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State Representative Tim Faust
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-0518
For more information contact: Michael Howard 651-296-8873
Column/LTE
LEGISLATIVE SESSION CONCLUDES
LAWMAKERS SEND GOVERNOR A ‘PAY AS YOU GO’ BUDGET THAT PRESERVES MINNESOTA VALUES
When the 2009 session began, we knew the recession and budget shortfall left us with difficult choices and big challenges. With the guidance of my constituents, my conscience, and my desire to do what is best for the state of Minnesota, I set out to responsively and responsibly balance the budget.
Both the state legislature and Governor offered plans to resolve the record shortfall that included spending cuts and revenue raisers. The Legislature made deeper cuts than the Governor and we were able to reach an agreement on about 5/6 of the budget. Our biggest percentage spending cut came from state government and bureaucracy in order to preserve public safety funding, veterans’ services, and local government aid. We also reduced unfunded mandates to our local school districts, cities and counties. In addition, we prevented a cut to our K-12 classrooms and held down college tuition, but I voted against the final K-12 bill because it didn’t do enough to reform school funding to make it more equitable for Greater Minnesota.
The remaining 1/6 of the budget, centered on opposing plans to raise revenue. The Governor wanted to raise revenue through borrowing. Knowing that reckless borrowing on the national level was the catalyst for our current recession, I didn’t see how we could responsibly ask our children and grandchildren to pay for our current needs.
The Legislature favored a “pay as you go" plan that would have raised on-going revenue to provide a more permanent solution to our budget. By and large, our plan increased income taxes on wage earners making over $250,000 per year in order to preserve funding at our hospitals, schools and nursing homes. We also raised the alcohol tax, which would cost someone $10 per year extra for 4 drinks per week, and instituted surcharge on credit card companies, not the cardholders, that charge high interest rates.
I strongly favored reaching a compromise with the Governor on a balanced budget, but he would only consider borrowing or deeper spending cuts to hospitals, local government aid and higher education. We worked to find common ground up until the last minute of session and sent him a bill that balanced the budget with on-going revenue, a delayed payment to schools, and several business incentives the Governor favored to create jobs. Unfortunately, he is likely to veto the balanced the budget.
As you may have heard, the Governor has said he will use a process called unallotment to fill the budget gap left by his veto. He has said it’s likely he will include several deep cuts that will particularly harm greater Minnesota. The Governor would cut local government aid by $450 million, 3 times the cut in 2003. It will raise property taxes in Greater Minnesota by 11%. The Governor will also slash over $300 million more from hospitals, on top of what the Legislature has already cut, triggering massive layoffs at hospitals.
I could not support a plan that would dramatically and unfairly raise property taxes on hard working Minnesotans. For some context, just a section of the Governor’s LGA cuts include a 20% cut from the renter’s tax credit. It would increase taxes on the average Minnesota renter by $130 per year. The income tax increase on wage earners making over $300,000 per year included in the legislature’s budget solution would result in an increase of $109 per year. Forcing a senior citizen on a fixed income to bear more pain in balancing the budget than someone making $300,000 per year, as our plan would have, shows the Governor’s misplaced priorities.
The Governor has until July 1st to use his unallotment authority to raise property taxes and cut our hospitals. Until then I will work to inform you of what to expect from these cuts. I am still open to work with the Governor on a compromised solution that is more fair to Greater Minnesota.
It’s an honor to serve you in the Legislature, and I continue to welcome your input and ideas. I look forward to seeing you out in the community this summer.
News Items
- Kyle Herman Bill Signed into Law - (Posted: 2010-04-28 00:00:00)
- To Students, Teachers, and Parents: Have a great year - (Posted: 2009-09-14 00:00:00)
- LEGISLATIVE SESSION CONCLUDES - (Posted: 2009-05-19 00:00:00)
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