By Rep. Paul Anderson
Two weeks ago I was pretty sure we’d get called back for a special session to once again pass a bonding bill. As I write this on Monday morning (June 6), I’m not so sure.
The reason for the less-clear future is that one of the two large measures the Legislature did pass, the Tax Bill, has become mired in controversy. And that’s unfortunate because it was a good bill, one that had many positive features for the people of Minnesota. It passed both houses with large majorities – 123-10 in the House and 55-12 in the Senate – and was sent to Gov. Dayton with high hopes that he’d sign it.
However, a one-word error was found in the bill language, literally the word “and” should have read “or,” and it changed the meaning of a provision affecting bingo halls in Minnesota. Legislative leaders have said the correction could be done by simply writing a letter clarifying the legislative intent. State budget officials, however, say the amount of money affected by the change in wording is so large, around $100 million, that it can’t be done that way.
Today, June 6, is the last day Gov. Dayton has to act on the bill. He either signs or vetoes it today, or if he does nothing, it automatically is vetoed. A press conference is scheduled for St. Paul this morning to urge the governor to sign the bill. It would appear that the governor is holding the tax bill in return for additional spending on bonding and transportation. In my opinion, his demands are so large – several hundred million dollars in additional bonding projects – that it would be difficult to get agreement on a bill with that much additional spending.
The tax bill in question provides over $800 million worth of relief over the next three years, with much of it becoming permanent. Among its main features is an exclusion of $100,000 in valuation for all commercial properties in the state as it relates to the statewide property tax, and a unique program offering $110 million in credits for college graduates facing student loan debt. In addition, it contains a program that pays 40 percent of the levy cost on agricultural land as it relates to school capital referendums, and additional funding for both the working family credit and the child care tax credit.
This is also the bill that removes the state income tax on veterans’ pension benefits. At Memorial Day services last week, I had several vets ask about the program. They were very much in favor of it, but I had to caution them that it hadn’t been signed into law yet. Unfortunately, that word of caution still remains true today.
The House of Representatives did get all of its bills passed. It was the amendment pertaining to light rail in the metro area that caused the Senate to adjourn without passing the bonding and transportation bill. We want to get our work done in St. Paul as the tax bill and the bonding bill contain many good provisions for the people of Minnesota.
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