A Fair and Responsible Budget that Invests in the Middle Class
Today, Governor Dayton released a revised budget plan today that responsibly resolves the state’s budget deficit and makes crucial investments in Minnesota’s future. The Governor’s proposal focuses on improving the lives of Minnesotans by making major investments in education, job creation, and a stronger middle class.
First, Governor Dayton’s budget makes $640 million of long-overdue investments in education. The Governor’s budget would provide access to high-quality early education for 10,000 young children, fund all-day Kindergarten for 46,000 kids, and increase school funding for every district in the state. His budget would also deliver the largest increase in direct student aid in 25 years, along with needed investments in the MnSCU system and the University of Minnesota to train our workforce for the jobs of the future.
The Governor’s budget also makes needed investments in job creation. Minnesotans need a strong economy we can depend on for good jobs, living wages, and a strong middle class. That is why Governor Dayton’s budget invests $86.5 million in proven economic development initiatives that will create thousands of jobs and leverage nearly $1.5 billion in additional private investment in Minnesota’s economy.
Governor Dayton’s budget plan would also provide property tax relief to Minnesota families and businesses. His budget would increase funding for the renter’s credit, fully-fund the homeowner’s property tax refund program, and increase aid to local governments by $120 million.
These new investments are made possible by asking the wealthiest 2 percent of Minnesotans to pay their fair share in taxes and closing unfair corporate tax loopholes enjoyed by just a handful of corporations.
According to the Department of Revenue’s most recent tax incidence study, most low- and middle-income earners in Minnesota pay about 20 percent more as a share of their income in state and local taxes than the wealthiest Minnesotans. In order to address that disparity, honestly resolve our state’s budget deficit, and make long overdue investments in education and job creation, the governor’s budget asks the wealthiest 2 percent of Minnesotans to pay their fair share of income taxes.
Finally, the governor’s budget delivers on his commitment to a Better Government for a Better Minnesota – ensuring Minnesotans get better public services for a better price. His budget delivers $5.1 billion in cost savings and reductions over four years through reform and responsible fiscal management.
For more information about Governor Dayton’s Budget for a Better Minnesota, visit http://mn.gov/governor/budget and follow the conversation on Twitter at #BetterMN.
Commissioner Cassellius stood with educators and education advocates to discuss how strategic investments in Governor Dayton’s budget will advance current efforts to close Minnesota's achievement gaps. Despite strong test scores, Minnesota is widely recognized as having one of the largest achievement gaps in the nation. Governor Dayton took a comprehensive look at education from early childhood through postsecondary and proposed $640 million in new investments in K-12 and Higher Education.
“If we’re going to address Minnesota’s significant achievement gaps, we need bold vision and leadership, which is exactly what we see in Governor Dayton’s budget,” said Commissioner Cassellius on Monday. “The investments take a strategic approach to meeting the needs of every student, especially those who come to us needing more, and position Minnesota to aggressively close the gaps that are some of the worst in the nation.
“I’m mystified why we are ranked as low as we are because I think we do things in the education realm better than most other states and it doesn’t obviously show in this case. We’re determined to close the achievement gap,” Governor Dayton stated in an interview on MPR in early March. “It’s going to be critical that all our citizens 10, 20, 30 years from now be productive and successful if we’re going to have a vibrant economy.”
At a news conference this morning, St. Paul Mayor Chris Coleman, St. Cloud Mayor Dave Kleis, Richfield Mayor Debbie Goettel, Circle Pines Mayor Dave Bartholomay, and other Minnesota mayors urged legislators to pass Governor Dayton’s plan to stabilize local government aid and deliver property tax relief to Minnesota homeowners and businesses.
Over the last ten years, property taxes have gone up 86 percent, placing a huge burden on the middle class. The governor’s plan would deliver $1.4 billion in direct property tax relief to homeowners, increase aid to cities and counties by $120 million over the next two years. Businesses would also benefit from Governor Dayton’s plan. His budget freezes state property taxes for all businesses and cuts state business property taxes by 3.6 percent, or over $120 million through 2017. More information about these measures is outlined below.
Today in Duluth, DEED Commissioner Katie Clark Sieben and Duluth Mayor Don Ness held a news conference to discuss Governor Dayton’s proposed $30 million investment in the Minnesota Investment Fund (MIF).
MIF is one of the state’s key job creation tools. It helps encourage Minnesota firms that have options outside of the state to expand here, and provides incentives for businesses outside Minnesota to locate in our state. In recent years, MIF sustained an 86 percent budget cut which severely limited its impact in creating and retaining Minnesota jobs. The governor’s proposed reinvestment in the program will help create tens of thousands of jobs and leverage an estimated $990 million in private investment. More information about MIF is included below.
For additional details about the Governor’s budget, visit http://mn.gov/governor/budget/toolkit and follow the conversation on Twitter at #BetterMN.
In the News
Wadena Pioneer Journal
Minnesota expands health care for poor
Another 35,000 poor Minnesotans will get health care under a bill Gov. Mark Dayton signed Tuesday. The bill expands Medical Assistance, the state’s Medicaid program. The federally funded expansion would save $129 million in the next two-year budget, supporters say.
“Minnesotans who will be covered by this legislation desperately need better-quality health care,” Dayton said. “Instead of taking their health crises to emergency rooms, thousands of low-income children, families and individuals will be able to see doctors sooner and live healthier lives.”
State Rep. Tom Huntley added: “This legislation allows us to cover more Minnesotans with health insurance and at the same time get more bang for our buck for Minnesota taxpayers.”
The senior citizen advocacy group AARP praised the action. “We represent thousands of consumers who have either gone without health care for years because they didn’t qualify for coverage or have lost their health insurance during the economic downturn; they will benefit greatly from this expansion,” AARP Minnesota Director Michele Kimball said.
Today in the News
Don't tell Wendy Brown that a business can't charge a sales tax and survive. She's been collecting the tax every time she gives a Schnauzer or a golden doodle a shampoo and a clip at her shop in south Minneapolis. So to her, Gov. Mark Dayton's proposal to lower the tax rate and spread it to a wider variety of businesses -- such as hair salons for humans -- is about fairness.
"I'm just surprised that hair salons have not been taxed," said Brown, owner since 1976 of Wendy's Doghouse, a pet grooming shop a few blocks west of the Minnehaha Dog Park. "I've been paying sales tax forever."
"The lines have been drawn over the years, and they've been relatively arbitrary," said Myron Frans, commissioner of the Minnesota Department of Revenue. "There's some people that say the rationale is simply, it depends on who was in the room when the bill was written."
"It's really silly that we've narrowed our sales tax so much," said Wade Vitalis, owner of the Drive-In Restaurant in Taylors Falls (closed for the winter) and Gransburg, Wis. Vitalis has been collecting sales tax for 26 years, adding it to the price of each patty melt and butterscotch malt. When businesses argue that they wouldn't be able to handle it and still prosper, he doesn't buy it.
"I don't have a lot of sympathy for that argument," he said. "If you can't figure out how to do it, someone will, because this is America."
Minnesota Public Radio
Dayton wants to boost funding for English language learning
CHASKA, Minn. — In hopes of boosting student achievement, Gov. Mark Dayton wants to boost funding for the state's English language learning programs by about $4.5 million a year, a 12 percent increase over current levels.
The governor's proposal is aimed at helping the 65,000 students in Minnesota for whom English is not a first language.
The state spends $40 million a year helping those students learn English, while they also study math, reading, writing, and other subjects.
Around the State
This week, cabinet level commissioners continued bringing the governor’s budget proposal to the people of Minnesota. Yesterday, Office of Higher Education Director Larry Pogemiller visited with college students in Moorhead, discussing Governor Dayton’s proposed investments in student financial aid. Today, Department of Human Services Commissioner Lucinda Jesson is in Duluth with Lt. Governor Yvonne Prettner Solon to discuss the governor’s proposed investments in children’s mental health. The governor’s cabinet will continue traveling across Minnesota next week, holding conversations with Minnesotans about Governor Dayton’s Budget for a Better Minnesota.
Today in the News
Higher education grants may get boost
Higher education backers are excited that the governor’s budget proposal could substantially increase state grant funding for lower-income students. Gov. Mark Dayton’s biennial budget proposal provides $80 million for the Minnesota State Grant Program — a need-based financial assistance program used by a quarter of undergraduates at the University of Minnesota.
The proposed increase in student aid is the largest in more than 25 years, said Larry Pogemiller, director of the Minnesota Office of Higher Education.
“We’ve slipped behind in higher education, and now we are in a catch-up mode,” said Rep. Lyndon Carlson Sr., DFL-Crystal. “The governor is trying to get us there as rapidly as he can with his proposal.”
Minnesota has the third-highest postgraduate student debt rate in the country, according to the Institute for College Access and Success.
WJON – AM1240
Gov. Dayton Addresses Issues at CSB
Governor Mark Dayton defended his budget proposal at a public forum last night. The governor said we have, “a rare opportunity to lead,” in front of a large crowd at the College of St. Benedict.
Dayton covered a range of issues that include taxes, marriage equality and gun control. The governor called for an increase in taxes on wealthy Minnesotans to provide new revenue for the state. He said, “If people are doing better, they should want to pay more taxes.” Dayton says everyone needs to chip in and pay their fair share.
The governor also made a pitch for an increase in higher education spending. He said Minnesota needs to, “put money where our values are.”
Nearly 400,000 veterans call Minnesota home. Their commitment to service and their personal sacrifices have earned them the right to education, opportunities, and benefits.
Governor Dayton’s budget seeks to underscore the service these men and women have given to our country and our state through GI Bill expansion, increased veteran services funding to secure benefits, Honor Guard preservation, and Health Care IT infrastructure improvements to raise the quality of care for our veterans to the highest degree.
The men and women of our armed forced have invaluable skills, skills the state of Minnesota looks to preserve and foster. The funds allocated in the budget invest in our veterans, help create a better Minnesota, and help veterans succeed.
» $1 Million to Expand the Minnesota GI Bill. The Governor’s budget expands the Minnesota GI Bill program to all generations of veterans, not just those serving on or after 9/11. This expansion will ensure all Minnesota veterans have access to the education and training they need to get good paying jobs.
» $1 Million for County Veteran Service Office Grants. The Governor’s budget provides increased grant funding for County Veteran Services Offices, which help veterans and their families obtain benefits and services earned through military service.
» $5 Million for Health Care IT Improvement. The Governor’s budget invests in IT infrastructure upgrades at the Minnesota Department of Veterans Affairs. This investment will allow the department to achieve industry standards in delivering high-quality health care to Minnesota veterans and ensure their safety.
» $400,000 for Honor Guards. The Governor’s budget includes $400,000 in permanent funding for the Honor Guard Program, which supports veterans and their families by providing military burial honors earned through their service and sacrifice. Governor Dayton is committed to ensuring all veterans who request funeral honors receive them.
» $200,000 for the Gold Star Program. The Governor’s budget includes $200,000 in permanent funding for the Gold Star Program, which supports the families of those service members who lost their lives in combat as they heal from their loss.
» $425,000 for new State Veterans Cemetery in Fillmore County. The Governor’s budget includes start-up and ongoing funding for a new state veterans cemetery in Fillmore County, opening in 2015. This State Veterans Cemetery will provide burial space for nearly 40,000 veterans. Governor Dayton believes every veteran deserves a dignified final resting place.