Greetings,
The 2017 Legislature has completed its budget work and adjourned, with $650 million in tax relief, a historic funding increase for roads and bridges and a whole lot more to show for it.
This session is undoubtedly one of the most productive in recent history with $650 million in tax relief and $300 million more for transportation over the next two years alone – without raising taxes. Reducing the tax on seniors’ Social Security income is a huge victory. Directing tax dollars already collected on the purchases of auto parts toward roads and bridges is another major win, one that I am proud to have personally led.
The House and Senate concluded a brief special session earlier this morning by passing the final bills that shape the state’s 2018-19 budget. In all, the Legislature passed seven bills during special session: taxes, transportation, state government, health and human services, K-12 education, capital investment and labor standards.
The tax bill’s reduction is the largest tax cut in nearly two decades with $650 in relief in the 2018-19 biennium and roughly $750 million in tax relief in 2020-21. It includes not only relief for seniors on Social Security, but also for college graduates with student loan debt, and property tax relief for farmers and Minnesota businesses.
The Legislature also approved the largest investment in road and bridge infrastructure in a state history, with billions more for transportation over the next 10 years without an increase in the gas tax or license tab fees.
The final budget is the result of compromise between the Legislature and the governor. That said, tax relief and funding for roads and bridges were two of the House’s top priorities this year and the results we achieved in those areas are good for Minnesotans. We all wish we could have gotten just a little more on both tax relief and transportation but, again, it took a great deal of negotiations and effort to achieve the success we did.
In all, the Legislature sent 10 budget bills, a $995 million bonding bill and a labor standards bill to the governor for his signature.
I will come back with a closer look at the other parts of the budget soon. But, before I wrap this up, I want to wish everyone a good Memorial Day weekend as we honor the men and women of our armed forces who have made the ultimate sacrifice. Please be safe out on the roads, especially now that summer road construction season has arrived. MnDOT will suspend most projects over the weekend, but work zones are still in place and can present potential hazards. Click here for a list of projects to help your trip planning.
Good luck,
Jeff