In This Edition:
- Federal Tax Conformity
- Education Committee Update
- Veterans Homes
- At the Capitol
Dear Friends and Neighbors,
Here is an update with the latest news from the Capitol and around the community.
Federal Tax Conformity
With a major overhaul of our federal tax code, conformity is a complex issue. In the House, we have worked diligently to craft a bill that holds as many people as possible harmless and focuses on returning surplus dollars to taxpayers through meaningful tax relief.
Our federal conformity plan, which was unveiled on Saturday, will help simplify our tax code, provide additional tax relief for many Minnesotans, and ensure fewer headaches and hassles for tax filers next year, as we adjust our state tax code to changes made in the Tax Cuts and Jobs Act.
Highlights in our plan include the first income tax rate reduction in Minnesota since 2000, cutting the second tier income tax rate from 7.05 percent to 6.75 percent by tax year 2020. We also lower taxes for people of all income levels by increasing the standard deduction from $13,000 to $14,000. Third, we preserve a state personal and dependent exemption of $4,150 for families. To encourage homeownership, our plan allows a state-itemized deduction of up to $30,000 in property taxes, and we also support businesses by reinvesting extra revenue from corporate tax changes into Section 179 conformity and overall rate reductions.
To compare our plan with other proposals, last week in the House Tax Committee we reviewed in detail Governor Dayton’s plan. There are a number of concerns surrounding his supplemental budget proposal, particularly the provisions which amount to a $1.4 billion tax increase on Minnesotans.
According to an analysis done by the Minnesota Department of Revenue, his plan is regressive and raises taxes on Minnesotans at every income level, hitting households that make under $32,000 a year the hardest. Components of the governor’s budget include reinstating more than $1 billion in health care tax increases and rolling back several tax reductions we passed last year.
As a member of the Tax Committee and a representative of the hardworking taxpayers of Eden Prairie, my focus remains on ensuring Minnesotans can fully benefit from both state and federal tax relief. My hope is that we can find compromise between the House, Senate and governor to advance a plan that serves in the best interest of Minnesota taxpayers, ensuring there are not undue complications for filers next year.
Education Committee Update
We have been working hard in the Education Finance Committee this session to craft legislation that prioritizes school and student safety, increases transparency in school finance and reporting on school performance, and helps prepare kids for a bright and successful future.
The Education Finance Omnibus bill passed out of committee with broad, bipartisan support on a vote of 14 to 1 on Wednesday, and I am pleased with the package we have put together.
Some highlights of the bill include:
- Championing a multifaceted approach to give school districts the resources and flexibility they need to address student safety and security. This includes expanding the use of long-term facilities maintenance revenue for facility security upgrades, strengthening our commitment to school-linked mental health grants, supporting suicide prevention training for teachers, increasing funding for Safe Schools Revenue, and more
- Strengthening and clarifying state law to address rare but unfortunate instances of teacher misconduct and how they impact teacher licensure
- Requiring the Minnesota Department of Education to create a summative and easily accessible school and district rating system that would provide families a single place to research, compare and help determine which schools would work best for their child
- Auditing school funding to increase transparency and discern whether or not education dollars allocated within school districts and dedicated to special education, English-learner and low-income students are reaching the students intended
- Ensuring students are exposed to a wide variety of post-secondary options including the trades and branches of the military
- Strengthening laws that protect kids from school lunch shaming
- Creating a Special Education Working Group to engage stakeholders and examine the factors that are driving rising costs
It’s an honor to work for Minnesota students and schools at the Legislature, and I am looking forward to bringing this bill to the House Floor for a vote by the full body.
Veterans Homes
The omnibus bill being advanced by the House State Government Finance Committee would use excess funds from the Vikings Stadium Reserve Account, and put them toward building three new critically-needed veterans homes in Preston, Bemidji and Montevideo.
The Vikings stadium reserve currently has an excess balance of $58 million, and that’s expected to grow to $120 million by FY 2021. Our plan also caps the stadium reserve at 125 percent of the annual payments of the stadium bonds, ensuring excess funds are put to use rather than sitting idle, while still protecting against a drop in revenue.
Building these new homes will help take care of more Minnesota servicemen and women and their families, allowing more veterans to choose a facility that is closer to the community they call home.
The State Government supplemental package also includes my home-based business reporting bill and a number of other measures. I will share more on the various omnibus supplemental bills moving through the House in the weeks to come.
At the Capitol
With Eden Prairie High School Page, Kathryn Berges. Kathryn was a terrific page last week, and impressed me with her volunteer tutoring for English language learners in Eden Prairie schools. Thanks for your good work and service to others!
With members of the Eden Prairie Chinese American community. Thank you for taking the time to meet with me!
With Eric Petersen from Eden Prairie
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If you need assistance on a matter related to state government, or have questions, comments or suggestions about what is happening in the Legislature, please don’t hesitate to contact my office. I am here to serve you!
Best regards,
Jenifer Loon