For more information contact: Chad Urdahl 651-296-5520
A number of new laws are set to become effective with the start of the new fiscal year July 1, including, $6.5 billion for transportation and a 2-percent increase in K-12 funding each of the next two years.
New law related to transportation directs taxes already collected on rental cars, leased cars and the purchase of auto parts to roads and bridges instead of the general fund. There is a $300 million increase in General Fund spending, $940 million in bonding and a $75 annual surcharge on electric motor vehicles set to take effect. Nearly $1.9 billion of the transportation funding is appropriated for the construction, reconstruction and improvement of state highways. Additional funds are used for design and engineering work along with construction project management. The influx of more than $300 million in funding for roads over two years, includes:
Over the next four years, Stearns ($3.7 million), Douglas ($1.6 million) and Pope ($1 million) counties will receive significant increases in road funding. Here is a sampling of what the new small-cities funding will mean in increases for District 12B cities over just the next two years:
The K-12 education budget which takes effect partners more than $1.3 billion in increased funding – 2 percent more to the per-pupil formula each of the next two years that was requested by our school districts – with key reforms. Melrose will receive approximately $723,357 in new funding the next two years, while Minnewaska ($555,461) and Sauk Centre ($470,378) are other examples of funding increases for area schools.
The omnibus agriculture package that now goes on the books includes numerous policy provisions I authored as chairman of the House Ag Policy Committee. A provision to update our lender mediation program is crucial. Here are some other highlights of ag funding and policy provisions:
While tax changes do not specifically take effect July 1, the 2017 tax bill delivers $650 million in relief to Minnesota families over the next two years and $790 million in 2020-2021. The following highlights all are in effect for either tax year 2017 (for filings made in 2018), or in calendar year 2018 (the property tax provisions):
Complete details of new laws starting July 1 can be found at this link. Have a good Fourth of July holiday, be safe and I will be back with more news soon.