Dear neighbor,
Good day from St. Paul, where we are concluding another busy week at the Capitol.
As a legislators, we are working on a rather wide range of issues. In my case, projects have included everything from carrying a flood bill that provides over $74 million in flood relief for 47 counties and three Indian reservations, to working on bills that solve more isolated issues of local interest. Here is a closer look at some recent developments:
FLOOD RELIEF ON FAST TRACK
The flood bill (H.F. 164) I authored provides $17 million in state funding to match over $50 million in federal funding for recovery efforts in response to last summer’s flooding. I chair the House Ways and Means Committee – the last stop for finance bills – and placed urgency on this assistance so we can get relief where it is needed as soon as possible.
I am proud to have bipartisan support for this important bill, which needs to be moved quickly so local governments are in position to issue bids and sign contracts so they will be able to start repairing the damage this spring.
It is pleasing to see the Senate is moving this bill, so we can gain final approval and send it to Gov. Mark Dayton for his action.
TAX RELIEF PASSES
Another bill we moved through the Legislature in short order to start the session provides nearly $20 million in relief for Minnesotans as they file their taxes this season. I co-authored this bill (H.F. 6), which matches Minnesota’s tax code with some of the federal tax changes made since 2013. It gained broad bipartisan approval in the Legislature in preparation for being sent to the governor.
Key provisions of the bill include:
-
Higher education tuition deduction ($2.1 million in fiscal year 2015; about 9,000 returns; $70 average tax decrease)
-
Educator classroom expenses deduction ($1.2 million in fiscal year 2015; about 60,000 returns, $20 average tax decrease)
-
Mortgage insurance premiums deduction ($4.6 million in fiscal year 2015; about 60,000 returns; $75 average tax decrease)
Other areas of tax relief pertain to charitable contributions, short sales on homes and assist small businesses.
BINGO BILL
There are seven bingo halls remaining in our state – including one in St. Cloud – and they have been disproportionately impacted by new charitable gaming taxes that were part of the legislation to build the new Vikings stadium. I have introduced a bill (H.F. 296) that will reduce their tax liability to what it was before passage of new gambling laws, allowing them to have extra funds to donate to the charities that they support. Because of the small number of bingo halls remaining in the state, this bill does not have a material effect on funding for the Vikings stadium.
MEETING WITH CITIZENS
My wife, Janet, and I were pleased to attend a celebration of Rev. Martin Luther King Jr. in St. Cloud on Sunday. It was sponsored by the St. Cloud-area NAACP and they put on a nice public event. I also was proud to attend a March for Life MCCL rally at the Capitol this week. Hundreds of people were on hand to support this good cause. In addition, it always is a pleasure to meet with people I represent. A former high school teacher of mine, Roland "Boots" Froyen, recently visited my legislative office to discuss conservation issues. It was nice to see him again.
COMMITTEE WORK
As I mentioned, I am again chairing the House Ways and Means Committee after taking a break from the Legislature to spend more time with private-sector ventures and my family. I also serve the Taxes Committee and am an ex officio member of all other finance committees in the House.
I will continue to be heavily involved in the process of setting a new two-year state budget and can pass along more on that subject as things develop. Your input would be greatly appreciated as we take on that challenge and as we face other important issues during the 2015 session.
Sincerely,
Rep. Jim Knoblach