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St. Paul, Minnesota – State Rep. Tom Anzelc (DFL - Balsam Township) called Governor Dyaton budget plan released today a “fair and balanced" solution to the state’s $6.2 billion budget deficit. Dayton’s plan meets his campaign promises to fund public education and hold down property taxes while bringing structural balance to the worst deficit in Minnesota history.
“I applaud Governor Dayton for presenting a fair and responsible budget,” said Anzelc. “There will certainly be painful cuts, but the Governor honestly shared the sacrifice and protected our most important Minnesota values. This is what he promised on the campaign and now he is making good on those promises.”
Dayton’s budget proposal includes a $50 million increase for K-12 education. Anzelc said this increase will help meet the demand of 14,000 additional Minnesota students next year.
“Our kids didn’t have the choice to get their education during our state’s budget deficit and they shouldn’t have to pay for it with their future,” said Anzelc. “Making our public education system a top priority in this budget is the correct choice.”
Anzelc also praised the Governor for holding the line on property taxes, a marked departure from the previous eight years when property taxes increased statewide by $3 billion. Local government aid (LGA) and county program aid (CPA) was held harmless in the Governor’s budget.
“For too long we have unfairly balanced our budgets by relying on homestead property taxes and Governor Dayton is putting an end to it,” said Anzelc. “This is welcome news for homeowners, seniors, and families throughout Northern Minnesota. In particular, International Falls and Grand Rapids will be spared drastic cuts that would have jeopardized funding for basic services for police, fire, libraries, and infrastructure maintenance.”
Dayton’s plan will increase taxes on the state’s top 5% of earners to help close the deficit. The plan includes a new 4th income tax tier at 10.95% for joint filers over $150,000 and head of household filers over $130,000; and a temporary income surtax of three percent for all filers over $500,000. He also proposed a statewide property tax on home values over $1,000,000 and closes many tax loopholes.
“95 percent of Minnesotans will see no tax increase in this bill,” said Anzelc. “Considering the wealthiest of Minnesotans have thus far been absent from budget pain, it is reasonable for the top 5 percent to pay their fair share.”
Anzelc said he looked forward to getting to work to pass a budget solution into law. The next step will be when Republicans introduce their all-cuts budget proposal, which will likely hurt kids, seniors, veterans and many vulnerable Minnesotans.
“The Republican leaders promised Minnesotans they would balance the budget with all cuts,” said Anzelc. “I look forward to seeing the specifics of that proposal so that we can begin the work that needs to be done to find a solution.”