Legislative Update (5-27-16)

Dear Neighbors,

The 2016 legislative session came to a close Sunday night and I wanted to fill you in on a few bills that were passed in the final days of session.

Tax Relief

During the 2013-2014 sessions, state government raised taxes on Minnesotans of all income levels by more than $2 billion (DFL had majorities in the House and Senate, as well as the Governor's office). With this in mind, House Republicans fought hard to ensure Minnesotans across the state would receive much needed tax relief this year.

I am happy to report that we were able to accomplish this goal with the passage of a tax bill over the weekend that includes $801 million in relief. Highlights from the bill include:

• $90.6 million in property tax relief for Minnesota farmers
• $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 future
• $146 million in tax relief for every small business in Minnesota

The bill received strong bipartisan support with a vote of 123-10 in the House and 55-12 in the Senate. It now awaits Governor Dayton’s signature.

Supplemental Budget

Both legislative bodies also debated and passed a supplemental budget over the weekend. While as a general rule of thumb I am not in favor of additional spending, the modest supplemental budget had a number of really good provisions that will benefit Minnesota, including additional tax cuts. Highlights from this bill include:

• A full exclusion of military retirement pay from state income tax
• $10 million for angel investor tax credit to grow good-paying jobs in all regions of the state
• Additional funding for the Anoka-Metro Regional Treatment Center
• Tax credits for parents of still-born children (I believe this is a major victory for the pro-life movement as it recognizes that a child is a child even if it dies before birth.)

Bonding and Transportation

Simply put, the government doesn’t have a revenue problem, it has a spending priorities problem. That’s why I have long been advocating for the House’s transportation proposal, one that redirects some existing revenue and puts it towards our road and bridge infrastructure

Unfortunately, the House, Senate, and governor were unable to agree to a long-term, comprehensive transportation plan because the Senate and governor continued to push for an unreasonable tax increase. At a time when Minnesota has a $900 million surplus, I do not believe it is prudent to implement a tax increase.

Realizing that bridging this impasse was unlikely, the House and Senate came to an agreement and assembled a bonding bill in the last days of session that would invest nearly $700 million in roads and bridges around the state. In addition to this serious investment in transportation, the bill included a number of critically important public works projects.

As is the case with the supplemental budget bill, I am hesitant to support bonding bills as I believe we should be prioritizing how we spend, not borrowing. However, we do have some guidelines in place to help ensure we borrow wisely (think of when you buy a mortgage); for example, we typically take out twenty years bonds and must pay back 40 percent of the bonds within the first five years, 70 percent within ten years. Furthermore, this year’s bill was, quoting some of our more conservative representatives, “the best they had ever seen" - largely because it was laser focused on roads, bridges, and public infrastructure.

For our area of the state, the bill contained a number of projects including:

• Adding a third lane on Highway 10 from Hanson Boulevard to Round Lake Boulevard
• Construction of a rail-grade crossing separation at Hanson Boulevard to help prevent train derailments, especially for trains that are carrying oil
• Funding for security improvements at the Anoka-Metro Regional Treatment Center
• Planning dollars for Thurston-Fairoak in Anoka on Highway 10

I am sad to report that, although the House passed the bill on a bipartisan 91-39 vote, the Senate broke their agreement and added an amendment that would expand taxing authoring for light rail expansion. Because of this, the Senate ended up running out of time and was unable to pass the bill. If they had stuck to the agreement between the two legislative bodies, the bill would have easily passed with time to spare.

Legislative leaders have urged Governor Dayton to call a special session to pass the bill and finish our work. It remains to be seen if or when the governor will do so.

Around Town: Memorial Day Observance & Honoring Student Achievement

Monday is Memorial Day, a time for our nation to remember men and women who gave their lives in service for our country. A colleague of mine humbly reminded me of Christ’s words in John 15:13, “Greater love hath no man than this, that a man lay down his life for his friends.”

With this in mind, I encourage you to attend this year’s Memorial Day observance program in Anoka. The event is set to begin Sunday at 10:00 am at Forest Hills Cemetery.

I also wanted to recognize a local high school student, Hannah Hoekman. Hannah began efforts to start a pro-life club in her freshman year, and while she graduates in just a few days, she finally was able to start this group. In honor of her accomplishment and perseverance, I had a House resolution drafted. Way to go Hannah!

Staying in Touch

As always, please do not hesitate to contact me if you have questions, comments, or concerns on anything related to state government. It would be an honor to discuss your ideas on how we can make Minnesota better for everyone. I can be reached by phone at 651-296-1729 or via email at rep.abigail.whelan@house.mn.

Have a great weekend!

Abigail