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Legislative News and Views - Rep. Carly Melin (DFL)

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2013 Legislative Session Wrap Up

Friday, May 24, 2013

To the editor:

Lawmakers recently wrapped up the 2013 Legislative Session by passing a budget that creates a brighter future for all Minnesotans.

The DFL budget eliminates our $627 million deficit, accelerates repayment of the school shift, and invests in priorities like education, job creation, and property tax relief. I’m proud of what we accomplished and I think Minnesotans throughout our state will be pleased with the results.

For the first time in our state’s history, we’ll provide all-day Kindergarten for every child. It means the moms and dads currently paying thousands every year to send their kids to all-day Kindergarten will be able to keep more of their hard-earned money. $234 million in additional funding for the K-12 school funding formula will help reduce class sizes and boost achievement.

For the next two years, our budget freezes tuition at Minnesota’s public colleges and universities like Hibbing Community College. This will make a positive difference for students and their parents who are taking on record debt as a result of perpetual cuts to higher education over the past decade.

These kinds of accomplishments are the reason 2013 will go down in history as the “Education Session.” By providing every student with a high-quality education, we’ll build a well-educated workforce that can compete in a global economy.

Our budget also includes direct benefits for northeastern Minnesota.

First, it reduces 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, Hibbing will receive an additional $163,000 in Local Government Aid (LGA), Chisholm will receive an additional $353,000, Keewatin will receive an additional $34,000, Marble will receive an additional $20,000 and Calumet will receive over $1,300. This is an important step 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 (generating approximately $2 million) 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.

Third, our budget creates a special fund financed by reserve taconite production revenue. Those resources are allocated to help fund projects like improvements to Hibbing’s water supply system and Memorial Building Arena, public works infrastructure projects for Chisholm, and water line replacements and construction of an electrical substation for Keewatin. In addition, it provides for the West Range Regional Fire Hall and Training Center merger of existing fire services for Coleraine, Bovey, Taconite, Marble, Calumet, and Greenway Township. These projects will put people back to work and make much-needed improvements to communities in northeastern Minnesota.

Most importantly, our budget fully pays for the cost of key investments while eliminating our $627 million deficit and accelerating the repayment of hundreds of millions of dollars borrowed from our schools. We put an end to the cycle of gimmicks, shifts, and one-time budget fixes used over the past decade that left Minnesota with perpetual deficits.

Under our budget, the top 2 percent of Minnesotans pay 2 percent more on income they earn more than $250,000 for joint filers and $150,000 for single filers. We also raise new revenue by closing tax loopholes used by big corporations to shelter profits overseas.

This is an exciting time for Minnesota. The budget we passed creates real, tangible results that improve people’s lives. Our state is now on a new trajectory towards educational excellence, economic growth, and long-lasting, shared prosperity for all Minnesotans.

With any questions or comments, please contact me by phone at (651) 296-0172 or toll free at 888-726-0711, by email at rep.carly.melin@house.mn, or by postal mail at 515 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.