Dear Neighbors,
The 2016 legislative session kicked off last Tuesday, and we are in for a fast paced, 10-week session.
Late last month, the Office of Management and Budget (MMB) released their February Economic Forecast revealing a projected surplus of $900 million for Fiscal Years 2016-17. This is a decline from the November forecast of $1.2 billion due in part to slower U.S. economic growth and lower consumer spending. Legislators will use this forecast as a budgetary guide for any spending legislation this session.
One of the top issues this year will be how to allocate our state's $900 million surplus. Keep in mind that these are dollars available after $600 million of the surplus is saved in a budget reserve fund. My top two priorities will be middle class tax relief for Minnesota families and transportation legislation.
Simply stated, a surplus is an over-collection of taxes from Minnesota families and businesses. We are taking in more than we need to fund state government. While a surplus is better than a deficit, I would much rather see these dollars in the hands of consumers and businesses so that they can do what they wish with the money. Their spending and saving decisions grow our economy and create jobs much better than state government.
The legislature will also be working on a transportation funding package. My goal is to pass a comprehensive road and bridge bill that fixes our transportation infrastructure without a harmful gas tax increase.
Should the legislature pass tax relief legislation and a transportation bill this session, then a capital investment/bonding bill may also be considered this year. Any bonding bill passed should fund needed improvements in our state’s assets including things such as prisons, college campuses, state parks, wastewater infrastructure and state-owned buildings. Estimates on the size of the bonding bill currently range from $700 million to $1.4 billion. My goal is to ensure any bonding dollars are used on projects with statewide significance and not used to fund pork barrel projects for legislators from either party.
I also welcome your thoughts on this legislative session, so please don't hesitate to contact me and share your priorities for state government.
As always, if you have any questions or concerns on an issue relating to state government, my office is available to help. My direct line is 651-296-7806. My email address is rep.joyce.peppin@house.mn and my mailing address is Room 459 State Office Building, 100 Dr. Martin Luther King Boulevard, St. Paul, MN 55155.
Have a wonderful week,
Joyce
**Encourage your neighbors and friends to sign up for my email updates at www.house.mn/34A