LEGISLATION HIGHLIGHTSRETURNING FUTURE BUDGET SURPLUSES TO TAXPAYERS Two years ago, Minnesota had an $18 billion budget surplus. Many people thought they would receive significant and permanent tax relief. Instead, they were lucky if they were sent a $260 rebate check as legislative Democrats wasted the entire surplus on their pet priorities. Thanks to these and other tax and spend decisions, we now face a $6 billion budget deficit in the next budget cycle. But back to the surplus and what to do with it for a moment. What if there was a way to ensure a surplus is automatically returned to the taxpayers, and if there was, would you vote for it? Current law allows the Legislature to dictate how surplus funds should be utilized. But a plan in the House would have asked voters whether to amend the Constitution to guarantee future budget surpluses are returned to the taxpayers. If voters had approved, a Minnesota tax relief account would be established. Any projected revenues that go over 5% of projected expenditures according to the last biennial budget forecast will be used to fund the account and those revenues would be returned to the taxpayers via refunds. Funds deposited in the account would not be taxable under Minnesota law, nor could they be used to offset the cost to the state’s general fund for any tax reductions made by the Legislature. Only income and property taxpayers in Minnesota would be eligible for a refund. Sadly, on Monday evening, Democrats voted "no" on this bill, effectively killing it for the rest of the legislative session. Despite this setback, House Republicans, and myself, will continue fighting hard to make sure Minnesotans get to keep more of their hard earned money. GROWING MINNESOTA BUREAUCRACY Many people don’t care about politics very much and I certainly understand why. You have two sides saying two completely different things, leaving people who seek truth, to wonder….who do I actually believe? For this week’s column, I want to discuss the Paid Family Leave Program (PFLP), which is the issue I receive the most correspondence and concerns about from constituents. This new tax program was passed by the Democrat trifecta last session and is currently scheduled to begin in January 2026. It guarantees Minnesota workers can take 12 weeks of paid family leave as well as 12 weeks of paid medical leave per year. It is paid for through a nearly 1% payroll tax, which is split between workers and employers. (To be noted – this cost has already increased by 25% from what was first predicted.) No one is exempt. School districts, farmers, small business owners, and city and county governments. Every employer who has even one paid employee or more will be mandated to participate with no exceptions. To be clear, I agree with the concept of offering time off, allowing families to care for their loved ones, but I also believe that it is our duty to legislate good governance. That means rolling this out in a responsible way in which we are not increasing financial stress and burden on employers. Nearly every day I receive an email or phone call of deep concern about this looming program. In recent years, many employers have been struggling with workforce shortages, significant inflation, rising property taxes, and increased costs for energy and insurance. These factors weigh heavily into why I believe the program must be delayed until we can make sure that it is fully prepared for success and will not cripple our workforce. Let’s look a little closer at how the State of Minnesota has performed recently on another new agency. Keep in mind, that we recently funded the brand-new Office of Cannabis Management (OCM) with 150 new employees, and it has been a disaster. Since its inception in 2023, OCM is now on its third Director. Many cities are struggling with little to no direction and have no idea how to deal with it. In comparison, would it be shocking for you to learn that this new PFML program is slated to hire over 400 new full-time employees? Here in southern MN, we have small towns with a lower population than what PFML is looking to expand in bureaucracy. Call me conservative, but I don’t believe that growing government and creating more bureaucratic jobs, is an overall productive strategy to a long-term strong economy. When I am talking to local school districts, who are already struggling financially from all of the unfunded school mandates which were passed in the last two years, they tell me that not only are they looking at cutting teachers if PFML is implemented in 2026, but many school districts will be forced to hire more “office help” just to implement this program. So I ask you, the citizens of my district, do you want to grow bureaucracy or keep teachers? Do you want to create another new tax, a new agency, or allow employers the opportunity to grow and thrive in Minnesota? Republicans in the Minnesota House are trying to delay implementation of the Minnesota Paid Leave Law by one year, moving it from January 1, 2026, to January 1, 2027. The track record of the Walz administration clearly shows we are not ready for more expansion of our already inflated and flailing State Government. LOCAL VISITORS  I enjoyed meeting with Wabasha Catholic Schools Principal Eric Sonnek in St. Paul recently.  Justin Bohl, Culligan Water from Red Wing  REM Disability Services group from Red Wing Thank you for stopping by! |