Dear friends,
This week the House has passed several omnibus budget bills including the E-12 Education Finance bill, the Higher Education Finance bill and the Tax bill.
This session has been deemed “the education session.” Our focus is on all of our learners, early childhood through adult education. Our long range aspirational goal is to build the world’s best workforce in Minnesota through closing the achievement gap, addressing our high school graduation rates, achieving literacy by third grade, and supporting career and college readiness by graduation. Through this proposal we will reinvest in our schools and follow through with every student to ensure their future success.
The E-12 Education Finance bill funds new investments in education such as all-day, every day kindergarten and early childhood learning scholarships. It has taken us a couple of decades to finally move the needle on investment in early childhood. Both brain research and economic data support the critical importance of early learning. The bill also increases the basic funding formula for K-12 schools by four percent over the biennium, or $292 per Mankato student. This will support our schools in number of areas and address some of the underfunding of the past decade.
Among the policy portions of the education bill that I have been working on is reform in our assessment system. We eliminate high stakes testing and move to a high school system that is college and career aligned. Under the new system, students at all levels will be directed and challenged based on their skills and interests towards their individual post-secondary goals. This plan is endorsed by education advocates and school districts across Minnesota, and is the product of many years of work by a broad range of educators, parents and assessment experts. This system aligns students’ post-secondary plans to their skills and interests and focuses on preparing every student for meaningful work and/or study beyond high school.
In addition to the E-12 Education Finance bill, Thursday the House passed the Higher Education bill on a bipartisan vote of 86 to 44. The bill will directly benefit students by freezing tuition at both the University of Minnesota (U of M) and the Minnesota State Colleges and University system (MnSCU), including MSU-Mankato.
The higher education proposal includes new reforms to expand legislative oversight of state higher education spending. The Higher Education Committee, on which I serve, held fourteen hearings on the topic of oversight to create further transparency in response to the dramatic increase in student tuition, fees, and debt over the past six years, student-faculty ratios, administrative costs and trends over the past decade. It is my hope that this will provide a base for shared responsibility for access, affordability and quality in our post secondary institutions.
Lastly, the House passed the Tax bill Wednesday on a vote of 69-64. This proposal fully pays back the $854 million owed to schools, closes the $627 million budget deficit, provides direct property tax relief and balances the budget into the future by using new revenue and reforms.
The tax bill provides $270 million in middle class property tax relief through a new Homestead Credit Refund, retooled renters’ credit and increased funds to cities and counties to provide tax relief to nearly 1 million Minnesotans. 380,000 homeowners and renters throughout the state will receive a refund increase, including many in the Mankato area.
Additional details of the House tax bill include:
· Along with the temporary surcharge to pay back schools, the House bill raises the income tax rate to 8.49% on the wealthiest 1.1% of individuals (taxable income greater than $400,000 per year for joint filer). The income tax was last raised in 1991.
· The bill eliminates corporate loopholes that allow corporations to shelter profits overseas and eliminates other subsidies that are outdated or ineffective.
· The affiliate nexus provision levels the playing field between Minnesota bricks and mortar retailers and online retailers.
· Provisions for businesses simplify taxpaying with an upfront exemption for capital equipment and improve the Angel Investor Tax Credit and the Historic Credit.
· User-based fees on cigarettes are raised to $2.83 per pack, helping recover state costs associated with tobacco use as well as reducing youth smoking. User-based fees on alcohol are increased by 7 cents per beer or glass of wine. The alcohol tax was last raised in 1986. Each year, the state spends billions in alcohol and cigarette related health and public safety costs.
· The bill creates a veterans jobs tax credit for when Minnesota businesses hire a vet and expands the income tax credit for veterans.
These bills will all go to conference committee where differences between the House and Senate versions will be sorted out. Our proposals vary greatly in some areas from the Senate and I will keep you updated on the outcome of these conference committees.
Please continue to contact me with your comments and questions. I can be reached by phone at 651-296-3248 or by email at rep.kathy.brynaert@house.mn. I appreciate any input that you have for me.
Sincerely,
Kathy Brynaert
State Representative
Mankato