Senate Republicans this morning finished their work by sending a complete state budget to Gov. Dayton. The budget delivers on priorities Republicans laid out at the beginning of session, including the first tax relief in nearly two decades and the first serious investment into roads and bridges since 2008. Roughly $1 billion of the state budget surplus is being used to fund these two top Republican priorities.
“When I knocked on doors last fall I told people I was frustrated with the status quo, and that I wanted to come to St. Paul to change the way government operates,” said Sen. Rich Draheim (R-Madison Lake). “That’s exactly what Republicans did. For too long, taxpayers have been made an afterthought. This year we promised to fix crumbling roads, to fund our schools, take care of our vulnerable citizens, and finally provide tax relief to the people who have found themselves working harder than ever but having little to show for it.”
The Republicans’ $648 million tax relief plan will boost the economy and help working Minnesotans save money after years of sales, income, and gas tax increases. It specifically includes tax breaks for new college grads trying to pay down high student loans, Social Security income tax relief for seniors looking to retire in Minnesota, statewide property tax relief for farmers and Main Street businesses across the state, working family credits, child and dependent care credits, and permanent Local Government Aid and County Program Aid increases to help Greater Minnesota communities.
Roads and bridges across Minnesota will get $300 million of funding every year going forward, as well as an immediate $600 million investment this budget cycle, with special funding also targeted to small cities, town roads, and local bridge replacement accounts. Thousands of lane miles and hundreds of bridges will be repaired or replaced without any gas or sales – the entire plan is funded with existing revenue.
The transportation bill brings more transparency to MnDOT’s project selection process and removes a requirement that state taxpayers pay half of South West Light Rail’s annual operating expenses.
Republicans committed to funding schools and guaranteeing Minnesota students receive a great education with $1.3 billion in new funding to K-12 classrooms. This includes a 2% funding formula increase every year – a top priority of students, education advocates, and teachers unions.
The Republican budget priorities farmers and Minnesota’s agriculture communities with funding increases to the Agricultural Utilization Research Institute (AURI), a new Beginning Farmer Tax Credit, and $850,000 help fight Palmer amaranth and other noxious weeds.
“Despite a few hiccups, this session was the most successful the legislature has had in years,” added Sen. Draheim. “It’s a testament to Republicans’ responsible style of government and management. We addressed every major priority and finished our work right on time. It’s a great day for Minnesotans.”