointly and earning more than $250,000, single taxpayers making more than $141,250, and single heads of households making more than $212,500.) The bill also raises revenue from an alcohol tax and a tax on banks and credit card companies that charge customers excessive interest rates. Every penny of revenue raised would be placed in accounts to go directly to schools, hospitals, and nursing homes and nothing else.
The $986 million plan represents a significant compromise for Legislators in the House, who initially proposed revenue of $1.5 billion. Anzelc said it’s important to note the current plan raises the same amount of money included in the Governor’s revenue plan, but unlike his borrowing scheme, had the votes to pass through the Legislature. Earlier in the session the House bipartisanly rejected the Governor’s plan to pass on $1.6 billion in debt over the next twenty years to raise $1 billion for the current deficit.
“Everyone, including the Governor, knows we need new revenue. If we don’t raise it we are going to do serious harm to our public schools, hospitals and nursing homes,” said Anzelc. “But instead of passing on debt to our children, we are proposing a plan to preserve our schools, nursing homes and hospitals with revenue we will raise today.”
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News Items
- STATE REPRESENTATIVE TOM ANZELC APPOINTED VICE-CHAIR OF HOUSE WAYS AND MEANS COMMITTEE - (Posted: Dec 21 2012 12:00AM)
- Rep. Tom Anzelc participates in Governor Dayton’s “Working for Minnesota Jobs” discussion with Essar Steel and Magnetation - (Posted: 2012-10-03 00:00:00)
- REP. ANZELC: DISASTER RELIEF PACKAGE PROVIDES DESPERATELY NEEDED STATE AID - (Posted: 2012-08-24 00:00:00)
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