Dear Neighbors,
Here is an update with the latest news from St. Paul.
Governor Vetoes Bipartisan Tax Relief Bill
I am disappointed to report that Governor Dayton let time expire on Monday, pocket vetoing an overwhelmingly bipartisan tax bill that provided more than $800 million in tax cuts over the next three years and half a billion in ongoing, permanent tax relief for middle-class Minnesotans.
This tax bill was noteworthy due to its overwhelming bipartisan support. In fact, the bill was supported by 178 of the 201 legislators in both the House and Senate. Democrats and Republicans supported the bill. Eighty-nine percent of legislators agreed that this bill was worthy of passage, an unheard of level of support for a tax bill.
After promising he would not hold the tax bill hostage or tie it to other ongoing negotiations on transportation and bonding, he vetoed the measure and gave us a long list of spending demands for a potential Special Session.
Governor Dayton stated that a very minor drafting error was part of the reason for his veto, but past legislative precedent has been that errors of this nature can be addressed administratively without the need for a redrawn bill.
Highlights in the tax relief legislation that Governor Dayton vetoed include:
- $110 million in tax relief for college graduates paying off student loans
- $49 million in tax relief for families who contribute to 529 plans to save for their children's college costs
- $146 million in tax relief for every small business in Minnesota
- $13 million in tax relief for Minnesota veterans
- $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
- $90.6 million in tax relief for Minnesota farmers
- Federal conformity provisions that allow Minnesotans to deduct higher education tuition expenses, mortgage insurance premiums, classroom expenses for teachers and more.
These provisions would have greatly benefited families and taxpayers in our community, and I am hopeful that the governor is now reasonable in ongoing negotiations for a potential Special Session so that Minnesotans can receive much-needed tax relief.
Special Session Negotiations
Legislative leaders are set to meet with Governor Dayton next Wednesday for ongoing discussions regarding a Special Session. Now that the governor has vetoed the bipartisan tax bill, he has said he is willing to negotiate on a long list of spending requests he sent to House Republicans last week that he previously said were non-negotiable.
A large portion of the governor's demands are related to bonding, and House Republicans already did quite a bit to meet the governor half way on bonding during session. House Republicans moved our bonding target from $600 million to $800 million and eventually $990 million in the bipartisan bonding bill that died in the last moments of session in the Senate over a light rail amendment. What's more, in that bipartisan bill, approximately $540 million went to the governor's list of priorities. Every one of his agencies received funding for their first priority, and in many cases their top two requests. The bill also funded vital water infrastructure projects across the state, something Governor Dayton stated was his top priority for a bonding bill. This of course is on top of the $180 million bonding bill that was signed into law last year.
I believe House Republicans moved a long way toward the middle, negotiating compromises with legislative Democrats and accounting for the governor's top priorities. I hope that any Special Session agreement includes a reasonably sized bonding bill that does not obligate us to unreasonable amounts of future debt, while funding road and bridge projects across the state and getting our bipartisan tax relief bill signed into law.
I will keep you updated on the latest news regarding Special Session and ongoing negotiations.
Peppin's MinnTriv
Thank you to everyone who participated in the last Peppin's MinnTriv quiz!
"The Big Fish Supper Club in Bena, Minnesota" was the answer to last week's trivia question: What Minnesota attraction was named one of our state's 10 most endangered historic places in 2009? Where was it located?
The big Muskie has drawn visitors to the restaurant off of busy Highway 2 for over 55 years. Volunteers restored the aging fish structure in 2009, bringing back memories of its years as a drive-in cafe where diners could eat inside the belly of a Muskie.
Congratulations to Robb Meyers from Maple Grove for having the first correct response. That's two weeks in a row!
Here is this week's question: What annual event in Minnesota is famous for having its participants stand in place?
Reply to this email with your answer, and I'll share the winner of the Peppin MinnTriv question in my next legislative update.
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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 weekend,
Joyce
**Encourage your neighbors and friends to sign up for my email updates at www.house.mn/34A