BUDGET, IMPACTS ON RURAL MINN. DISCUSSED AT TOWN HALLS

New laws in effect July 1

I’m always encouraged that so many folks in our district are engaged with what the state legislature is up to in St. Paul. Following the end of the 2013 session, I held 15 town hall meetings where discussion surrounded the new historic tax-and-spend budget, government overreach, and the growing rural/metro divide.

Area residents expressed their concern that, starting July 1, rural Minnesotans will pay more for historic government growth while receiving lower priority for state funding. Spending will increase by nearly 10 percent—or five times faster than the economic recovery—and every hardworking taxpayer will pay for it.

I echo local citizens’ concerns about the change in course Minnesota made this year under one party control. After two years of economic recovery under a common-sense, responsible budget that lived within its means—like families do every day in our neck of the woods—we’ve turned the ship around and headed the other direction.

Since 2011, Minnesota has witnessed a significant economic turnaround. Following a historic $5 billion budget deficit and high unemployment, we are finally seeing revenue on the rise (without tax increases), replenished reserves, and tens of thousands of new jobs and businesses.

I am disappointed to report that, rather than supporting this economic recovery, my colleagues across the aisle supported an all-spending approach to budgeting. They added nearly 1,300 new government jobs, gave pay raises to statewide politicians, funded state agencies above requested amounts, and bailed out facilities and groups in Minneapolis, St. Paul, and Duluth.

In order to afford billions of dollars in new spending, taxes and fees were increased upwards of $3 billion, shrinking rural families’ checkbooks and diminishing the competitiveness of our businesses in border communities.

Folks at the town halls rightly recognized that everyone will be affected by this budget. A recent tax incidence study shows that every Minnesotan will pay higher taxes. In fact, the poorest of the poor will pay more as a percentage of their income than other tax brackets.

I’ve received emails and had conversations with small business owners concerned about the business climate in Minnesota and how hard it is to stay open and compete with North Dakota. Under the new budget, many of these Main Street folks will have to pay 25 percent more because they file their business taxes through their individual tax returns.

Our larger employers will also pay more in taxes, which could result in less take-home pay for hardworking employees or the loss of jobs altogether.

Implement dealers and farmers have talked to me about the new sales tax on equipment repairs. This tax, on top of a long list of other new taxes, will cut into their bottom line. Unfortunately, many will have to pass the new costs on to consumers.

The regressive cigarette tax will increase from $1.23 per pack to $2.83 per pack to pay for the new Vikings stadium, and fees will increase for driver’s licenses, vehicle registrations, and vehicle titles.

Energy bills are expected to increase due to a new solar mandate on utility companies, and health insurance premiums are projected to increase in order to pay for the new Obamacare Health Insurance Exchange bureaucracy.

A new warehousing and storage tax will increase the costs on nearly every product, like fuel, groceries, ATVs, you name it. It is set to go into effect next year, and I am hopeful it will be repealed before then.

Unfortunately, there are winners and losers under the new budget, with the metro being the big winner this session. One bright side was the bonding bill that provided flood mitigation relief to our district—an example of what good government should do.

Although the legislative session is over for the year, your input is still welcomed and encouraged! Please feel free to contact me any time regarding matters of state government. I can be reached at rep.dan.fabian@house.mn, 651.296.9635, or 307 State Office Building, 100 Martin Luther King Jr. Blvd., St. Paul, MN 55155.