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Minnesota House of Representatives

State Representative Barb Yarusso

507 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-0141

For more information contact: Susie Merthan 651-296-2955

Posted: May 30 2013 4:52PM
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E-Update

2013 Session Update: Legislative Wrap-Up

Dear neighbors,
 
The legislature adjourned on time this session, providing a balanced budget into the future and making major investments in middle class job creation, education and property tax relief.  I want to update you on some of the proposals that became law this session.
 
Budget
After a decade of budget deficits, borrowing from our schools and all-cuts budgets that have protected corporations and the wealthiest Minnesotans at the expense of the middle class, we delivered an honest solution to fund Minnesota’s priorities, accelerate payback to our schools and close the $627 million budget deficit.  Our budget puts an end to one-time money and starts to put our state on stable financial footing into the future.
 
The final tax bill:
 
Balances the budget and eliminates budget gimmicks:
  • Closes the $627 million budget deficit and provides a structurally balanced budget into the future without shifts or deficits.
Provides $400 million in middle class property tax relief to homeowners, renters, cities and counties:
  • Provides direct property tax relief for nearly 1 million Minnesotans through the Homestead Credit Refund, retooled renters’ credit and increased funds to cities and counties. 
  • 300,000 homeowners will see their refunds increase and 100,000 additional homeowners will receive a refund.
  • The average renter will see their refund increase by $179.
Increases Tax Fairness:
  • Raises income tax rate to 9.85% on the wealthiest 2% of individuals (taxable income greater than $250,000 per year for joint filers).
Closes Corporate Loopholes:
  • Eliminates corporate loopholes that allow corporations to shelter profits overseas and eliminates other subsidies that are outdated, ineffective, or that we can no longer afford.
Provides tax relief for Minnesota businesses:
  • Levels the playing field between Minnesota bricks and mortar retailers and online retailers with the affiliate nexus for sales tax; simplifies taxpaying with an upfront exemption for capital equipment; improves the Angel Investor Tax Credit and the Historic Credit; and encourages business growth in greater Minnesota by exempting business expansion from sales tax.
Recovers State Costs from Tobacco Consumption:
  • Increases the user-based fees on cigarettes by $1.60 per pack to $2.83 per pack and catches Minnesota up with Iowa, South Dakota and Wisconsin who all have a higher cigarette tax.  Each year cigarette use costs the state billions in related health care costs.
Provides tax relief for veterans:
  • Creates a veterans jobs tax credit for Minnesota businesses and expands income tax credit for veterans.
 
Education
This session was deemed ‘the education session’ due to historic investments in our schools that include all-day kindergarten, early learning scholarships and new student assessments.  In addition to these E-12 initiatives, we reversed a decade of disinvestment in higher education.
 
To make college more affordable and reduce student debt, we will be freezing tuition at the U of M and MnSCU for two years for undergraduates.  New reforms will also be implemented to make sure that taxpayer dollars are being spent wisely at our public institutions.  This new oversight is in response to tuition that has nearly doubled in the last ten years and high administrative costs.  Freezing tuition and overseeing spending will help to address tuition, debt and fees for students in Minnesota.
 
In addition, we adjusted the current State Grant Program formula to better reflect all of the costs of a higher education and include part-time students.  The new grant formula recognizes that a large percentage of students are part-time, and will help countless students and families achieve their educational goals.
 
Health and Human Services
The final health and human services budget made $50 million in cuts to this fast growing budget area while protecting seniors and our most vulnerable.  The budget funds the first nursing home worker pay increase in over four years and a PCA rate increase, which will help Minnesota’s nursing homes reduce employee turnover and improve senior care.  This is especially important as we prepare these facilities for the expected increase in residents.
 
We also implemented the Minnesota Insurance Marketplace this session, which will make it easier and more affordable for families and businesses to purchase health insurance.  Minnesota families are projected to save over $1 billion by using the exchange, which will be active January 1, 2014.
 
Agriculture
The budget bills include funding for pollinator habitat restoration.  Although this may not seem like a district issue, a current crisis of bee colony collapse threatens about a third of our food crops that rely on insect pollinators.  It also threatens area businesses like Shoreview’s Victoria Valley Apple Orchard, a local beekeeper, and neighboring apple orchards and berry farms.
 
Energy
This year I was proud to serve on the Energy Policy Committee.  Our bill provides a kick-start to solar power similar to what the wind industry received 20 years ago.  This includes a solar energy standard of 1.5% by 2020 for investor-owned electric utilities, with a goal of 10% solar by 2030.  The cost of solar is almost 100% upfront and once installed, a solar panel requires no fuel and minimal maintenance to produce power.  The bill underwent several changes during the legislative process, and does not change any laws or otherwise affect the current operations of municipal power agencies and electric co-ops.
 
Anti-bullying and Minimum Wage
Two important measures that did not make it into law this session are the anti-bullying policy and minimum wage legislation.  I will continue to advocate for comprehensive anti-bullying policy and an increase in the minimum wage.  I am hopeful that these measures will advance next session.
 
Thank You
I want to thank those of you who have kept in touch this legislative session.  If you have any ideas for 2014 legislation, please let me know.  Now is the time to begin work on bills for next year.  Please e-mail me at rep.barb.yarusso@house.mn with any ideas.  As always, please contact me anytime with your questions, comments or concerns.
 
Sincerely,
 

Barb Yarusso
State Representative

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