Minnesota Senate Releases The Minnesota Priorities Budget

Minnesota Senate Republicans released their budget for the 2021 ‒ 2022 biennium, making COVID recovery and support for families (without raising taxes) a priority.

“This proposal funds Minnesota Priorities to balance the budget without raising taxes, recover from COVID, and support Minnesota families,” said Senator Gary Dahms (R ‒ Redwood Falls). “The Senate Republican Majority will work together with the House DFL Majority and the governor to pass a budget that funds those priorities.” 

The Minnesota Priorities budget includes tax relief through the Paycheck Protection Program (PPP) loan tax conformity and Unemployment Insurance tax elimination for COVID. It also funds extending the Reinsurance Program and the Law Enforcement Operations Account, bills already passed by the Minnesota Senate. The budget does not consider the recently passed federal stimulus “American Rescue Plan” which provides $2.6 billion to the state, much of which can only be used for one-time spending. 

Highlights of the Minnesota Priorities budget include: 

  • 40% of the budget is for E-12 education: 
    • $19.8 billion total to fully fund the February forecast budget 
    • Funding to close racial and financial disparities, for teachers of color, and for student mental health 
    • Education Scholarship Accounts to give parents and students a choice in their schooling 
  • 31% of the budget is for Healthcare: 
    • $13.7 billion meets the February budget forecast 
    • $100 million in cost savings from targeted reforms  
    • Shoring up the Health Care Access Fund for low-income access 
  • $591 million for tax relief: 
    • Employer relief through PPP conformity 
    • Employee relief on COVID unemployment benefits during the pandemic 
    • Tax relief to stimulate economic growth and support families 
    • No tax increases 
  • State Government budget includes a 5% reduction in government administrative costs 
  • $216 million increase for transportation funding without a gas tax or tab fee increase 
  • Jobs and Economic Development has additional $100 million over the February forecast to help recovery from COVID unemployment 
  • $40 million for broadband included in Agriculture budget 
  • No tax increases 
  • No OneCare 
  • No Defunding of Police 
  • No MN Green New Deal 

“This budget helps businesses recover and gets the state’s economy moving again,” concluded Senator Dahms. “We are also giving families the support they need to overcome the challenges of the pandemic.”

Senator Dahms is in his fourth term representing Senate District 16 which includes communities in Brown, Lac qui Parle, Lyon, Redwood, Renville, and Yellow Medicine counties. He also serves as chair of the Senate Commerce and Consumer Protection Finance and Policy Committee and Vice Chair of the Agriculture and Rural Development Finance and Policy Committee.