Dear Neighbor,
Health insurance relief and reform has been enacted by the governor after the House and Senate both provided final approval with overwhelming bipartisan support on Thursday.
The package provides a 25-percent premium reduction to Minnesotans who do not qualify for MNsure tax credits on the individual market. It also includes key Republican-led reforms to preserve care for those receiving life-saving treatments and increase competition and consumer choice moving forward.
I am very pleased with the reform in this bill, especially the continued care portion and increased accessibility. MNsure has been failing to meet its core objectives of delivering affordable, accessible health insurance and this package helps on both accounts and more.
On another topic, please join me in sending blessings to Gov. Mark Dayton as he faces challenges related to his health. He is in the hands of great doctors in our state and let’s pray for the best.
The governor this week issued his budget proposal for the 2018-19 biennium. He is advocating for a $45.8 billion budget, roughly a 10-percent increase from the current cycle. Despite Minnesota’s $1.4 billion surplus, his plan includes just $88 million in tax cuts for 2018-19 and $244 million in 2020-21.
In addition, the governor proposing a $1.4 billion tax increase on trips to the doctor by extending the provider tax, and $1.5 billion in new taxes and fees in the next biennium alone by increasing the gas tax, tab fees, the Metro area sales tax, new license/title surcharges, and more.
The House currently is working on its own budget plan and, while the details are not yet in place, we will be seeking greater tax relief than what the governor has outlined.
On the subject of education, a bill I authored to expand education tax credits cleared its first committee hurdle of the session Thursday, advancing through the House Education Policy Committee.
The bill (H.F. 387) increases the state’s education tax credit and deduction by about 50 percent to account for the inflation that has taken place since the programs were last updated 20 years ago. The credit would now be $1,500, along with deductions of $2,600 for students in K-6 and $3,900 for students 7-12. It also expands eligibility for the credit so that families that make up to $50,000 would be eligible and extends the credit to cover private school tuition, which already has been covered by the tax deduction since 1955.
My proposal is designed to provide public, private and home school students with additional help in meeting their educational expenses. It also would help provide low- and lower-middle-income families with increased school choices that higher income families currently have.
The House also is proposing “opportunity scholarships” for children of low- and middle-income children to attend a school of their choice. The funding in the bill comes via private contributions to non-profit scholarship granting organizations approved by the Department of Revenue. Companies and individuals who contribute to the non-profit scholarship fund would be eligible for a state tax credit.
The timing of these bill introductions coincides with this week’s National School Choice Week.
Look for more on these and other issues as things unfold and, as always, your feedback is welcome.
Sincerely,
Jim