Dear Neighbors,
As spring has sprung here in the state of Minnesota, so too have the budget priorities of the Republican Majority in the Minnesota House. Last week, we saw their initial outline of budget targets released, and now we are seeing their package of finance bills take shape. Unfortunately, this budget puts the interests of corporations and the richest Minnesotans ahead of working families in Minnesota, with major tax breaks benefitting the former, and significant cuts harming the latter. This approach is difficult to comprehend anytime, but during a time of budget surplus, it is unconscionable.
The Republican tax bill passed off the House Floor yesterday and contains a number of troubling pieces. Before pointing out anything specifically, the sum of its whole is perhaps more egregious than any individual part. At a massive size of $1.3 billion, it suffocates critical investments in areas like our schools and health care services. And for what purpose? One of the biggest purposes is to allow a whopping $5.5 million exemption under the estate tax, up from the current $1.4 million. At a cost of $162 million to the state treasury alone, it makes me wonder: instead of giving dead millionaires such a tax break, how could this money better be used?
One way would be an increase in the Working Family Credit, a proven tool to keep Minnesota families out of poverty. This isn’t in the Republican tax bill. Also notably absent is any increase for Local Government Aid, which helps cities like St. Paul keep property taxes in check while delivering key services. It also cuts the renters credit, which much like the homestead credit, has been successful in lowering the property tax burden for those people who carry a high share of property taxes relative to their income.
Not only does the size of the tax bill take away resources that could go to public school classrooms, but their tax bill includes tax credits for those who donate money for private school scholarships. It’s our responsibility to ensure all Minnesota students have the opportunity to get a world class education; this unprecedented diversion of resources to private schools prevents this. Consequently, the Republican budget doesn’t even fund an inflationary increase for our public school learners, and guts the successful voluntary pre-K program.
There has to be a better way, and I’m committed to being part of a solution that keeps our state on track, while investing in the areas which have made our state so successful to start with, like education. Part of the way we can achieve such a solution is for you to keep making your voices heard. There are real consequences to real Minnesotans in these bills, and it’s helpful for elected officials to be reminded of this, beyond just seeing numbers on a spreadsheet. As we witnessed last week in the U.S. Congress, with the bill to take away health care from millions of Americans stalling, there is still a collective power when groups of citizens resist against harmful legislation like that. Here in Minnesota, I’m confident there is a similar will among ordinary citizens to make sure our state budget prioritizes opportunities for them, and not special interests.
As always, I welcome your thoughts. Please feel free to write or call anytime.
Sincerely,
John Lesch
State Representative