House legislation builds on Minnesota’s economic progress for middle class families and critical investments in education, job creation, and care for seniors
Saint Paul, Minnesota – After passing tax cuts for more than one million Minnesotans just under two weeks ago, the Minnesota House passed their supplemental budget bill late Thursday night on a 70-59 vote.
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.
Lawmakers built on that progress with a supplemental budget that uses an additional $322 million of the state budget surplus to prioritize the needs of middle class families, students and seniors. Highlights of the supplemental budget include:
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Statewide investments to strengthen Greater Minnesota through broadband investments and economic development resources and job training.
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Education investments that build on the 2013 “education session” and increase the K-12 funding formulas by $54 million
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Funding increase of 5% for home and community based health care workers who provide care for the elderly and disabled.
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Critical transportation funding to repair potholes and make investments in highways, roads and bridges.
“I was pleased to vote for this bill because it increases support for Minnesota’s positive economic momentum. The additional investments in job training that I authored are going to help people get back to work, and the additional funding for our schools is going to help make sure that students are ready for work when they graduate,” said Rep. Zach Dorholt (DFL-St. Cloud). “Also, we were all pleased to give a 5% raise to home healthcare workers. We wanted to send a message that we value the work of the folks taking care of the most vulnerable individuals in our community. The extended and healthy debate on this bill gave us a final product that is going to do good things for Minnesotans now and into the future.”
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. Dorholt was happy to see the bill address some key issues for Central Minnesota.
“Our economy has real growth potential and we’re on the upswing, but face different challenges here in the St. Cloud region,” said Rep. Dorholt. “By placing our focus on job training and creating economic opportunity for our community, we keep our area thriving and improving. Expanding economic opportunity includes improving broadband internet access, increasing support for early learning scholarships, and helping Greater Minnesota businesses with the $6 million we dedicated to the Initiative Foundations. There will be even more help for families balancing their budgets when the second tax bill is passed tomorrow.”
On Friday, the House will take action on a second tax bill, another key component of the House budget plan. “Tax Bill 2” is expected to include $103 million in additional tax cuts for homeowners, renters, farmers and small businesses:
· 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.
· 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.
· 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.
Rep. Dorholt encourages constituents to contact him with any questions, comments, concerns, or ideas on any legislative topic. He can be reached by phone at 651-296-6612 or by email at rep.zach.dorholt@house.mn
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