Greetings from the Capitol-
Most Popular Constituent Contact Issue This Week – Tax Increases
Governor Dayton’s budget proposal was heard in the House Taxes Committee on Wednesday night. As you may know, the plan calls for new taxes on businesses and families through an expanded sales tax, a new transit tax, and higher income taxes. Many of you have expressed concern over this plan. Small-business owners were among the first to testify, telling the committee that the business-to-business tax provision, paired with the proposed 40% increase in minimum wage, would force them to raise prices on consumers, cut jobs, or close their doors. Debate on the Governor’s tax and spend plan will continue in the coming weeks.
Good News: Budget Forecast Shows GOP Policies Worked
Minnesota’s projected budget deficit for 2014-2015 is now $627 million, a small fraction of the original estimate of $4.4 billion two years ago. We saw today the impact of the Republican fiscal policies from 2011 have had on Minnesota’s economy and our overall budget situation. Just two years ago, Republican majorities in St. Paul took on the difficult task of balancing the state’s massive budget deficit while not impeding the economic growth necessary to refill state revenue accounts. The 2011 legislature erased a $5 billion hole for fiscal years 2012-2013 and turned it into an eventual $2.8 billion surplus which was announced today. Minnesota has refilled its cash flow and rainy day fund accounts, and is once again on the right path thanks to sound management of the state’s finances and a commitment to keeping taxes low. Our policies have delivered steady, consistent improvements to the budget outlook.
I am also proud to report that another $290 million from the updated budget will be directed to buy down the K-12 school shift. All in all, the Republican budget has paid back the entire school shift enacted in 2011 and is now being directed towards the DFL school borrowing that occurred in 2010.
Given this good news of our growing private sector, the time has come for Governor Dayton to revise his request to raise taxes on the middle-class. There is no need for billions in new taxes to close a gap of $600 million.
Meetings with Constituents and Groups
I had the pleasure of meeting with several groups and individuals from Lakeville this week, including:
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Kelly Coleman - this was Kelly’s first time visiting the Capitol with the Epilepsy Foundation.
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Elise Hedlund & Miroslava Novosad - Students studying nutrition with the MN Academy of Nutrition and Dietetics.
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Chris Pommerenke - Holistic Health student at St. Kate’s University
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Matt Raatz - Goodwill/Easter Seal – Visited for Disability Tuesday
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Constituents with the YMCA who are concerned about the Governor’s proposed taxes on non-profits and their services
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A local elementary student supporting the anti-bullying legislation being heard this week
I also was happy to meet with 5th through 8th grade students from Christian Heritage Academy in Rosemount after they completed a tour of the Capitol.
Sincerely,
Mary Liz Holberg
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Please feel free to contact me with any thoughts or concerns you may have. I can be reached at 651-296-6926 or by e-mail at rep.maryliz.holberg@house.mn