Dear Neighbors,
The Legislative break to observe Easter and Passover has arrived. Here’s what we’ve been working on at the Capitol:
Minnesota Values Budget
At the beginning of the month, the House DFL Majority released the budget framework, our moral document, to reflect Minnesota values. The Minnesota Values Budget invests in a state that works better for everyone no matter where you live or what you look like.
After years of misguided Republican priorities benefiting corporations, the wealthy, and insurance companies, while leaving our schools and Minnesota students and families behind, we’ve worked hard to craft a responsible, sustainable, and equitable budget.
Our Minnesota Values Budget aims to strengthen communities across the state through honest investments to improve education opportunities, support our families, and increase economic prosperity. Recently, House DFLers began announcing the budget’s major components, including E-12 education and taxes.
E-12 Education and Taxes
For decades, the state’s commitment to schools has not kept pace with inflation. Years of Pawlenty cuts further delayed progress in making the investments students need and deserve. Minnesotans have been loud and clear- the bright future we want to build for Minnesota requires honest investment. House Democrats propose to invest $900 million in E-12 education -- approximately three-fourths of the new revenue raised by their tax bill.
The House DFL’s tax bill would raise $1.2 billion in new revenue, largely through sheltered corporate income taxes, leveling the playing field for working families, farmers, small businesses, and senior citizens.
Taxes
The House DFL tax bill emphasizes tax fairness for Minnesota by bringing large corporation’s foreign profits back to Minnesota to ensure they play by the same rules as small businesses. Matching the income tax standard deduction with the federal government to cut taxes will greatly simplify the tax filing process for taxpayers. This will result in tax cuts for 1.9 million Minnesota taxpayers and other conformity measures will result in 93% of Minnesotans taking the standard deduction.
The significant investment in the Working Family Credit will deliver $80 million in tax cuts to over 380,000 working parents, grandparents and individuals. These families will receive an average tax cut over $100.
The Homestead Credit Refund Program is increased by $22.5 million to deliver an average property tax cut of $203 to 110,000 Minnesotans through increased refunds. Included are 41,500 additional homeowners who will see an average refund of $277 by increasing the maximum income limit to $155,440.
The Renter’s Property Tax Refund program is increased by $22 million to provide 356,000 renters with an average increased refund of $60. Included are an additional 33,000 renters who will see an average refund of $303 by increasing the maximum income limit to $75,000.
The Local Government Aid increase of $60 million to cities (6% increase) and counties (13% increase) will help keep property taxes competitive and fund important services such as public safety and streets.
Gas Tax
The House Transportation budget includes a modest, nickel a year gas tax, phased-in over four years. The budget also brings the motor vehicle sales tax in line with all other sales taxes (from 6.5% to 6.875%) and increases the share of this revenue going to public transit.
Additionally, Minnesotans with older vehicles will see a reduction in tab fees to help offset the cost of the gas tax increase to lower income households. For the first time, Metro Mobility, which provides transportation to our neighbors with disabilities, will receive dedicated funding.
Education
Our education budget includes investments to support our students inside and outside the classroom. We know when the experts in the schools - teachers, counselors, nurses, social workers and support staff - have sufficient resources our children and families will succeed. This budget ensures that students, families and communities across the state have access to resources such as mental health, housing and the community services needed to be successful in school.
House Democrats’ historic $900 million investment in E-12 education would allow the Legislature and Governor Walz to:
- Increase the per-pupil funding formula by 3% in the first year and by another 2% in the second year of the biennium
- Address school district cost drivers to help stabilize school budgets
- Provide access to high-quality preschool and early learning opportunities
- Prioritize student and teacher needs including increased student support staff
- Help students build varied bridges to post-secondary opportunities
- Address ways to retain and recruit more teachers of color in the classrooms.
- Wilder Research recently released a report showing only 4.3 percent of Minnesota’s teachers are people of color, while 33.5 percent of the students are. We also know student outcomes are improved when they have access to more teachers who look like they do.
Bottom line: All of our children deserve a world-class education, no matter where they live in our state. That’s why we’re investing in every student in every public school.
Public Safety
The Public Safety budget provides a pathway for Minnesotans to move beyond the criminal justice system, delivers justice for crime victims, and holds those who hurt others and hurt communities accountable.
I’m pleased to share that the gun violence prevention measures have been included in this comprehensive public safety bill. HF 8 would require criminal background checks to be performed prior to all gun sales. HF 9 would provide for “Red Flag laws,” temporarily restricting an individual’s access to firearms if a court determines they may be a threat to themselves or others. You can find more information on the bill here.
Looking ahead, legislative business at the Capitol resumes on Tuesday, April 23, at which point we will begin voting on the components of our Minnesota Values Budget, starting with our Jobs and Economic Development and E-12 Education bills. The other major spending bills are scheduled throughout the coming week.
Keep in Touch
Don’t hesitate to reach out with questions, comments or feedback. I appreciate your input.
It’s an honor to represent you at the Capitol!
Sincerely,
Jim Davnie
State Representative