For more information contact: Sandy Connolly 651-296-8877
St. Paul, MN - The Minnesota House sent a bill to the Governor today that provides a stable, ongoing funding source for Minnesota schools, hospitals and nursing homes.
State Rep. John Ward said he voted for the bill because even during tough economic times, children still need a top-notch education, families still need good health care, and seniors deserve to live out their lives in dignity.
“I represent school children, educators, parents, senior citizens and families," said Ward. “I voted for this bill today because every one of them would be hurt if I didn’t. Minnesotans understand we need to pay for what we value.”
The House plan would raise $987 million in new revenue primarily by creating a new 4th tier income tax bracket of 9% on Minnesota’s highest earners ($250,000 and above). Every penny would be dedicated to protecting three key areas of state funding from potentially irreparable budget cuts. Specifically,
• $586 million would go to schools
• $288 million would go to nursing homes
• $114 million would go to hospitals
The bill also increases the alcohol tax by a few pennies a drink – the first increase in over 20 years, and puts in place a surcharge on credit card companies and banks that charge their customers more than 15 percent interest.
Under the Governor’s budget proposal, St. Joseph’s Medical Center in Brainerd would be cut by $9.5 million over the next two years. The Cuyuna Regional Medical Center would be cut by $4.7 million.
“We have faced a deficit every year but one since Governor Pawlenty was elected, and every time, hospitals and nursing homes were cut,” said Ward. “They no longer have the safety net to withstand cuts of this magnitude.”
Ward also said he believes Minnesotans will agree that the revenue sources in this bill are fair, and they will like knowing where their tax dollars are going.
“We’re asking those most fortunate in our state to pay a little bit more, and add a few cents to your beer or glass of wine,” said Ward. “These tax increases will not force people out of their homes, or take food off their table. What they will do, however, is let our children continue to attend strong schools, keep local medical facilities open, and help protect the important jobs they provide in our communities.”
The legislative session is set to end on May 18th. Rep. Ward said he hopes the Governor will recognize this is a reasonable and fair way to protect schools and health care in Minnesota.
“We have now compromised with the Governor by matching his revenue amount, and cut $100 million more than him to help fill our budget shortfall,” said Ward. “This may not be the final answer, but it’s a very good beginning,”