Dear Neighbors,
The governor released a revised budget yesterday in light of an improving economy and opposition from the public for its negative impact on the middle class and small business.
Governor Dayton proposes to balance a projected $627 million deficit in the next budget cycle (2014-15) by:
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Increasing spending by $2.7 billion
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Raising taxes by $1.83 billion
Included in the governor’s nearly $2 billion tax plan:
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$1.1 billion tax increase on small business owners and the highest income earners
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$30 million tax increase on snowbirds
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$317 million tax increase on cigarettes
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Metro transit sales tax of .25%, which may increase to .5%
The governor has removed the following from his original plan:
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Sales tax extension on nearly every good and service
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Business-to-business taxes
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$500 property tax rebate
Although Governor Dayton has removed two of his most criticized tax proposals, he still plans on growing government by billions of dollars in order to balance a relatively small deficit—so small, in fact, it’s only 2 percent of the overall budget.
The economy is slowly but surely beginning to recover, and according to state economists, if we didn’t touch the current operating budget, this deficit would gradually take care of itself.
I support an efficient government, not an expensive government. It is our hope that when the new legislative majorities announce their budget targets, they are smaller in scope than the governor’s plan. We need a budget that lives within its means and allows Minnesotans to keep more of their money and keep Minnesota's economy moving forward.
For more information on the governor’s budget, here are two helpful links:
HEALTH INSURANCE EXCHANGE ON ITS WAY TO GOVERNOR
The final version of the Minnesota Health Insurance Exchange (HIX) bill was voted off the House floor last night and is on its way to Governor Dayton. Even in its final form, the Minnesota HIX is lacking in three critical areas: affordability, choice in care, and data privacy.
An Exchange, in its simplest form, is an online marketplace for comparing health insurance plan purchases, as mandated by the Affordable Care Act (“Obamacare”).
The Minnesota plan goes beyond this simple idea and creates what some believe is the most powerful and unaccountable government super agency in state history. The bill establishes a large, autonomous bureaucracy, costing taxpayers hundreds of millions of dollars in an effort to provide “affordable” health insurance.
The Minnesota Chamber of Commerce, National Federation of Independent Businesses, Minnesota Business Partnership and other groups offered ways to make the Exchange leaner, more effective and actually more likely to work when the start switch is pushed on October 1 this year. Those suggestions were largely ignored.
CHILDCARE UNIONIZATION
A bill is moving through the House that would unionize independent and privately-owned childcare providers who receive state subsidies.
Several of these small business owners testified in opposition to the bill, saying union dues will increase their costs. Moreover, they do not want the government to come between the relationships they have with the families they serve. On the other hand, proponents of the bill argue it will give more power to these workers to improve their wages and working conditions.
Would the unionization of childcare providers affect your family or business? Please let me know. I look forward to hearing from you.
My door is always open to the people and priorities of Blaine. Please contact me at any time regarding matters of state government. You can locate my contact information on the left-hand side of this email, or feel free to follow me on Twitter.
Have a great weekend,
Tim