ST. PAUL, MN – This week the Minnesota House DFL Caucus announced a framework that will help guide lawmakers as they work to pass a fair, honest budget without gimmicks or funding shifts.
The House DFL budget targets call for historic investments in education – including a plan to fully pay back over $800 million borrowed from Minnesota schools. The new investments are aimed at creating long-term economic growth and prosperity.
The proposed budget includes three main components:
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Closing the state’s $627 million deficit in the FY 14-15 budget cycle using new revenue, spending cuts and reforms and providing for structural balance in FY 16-17.
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Fully paying back the $854 million IOU to Minnesota schools for the first time since 2007, utilizing a temporary income tax surcharge on only the very wealthiest Minnesotans.
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Investing $1 billion in priorities to strengthen Minnesota’s economic future, including $700 million for early childhood education through post-secondary education, $250 million in middle class property tax relief, and another $46 million in job creation.
Rep. Tom Anzelc (DFL—Balsam Township) praised the additional funding for education, noting that students have shouldered much of the burden from cuts over the past decade.
“Our communities in northern Minnesota understand the importance of a good education,” said Rep. Anzelc. “We’re going to put together a fair, honest budget that puts an end to overcrowded classrooms and skyrocketing tuition rates. Our students deserve the best education possible.”
In the last biennium, the legislature borrowed a record $2.4 billion from Minnesota schools. Under this budget framework Minnesota schools would be fully paid back this budget cycle through a temporary income tax surcharge on Minnesotans who earn more than $500,000 per year (less than 1% of all Minnesotans). The surcharge would end once Minnesota schools are paid off, which would occur in two years or sooner.
“I think it’s fair to ask the richest Minnesotans to temporarily pay a little more in taxes to pay back the shift,” said Rep. Anzelc. “We need to make sure our state remains a place that values a good education and prepares students to succeed.”
Rep. Anzelc also praised the budget framework for offering property tax relief. Since 2002, budget cuts and gimmicks used to resolve previous deficits caused property taxes to increase by 86 percent.
“The property tax hikes we’ve seen over the past decade have disproportionately hit middle class families, which is simply unacceptable” said Rep. Anzelc. “Northern Minnesotans should be pleased to know that we plan on tackling this problem head on. We’re going to put an end to the gimmicks that caused the problem in the first place and get folks some much-needed relief.”
Over the coming weeks, the budget targets will help finance committees shape legislation to fund everything from transportation to education to health and human services. Lawmakers face an April 19 deadline to act favorably on major finance and appropriation bills.