When my third term at the Legislature began in January 2013, Minnesota faced big challenges, including a $627 million budget deficit and over $800 million in debt to our schools.
The facts show that Minnesota is much stronger today than when the 2013-2014 legislative session began. We made tremendous progress on priorities like education, middle-class tax cuts and job creation with support from both sides of the aisle. In fact, over 90 percent of bills passed with bipartisan support this session.
Despite the doom-and-gloom predictions from some people (none of which have come true), the results show our approach is working well.
Unemployment is down and Minnesota’s fiscal house is on stable footing for the first time in years. We repaid the ‘school shift’ in full, eliminated the deficit and made new investments designed to grow the middle class, largely by increasing income taxes on the wealthiest two percent and closing corporate tax loopholes. Smart fiscal management at our state capitol and a very productive year from our workers and businesses generated a $1.2 billion surplus.
Here is a closer look at how the Legislature corrected course and got our state back on the right track.
Job Creation and Economic Growth
From the time the session began, employers added over 50,000 jobs, restoring all the jobs lost during the Great Recession. In Dakota County, unemployment dropped from 5.6 percent to 3.9 percent.
The Legislature’s investments in proven job creation programs like the Minnesota Investment Fund are keeping us on the right track. Competitive loans are already attracting new businesses to Minnesota and helping existing businesses expand and create new jobs.
New pay equity requirements for state contractors and stronger workplace protections for pregnant women and nursing mothers mean more economic security for middle-class families.
And let’s not forget about the bipartisan capital investment bill to improve public assets like roads, bridges, classrooms at the U of MN and MnSCU campuses and other basic statewide infrastructure, estimated to create 33,000 new jobs.
Education
Providing a high quality education for every child is the foundation of a thriving economy.
That’s why the Legislature expanded preschool scholarships for low-income families, boosted funding for every school and made all-day Kindergarten available for every child free of charge beginning this fall. In addition, college students are taking on less debt because we froze tuition and enacted the largest financial aid boost in a decade.
New investments in our children’s education, from preschool through college, are important steps toward building a highly skilled workforce needed to attract and maintain large employers that provide great jobs.
Middle-Class Tax Cuts
According to non-partisan fact checkers, over two million Minnesotans will pay less in taxes due to changes we made during the legislative session.
Bigger property tax rebates for homeowners and renters helped reverse over a decade of statewide property tax hikes. And by conforming our state tax code with federal deductions, we cut income taxes for many married couples, low-income families, homeowners and Minnesotans paying back student loans.
We also enacted over $346 million in tax cuts for businesses by reducing unemployment insurance taxes paid by employers – the largest businesses tax cut in state history.
Minnesota’s Future is Bright
After one of the most productive legislative sessions in a generation, Minnesota is an even better place to live, work and raise a family. We have a structurally balanced budget, businesses are hiring and our kids have more opportunities to succeed.
There is no doubt we have more work to do, but the facts show that Minnesotans have every reason to feel optimistic about our future. I look forward to visiting with you this summer and fall to talk more about how we can keep our great state on the right track.