Dear friends,
Some updates from this week in Saint Paul:
K-12 Budget
Last week, a House committee reviewed the details of Gov. Mark Dayton's proposed K-12 budget for the next biennium. His bill would increase school spending by $344 million over the next two years, but unfortunately neglects to pay back the $1.1 billion dollars in delayed K-12 payments until 2017.
The governor also calls for $44 million to be used in providing opportunity scholarships or “vouchers” that empower parents to send their kids to early childhood programs of their choice. This proposal would be a positive step forward for our schools and has the support of a number of Republicans.
Constituent Meetings
This week, I had great constituent meetings on a variety of issues:
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Kevin Urlaub came to discuss the Healthcare Insurance Exchange Proposal.
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Jeff Larson from the MN Athletic Trainers Association.
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Bill Mitchell, a Veterinarian, came to discuss the proposed vet sales tax included in the Governor's budget proposal.
Business-to-Business Taxes
The Governor's tax plan will begin to make its way through the committee process this week. One of the most controversial items, with concerns voiced by Republicans and Democrats alike, has been the proposed tax on business-to-business services such as advertising, legal, and accounting services.
Taxing business-to-business services such as these is what is known as "tax pyramiding." Tax pyramiding is when taxes are added to the line of production when goods and services are produced. Adding extra costs, in this case the business to business taxes, raises the cost of doing business. These costs are passed on to consumers in the form of higher prices or reduced services. There is great cause for concern from both sides of the aisle about the impact this tax provision would have on businesses and jobs across Minnesota, and I will continue to monitor its progress closely as session continues.
Looking Ahead
This week on February 28th, we will receive the latest revenue forecast from the Minnesota Department of Revenue. This will be the last forecast released before the budget is passed later in session, and will be an important step to determine exactly where our state's finances are at.
This forecast will determine exactly how much our state's budget gap will be, and the parameters we have to work with in crafting a state budget for the 2014-2015 biennium.
As always, I am interested to hear your input on issues at the Capitol. Please don't hesitate to email me at
rep.mark.uglem@house.mn or call my office at 651-296-5513.
Have a great week,
Mark Uglem
State Representative, District 36A