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State Representative Tara Mack
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-5506
For more information contact: House GOP Communications 651-296-5520
LEGISLATIVE UPDATE
Another positive economic forecast
Greetings from the Capitol!
More good news regarding the state’s economy highlighted a very busy week at the Capitol, where proposed tax increases and child care issues also came to the forefront. Here’s a rundown:
ANOTHER POSITIVE ECONOMIC FORECAST
There have been four economic forecasts issued since Republicans put a new budget in place in 2011. Each of the forecasts has revealed more state revenue than previously projected.
The latest report from Minnesota Management & Budget shows a positive balance of $295 million for the 2012-13 biennium, for a combined $2.8 billion in more-than-expected revenue since November of 2011. That represents a significant state revenue gain with no tax increase.
Another positive sign is our shortfall for 2014-15 continues to shrink. It is now down to $627 million after being $1.1 billion last November and $4.4 billion to end 2011. MMB indicates a $782 million balance in 2016-17, up from $263 million in the last forecast.
We will put $290 million of the latest surplus toward paying off delayed K-12 funding. Previous unanticipated revenue paid off the entire K-12 shift from 2011 and now we are paying off what we inherited from the previous Democrat majorities and Gov. Tim Pawlenty. The balance is now down to around $800 million.
The other $5 million from the new $295 million will be placed in state reserves, bringing that balance to $694 million.
This is all great news and I am proud of the achievements we made in 2011-12 to get our state pointed in the right direction. But we still need to exercise caution because our economy is still fragile. The new biennial budget should be a responsible one which stays within our expected 3-percent rate of revenue growth. If we do that, there is no need for tax increases.
UNIONIZED DAYCARE
A bill introduced this week would establish a “statewide unit for all family child care providers” in Minnesota. Any licensed or unlicensed child care provider who has received a state subsidy in the past year would be eligible to vote on the collective bargaining unit. This issue also arose in 2011 when Gov. Dayton attempted to use an executive order to conduct a union vote for licensed childcare providers. Ramsey County Judge Dale Lindman later ruled that the governor’s directive was an “unconstitutional usurpation of the legislature’s constitutional right to make or amend our laws.”
I have not heard from anyone in our district who favors this initiative. Many people have spoken out against the unionization of daycare, including a YMCA representative who indicated to me this week that this initiative would be extremely detrimental to their operation.
GOVERNOR'S TAX PLAN
On Wednesday, the Minnesota Taxes Committee began hearing public testimony on Gov. Dayton’s budget proposal, which would increase state spending by $2.5 billion, and increase taxes by $3.7 billion. Small-business owners were among the first to testify, telling the committee that the business to business tax provision in the proposal would force them to raise prices on consumers, cut jobs, or close their doors.
Debate on the Governor’s tax and spend plan will continue in the coming weeks. I will keep you up to speed as these and other issues develop.
Have a great weekend!
Tara
News Items
- 2013 survey results - (Posted: May 17 2013 5:08PM)
- Rep. Mack's 2013 survey - (Posted: Apr 22 2013 4:37PM)
- Budget news, health insurance exchange and more - (Posted: Mar 22 2013 12:00AM)
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