Budget targets were unveiled by Minnesota House leadership recently, which is the first step towards crafting an actual budget that will fund state government programs over the next two years.
Among the highlights – significant tax relief for the middle class. Roughly $1.35 billion has been proposed by House Republicans, targeting middle class Minnesotans in all age groups, from the family with a newborn attending daycare to senior citizens trying to enjoy their retirement. In fact, the single largest feature in the bill is the $269 million in relief for Minnesota’s senior citizens by increasing the income limit at which social security income is taxable, which will help those seniors living on a fixed income.
In all, more than half of this proposal would benefit the middle class.
Transportation is also a top priority. Our bill would allocate $450 million in new revenue to roads and bridges without raising taxes. Much like our proposal last year, we would redirect existing transportation-related funding streams into the Transportation Priorities Fund, like existing taxes on auto repairs and auto rentals. The plan, including transportation-related bonding, totals $6 billion over ten years.
I have begun to hear from some people about “not enough money” being dedicated to health and human services (HHS) spending. A couple of points worth remembering here: HHS funding will grow $1.959 billion dollars between our current and upcoming budget cycles due primarily to built-in increases to programs like Medical Assistance.
It’s also worth remembering that with all the health care uncertainty that exists at the federal level, we don’t want to overplay our hand now and be forced to make drastic cuts in two years in order to balance the books. Any funding reductions Minnesota receives from the federal government ultimately has to be accounted for within state government spending.
With targets unveiled, individual committees are now creating spending proposals that meet the benchmark. I fully expect we will have all of our spending and tax relief proposals approved on the House floor in the coming weeks.
As always, I am interested in your feedback. Please feel free to contact me by e-mail at Rep.Kathy.Lohmer@House.MN or contact my office at 651-296-4244. You can also send mail to my office address: 501 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.