For more information contact: House GOP Communications 651-296-5520
Dear Friend,
Much is happening at the Capitol and I would like to fill you in.
Last Thursday, February 28, 2013, Commissioner Schowalter of the Office of Minnesota Management and Budget (MMB) presented the long-awaited state financial results for the current biennium and the budget forecast for the next biennium. The commissioner reported current biennium increased revenues and decreased spending have resulted in a $2.8 billion dollar surplus. This is a tremendous improvement from the $6.2 billion dollar projected budget deficit when I first took office in January 2011. As required by MN statute, the commissioner went on to report, the surplus first replenished the state's cash flow fund ($255 million dollars), then replenished the state's budget reserve fund ($642 million dollars), with the remaining surplus of $1.927 billion paying the school shift to a 87/13 rate. In my view, this impressive turnaround is a direct result of the budget agreement put forth by the Republican-led legislature of the previous two years that did not impose new taxes. Additionally, the MMB's forecast deficit for the next biennium decreased from $1.1 billion to $627 million. With this modest budget deficit, 1/10 the deficit facing the state two years ago, I believe the governor's tax-all proposal is the wrong direction for Minnesota.
This last week, as a member of the House Tax committee, I listened to job providers tell of the truly devastating impact the governor's tax-all proposal will have on their businesses and industries. The governor's tax-all plan will hit all non-government jobs hard. I would like to give you just one small example. Under the governor's tax-all proposal a pre-teen will now have to pay sales tax to take a babysitting certification program at the YMCA, a not-for-profit, charitable organization. When the pre-teen babysits more than three times for a family, they will need to collect sales tax on their services. Additionally, the pre-teen will need to open a checking account to remit their tax liability to the state and pay an accountant to fill out their tax forms and figure out what sales tax rates are applicable. And yes, under the governor's tax-all plan the pre-teen will need to pay sales tax on the services provided by the accountant as part of the governor's business-to-business sales tax. This one example shows how completely out of touch the governor and Democrats are with average Minnesotans.
Today, the House is taking up the Minnesota Democrat Health Insurance Exchange bill. The Minnesota Democrat Health Insurance Exchange, an internet portal for the purchase of health insurance, does nothing to guarantee better health care, lower insurance premiums, increase coverage or savings in the health care system. The Minnesota Democrat Health Insurance Exchange is an extremely enormous and expensive government entity with absolute power over the health insurance market and no transparency. I am particularly concerned the Minnesota Democrat Health Insurance Exchange will result in less choice, more cost, and less privacy for Minnesotans.
Another bill of great concern is the Childcare Unionization bill, House File 950, introduced by Democrat Rep. Nelson. The bill is scheduled to be heard this Thursday, March 7, 2013 at 6:00 p.m. in the State Office Building Room 200 in Early Childhood and Youth Development Policy Committee, where I serve as the lead Republican member. Please let your childcare provider know about this hearing and request they attend to testify against the bill.
Thank you for the feedback on my bill to tighten Minnesota disclosure statute, House File 604. I was pleased to see the Star Tribune editorial board’s endorsement; you can read it here. I am hopeful House File 604 as amended will pass with strong bipartisan support.
As always, please feel free to contact me with your comments or concerns.
Sincerely yours,
Pam