Just days after passing tax cuts for more than one million Minnesotans, the House passed their supplemental budget bill late Thursday night.
Minnesota’s growing economy and balanced 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 building on that progress with a supplemental budget that puts middle class families, students and seniors ahead of wealthy special interests. Highlights of the supplemental budget include:
? Statewide investments to strengthen Greater Minnesota through broadband investments and economic development resources.
? Education investments that build on the 2013 “education session.”
? Funding for home and community based health care workers who provide care for the elderly and disabled.
? Critical transportation funding to repair potholes and make investments in highways, roads and bridges.
“There are a lot of positives things in this budget, but one of the most important provisions is the pay increase for long term care workers,” said Representative Shannon Savick (DFL - Wells). “Nursing home workers and long term care workers had been left without a raise for years. Last year, we were able to provide a raise for nursing home workers. This year, we were able to provide a raise for long term care workers. These workers take care of our family members when they need it most. I would gladly support an even greater pay increase for these workers, but this is a very positive start.”
House DFL Supplemental Budget
Job Creation: Bonding and Jobs and Economic Development - $170
• Provide debt-service for $850 million in GO bonds for a bonding bill that improves infrastructure and creates jobs throughout the state and boost bonding bill with $125 million for additional critical statewide investments.
• Build a Greater Minnesota through targeted investments that address economic challenges confronting Greater Minnesota:
o Invest $25 million in broadband access in Greater Minnesota.
o Provide $10 million in economic development resources to support rural job growth and the business sectors critical to rural economies.
Seniors & Caregivers - $91 million
• Provide an additional 5 percent increase for home and community-based health care workers who provide care for the elderly and disabled.
• Increase funding for rural nursing homes and provide additional investments in senior nutrition.
Education - $92 million
• Provide a funding increase for K-12 schools to help address the costs of teacher evaluations and to further improve education outcomes.
• Provide more Minnesota children with access to affordable, high-quality early learning opportunities.
• Fully fund reduced price for school lunches to ensure no Minnesota child is turned away in the lunch line (passed off House floor).
• Invest in our higher education institutions to improve students’ access to an affordable college education.
Transportation - $50 million
• Provide $15 million to help local governments throughout the state address the need to repair potholes after the worst winter in recent memory.
• Build on progress last session with further investment in “Corridors of Commerce” funding for statewide highway repairs.
Rep. Savick is happy to see the bill address some key issues for Greater Minnesota.
“There some issues that we deal with in Greater Minnesota that they just don’t deal with up in the Twin Cities,” said Savick. “This bill helps address those by providing additional funding for jobs and economic development. It expands our broadband internet access to early learning scholarships. These are things that will help give families and businesses in rural communities better opportunities to succeed. I’m hoping we can do even more for those folks when we pass the tax bill as well. That bill will definitely help some farmers, families, and businesses in our area.”
Today, 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:
• 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.
• 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.
• 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.
• 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.