ST. PAUL, MN – This week the Minnesota House DFL Caucus announced a framework that will help guide lawmakers as they work to pass a fair, honest budget without gimmicks or funding shifts.
The House DFL budget targets call for historic investments in education – including a plan to fully pay back over $800 million borrowed from Minnesota schools. The new investments are aimed at creating long-term economic growth and prosperity.
The proposed budget includes three main components:
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Closing the state’s $627 million deficit in the FY 14-15 budget cycle using new revenue, spending cuts and reforms and providing for structural balance in FY 16-17.
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Fully paying back the $854 million IOU to Minnesota schools for the first time since 2007, utilizing a temporary income tax surcharge on only the very wealthiest Minnesotans.
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Investing $1 billion in priorities to strengthen Minnesota’s economic future, including $700 million for early childhood education through post-secondary education, $250 million in middle class property tax relief, and another $46 million in job creation.
Rep. David Bly (DFL—Northfield) said the House budget targets reflect the priorities Minnesota voters called for in the 2012 election.
“Minnesotans are tired of the status quo of cuts, gimmicks and shifts,” said Rep. Bly. “They want lawmakers to make the kind of investments that grow the middle class, like preparing our students to succeed and providing homeowners and businesses with property tax relief.”
In the last biennium, the legislature borrowed a record $2.4 billion from Minnesota schools. Under this budget framework Minnesota schools would be fully paid back this budget cycle through a temporary income tax surcharge on Minnesotans who earn more than $500,000 per year (less than 1% of all Minnesotans). The surcharge would end once Minnesota schools are paid off, which would occur in two years or sooner.
“Asking the richest Minnesotans to temporarily pay a little more is a far more fair solution compared to alternatives – such as driving up middle class property taxes even further by cutting funding for education and Local Government Aid,” said Rep. Bly. “As my colleague Rep. Erin Murphy said earlier this week, if the very wealthiest Minnesotans had paid a little more over the past decade we wouldn’t owe our students this money in the first place.”
Over the coming weeks, the budget targets will help finance committees shape legislation to fund everything from transportation to education to health and human services. Lawmakers face an April 19 deadline to act favorably on major finance and appropriation bills.
“At the end of the day, we need to figure out how to pay for the investments needed to create jobs, provide property tax relief, and make sure our children receive a great education,” said Rep. Bly. “I’m hopeful that lawmakers can reach a consensus that doesn’t rely on gimmicks or ask students or middle class families to shoulder the burden.”