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Legislative News and Views - Rep. Matt Grossell (R)

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Dayton Announces Plan for Big Tax Increases

Monday, April 23, 2018


I'll keep this update short. Get out and enjoy the nice weather this weekend, we've certainly waited long enough for Spring to get here!

State Government Finance Bill to Prioritize Veterans Homes

The House State Government Finance Committee has announced plans to fund three critically needed veterans homes across Minnesota. Using excess funds from the Vikings Stadium Reserve Account, the bill funds veterans homes in Bemidji, Preston, and Montevideo.

With financial backing from the state and local communities, the federal government will cover 65 percent of the veterans homes’ cost. Though the House State Government Finance bill included funding for these homes last year, Governor Dayton vetoed the bill.

The Vikings stadium reserve used to fund the veterans homes currently has an excess balance of $58 million. The reserve is expected to grow to $120 million by the end of fiscal year 2021. Under the bill, the stadium reserve account would be capped at 125 percent of the annual payments of the stadium bonds. The House bill ensures excess funds are put to use rather than sitting idle while still protecting against a drop in revenues. Currently, there is no cap on the amount of the reserve.

Providing this funding for the veterans home in Bemidji is long overdue and I am glad to see the hard work from everyone involved resulted in this being included in the House’s Budget proposal. The facility in Bemidji will fill a true hole in service and will serve veterans from 16 northern Minnesota counties, including four reservations. All of these veterans have earned and deserve the best care we can give them.

See footage from the press conference where we presented the bill here

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Dayton Announces $1.4 billion tax increase plan

Gov. Mark Dayton’s own agency, the Department of Revenue, says his overall supplemental budget proposal would raise taxes on Minnesotans of all income levels. Every. Single. One. 

Revenue found that under the governor's plan, Minnesotans in every income bracket – not just the rich – would be hit with a tax increase and households making less than $32,000 would feel it the most. Overall, the Dayton proposal would make Minnesota's tax code more regressive in nature. The governor has proposed reinstating more than $1 billion in health care tax increases, repealing tax reductions enacted last session, and numerous changes reacting to tax changes at the federal level.

This is simply a non-starter with me and my colleagues in the House.

The House soon will be putting out a supplemental tax bill and an overall supplemental budget package of its own. The details are still coming together, but our overall supplemental budget focus is on returning the state surplus to Minnesotans in the form of tax relief, along with holding Minnesotans harmless as we adjust to the Federal tax law changes. 

Please continue to stay in touch to share your thoughts or concerns. My phone number is 651-296-4265 or you can email me at

Have a great weekend!