The Legislature adjourned on May 16, bringing to a close a very productive 2013-2014 legislative biennium.
In January, 2013, Minnesota faced a $627 million deficit and owed our schools more than $800 million. Property taxes were soaring and our middle class working families were hurting.
Fortunately, the 2013 -2014 Legislature moved Minnesota in a different direction, electing to invest in hardworking families and middle-class Minnesotans by:
-Paying back the money borrowed from our schools.
-Making historic investments in education, from early childhood to college, including a tuition freeze at our public postsecondary institutions, free all-day kindergarten for every child for the first time in state history, and an early childhood scholarship program that will give thousands more youngsters’ access to high-quality early learning opportunities.
-Reducing the property tax burden for middle-class Minnesotans by direct relief to homeowners and renters resulting in the first statewide property tax decrease in more than a decade.
-Enacting a stable budget built on fair taxes that invest in the future.
Since then, Minnesota’s economy has grown, the unemployment rate dropped, and the deficit turned into a surplus. We halted our state’s decline and started moving forward. Look at where we are now:
BUDGET: After a decade of deficits and “budget gimmicks,” Minnesota now has a stable budget into the future. Last year, we balanced our deficit honestly, and, this year, we had a $1.2 billion surplus. We utilized our surplus responsibly, providing middle-class tax cuts, making key investments in bread-and-butter priorities like education, and strengthening our budget reserve.
MIDDLE CLASS TAX CUTS: In 2014 the Legislature provided approximately $200 million in middle class income tax relief by conforming Minnesota’s income tax code to key federal provisions. Conformity reduces taxpayer confusion, makes filing the state income tax simpler. The marriage penalty was fixed, and the dependent care credit and working family credits were improved.
EDUCATION: Last year, the Legislature brought a decade of disinvestment in education to an end, making historic investments to fund all-day kindergarten and freeze tuition at our public colleges and universities. This year the state’s commitment to education continued. Among other things, a $25 per pupil increase in the funding formula was enacted.
JOBS: More than 50,000 jobs have been created in Minnesota since the 2013-2014 biennium began. We focused on job creation and economic development in 2014. For example, $20 million was allocated to expand broadband Internet access in unserved or underserved areas of the state. Increased access to broadband service will help drive job creation, promote innovation and expand markets for Minnesota businesses, particularly those in Greater Minnesota.
This session the Legislature adopted, with broad bipartisan support, the Women’s Economic Security Act (WESA).This new law strives to close the “wage gap” and promote the overall economic standing of women and their families by investing in initiatives that help women enter and stay in high-wage, high-demand, non-traditional occupations and promote the creation and expansion of women-owned businesses.
This year the Legislature also addressed the needs of Minnesota’s lowest paid workers. The minimum wage will begin a phased-in increase in August 2014 – boosting the wages of over 300,000 Minnesotans.
CAPITAL INVESTMENT: The Legislature passed a bipartisan capital investment package containing $1.1 billion in strategic investments to every corner of the state. These measures will provide thousands of private sector jobs and fund crucial investments in college campuses, roads, bridges, wastewater treatment plants, flood prevention and mitigation, parks & trails, housing, and other important infrastructure.
Some of the local projects in the bill include:
• BSU Memorial, Decker, Sanford, and Hagg Sauer building project- $13.7 million
• Red Lake School Capital Loan for the kitchen and cafeteria to serve the high school and middle school - $5.4 million.
• State Matching funds for a EPA clean water grant (Lake of the Woods County eligible for up to $1.3 million)
• Development and maintenance of the Heartland Trail
• Upper Mississippi Arts Center in Park Rapids - $2.5 million
• Pre-design for DNR Buildings and Facilities Development in Bemidji
• Bemidji State University Higher Ed Asset Preservation
POSITIVE ECONOMIC NEWS:
This month, we received more positive economic news:
• Minnesota Management and Budget released its Quarterly Budget Update showing revenues coming in $168 million ahead of projections for 2014.
• Since 2011, the state has gained 154,000 jobs – regaining all jobs lost during the Great Recession and adding thousands more.
• Minnesota’s unemployment rate is at its lowest since 2007 – 4.6%
In the upcoming session we will continue to build on the achievements of the last two years.
Thank you for the honor of serving in the Minnesota Legislature. Please always feel free to contact me anytime.