ST. PAUL – The Minnesota Legislature finished its work in approving a new two-year state budget and adjourned on time Monday night, capping the 2015 session.
"We got the people's work done," said Rep. Bob Vogel, R-Elko New Market. "We provided a new budget and were successful in stopping what would have been the largest gas-tax increase in state history."
The final budget agreement includes $400 million in new K-12 education funding and $138 million more for long-term care. House proposals to cut taxes by nearly $2 billion this biennium and a provide $7 billion more for roads and bridges during the next decade – without raising taxes – did not make it to the finish line this session.
"We didn't get all that we wanted, including the tax relief we had hoped for, but at least the budget surplus remains intact," Vogel said. "Assuming those dollars come in as projected, we can do more next year without new structural spending issues adding to the challenge. I’m happy we didn't spend the surplus money as some at the Capitol wanted to do, because if the economy continues to improve we have the opportunity to revisit tax relief during next year’s session. If on the other hand the revenue does not come in as anticipated there does not need to be a tax increase to make up the difference"
Vogel said one of the primary reasons he vehemently opposed initiatives to raise the gas tax is because it was subject to increase if and when prices at the pump rise. A 6.5-percent tax at the wholesale level translates to at least 16 cents per gallon more at today's prices, but $4 per-gallon gas would mean another 26 cents added to the gas tax.
"The sales tax would make for a double-whammy by increasing the tax pain as the pain at the pump also increases," Vogel said. "That is why it is so important for legislators to always look at the long-term ramifications of what is being done because the worst thing we could do is hurt people more when they are already having a difficult time with things."
While the complete longer term House transportation package was not in the final budget, a slimmed-down version was included. It still totals nearly $6 billion over the 2016-17 biennium, which is an increase over the 2014-15 comparable budget, and should allow all the projects previously planned for this summer to be completed as intended. It also notably provides $12.5 million in road funding for cities of less than 5,000 residents which is new funding.
The $400 million in new funding for K-12 education represents increases of 1.5 percent in 2016 and 2 percent in 2017. The education budget dedicates more per pupil than Gov. Mark Dayton proposed in his own budget, and was mutually agreed to in conference committee, and passed by the both the House and the Senate chambers. The agreement the House and Senate reached does not include funding for universal pre-K and Dayton has threatened to veto the bill.
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