ST. PAUL, MN – The Minnesota House of Representatives passed comprehensive K-12, higher education, and tax bills this week.
The votes capped an intense week at the capitol where House lawmakers approved a series of major omnibus bills, marking significant progress towards finalizing a budget before the Legislature adjourns in late May.
The omnibus tax bill passed the House by a vote of 69-64. It ends the cycle of deficits, shifts, and gimmicks seen over the past decade and provides for a structurally balanced budget into the future. It covers the cost of new middle class property tax cuts, historic investments in education at every level, and pays back the remaining $854 million school shift balance caused when the Legislature enacted record borrowing from schools in 2011.
The bill pays back Minnesota schools by establishing a temporary income tax surcharge on the wealthiest 0.5% of Minnesotans, or those with taxable income greater than $500,000 per joint filers. The surcharge expires after the shift is paid back in full, which would happen in two years or sooner.
“On the campaign trail last year, countless families told me they wanted the Legislature to pay back the school shift,” said Rep. Jason Isaacson (DFL—Shoreview). “I’m proud to report we passed a bill that gets the job done. It shows that as a state, we’re returning to a mindset that puts our kids first. This is a top priority for me. We’re following through on our promise to pay off this debt.”
The House K-12 Education Finance and Policy omnibus bill, which passed by a vote of 83-50, is designed to create the world’s best workforce by closing Minnesota’s achievement gap, reaching a 100 percent high school graduation rate, 100 percent literacy by third grade, and 100 percent career and college readiness by graduation.
In order to meet those goals, the bill fully funds all-day, every day kindergarten, invests in early learning childhood scholarships, and increases the basic funding formula for K-12 schools by over $315 million—all of which is paid for by the tax omnibus bill without relying on the gimmicks or shifts seen over the past decade.
“As an educator at Century College, I see far too many students taking remedial courses to gain the skills and knowledge they should have learned in high school,” said Rep. Isaacson. “The House K-12 bill fixes that problem. It’s a plan that prioritizes college and career readiness. Investing in solutions on the front end to prevent bigger problems from occurring on the back end is just common sense. If you don’t address them early on, it becomes much more expensive and unmanageable down the road.”
Under the bill, school districts in the area are set to receive sorely-needed funding increases in Fiscal Years 2014 and 2015. The increases are as follows:
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$1,229,524 more in FY14 ($123 per pupil) and $4,813,781 more in FY15 ($479 per pupil) for Mounds View Public Schools.
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$752,812 more in FY14 ($111 per pupil) and $3,214,613 in FY15 ($475 per pupil) for Roseville Public Schools.
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$695,179 more in FY14 ($87 per pupil) and $3,848,334 in FY15 ($485 per pupil) for White Bear Lake Public Schools.
As part of building the world’s best workforce, the House K-12 education bill implements several reforms, such as requiring schools to develop strategic plans for student achievement and updating the public on their status each year. The state will utilize the Minnesota Department of Education’s Regional Centers of Excellence to provide assistance and work with schools to reach their goals.
A new student assessment system will be implemented that ensures students stay on the path to being career and college ready, and innovation grants that promote new ways to increase student achievement will be available to schools.
For example, the bill includes a provision replaces the GRAD exam with career and college readiness entrance exams. Students will take these new tests beginning in middle school to provide parents and kids with important diagnostics to empower them with early planning for their career goals and success in learning.
“Our education bill is going to make a big difference in countless lives,” said Rep. Isaacson. “Minnesota is on the way to reclaiming its status as a national leader in educational excellence. With a well-educated workforce, we’ll attract more businesses to set up shop in our state.”
The House tax omnibus bill, which passed by a vote of 69-64, provides $270 million in direct middle class property tax cuts to nearly one million Minnesotans through the Homestead Credit Refund, a retooled renter’s credit and increased funds to cities and counties. Under the new Homestead Credit Refund, homeowners in Ramsey County will see an average increase of $228. The new proposal also enhances the renter’s credit by increasing the maximum refund allowed for renters.
Cities and counties will see a significant increase in local government and county program aid (CPA) under this bill, which includes the largest LGA reform in a decade. The new LGA formula provides $110 million in need-based aid to cities and counties after years of cuts to vital services like police officers and firefighters. Ramsey County will receive $2,385,867 more in CPA in 2014.
“Over the past decade, property taxes skyrocketed by 86 percent,” said Rep. Isaacson. “That kind of burden on middle class families is unfair and it’s not sustainable over the long haul. The House tax bill puts more money in Minnesotans’ pockets. This is another issue that voters frequently spoke to me about on the campaign trail. By delivering relief, we’re keeping another promise to the people of Minnesota.”
The House also passed a higher education bill by a vote of 86-44 this week that freezes tuition at Minnesota’s public colleges and universities.
Last year, the Legislature enacted record cuts to higher education. Tuition has more than doubled at Minnesota’s public colleges and universities since 2000. The House Higher Ed bill invests $150 million into the system, using most of those resources to freeze in-state resident tuition over the next two years. It also allocates $18 million to the MnDrive research program at the University of Minnesota and nearly $11 million to the Office of Higher Education to increase grants for access, choice, and debt reduction.
The House bill includes new reforms to expand the oversight function of the Legislature. They are designed to better hold the U of MN and MnSCU accountable for budgeting practices that have come under fire for high administrative costs and excessive compensation for top administrators.
“No student should be burdened with overwhelming amounts of debt after they graduate from college,” said Rep. Isaacson. “It prevents them from being able to save money to go towards buying a car or a house. Those kinds of purchases create jobs and drive economic stability in our communities. I’m glad we’re taking serious steps to get skyrocketing tuition under control. It’s going to have a positive impact on our economy over the long haul.”
Rep. Isaacson encourages his constituents to contact him with any questions or comments. He can be reached by phone at (651) 296-7153, by email at rep.jason.isaacson@house.mn, or by postal mail at 545 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.