St. Paul, Minnesota — Today, Minnesota House DFLers announced their framework for the state budget, which calls for investments in education, property tax relief, and job creation efforts. The House DFL budget targets call for a structurally balanced budget without gimmicks.
The proposed budget targets would close the state’s $627 million deficit in the FY 14-15 budget cycle using new revenue, spending cuts and reforms and provides for structural balance in FY 16-17; fully pay back the $854 million IOU to Minnesota schools for the first time since 2007, utilizing a temporary income tax surcharge on only the very wealthiest Minnesotans; and invest $1 billion in priorities to strengthen Minnesota’s economic future, including $700 million for early childhood education through post-secondary education, $250 million in middle class property tax relief, and another $46 million in economic development.
In the last biennium, the legislature borrowed a record $2.4 billion from Minnesota schools. Under this budget framework Minnesota schools would be fully paid back this budget cycle through a temporary income tax surcharge on Minnesotans who earn more than $500,000 per year (less than 1% of all Minnesotans). The surcharge would end once Minnesota schools are paid off, which would occur in two years or sooner.
“After a decade of deficits, gimmicks, and squeezing the middle class, this budget framework makes important, necessary investments in Minnesota’s future and Minnesota’s people,” said Rep. John Ward (DFL – Baxter). “Investments in education, property tax relief, and economic development will help our economy and strengthen our middle class now and over the long-term.”
“A world-class education system is the gateway to a world-class economy and this budget sets us on that path,” said Rep. Radinovich (DFL – Crosby). “By investing in early childhood education through college, we can have a more equitable education system that better prepares students to become the world’s best workforce, close the achievement gap and the job skills gap, and build a better state for generations to come.”
The budget targets also contain a $150 million cut to Health and Human Services, and a $20 million cut to Transportation.
“We heard loud and clear from Minnesotans that we need to balance the budget honestly and make new investments in our future, but we also heard that the state budget needs cuts as well,” said Rep. Ward. “We will continue to look for targeted cuts, reforms, and efficiencies while ensuring our vulnerable populations and nursing homes are protected.”
“There is no question that in addition to new revenue and new investments in our future, we need to make cuts and reforms as well,” said Rep. Radinovich. “I look forward to working with my legislative colleagues and hearing input constituents on how best to find reforms and efficiencies while protecting the most vulnerable among us.”
Over the next several weeks, House finance committees will begin crafting budget bills to fit the budget targets.
Reps. Ward and Radinovich encourage constituents to contact them with any questions, comments, concerns, or ideas on any legislative topic. Rep. Ward can be reached by phone at 651-296-4333 or by email at rep.john.ward@house.mn. Rep. Radinovich can be reach by phone at 651-296-2365 or email at rep.joe.radinovich@senate.mn.