Priorities build on Minnesota’s economic progress with critical investments in education, job creation, and care for seniors
Saint Paul, Minnesota – The Minnesota House of Representatives passed a supplemental budget tonight that makes critical investments in Greater Minnesota job creation, caregivers, education, and transportation. State Representatives John Ward (DFL – Baxter) and Joe Radinovich (DFL – Crosby) voted in favor of the bill.
Just two weeks ago the legislature moved quickly to pass $443 million in tax cuts for more than one million Minnesotans. These tax cuts and new investments come after a strong budget and growing economy showed Minnesota with a $1.2 billion budget surplus.
“Minnesota is heading in the right direction, but we know we have more work to do,” said Rep. Ward. “This supplemental budget builds on the progress made during the historic 2013 Session through smart, targeted investments in important Minnesota priorities.”
“Our economy is strong and growing, but we need to make sure Greater Minnesota is sharing in that growth,” said Rep. Radinovich. “This supplemental budget is designed with Greater Minnesota in mind and will continue to build on our state’s economic momentum.”
The budget includes $37 million in job creation measures, including legislation authored by Ward and Radinovich.
One provision chief authored by Rep. Ward would provide grants to small businesses in Minnesota that seek to develop their workforce through in-house training. This bill provides $1 million for a pilot program that would offer grants to employers to offset the cost of training new employees when this training is specifically directed to new jobs.
“We’ve heard from employers in our area that they had difficulty finding qualified workers and this bill helps address that challenge,” said Rep. Ward. “Great businesses in our area — like Clow Stamping — will be able to train new employees without having to absorb those costs. This is a win for local businesses and a win for our economy. I’m hopeful we can expand this program in future years.”
Rep. Radinovich chief authored a provision that would provide innovation vouchers to help small and mid-sized manufacturers grow. This pilot program would allow small and midsized companies to purchase expertise and services from universities, research institutions, and consulting firms like Enterprise Minnesota that can help them improve their products, implement new technologies, and achieve growth.
Radinovich also authored a provision allocating $100,000 of Explore Minnesota Tourism funding for marketing activities of Mille Lacs Tourism Council.
“Helping our local businesses gain access to research, expertise, and services will help them innovate and grow,” said Rep. Radinovich. “Increasing tourism activity around beautiful Lake Mille Lacs will boost our already strong tourism economy. This budget places a focus on strengthening Greater Minnesota.”
In addition to these provisions, the budget increases funding for home and community-based long-term care providers by 5 percent.
“This is a long overdue increase for the great people who care for our loved ones,” said Rep. Ward. “After years of cuts and freezes, it’s great news that we were able to include this increase in our budget.”
“Before session, I met with providers in our area who told me about low wages — despite the long hours and difficult work,” added Rep. Radinovich. “Through their incredible work, these workers actually save our state money. They have more than earned this increase.”
Additional highlights of the budget include:
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Funding increase for every school: Provide a 1 percent formula funding increase for K-12 schools — increase of $58 per pupil — to help address the costs of teacher evaluations and to further improve education outcomes.
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Pothole repairs: Provide $25 million to help local governments throughout the state address the need to repair potholes after the worst winter in recent memory.
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Farm-to-Food Shelf: Invests $1.5 million in Farm to Food-Shelf funding – funding goes to Second Harvest to reimburse food producers for labor costs when producers donate surplus food to food banks. Second Harvest estimates this program would generate 10 million pounds of fresh food for food shelves around Minnesota, which would turn into 7.6 million meals. The Farm on St. Mathias is part of this great program and donates its surplus food to food banks.
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Broadband Access: $25 million in broadband access grants for Greater Minnesota. Areas of the State with low broadband connectivity will receive priority.
More details on the budget can be found here.
On Friday, the House will take action on a second tax bill, another key component of the House budget plan. “Tax Bill 2” will include $103 million in additional tax cuts for homeowners, renters, farmers and small businesses:
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Farmers: Provides $18 million in property tax relief to more than 90,000 homesteaded farms. An average family farmer in Minnesota will see $460 in property tax relief.
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Homeowners: Provides $12 million for a one-time increase for all Homestead Credit Refunds paid in 2014. Each homeowner receiving a refund will see a 3% increase, providing further property tax relief to 500,000 Minnesota homeowners.
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Renters: Provides $12.5 million for a one-time increase for all Renters’ Credit Refunds paid in 2014. Each renter receiving a refund will see a 6% increase, providing property tax relief to 350,000 Minnesota renters.
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Businesses: Provides a property tax cut for small businesses with property value less than $1.1 million. The bill also includes sales tax reforms that provide additional sales tax relief to small businesses.
“Property taxes are set to go down statewide for the first time in over a decade, but our farmers haven’t seen the relief,” said Rep. Radinovich. “We’re providing relief to 90,000 family farms while continue to increase refunds to homeowners and renters.”
The second tax bill also contains legislation authored by Rep. Ward for an extension of the Brainerd-Baxter local sales tax. This allows the two cities to extend their sales tax to fund a joint waste treatment facility, storm and sewer projects and trail improvements.
“This local sales tax helps us address our local infrastructure needs and improving our infrastructure is important for business and community growth,” said Rep. Ward. “Because of our strong tourism industry, many visitors pay this sales tax, lessening the burden on local residents while improving critical infrastructure.”
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@house.mn.