Accessibility menu
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
Minnesota legislators propose balanced-budget solution
Saint Paul, Minnesota – Just days after the Supreme Court ruled Governor’s Pawlenty’s unilateral unallotments were illegal, state lawmakers prepared to take action on a balanced solution to solve the state’s fiscal crisis. On Monday both the House and Senate plan to vote on a balanced budget solution that will solve the state’s $3 billion budget shortfall with significant budget reductions as well as a targeted 4th tier income tax increase on the wealthiest Minnesotans.
“The wealthiest Minnesotans have been doing alright in this recession, but our schools, middle class homeowners and communities have been struggling to get by," said State Rep. Tom Anzelc. “This balanced budget recognizes that everyone needs to contribute to restore Minnesota values. The right way is the fair way.”
Given the state’s dire financial situation, the Legislature’s budget plan includes more than $2.5 billion in spending reductions, including adoption of many of the Governor’s unilateral budget cuts and K-12 borrowing. However, unlike the Governor, the Legislature’s plan includes a way to repay the debt created by borrowing from Minnesota schools. The proposal would create a fourth-tier income tax on Minnesotans whose taxable income exceeds $200,000 per year, which will generate more than $400 million in new revenue in the current biennium. The tax increase would automatically expire in 2013 if the February 2013 budget forecast shows the state has at least a $500 million reserve balance. Anzelc said without the fairly raised tax revenue, Minnesota schools would receive the largest cut in the history of the state.
“We have to be honest to our schools. If we adopt the Governor’s payment shift without any way to pay it back then it is a cut,” said Anzelc. “Our budget solution maintains our commitment to public education and prevents the Governor’s significant cut to K-12 education.”
In total, the Legislature’s plan would cut $5 in government spending for every $1 raised in new revenue. Anzelc said the bill includes 85 percent of the Governors level of cuts, a more than fair compromise.
“We are serious about reaching a solution. The future of our state depends on it,” said Anzelc. “If the Republicans or the Governor cannot agree to a plan that is 85 percent of what they want then we will know that they are not serious about a budget solution.”
The Senate passed the bill this afternoon. The House plans to take up the bill this evening and send it to the Governor.
-30-
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)
- Archived News Items
- Subscribe to RSS News Feeds
- Read more about RSS.