Dear Neighbors,
Over the weekend, the House released its plan to conform Minnesota’s tax code to changes made at the federal level late last year. As I’ve detailed at length, federal tax conformity is one of the biggest issues facing the Legislature this year. It is something that needs to happen in order to prevent problems with tax filing next year.
The House plan seeks to simplify Minnesota’s tax code and lower taxes for middle-income Minnesotans—the centerpiece of which is the first rate reduction in nearly 20 years for second-tier income tax filers.
As a result of the House proposal, more than 2.1 million Minnesota filers will benefit from a tax cut in tax year 2018. Highlights include:
- Helping middle-class Minnesotans keep more of what they earn by cutting the second tier income tax rate from 7.05% to 6.75% by tax year 2020. This would mark the first income tax rate reduction in Minnesota since 2000.
- Lowering taxes for people at all income levels by increasing the standard deduction from $13,000 to $14,000.
- Protecting families by preserving a state personal and dependent exemption of $4,150.
- Encouraging affordable homeownership by allowing a state-itemized deduction of up to $30,000 in property taxes.
- Supporting hometown businesses and farmers by reinvesting extra revenue from corporate tax changes into Section 179 conformity and overall rate reductions.
The House plan is in contrast with Governor Dayton’s proposal, which potentially raises taxes on Minnesotans.
I am hopeful that the governor and legislature will come to agreement on a simplified Minnesota tax plan in the near future. We simply cannot afford to do nothing.
House Approves Education Bill
On Thursday, the House approved its supplemental education omnibus bill. Included in the bill is a number of initiatives that work to improve the educational experience for Minnesota’s children.
A large component of the bill focuses on school safety as we work to ensure our children can learn in a safe and secure environment.
The legislation’s multifaceted approach gives school districts the resources and flexibility they need to address student safety and security. That includes expanding the use of long-term facilities maintenance revenue for facility security upgrades, strengthening the state’s commitment to school-linked mental health grants, supporting suicide prevention training for teachers, increasing funding for Safe Schools Revenue, and more.
Additionally, I authored a handful of provisions that are included in the omnibus bill. Those provisions include:
- Dyslexia Screening—these provisions require schools to screen students who struggle with reading for dyslexia. They also require the Department of Education’s dyslexia specialist to provide guidance to school districts and charters on how to access screening tools and identify students showing characteristics associated with dyslexia.
- School Security Audit Reimbursement— appropriates $2 million to give 100 percent reimbursement for schools who complete security audits. Audits may cost anywhere from $5,000 to $20,000 depending on school size.
- Mounds View Early College Program—appropriates $250,000 for the Mounds View School District to use towards teacher scholarships in order to continue operating the district’s innovate early college program. The program gives students the ability to earn free college credits while still enrolled in high school. Expansion of the program to 'Pathways to Possibilities' is scheduled for this fall and will offer 6 distinct vocation choices.
- Sexual Exploitation Prevention—this provision encourages school districts to include sexual exploitation prevention instruction in a health curriculum. The initiative was put forth by a number of high school students in Hopkins and I am grateful for my colleagues support to move it forward.
All in all, I am proud of the work we have accomplished this year to improve our schools and I look forward to working with the governor and Senate to get this legislation signed into law.
Staying Connected
Thank you for allowing me to represent you at the capitol. For any questions, comments, or concerns regarding any issue related to state government, please feel free to contact me at either 651-296-0141 or rep.randy.jessup@house.mn.
Sincerely,
Randy