Legislation builds on Minnesota’s economic progress, prioritizing middle class tax cuts and critical investments in education, job creation, and care for seniors
Saint Paul, Minnesota – Just days after passing tax cuts for more than one million Minnesotans, the House passed their supplemental budget bill late Thursday night in a marathon session with 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.
Thursday evening, the Minnesota House built on that progress with a supplemental budget that uses an additional $322 million of the state budget surplus to prioritize the needs of 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.
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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 and invest in highways, roads and bridges.
“The supplemental budget continues the work we’ve been doing since the first day of session last year; growing our economy. The components in this bill are not only going to keep us competitive, but help make us a stand out in our region,” said Rep. Kim Norton (DFL- Rochester). “There is a lot to like in this bill, but I’m especially proud that we have kept our promise to home and community-based care providers by getting them the increase they have been working for since they were cut in 2011. I was pleased to be able to support the work of the people who are caring for the most vulnerable folks in our community, just as we did last year for our nursing home staff.”
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. Norton championed some key issues for the Rochester area that were included in the bill.
“I'm pleased to be able to continue to expand apprenticeship options in MN and I supported a plan to begin developing standards for health care and manufacturing programs in this year's bill. Expanding Minnesotans access to broadband internet is also essential,” said Norton. “This bill helps address those needs.”
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:
· 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.
Rep. Norton encourages constituents to contact her at rep.kim.norton@house.mn or 651-296-9249
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