Dear Neighbor,
While most of us are looking forward to celebrating the Fourth of July holiday, July 1 also is a meaningful day in that our state’s new fiscal year begins and a number of new – mainly budget-related – laws take effect. This includes a $6.5 billion transportation package for 2018-19 and a 2-percent increase in K-12 funding each of the next two years.
For transportation, 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. Almost $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. New law also directs taxes already collected on rental cars, leased cars and the purchase of auto parts to roads and bridges instead of the general fund.
The $300 million influx for roads is provided over two years, including:
- $16 million for cities under 5,000 citizens
- $102 million for trunk highways
- $48 million for counties
- $15 million for cities
Over the next four years, Le Sueur ($1.5 million) and Scott ($2.9 million) counties will receive significant increases in road funding. Belle Plaine ($98,165) and New Prague ($85,007) each will receive new local street aid during that span. The small-city funding will help many towns in the region. Biennial increases for Elko New Market (nearly $66,000), Le Sueur (nearly $64,000), Le Center (more than $39,000) and Cleveland (nearly $16,000) will help fund local road repairs.
The K-12 education budget which is set to hit the books includes more than $1.3 billion in increased funding (2 percent more each of the next two years as requested by our schools). New Prague will receive approximately $1.7 million in new funding the next two years, while Tri-City United ($843,590) Belle Plaine ($670,078) and Le Sueuer-Henderson ($435,253) are other examples of local funding increases.
While tax changes do not specifically take effect July 1, the 2017 tax bill delivers $650 million in tax 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):
- Social security tax relief for nearly 284,000 senior citizen tax returns (single and married filing jointly)
- Property tax relief for small business owners by eliminating the state property tax on the first $100,000 of value on commercial real estate
- An increased child care tax credit so a family of four making $50,000 will get $1,200 more
- A student loan credit that will give 65,000 students an average of a $414 reduction
- A 40% reduction in school levy property taxes on farmland
You can review the full list new laws starting July 1 at this link. Look for more news soon and have a happy, safe Fourth of July. I hope you are able to spend extra time with friends and family as we celebrate our nation’s birthday.
Sincerely,
Bob