This week, Minnesota Senate Republicans introduced alternate budget targets that serve as a path forward to invest in Minnesotans. The proposal shifts a cash bonding target to a general obligation bond target, freeing up $1.9 billion to invest in other areas. This shift delivers permanent tax relief, a strong bonding bill, and support to Minnesotans struggling to find long-term care. 

“Senate Republicans heard loud and clear that Minnesotans want to see strong investments in local infrastructure projects, but at the same time, they need meaningful tax relief,” said Senator Gary Dahms (R ‒ Redwood Falls). “That is why Senate Republicans introduced a path forward to balance both needs. From additional funding for long-term care facilities to fully eliminating the tax on Social Security income, this would be a bipartisan win that delivers for all Minnesotans.”

Throughout this session, Senate Republican leaders made clear that there must be movement on tax relief before a bonding bill is passed. Senate Democrats still moved forward with their bonding bill to the Senate floor where it failed to pass. Democrat budget targets were then released, amounting to massive spending higher than the $17.5 billion surplus and no plan for tax relief.

The Senate Republicans’ alternative proposal allows for investment in several key priorities: 

• A $200 million increase in bonding funding to be used on local roads and bridges. 
• An increase to the tax target to provide a full elimination of the tax on social security and ensure no new taxes. 
• $1.53 billion in FY24-25 and $1.82 billion in FY26-27 in Human Services
  • Additional money must be directed to support our long-term care facilities
• An $80 million increase in the agriculture budget, which was short-changed in the single-party control agreement. 

To hear more of Senator Dahms’ comments, click here.