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Legislative News and Views - Rep. Jeanne Poppe (DFL)

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The State Budget Comes into Focus

Sunday, April 5, 2015

The Legislature is concluding their Easter/Passover break and will resume a full schedule on Tuesday, April 7.  As this is the first year of the biennium, the primary responsibility of the legislature is to prepare a two year budget. The beginning phase of that process is when the majority party sets the spending targets for each finance division. Almost two weeks ago, House GOP members released their spending targets for each of the state’s budget areas. With a nearly $2 billion surplus, there is room to be innovative and thoughtful while still investing in priorities. Unfortunately, from what I have seen from the GOP budget targets, the priorities are being underfunded and there is no innovation, just a return to old habits of shifting money from one pot to another. Priorities like education and job development are left behind.  Greater Minnesota was given the impression they would be at the top of the agenda in all things budgeted, but the spending targets do not follow that message.

 

At the start of a biennium, the Speaker of the House works with his or her caucus to craft their top priority for the legislative session. That legislation is designated by the Speaker as House File 1. This year, House File 1, which was introduced by Republicans at a large press conference with much fanfare, was primarily a corporate and business tax cut bill.  Political differences are certainly to be expected when you have press conferences and introduce legislation. House File 1 showcased the priority of focusing on reducing corporate taxes rather than on investing in people. It is a departure from the last two years when the DFL was in the majority. 

 

John F. Kennedy is credited with saying, “A rising tide lifts all boats,” meaning when the economy is performing well, all people will benefit from it. When the DFL led the House of Representatives, the priorities of the legislative session were expanding opportunities for the improvement of the economy and quality of life for all Minnesotans. House Democrats paid back the school shift, funded statewide all-day kindergarten, expanded the property tax refund program, and established economic development programs in Greater Minnesota. We accomplished all of this when we were facing more than a $600 million deficit.  And we did it through targeted tax increases on those who could afford to give a little more to jumpstart the economy for the benefit of all.

 

Now the House Republicans are expected to have the benefit of a $1.9 billion budget surplus. But with their budget targets, House Republicans have essentially stopped investing in education. The House Republicans are signaling they won’t continue to freeze tuition at all of Minnesota’s public universities or colleges. For too many years, college students paid the spending bills for the state because they were the only ones who faced a double digit tax increase through their increased tuition costs.  It is time to help them get back to a reasonable cost threshold for their education.  Freezing college tuition over the past two years has long-lasting economic impacts on thousands of students, graduates and families across Minnesota. Under the House GOP plan, education overall is receiving less than a 1% increase. Many schools in Greater Minnesota will actually have to cut programs because of increasing costs. With Minnesota’s strong economy, we should be looking at ways to continue our investment, not cut basic education programs. With the House Republican budget, for every $1 that goes towards education, the GOP have $15 in tax giveaways.

 

Additionally, the House Republicans' proposed budget cuts health care services by over $1 billion dollars and cuts job creation and job training efforts across Minnesota.

Fortunately, the spending targets are not the final budget. Once back from the legislative break, finance committees will be meeting and the roll-out of finance bills will begin. The weeks until adjournment will be actively focused on how to serve Minnesotans and support their needs. The political differences will be apparent.  In the end it is my hope common sense and sound fiscal management will prevail. I was proud of the work to bring back transparency and clearly defined priorities over the past two years. Minnesotans deserve to know where the money is coming from and where it is going. Returning to the old ways of budgeting through shifting, redirecting and using gimmicks to hide spending is the wrong direction to go.

 

If you have ideas on how we can continue to strengthen our state, please contact my office at (651) 296-4193, by mail at 291 State Office Building, 100 Dr. Rev. Martin Luther King Jr. Blvd., St. Paul, MN 55155, or via email at rep.jeanne.poppe@house.mn.