Dear Neighbors,
First of all, a reminder that I’ll be hosting my “Second Saturday” coffee tomorrow, March 8th, from 8:30-9:30am at Dunn Brothers Coffee (120 Elton Hills Drive NW). I hope to see you there to discuss all of the activity that has filled the past two weeks at the Capitol, as well as what’s to come! We always have great conversations, and it’s good to hear the views of folks from home.
Session got off to a running start because of our pre-session hearings and the shortened session this year. I’ll discuss a few of the noteworthy subjects below:
$20 million for Emergency Heating Assistance
Our first action on the first day of Session 2014 used $20 million of our state budget surplus to ensure that the Low Income Home Energy Assistance Program would have funds to last through the rest of this unusually cold winter. Because of the propane crisis in Greater Minnesota, the fund was in danger of running out of cash by March 10, 2014. Any leftover funds will return to the general fund on June 1. The Governor signed the bill and funds are now available.
Budget Forecast: Economic Growth Increases Surplus
I’m pleased to report that our state has the strongest structural budget in more than a decade. Last session, the legislature was facing a $627 million deficit and $800 million in debt to Minnesota schools. We learned last Friday that all of the money borrowed from schools has been paid back and that Minnesota has a $1.23 billion budget surplus over projections. The revised February forecast showed that our state’s budget surplus increased by $408 million since November. That’s good news for Minnesota families, and will allow us to focus on a strong statewide bonding bill that protects state infrastructure and grow our economy with continued wise investments. It also allows us to provide some desirable tax relief...
Broad-reaching Tax Relief
Yesterday, I joined many of my House colleagues in supporting $503 million in middle class tax relief and business-to-business tax repeals. The bulk of these tax savings come from federal tax conformity. By aligning Minnesota’s tax law with the annual changes made to the federal tax code, we end up helping 650,000 families save an average of $115 for filing as a married couple. Tax conformity also helps boost income for families who have refinanced a mortgage, have student loan payments, or qualify for the Earned Income Tax Credit. I also authored a bill that passed as part of the bill to help reduce taxes for families that welcome adopted children into their lives with employer support. It provides about $400,000 in tax credits for employees who received adoption assistance (HF 2002).
The bill now must be taken up by the Senate before it can go to the Governor’s desk for enactment. There have been some questions- If you’ve already filed you may want to consider an amendment if you think you’ll qualify for additional benefits after passage. If you can wait a few weeks to file, it may be to your advantage to wait.
Remember to file your Property Tax Refund!
Last week we also learned some good news: Minnesotans will pay less in property taxes in 2014! After more than a decade of property tax hikes, Minnesotans will pay less in property taxes in 2014 in large part due to direct property tax relief included in the 2013 state budget. Last year’s state budget included $133 million in direct relief for homeowners and renters through the new Homestead Credit Refund and expanded Renter’s Credit.
According to non-partisan House Research, when including direct relief, statewide property taxes for homeowners are decreasing by $161 million or 4.9 percent.
As part of our budget, a homeowner receiving a property tax refund in Olmsted County will receive an average refund increase of $200 and 7,100 more homeowners will qualify. A renter in Olmsted County who qualifies for the Renter’s Credit will receive an average credit increase of $143 and 1,710 additional renters will qualify.
I encourage you to see if you are eligible for the Homestead Credit Refund or Renter’s Credit. Some of you who may not have been eligible in the past may be eligible this year due to expanded refunds and credits. You can find more information on eligibility and how file for your property tax refund at the Department of Revenue website.
It’s been a busy start and I’ll update you about the various bills I’m personally carrying in a future update.
It’s such an honor to represent you in St. Paul, and I appreciate hearing from you on any legislative issue. Please contact me at rep.kim.norton@house.mn or 651-296-9249.
Sincerely,
Kim Norton
State Representative