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State Representative Kim Norton
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-9249
For more information contact: Matt Swenson 651-297-8406
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LAWMAKERS PASS BILL PROTECTING SCHOOLS, HOSPITALS, NURSING HOMES
ST. PAUL, MN - Rochester School District #535 would face $11.6 million in cuts and Rochester area hospitals would lose $28.2 million if the Minnesota Legislature adjourns without new revenue. Thousands of teachers would be laid off across the state, 16,000 jobs lost in the health care industry, and the state’s ability to aggressively pursue economic recovery severely set back. To avoid this damaging scenario, Rep. Kim Norton (DFL - Rochester) and 85 of her colleagues in the Minnesota House voted to pass a compromise tax bill (HF885) today raising $1 billion to minimize budget cuts to E-12 education, hospitals, and nursing homes.
“A cuts-alone budget plan would cause deep and lasting damage to our state," said Rep. Norton. “Recognizing the clear need for a balanced approach to resolving this budget crisis, the House acted today with bold leadership to maintain our quality of life and put Minnesota on course for economic recovery. In addition to more than $2 billion in cuts, a balanced plan relies on reasonable, progressive revenue.”
Governor Pawlenty has acknowledged $1 billion in new revenue is needed to help fill the budget gap. The governor would pay for it by borrowing against future revenues - a plan that would accumulate $800 million in interest payments and take 20 years to pay off. The governor’s plan was soundly defeated in the House with bipartisan support by a vote of 130 to 2.
“Putting our budget on a credit card is not a responsible option,” Norton said. “In the midst of Minnesota’s worst fiscal and economic crisis since World War II, we need to approach our shared challenges squarely and honestly. State leaders have a choice today: we can settle this deficit today, or pass it off to our children for the next 20 years. Our options are limited and difficult, but I choose to balance the budget today.”
The House plan would raise $987 million in new revenue by: 1) creating a new 4th tier income tax bracket of 9% for Minnesota’s highest earners ($250,000 and above) that would expire in 2014 or if the state sees a $500 million surplus before then; 2) increasing the alcohol tax for the first time in 22 years; 3) a 30% tax on credit card companies that charge interest over 15%; and 4) additional tax compliance. Every penny would be dedicated to protect three key areas of state funding from potentially irreparable budget cuts:
• $586 million would go to schools
• $288 million would go to nursing homes
• $114 million would go to hospitals
“Quality education for our students, the stability of our area hospitals, and the well being of Minnesota’s sick and elderly are in the balance,” said Norton. “What’s at stake in this session is the future of our state, the future of Rochester and Southeast Minnesota as an economic engine, and the maintenance of our quality of life. Difficult as it may be, the choice is clear.”
The legislature’s plan also relies on $1.8 billion in federal recovery funds and $2 billion in budget cuts - a half-billion dollars more than Governor Pawlenty has proposed in budget cuts. Unlike the governor, lawmakers also plan to protect the Health Care Access Fund. Governor Pawlenty would use those dedicated funds to balance the budget, eliminating health care for 113,000 working Minnesotans including 20,000 kids. A half-million Minnesotans are already uninsured - 67% of whom are working people.
“Our parents and grandparents faced challenges even more difficult than those we face this session,” Rep. Norton said. “We can all learn something from the commitment they showed to maintaining the Minnesota way of life even when confronted by the worst economies in history. We need to emulate their resolve and their courage today, more than ever.”
The 2009 Legislative Session is scheduled to adjourn May 18, 2009.
News Items
- Rep. Norton Selected as Vice Chair of House Health and Human Services Finance Committee - (Posted: 2012-12-14 00:00:00)
- It’s Time for Legislature to Get Back to Basics, Balance the Budget Honestly - (Posted: 2012-12-11 00:00:00)
- Second Saturday Coffee Meeting Date Changed to December 9 - (Posted: 2012-12-03 00:00:00)
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