Saint Paul, Minn. – Today, the House wrapped up the 2013-2014 Legislative Session early for the first time in over a decade after passing their supplemental budget and their second tax bill off the House floor. A package of Capital Investment projects was also passed early this morning.
The passing of these key bills mark the end of a very productive biennium for the Legislature. When lawmakers came to the Capitol in January of 2013, Minnesota was faced with a $600 million budget deficit and still owed schools over $800 million. After passing a balanced budget in 2013, lawmakers returned to the Capitol in 2014 with a $1.2 billion budget surplus and an agenda focused on cutting taxing and growing local economies in Greater Minnesota.
Tax Bill 2
“Tax Bill 2,” provides $103 million in additional tax cuts to Minnesota homeowners, renters, farmers and businesses. Once this bill is signed into law, the Minnesota Legislature will have provided $550 million in tax cuts this session – providing tax cuts for nearly 2 million Minnesotans. About one million Minnesotans received tax cuts in the first tax bill passed this session. 940,000 Minnesotans will see property tax relief in Tax Bill 2, including 500,000 homeowners, 350,000 renters, and 90,000 farmers.
The bill also includes several key provisions for local communities, including approval for two sales tax provisions for the city of Albert Lea and funding for Rep. Shannon Savick’s bill related to volunteer first responders, firefighters, and EMTs.
“This first responder provision is absolutely crucial for rural communities across Minnesota,” said Savick. “The bill offers a $500 stipend to volunteers who help protect our communities through a pilot program that will operate in 14 counties. We’ve heard from local groups that it’s getting more and more difficult to recruit new volunteers into these positions. This program is a good first step toward improving that recruitment process for our cities across Greater Minnesota.”
The first tax bill signed into law this session by Governor Dayton made reduction to middle-class income taxes, largely through federal tax conformity. This second tax bill will cut taxes largely through further property tax relief. Tax Bill 2 includes $45 million in targeted property tax relief to Minnesota homeowners, renters, and farmers.
· Farmers: $17 million in property tax relief to more than 90,000 homesteaded farms in 2014. An average family farmer in Minnesota will see $410 in property tax relief – an increase of about $200.
· Homeowners: Each and every homeowner receiving a refund will see a 3% increase in 2014. The average homeowner will see a refund of $837 for 2014. This comes on top of the $133 million in direct property tax relief passed in 2013 for homeowners and renters.
· Renters: Each and every renter receiving a refund will see a 6% increase in 2014. The average renter will see a refund of $643.This comes on top of the $133 million in direct property tax relief passed in 2013 for homeowners and renters.
Source: Non-partisan House Research
In addition to property tax relief, the tax bill includes targeted income and sales tax relief:
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Aquatic Invasive Species Prevention Aid: $4.5 million this year and $10 million a year thereafter will be distributed to 83 of Minnesota's 87 counties with public-access boat landings, to help manage county-based AIS-control efforts. This is on top of the $700,000 that was allocated to the Shell Rock Watershed to fight AIS in the Outdoor Heritage bill.
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Volunteer first-responders: Fourteen counties will participate in a pilot project aimed at improving retention and recruitment of these crucial positions. The pilot includes a $500 stipend to be paid to each eligible first-responder in participating counties, including Freeborn and Faribault Counties.
Supplemental Budget
The Supplemental Budget bill makes critical investments in long term care givers, expanded broadband internet access, and Greater Minnesota workforce development.
Last year, the Legislature provided a rate increase for nursing home workers for the first time in years. The Supplemental Budget will provide a similar 5 percent increase for home and community based long term care workers this year.
The bill also invests heavily in job creation across Greater Minnesota. As the economy continues to improve, some rural areas are being left behind due to lack of high speed internet access needed for new businesses to succeed. The $20 million in broadband grants will be leveraged against local matching dollars to create an even greater impact on rural communities across Minnesota.
“We’ve heard from businesses in our area about how critical broadband expansion is,” said Rep. Savick. “In the many rural areas of Minnesota the lack of high speed internet prevents certain businesses from expanding or setting up shop on main street. These grants will help boost the local efforts that are already underway in many parts of the state to expand high speed internet access for students, families, and businesses.”
Another significant challenge businesses face is finding workers who have the right qualifications for the position their looking to fill. This skills gap also leaves workers with fewer options for jobs in their area. The Supplement Budget invests in regional initiative foundations, business development organizations, and job training centers that can help match up prospective employees with businesses looking to hire workers in their area.
These key bills cap a session of progress that also included provided emergency heating assistance, boosting funding for K-12 schools and early learning scholarships, and address the pay gap for female workers by updated outdated workplace policies in state statute.