Hello from the Capitol!
This week, I met with constituents with Minnesota United Snowmobilers Association, ISD 196 Food Service, and constituents with MN Citizens for the Arts; thanks for coming to St. Paul to discuss legislative issues important to you!
Budget Surplus:
The Office of Minnesota Management and Budget (MMB) released the February economic forecast Tuesday, revealing a larger budget surplus than forecasted last fall. For the 2018-2019 budget years, Minnesota is projected to have a $1.65 billion surplus, an increase of about $250 million. Additionally, a $2.124 billion surplus has been projected for the 2020-2021 biennium.
The increase in the surplus mostly comes from greater-than-expected revenue from individual income taxes, the general sales tax, and the corporate franchise tax. MMB budget documents state that an improved U.S. economic outlook and positive numbers for key economic data points such as personal income growth, employment, and consumer spending have contributed to the additional surplus revenue.
The taxpayers of Minnesota need a break and deserve some relief.
Post-Secondary Education Savings Plan Tax Deduction/Credits:
On Wednesday, a bill I co-authored (House File 1869) that establishes income tax subtraction and credits for contributions to Minnesota College Savings Plan was introduced.
This bill allows for parents to invest in a 529 plan (Minnesota College Savings Plan) while benefiting from one of two tax incentives: either an income deduction (up to $1,500 for individual filers and $3,000 for joint filers) when calculating a filer’s taxes, or a tax credit (up to $500), reducing a filer’s tax obligation.
A 529 plan is a tax-free savings plan designed to encourage savings for future post-secondary education costs authorized by Section 529 of the Internal Revenue Code.
Uniform Labor Standards:
On Thursday, a bill I co-authored that makes private employment regulations uniform across the state of Minnesota passed the House of Representatives. Over the past couple years, a few cities (specifically Minneapolis and St. Paul) have proposed establishing their own labor standards.
This practice of patchwork city ordinances would damper job growth, discourage businesses contemplating expanding into Minnesota, and possibly even drive businesses out of Minnesota; ultimately resulting in a loss of jobs for Minnesota workers. These local labor ordinances would also add confusion in trying to do business in these cities. Wage and benefit regulations need to be uniform across the state of Minnesota.
If you ever have any questions, comments, or concerns regarding any issue related to state government, please feel free to contact me at either 651-296-5387 or rep.roz.peterson@house.mn.
Sincerely,
