For more information contact: Austin Bleess 651-296-5529
By Bob Dettmer
State Representative
District 52A
One of the most notable things the Legislature accomplished this session came just hours before adjournment: We balanced the budget without raising taxes.
Minnesota was predicted to suffer a nearly $1 billion budget deficit, but a last-minute deal was struck to balance our books. The final budget-balancing deal included a property tax cap at 3.9 percent for three years, $60 million in local government aid, $25 million for direct property tax relief, a tax credit for veterans who have served our country, and a cost-of-living increase for nursing home employees. There also was limited expansion for the uninsured that rely on public assistance programs and implementation of tax credits for those in the private market. We also provided additional, one-time funding for schools.
To help balance the budget, we cut $355 million in spending and generated $129 million in tax revenues generated from altering corporate taxes. About $500 million from the state’s reserve funds was applied to balance the budget.
The budget-balancing job would have been more difficult had the bonding bill not been trimmed by more than $200 million earlier in the session, getting it down to within the spending limit recommended by the state’s economist. A handful of non-essential projects were struck down by Governor Pawlenty, narrowing our focus to priorities like local sewer and water, the environment and higher education infrastructure.
The only disappointment I had this session was the outcome of the K12 education bills. The funding disparities between urban schools and rural schools only widened. Our schools received a dismal 3 percent increase plus some one-time money. A student is a student regardless of where they live. If we are truly going to make education a priority, we need to make all students equal and put the students first.
I was pleased that we were able to secure much needed cost-of-live increases for our nursing homes. The people who provide care to our state’s most vulnerable residents deserve our support.
While it was positive legislative session, our work is far from over. Minnesota’s economy is not as strong as it should be and as a result the state will face a large deficit going into the 2009 legislative session. We need to do all that we can to encourage economic development and job growth. I look forward on working on proposals to grow jobs for Minnesota families and bringing those solutions to the capitol in 2009.
As always, please contact me if you have any questions or need additional information. It is an honor and privilege to serve you and our communities in the Minnesota House.
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