Dear Neighbor,
The Legislature sets the state's biennial budget in odd-numbered years and often does "supplemental" budget bills to fine-tune things in the even years such as this.
The governor came out with his proposal a few weeks ago and, as you might expect, it was full of taxing and spending and blew through most of the state's $900 million surplus. We are still waiting on the Senate's plan.
Meantime, the House issued a net-neutral bill late last week, meaning there are some adjustments to various areas of the budget, but spending vs. reductions end up evening out. The state is fully funded through June of 2017 through the budget we passed last year, so this simply shuffles some funding to focus on our priorities. One noteworthy item is $20 million in additional funding for broadband to help improve patchy service in Greater Minnesota.
It is important to note the supplemental budget proposed by the House does not touch the $900 million surplus. That is a good thing because that money should go back to the taxpayers. Democrats raised taxes by record-breaking levels in 2013 and this is an opportunity for us to undo some of the havoc they wreaked on citizens' wallets.
The House passed a tax bill with significant relief last year, but Democrats in the Senate and the governor's office blocked it from passage. The bill remains in a conference committee and could move again this session. It includes a number of good provisions, including one that would phase out the state's tax on social security benefits for seniors. Our state is an outlier in fully taxing social security income and that should be changed. The House's tax bill also has proposals to end the tax on military pay, provides property tax relief for farmers and small businesses, and more.
This all comes back the point that the reason we have a surplus is because taxpayers have been overcharged – not because government didn't do a good enough job spending our money.
That would be like saying Imelda Marcos didn't have an excessive collection of shoes, she just didn't have enough feet.
Stay in touch as things develop in St. Paul. I will continue advocating for taxpayers as decisions are made the next several weeks regarding the $900 million.
Sincerely,
Mark