Dear Neighbor,
Gov. Mark Dayton has an interesting way of following the give-and-take process of setting a new state budget: He gives us tax increases so government can take more money from citizens.
This week we received the governor’s budget proposal for the 2016-17 biennium. It raises All Funds spending by 10 percent, from $71 billion to $77 billion. His plan raises taxes by $9 billion over the next decade. Maybe the most concerning tax increase would be a new 6.5-percent gas tax at the wholesale level. Drivers would pay an extra 16 cents per gallon at current prices. There also is an increase in license tab fees. This would be on top of the historic tax increases he and fellow Democrats enacted just two years ago.
I wrote in a recent letter that maybe we do need to increase funding in priority areas, such as transportation. That does not necessarily mean we need more state spending in total. House bills have been introduced to help make sure we adequately fund transportation with existing taxes we pay. For example, I am co-author of House File 215, which directs tax dollars we pay on the purchase of auto parts to roads and bridges (not wasteful projects like light rail).
We already pay these taxes to keep our vehicles on the road, so let’s those dollars to support our system.
People want safe roads and bridges, but that should not be used as a means to formulate an emotional plea to get more tax dollars. Minnesotans would be much happier if we just cut out some of the government waste to help fund priorities instead of treating taxpayers as walking, talking ATMs.
Parts of the governor’s budget also reflect a lack of priorities. He includes $11 million for rent of an unnecessary, wasteful Senate office complex that people I talk with do not want, yet there is no increase in funding for nursing homes.
Dayton also wants to pump more money into the MNSure program. Why does he want to spend more money on a broken program that its advocates promised would be self-supporting?
The House will come back with a budget proposal of its own after we receive an updated economic forecast in February, giving us a real set of numbers to work with. One thing I expect to see in our plan is more support for nursing homes than the governor’s blueprint shows.
Until then, we are busy introducing bills and getting committees up and running. One important piece of legislation we recently passed through the Legislature provides $17 million in state funding to match over $50 million in federal funding for recovery efforts in response to last summer’s statewide flooding. The aid assists 47 counties – including Wadena and Todd in our district – and three Indian reservations.
Stay in touch and I will be back soon with more from the Capitol.
Sincerely,
Mark