Following the conclusion of the 2017 legislative session, a complete state budget has been signed into law by Gov. Mark Dayton. The budget, which amounts to $46 billion over the next two years, was a result of lengthy negotiations between the Republican legislature and Democratic governor.

“The upcoming state budget represents a true compromise and is in the best interest of the Minnesotans we serve. In particular, this budget is great for rural Minnesota” said Sen. Scott Newman (R-Hutchinson). “We put together a comprehensive package that funds valuable, needed programs, and limits the exorbitant increases in government spending as much as possible given the makeup of our government.”

The state budget includes a $648 million tax relief package – the largest in nearly two decades – and the biggest transportation infrastructure investment in state history. Many of these provisions are designed for Greater Minnesota, including:

• A new school building bonds agricultural credit – a 40% offset for school building levies.
• A permanent, yearly increase to Local Government Aid and County Program Aid.
• A reduction to the statewide property tax through an elimination of the inflator and an exemption up to $100,000 of C/I property value.
• A subtraction for a portion of Social Security benefits subject to state income tax.
• An increase to Minnesota’s estate tax exemption – bringing it to $3 million.
• A beginning farmer tax credit program, which provides additional tools to encourage and support more individuals to be successful in their early years in farming.

In addition, the $18.7 billion education budget raises the per-pupil general education funding by 2% in each of the next school years – something that was critically important to rural school districts and teachers. Reforms, including changes to the teacher licensure law and a repeal of the “last in, first out” statute, will afford local school districts more control over the varying needs of their communities.

“This really was a historically productive session,” Sen. Newman continued. “We finally were able to provide some tax relief to hardworking families, a true investment in roads and bridges across the state, and reforms that will strengthen our schools. I think the people of Minnesota will be well served by the efforts of this legislative session.”

Sen. Newman is in his third term representing Senate District 18, which includes communities in McLeod, Meeker, Sibley, and Wright counties. Sen. Newman serves as chair of the Transportation Finance and Policy Committee.