Greetings from the Capitol!
Last week, I met with constituents with the Joint Religious Legislative Coalition. It was great to hear about the issues that are important to them for this session!
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.
I am happy to see that the Minnesota economy has been steadily improving and the surplus is growing. We must pass a responsible budget that includes tax relief for middle class families.
Post-Secondary Education Savings Plan Tax Deduction/Credits for Families:
At a Wednesday press conference I introduced HF 1869. This bill establishes income tax subtraction and credits for family contributions to a 529 College Savings Plan.
Parents will be able to invest in a 529 plan for one or more of their children and benefit from one of two tax incentives: either an income deduction (up to $1,500 for individual filers and $3,000 for joint filers) from reported Minnesota income, or a tax credit (up to $500), reducing a family’s tax obligation.
A 529 plan is a tax-free savings plan designed to encourage savings for children’s future post-secondary education expenses as authorized by Section 529 of the Internal Revenue Code.
Check out the video of the press conference on my Facebook page.
Uniform Labor Standards:
On Thursday, a bill that makes private employment regulations uniform across the state of Minnesota passed the House of Representatives on a bipartisan vote of 76-53. 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 dampen job growth and potentially even drive businesses out of Minnesota; ultimately resulting in a loss of jobs for Minnesota workers. All three major newspapers for the state (Minneapolis Star Tribune, St. Paul Pioneer Press and the Duluth News Tribune) endorsed passage of the Uniform Labor Standard bill.
The federal government, state governments, county governments, city governments, and school boards all have distinct and different governance jurisdictions. We do not want the federal government telling a city how to complete residential or commercial zoning. Likewise, we don't expect a county to be responsible for national defense. Employee/employer labor laws are a national and state matter. At a state level, employers are responsible for providing unemployment insurance payments, income tax retention and other requirements, and at the federal level, labor laws are established.
Contact Me:
For any questions, comments, or concerns regarding any issue related to state government, please feel free to contact me at either 651-296-0141 or rep.randy.jessup@house.mn. Thank you for allowing me to represent you at the Capitol.
Sincerely,
Randy