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Legislative News and Views - Rep. Tina Liebling (DFL)

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Legislative Update - March 18, 2016

Friday, March 18, 2016

Dear Neighbors,

On Monday morning I was the guest on KROC radio’s call-in show. One of the callers asked a great question that reminded me how confusing our state budget process can be. He wanted to know why we are now talking about a $900 million budget surplus when we also talk about a $2 billion surplus?

The first number, $900 million, if from the most recent budget forecast in February and covers the remainder of the current 16-17 budget years. In November, we had a projected surplus of $2 billion in the next two year budget period covering 18-19, but that has decreased to $1.2 billion in the most recent forecast.

The state budget is based on projections, which are expert estimations of how much money the state will take in and how much it will spend based on previous budget decisions. Predictions about the economy greatly affect these projections—because tax collections and some types of spending rise and fall with the economy. As we go through the budget year and see how much is actually coming in and going out, the prediction changes. This does not mean that anyone did a bad job or that anything is wrong. It’s just the way the budget process works.

The $900 million projected surplus is for the current budget period, which ends June 30, 2017. Since we now expect to take in an “extra” $900 million, legislators and the governor are deciding what adjustments to make: how much more to spend as appropriations or tax cuts and how much to carry over to the next budget period.

This week, Governor Dayton released his supplemental budget proposal for the $900 million surplus. While our overall economic outlook is strong, too many Minnesotans are being left behind. Governor Dayton’s supplemental budget proposes investments that he believes will give more Minnesotans opportunities to succeed and thus benefit all of us.

Some of the highlights from his proposal include expanding rural access to broadband, investing in voluntary prekindergarten, tax cuts for 400,000 middle class families with targeted reductions and credits, funds to close economic disparities, and $202 million left on the bottom line to ensure a sound fiscal future for the state.

Logistically, the first two weeks of session have been unusual. This year--with the short session and the Capitol not useable for meetings—the halls, stairs and elevators of the State Office Building are packed with people. A lot of meetings—including Senate floor sessions—are also taking place in the new Minnesota Senate Building. In spite of its controversial beginning, I’m glad the building is there. It is functional and aesthetically pleasing, and I can hardly imagine how the legislature would be managing without it.

It is always wonderful to see constituents at the Capitol. I was pleased to visit with many constituents this week. Tuesday was one of the best opportunities for that because it was Rochester Area Chamber’s Day at the Capitol.

One of the many groups I met with was Leadership Greater Rochester. Leadership Greater Rochester is a Chamber of Commerce sponsored program that develops leadership through a 10 month development course. The meeting is pictured below.

 

(Two of the wonderful and enthusiastic Leadership Greater Rochester program participants.)

I also had the pleasure of meeting veterans representing the Rochester VFW and American Legion. We spoke about exempting veterans’ pensions from income taxes. While I believe everyone should pay taxes based on their income, we had a good discussion about ways to honor veterans and provide for the needs veterans and others have.

Thanks to all of you who attended!

As always, please feel free to contact me with any thoughts or questions. Have a great weekend!

Tina