Friends,
We passed the omnibus bills, and some have already been sent to conference committees.
I'd like to tell you what the goals of the DFL majority in the House were this session and how we measured up to them.
We made it clear that our number one priority this legislative session is to balance our budget and position Minnesota for a stronger economic future.
That meant an end to a seemingly endless cycle of structural deficits, the solutions to which have been to squeeze middle-class families yet protect wealthy special interests.
Our work here in St. Paul has paid off. We produced a House budget that:
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Balances our budget without gimmicks
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Pays back our schools
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Invests in our future: education, middle class property tax relief and job creation
Balance our budget without gimmicks
During the campaign, you made it clear that Minnesota was tired of budgets balanced through deep cuts and accounting gimmicks – such as borrowing from our children’s schools. My colleagues and I listened. We produced a responsible plan that resolved our deficit with reductions, reforms and new revenue. For example, our Health and Human Services budget makes $150 million in spending cuts, reductions and reforms while protecting our most vulnerable Minnesotans. It prioritizes nursing homes and caregivers by providing them the first funding increase in four years.
We also call for a more equitable tax code. We ask the very wealthiest Minnesotans and rich corporations to pay their fair share. Our plan includes an income tax increase on the wealthiest 1.1 percent of individuals (taxable income greater than $400,000 per year for joint filer). This increase would only affect 3.3 percent of businesses. Our plan also eliminates corporate loopholes that allow corporations to shelter profits overseas and other subsidies that are outdated, ineffective, or that we can no longer afford.
Pay back our schools
In 2011, the legislature borrowed a record amount from our schools in order to patch our deficit. This is, frankly, an immoral solution from past legislatures unwilling to tackle painful realities. It hurt our students, increased their class sizes and didn’t solve our state’s budget problems. Our plan would fully pay back our schools with a temporarily surcharge on the wealthiest 0.5 percent of Minnesotans (joint filers making $500,000 per year). Once our schools are paid back the surcharge goes away. The state shouldn’t be using our schools as a “piggy bank.”
Invest in our future: education, property tax relief and job creation
Getting our state on firm financial footing is important, but we also need to make overdue investments in priorities that we know will help our state succeed down the road. And it starts with education.
A world-class education system is essential to building a world-class economy. That is why our plan makes historic investments in education from “cradle-to-career”:
· Invests in our youngest learners by fully funding all-day kindergarten and early learning scholarships,
· Increases funding for K-12 schools an additional $315 million, or $209 per pupil
· Implements reforms to ensure we get the most value out of every dollar
· Freezes college tuition for students at U of M and MnSCU after a decade of historic tuition increases and debt
Property Tax Relief
We’ve all been hit with skyrocketing property taxes. As the state continually cut back on Local Government Aid, cities have had to increase property taxes to pay for vital city services – such as law enforcement and firefighters. Property taxes increased 86 percent in the last 10 years, hitting middle class Minnesotans the hardest. Our plan restores property tax relief for Minnesotans that was taken from them when the Republican-led legislature eliminated the Homestead Credit. It will provide $270 million in property tax relief. Due to the Homestead Credit Refund and retooled renters’ credit: 380,000 homeowners and renters will see their refunds increase, 200,000 additional homeowners will receive a refund, and the average increase will be more than $200. We believe putting more money in the pockets of middle class Minnesotans will help grow our economy and create jobs for the future.
Job Creation
Our plan makes job creation and economic development a priority again after the Republican-led legislature voted to cut the jobs and economic development budget by 50% in 2011. The budget includes the largest tax cut for small businesses in state history – $346 million – by reducing the rate employers pay to fund the Unemployment Insurance Trust Fund. We also invest in proven strategies to support job creation, encourage small businesses expansion, help Minnesota small businesses compete globally and help address our state’s “job skills” gap.
What’s next?
With our budget passed off the floor we will work with Governor Dayton and the Senate to finalize an honestly balanced budget that invests in our future. Please contact me with any questions you have our budget as we work to complete our work this session. I encourage constituents to contact me with any questions, comments, concerns, or ideas on any legislative topic. I can be reached by phone at 651-296-4342 or by email at rep.dan.schoen@house.mn. Constituents can also visit my legislative page and sign up for email updates.
Sincerely,
Dan