To the editor:
State lawmakers recently wrapped up the 2013 Legislative Session by passing a responsible budget that eliminates our deficit, accelerates repayment of the school shift, and invests in education, job creation, and property tax relief.
Simply put, this budget is a winner for northeastern Minnesota.
We’re putting Minnesota on sound fiscal footing by ending the gimmicks and shifts that caused perpetual deficits over the past decade.
For the first time, we’re providing all-day Kindergarten for every child. Additional resources for the K-12 system will help reduce overcrowded classrooms and boost achievement. We’re also putting more funding into early childhood education so moms and dads can send their kids to preschool. This budget gives our youngsters the tools and resources they need to reach their full potential.
Students at the University of Minnesota and MnSCU schools like Itasca Community College will not pay a penny over current tuition levels for the next two years. When you combine that tuition freeze with substantial funding increases for the state grant program, our budget cuts the financial burden on students and parents who are taking on record debt. As a good student who came from a poor family, I can personally attest to the positive impact these steps will have on Minnesotans who are in need of a ladder up to the middle class.
We pay for these vital investments by increasing the income tax rate on the wealthiest two percent of Minnesotans by two percent. This affects earned income above $250,000 for joint filers and $150,000 for single filers. We also close loopholes used by big corporations that shelter profits overseas.
As a member of the House Taxes Committee and Taxes Conference Committee, I advocated for a number of provisions in our budget that provide direct benefits to the people of northeastern Minnesota.
First, we’re reducing the property tax burden on middle class Minnesotans by providing direct relief to homeowners and renters and restoring the state’s commitment to cities, counties, and school districts. In 2014, Grand Rapids will receive over $307,000 in additional Local Government Aid (LGA), Coleraine will receive over $39,000, Harris will receive over $29,000, Deer River will receive over $27,000, and Bovey will receive over $23,000. This is an important step forward to bring down property tax rates after they increased by 86 percent over the past decade due to LGA cuts.
Second, our budget increases the rate of the taconite production tax by 5 cents per ton to help the Iron Range Resources and Rehabilitation Board (IRRRB) pay off bonds financing school capital projects in the taconite tax relief area. It also increases the production tax distribution to all districts in the taconite area by 9 cents per ton (generating approximately $3.5 million) and provides for a supplemental distribution of taconite production tax proceeds to districts based on their referendum levy authority and tax base. When you combine these reforms with the additional funds for the K-12 school funding formula, we made significant progress to meet the needs of students and schools in northeastern Minnesota.
We’re also unleashing a comprehensive, all-of-the-above plan to put Minnesotans back to work and create the kind of good jobs that allow our people to provide for their families. We’ve included $346 million in tax cuts for Minnesota businesses, low-interest business loans, job training programs and more.
While I’ve covered a lot of the major components of our budget in this letter, there are many additional benefits I will highlight this summer. I’m proud as heck of what we accomplished and I think Minnesotans will be pleased with the results.
Sincerely,
Tom Anzelc
State Representative, District 5B