Dear Lakeville Friends and Neighbors,
The Legislature adjourned on Sunday evening with a frantic finish. You’ve probably read some of what happened, but I want to make sure to keep you informed. It was my intention to give an update during the weekend, but there was too much uncertainty of what final compromise would be worked out.
Middle-Class Tax Relief
On Sunday, the House and Senate passed a tax relief package of more than $800 million over the next three years. Included in the bill are provisions to provide tax relief in the amounts as follows:
- $110 million in tax relief for college graduates paying off student loans through a refundable tax credit up to $1,000, the first of its kind in the country.
- $49 million in tax relief for families who contribute to 529 Plans to save for their children's college costs.
- $146 million in property tax relief for every small business in the state by exempting the first $100,000 of commercial-industrial property from the state general tax levy (a business only tax classification).
- $13 million in tax relief for veterans by raising the income eligibility threshold, and increasing the total credit from $750 to $1,000.
- $150 million in tax relief for working families by expanding the working family tax credit
- $32 million to reduce the cost of childcare; by expanding the childcare tax credit, families could earn a tax credit up to $960.
What’s important to remember is that middle-class families, small business owners, and recent college graduates would benefit from our plan. We passed the bill on a wide bipartisan vote of 123-10, and I’m hopeful Governor Dayton will sign it in the coming days.
Transportation Funding
We passed the first year of a road and bridge package with a $700 million transportation plan on a bipartisan 91-39 vote. Our plan called for significant dollars for statewide transportation projects. In a strictly political maneuver, in the final minutes of session, Senate Democrats attempted to add an amendment in favor of the Southwest Light Rail, and ran out of time before the deadline. The Senate played a political game, and Minnesotans were the ones who lost. In addition to transportation funding, the bonding bill also included important and essential statewide capital improvement projects for our higher education buildings and local government projects.
Since the Senate failed to pass the same agreed-upon transportation and bonding bill, we will need a special session to approve these bills. This could be a simple process as we could repass the previous bill, without the Minneapolis light rail provision, and provide needed road and bridge funding for our state.
Transit funding, specifically Southwest Light Rail, had been the sticking point all along. House and Senate leaders had agreed on the road and bridge part. My hope was that we could agree on a long-term plan on the transportation side and separately find agreement on transit without raising taxes (including a moratorium on new rail lines, and train funding reforms). There were a few ideas in the works that I supported, but didn’t make it to the final deal. I will continue to work towards a long-term package that is fair statewide.
I hope Governor Dayton will leave politics aside, and agree to a special session so we can repass a bill similar to the one we passed in the House and one that works for Minnesotans.
Real ID
The House passed the version I mentioned a few updates ago. Republican House and Democratic Senate conferees met and ironed out a few differences, however, the Senate wanted to leave open the door for driver’s licenses for undocumented immigrants (those without legal status). Providing the majority of Minnesotans, if they choose, the opportunity to travel with a Real ID compliant ID was a job we took seriously and addressed. I believe this should have been a single-topic issue and should not have been complicated by adding the controversial issue of driver’s license for those without legal status. That issue should be brought up to stand on its own, not hidden in other bills. We will continue to address this issue before federal enforcement starts in 2018.
Please Contact Me
I appreciate hearing from so many of you. All your emails are read and I do my best to reply to personally generated emails. Please continue to share your ideas and concerns.
Have a wonderful Memorial weekend. Take the time to remember those who have given the ultimate sacrifice in protection of our ability to enjoy the freedom and liberty, as messy as it can be, to self-govern. Those sacrifices allow us to still pursue our individual American dreams and achieve as much as our God-given talents provide. Thank you to those of you who currently serve and those who previously have.
Jon Koznick
State Representative, Lakeville, 58A