Friends,
Greetings from the Capitol! We wrapped up another busy week at the legislature last week, with Friday being the third committee deadline. In order for a major finance or appropriation bill to continue going through the legislative process, and ultimately have a chance to become law, it must be approved by committees by the third deadline.
Before I get to some of the latest Capitol news, I wanted to fill you in on the healthcare conference I attended last weekend. The conference brought together legislators from across the country to discuss the issues facing our health care systems and health insurance markets. Specific topics covered included Medicare and Medicaid, opioids, mental health, and pharmaceutical prices. It was a great opportunity to hear from policy experts and legislators in order to learn more about how other states are addressing rising health care costs, as well as the impact of federal reforms.
Budget Priorities
As many of you know, our state has a projected $329 million budget surplus. The House recently adopted supplemental budget targets for how to use that surplus. House Republicans remain focused on dedicating the majority of this surplus to providing meaningful tax relief to Minnesota’s middle class families in addition to making transportation investments in roads and bridges.
Another high priority is investing in improvements to school and student safety. We are proposing an investment of more than $27 million dollars to be used for the hiring of more school resource officers, student counselors and mental health professionals, in addition to making critical building security upgrades. This proposal will give each school district the resources and flexibility they need to determine how to best ensure the safety of our schools and students.
Governor’s Budget Proposal
The governor recently put forth his budget proposal and the Department of Revenue reports it would raise taxes on every income bracket. The report (from the governor’s own Department of Revenue) also says households making less than $32,000 would be hit hardest. Governor Dayton has proposed reinstating more than $1 billion in health care tax increases, repealing tax reductions enacted last session, and numerous changes reacting to tax changes at the federal level.
House Republicans are going in a different direction with our supplemental tax bill, which was unveiled at the end of last week. Its main focus is on simplifying Minnesota’s tax code to allow taxpayers to fully benefit from recent federal tax reform, as well as to provide additional tax relief to middle-class Minnesotans. The bill would ensure our state’s middle-class families keep more of what they earn by providing a tax rate reduction for the first time in nearly 20 years. This bill will begin its way through the legislative process this week in committee; I’ll be sure to come back with more details on the legislation in the weeks ahead.
Tax Freedom Day
On the topic of taxes, every year, the Tax Foundation calculates “Tax Freedom Day” for America as a whole, while also listing a breakdown for each state. Tax Freedom Day is the date when the nation (or an individual state) has earned enough money to pay all of its taxes for the year. This year, the federal Tax Freedom Day was April 19, and Minnesota’s is April 27. Minnesota’s is the 5th latest Tax Freedom Day of any state, indicating that our state’s taxes remain among the highest of any in the country. Click here for more information on Tax Freedom Day.
At the Capitol
Orchard Lake Elementary Impact Academy 4th graders visiting the Capitol.
Speaking with the Minnesota Chamber of Commerce about the issues of affordability and accessibility surrounding childcare in our state.
Contact Me
Please continue to stay in touch to share your thoughts on the issues that will come before me on the House floor in the weeks to come; I’d love to hear from you. I can be reached at 651-296-5387 or rep.roz.peterson@house.mn.
Have a great weekend.
Sincerely,
