Budget builds on Minnesota’s progress with new investments in caregivers, Greater Minnesota job creation, and education
Saint Paul, Minnesota – The Minnesota House of Representatives passed a supplemental budget tonight that makes critical investments in seniors and their caregivers, Greater Minnesota job creation, education, and transportation. State Representative Mary Sawatzky (DFL – Willmar) voted for the budget.
Minnesota’s growing economy and strong budget passed in 2013 created a $1.2 billion budget surplus. The legislature has moved quickly to utilize about half of that surplus already, approving $443 million in tax cuts and directing $150 million to bolster the state’s budget reserve. The House is aiming to build on that progress with its supplemental budget.
“We made a lot of progress in 2013 and our economy is strong and growing,” said Rep. Sawatzky. “Our job this session is to build on that momentum and we’re doing just that through middle-class tax cuts and targeted investments in the priorities Minnesotans share: education, jobs, and our seniors and their caregivers.”
The budget includes $37 million in job creation measures, including legislation authored by Rep. Sawatzky.
Rep. Sawatzky is the chief author of a provision that increases funding for the Initiative Foundation located in Southwest Minnesota. The funding would be one-time resources for existing small business revolving loan funds that offer loans and gap financing for small businesses in need of capital.
“Since 1985, the six Initiative Foundations in the state have leveraged more than $1 billion and created or retained more than 40,000 jobs,” said Rep. Sawatzky. “This is a program proven to help businesses create jobs in Greater Minnesota.”
The budget also contains education language authored by Rep. Sawatzky aimed at reducing special education paperwork. One provision expedites rulemaking authority to make changes recommended by the Special Education Case Load and Rule Assignment Task Force. The second provision establishes a statewide online system for special education paperwork, providing teachers with a simpler, more uniform system.
“This is just a first and incremental step in solving our paperwork and special education crisis,” said Rep. Sawatzky. “Much more remains to be done in the years ahead and I look forward to continuing the work. This crisis not only threatens teacher and student classroom time, it also threatens attracting and keeping good qualified special education teachers.”
In addition to these provisions, the budget increases funding for home and community-based long-term care providers by 5 percent.
“The caregivers do incredible work caring for our loved ones,” said Rep. Sawatzky. “They shouldn’t have to get a second job to make ends meet or leave the field they love because the pay is so low. This increase is long overdue and I’m very pleased we were able to include it in our budget.”
Additional highlights of the budget include:
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Funding increase for every school: Provide a 1 percent formula funding increase for K-12 schools — increase of $58 per pupil — to help address the costs of teacher evaluations and to further improve education outcomes.
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Pothole repairs: Provide $25 million to help local governments throughout the state address the need to repair potholes after the worst winter in recent memory.
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Corridors of Commerce: Build on progress last session with $10 million in further investment in “Corridors of Commerce” funding for statewide highway repairs.
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Farm-to-Food Shelf: Invests $1.5 million in Farm to Food-Shelf funding – funding goes to Second Harvest to reimburse food producers for labor costs when producers donate surplus food to food banks. Second Harvest estimates this program would generate 10 million pounds of fresh food for food shelves around Minnesota, which would turn into 7.6 million meals.
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Broadband Access: $25 million in broadband access grants for Greater Minnesota. Areas of the State with low broadband connectivity will receive priority.
More details on the budget can be found here.
On Friday, the House will take action on a second tax bill, another key component of the House budget plan. “Tax Bill 2” will include $103 million in additional tax cuts for homeowners, renters, farmers and small businesses:
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Farmers: Provides $18 million in property tax relief to more than 90,000 homesteaded farms. An average family farmer in Minnesota will see $460 in property tax relief.
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Homeowners: Provides $12 million for a one-time increase for all Homestead Credit Refunds paid in 2014. Each homeowner receiving a refund will see a 3% increase, providing further property tax relief to 500,000 Minnesota homeowners.
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Renters: Provides $12.5 million for a one-time increase for all Renters’ Credit Refunds paid in 2014. Each renter receiving a refund will see a 6% increase, providing property tax relief to 350,000 Minnesota renters.
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Businesses: Provides a property tax cut for small businesses with property value less than $1.1 million. The bill also includes sales tax reforms that provide additional sales tax relief to small businesses.
“For the first time in over a decade, Minnesotans are paying less in property taxes,” said Rep. Sawatzky. “But we know we have more work to do, especially for family farmers. This second tax bill addresses the property tax increases our farmers have experienced while boosting direct relief to homeowners and renters.”
Rep. Sawatzky encourages constituents to contact her with any questions, comments, concerns, or ideas. Rep. Sawatzky can be reached by phone at 651-296-6206 or by email at rep.mary.sawatzky@house.mn. Constituents can also visit Rep. Sawatzky’s AreaVoices blog, legislative page and sign up for email updates.