Friends and neighbors,
As I am writing this article, it is April 15 — the last day to file your 2024 taxes unless you have requested an extension. It is a reminder of just how much Minnesotans send to their state government each year.
The financial pressure on families keeps building, while Minnesota government grows its spending. During the last budget cycle alone, the state saw a 40% increase in spending. This is a staggering jump that has not translated into meaningful relief for hardworking Minnesotans. Additionally, our state is now facing a $6 billion deficit due to poor financial decisions made in recent sessions.
Minnesota consistently ranks among the top 10 highest-taxed states in the country. We have the 6th highest state income tax and highest corporate income tax nationwide. These high tax burdens make it difficult for both families and businesses to stay competitive and keep up with other states.
On top of that, in just about a month, many of us will be writing out checks for our property taxes, which, more often than not, continue to rise year after year.
In his budget, Governor Walz has proposed cuts to state funding for some of our most vulnerable citizens. When the state reduces its support, that responsibility often falls to our local governments. This forces our cities and counties to raise local budgets, and those increases eventually land squarely on you, the taxpayer.
Right now, the legislature is on a one-week break. Hopefully, when we return, we can get meaningful work done before the session adjourns on May 19. We can agree to a balanced budget that protects our most vulnerable and funds the priorities Minnesotans support and need.
If we do not pass a budget by then, Governor Walz would need to call a special session. And if no budget is approved by July 1, parts of the state government could shut down.
This year is technically a budget year, but we also have unfinished business from last session. Traditionally, bonding bills, which fund infrastructure and large-scale projects, are handled in even-numbered years. But last year’s session ended in chaos, and no bonding bill was passed.
The majority party, instead, focused on pushing through more controversial policy changes and additional spending, missing the opportunity to address essential infrastructure needs. Now, we are in a budget year, but we still need a bonding bill. These bills tend to be among the last passed and, unfortunately, are often used as a political bargaining chip.
Interestingly, eight Senate Democrats have publicly declared themselves as “Blue Dog” moderates, essentially apologizing for last biennium’s tax and spending spree. They are now pledging to take a more centrist approach. As budget and policy bills begin hitting the floor, we will soon see how that plays out.
An area of common ground may be the burdensome mandates placed on schools and businesses last session. The Blue Dogs have expressed interest in working to ease those. I am also hopeful they can join us in coming to a sensible budget that puts Minnesotans first, and we welcome the opportunity to collaborate on real solutions.
Wishing you a blessed Easter!
Spring is always a special time in Minnesota. The snow melts away, temperatures rise, and new life returns to our fields and forests. Farmers across the state are out preparing their soil and planting crops. I saw many already working in their fields this week.
Wishing you all a safe and productive planting season and a blessed Easter weekend with your families.
He is risen!
Sincerely,
Gene