Dear Neighbor,
The 2013 legislative session is officially underway here in Saint Paul. Committee hearings started last week, and the first bills of this session have been introduced.
This week's meetings included meeting with the North Metro Mayor's association where I had the chance to speak alongside DFL Senate Majority Leader Tom Bakk about the state's budget. I also met with a number of educators who came to discuss their priorities this session, as well as a constituent from the American Bikers for Awareness, Training, and Education (ABATE).
I welcome the opportunity to hear from you about the issues and causes you care about as session continues. I encourage you to contact my office with your feedback or if you wish to schedule a constituent meeting.
Governor Dayton's Budget
Governor Dayton unveiled his budget proposal last Tuesday, calling for a significant increase in spending paid for by the largest proposed tax increase in the state's history.
At a time when states across the country are working to make government smarter and more effective, Governor Dayton is instead choosing to add billions of dollars in spending without any meaningful reforms.
Part of the $3.7 billion dollar tax hike is a sales tax expansion that will mean more money out of your pocket. Every day items like clothing, over-the-counter medicine, and oil changes will cost more under Governor Dayton’s plan. You’ll be paying more on gym memberships, personal care services for loved ones, and getting your hair cut.
While the Governor is proposing a lowering of the sales tax rate from 6.876% to 5.5%, the numbers simply just don’t add up. These taxes affect all Minnesotans – rich and poor, and I’m concerned that middle-class Minnesotans could see a tax increase as a result. Governor Dayton is balancing the budget on the backs of middle-class Minnesota families, asking them to pay more in taxes to pay for billions of dollars in new spending. Families are already paying more in taxes thanks to our federal government. Now is not the time to potentially raise their taxes further.
Minnesota businesses are also set to see billions of dollars in more taxes if Governor Dayton’s proposal becomes reality. Accounting services, legal services, and advertising services all will be taxed 5.5%. Fortune 500 companies like Target, Best Buy, Cargill, and others spend millions of dollars each year on business services, and Dayton’s tax plan could cost them tens of millions of dollars in taxes.
These taxes make Minnesota less competitive while other states in the Midwest and around the country are implementing policies aimed at luring businesses from other states. GOP Leader Kurt Daudt described Governor Dayton’s budget as a “budget for a better Wisconsin” thanks to the jobs it would send to our neighbors to the east. We should be making Minnesota more competitive for jobs, and making every effort to attract businesses to open and relocate to Minnesota. This budget represents a step in the wrong direction for jobs in our state.
I look forward to discussing these important issues in the coming weeks and months with Governor Dayton and my colleagues in the majority. Our budget solution must be one that helps create jobs and improves the lives of all Minnesotans – not one that simply seeks to increase the size of government.
Co-Authored Legislation
I was proud to sign on to HF60, a bill authored by Representative Bob Dettmer of Forest Lake that exempts military retirement pay from state taxes. This measure would make Minnesota the 32nd state with such an exemption, and will help keep more of our veterans here in Minnesota.
I am committed to working together with Democrats and Republicans alike on issues to help improve our state. That's why I'm proud to be working with DFL Representative Jerry Newton on a bill that would give more local control for cities to set their own speed limits.
I am also a co-author on a piece of bipartisan legislation to help protect your privacy: HF20 is a bill authored by DFL Representative Freiberg that makes personal contact information classified unless specifically authorized by law.
Additionally, I've also signed on to HF142 which would enhance penalties for sex offenders, and HF146 which would rename Highway 23 after Office Tom Decker, a police officer who was tragically killed in the line of duty.
You can find the full list of bills I've authored and co-authored on my legislative website.
Have a great week,
Mark Uglem
State Representative, District 36A