Dear Neighbor:
The House of Representatives adjourned on May 16, 2014, ending an extraordinarily productive two-year legislative term. Here are a few highlights from these two sessions.
When the new legislature convened on January 8, 2013, Minnesota faced a projected $627 million deficit, we owed our schools over $800 million, and property taxes were rising across the state. The Legislature began to move Minnesota in a new direction. With an increase in income taxes on the highest marginal income of the highest earners and by closing some corporate tax loopholes, we were able to invest in Minnesotans by:
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Paying back the money borrowed from our schools.
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Making historic investments in education, from early childhood to college, including a tuition freeze at public postsecondary institutions, free all-day kindergarten for every child for the first time in state history, and an early childhood scholarship program that will give thousands more children access to high-quality early learning opportunities.
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Reducing property taxes for middle-class Minnesotans via direct relief to homeowners and renters resulting in the first statewide property tax decrease in more than a decade.
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Creating more jobs through initiatives like the Minnesota Investment Fund, which helps to bring new businesses to our state and helps existing businesses expand.
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Providing a tax cut for Minnesota’s employers.
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Enacting a fair and balanced budget to replace a decade of budgeting based on cuts and gimmicks.
Since then, Minnesota’s economy has outperformed the improving national economy. Our unemployment rate dropped and the projected state budget deficit turned into a surplus. This year the Legislature built upon the successes of the 2013 session, and continued to move Minnesota forward in significant ways. For example:
BUDGET
This year Minnesota had a projected surplus of $1.2 billion. The legislature and governor used the surplus to provide middle-class tax cuts, make key investments in priorities like education, and rebuild our budget reserve.
HEALTH AND HUMAN SERVICES
As Chair of the House Health and Human Services Policy Committee--and a member of the HHS Finance Committee--I worked hard to help improve the health and safety of Minnesotans. This year’s enhancements include a 5% rate increase for hardworking home-and community-based health care workers, better funding for nursing homes (on top of a 5% increase in 2013), and protecting the health of children through sensible restrictions on: (1) the sale of e-cigarettes, (2) tanning by minors, and (3) smoking in foster homes. The Minnesota Department of Health released its Health Equity Report, and the legislature allocated more funds to begin addressing the health needs of minority populations. The Legislature also focused on the needs of vulnerable youth through the Homeless Youth Act and the Safe Harbor law—efforts aimed at addressing the exploitation and sexual trafficking of Minnesota’s children.
MIDDLE CLASS TAX CUTS
In 2014 the Legislature provided approximately $200 million in middle class income tax cuts by conforming Minnesota’s income tax code to key federal provisions. Conformity makes filing the state income tax simpler, reduces taxpayer confusion, and provides tax benefits that Minnesotans expect. For example, the marriage penalty was removed and the dependent care credit and working family credits were increased. Families paying higher education tuition or who have student loans will also benefit.
The Legislature also continued efforts begun last year to keep property taxes in check, enacting a major property tax cut plan that will provide $45 million in additional direct property tax relief to 980,000 homeowners, renters, and farmers.
All told, more than 2 million Minnesotans will benefit from tax cuts passed by the 2014 Legislature.
EDUCATION
Last year, the Legislature ended a decade of underfunding public education by making historic investments to support all-day kindergarten and freeze tuition at our public colleges and universities. This year the state’s commitment to education continued. School funding was increased by $25 per pupil and school lunch aid was increased to ensure that all students can get a hot meal at lunchtime. Special financial assistance will also be provided to school districts to guarantee that all kindergartners, regardless of ability to pay, receive breakfast.
JOBS
More than 50,000 jobs have been created in Minnesota since the 2013-2014 biennium began, which means the number of jobs lost during the Great Recession have been recovered. This session the Legislature continued to build on that progress by focusing on job creation and economic development. For example, $20 million was allocated to expand broadband Internet access in unserved or underserved areas of the state. Increased access to broadband service will help drive job creation, promote innovation, and expand markets for Minnesota businesses, particularly those in Greater Minnesota.
Growing Minnesota’s economy and job base takes more than just technological advances. That is why this session the Legislature adopted the Women’s Economic Security Act (WESA). This new law strives to close the “wage gap” and promote the overall economic standing of women and their families with initiatives that: (1) help women enter and stay in high-wage, high-demand, non-traditional occupations; and (2) promote the creation and expansion of women-owned businesses. WESA also eliminates barriers to the economic well-being of women and their families by ensuring equal pay for equal work, expanding parenting and sick leave, and enhancing employment protections for pregnant workers. When women have equal opportunities to succeed, it means stronger families, stronger communities, and a healthier Minnesota economy.
This year the Legislature also addressed the needs of Minnesota’s lowest paid workers by increasing the minimum wage to $9.50 per hour for employees of large companies. The increase will start phasing-in August 2014—boosting the wages of over 300,000 Minnesotans.
INVESTING IN OUR INFRASTRUCTURE
The Legislature enacted a capital investment package containing $1.1 billion in strategic investments spread throughout the state. These investments will provide thousands of private sector jobs while improving college campuses, roads, bridges, wastewater treatment plants, flood prevention and mitigation, parks & trails, housing, and other important infrastructure. The package included funding to renovate the Mayo Clinic Center, which the Post Bulletin says, “will create jobs and boost local businesses for generations to come.”
MINNESOTA’S FUTURE IS BRIGHT
Minnesota has momentum, but we must keep working to ensure continued progress. I hope that in upcoming sessions we can build upon the significant achievements of the 2013-2014 term. I am committed to the good of our entire community because, as Senator Wellstone used to say, “We all do better when we all do better.” I look forward to spending this summer and fall visiting with you and other members of our community about how we can keep our state moving forward.
Thank you for the privilege of serving you in the Minnesota Legislature.
Warmly,
Tina
State Representative