Dear Neighbors,
We’re entering the final weeks of the 2016 legislative session. Much of the activity has now moved to the House Floor where this week, we’re considering the major finance bills. The House Majority has given “$0” targets to all areas of the budget, and proposed to spend the entire $900 million budget surplus (and more) on transportation and tax cuts for businesses. Instead of making targeted investments in critical areas like education and broadband infrastructure, the surplus is being held over for tax giveaways, the lion’s share of which are set to benefit corporate special interests and the wealthiest Minnesotans.
The E-12 and Higher Education bill, which was passed Monday night, had modest one-time spending in the E-12 area – paid for by a projected $55 million of early repayments of loans by school districts – but provided no new funding for school counselors, higher education, a college tuition freeze or student loan debt relief. Minnesota college graduates experience the fifth-highest average student debt loads in the nation, and college debt is keeping many from becoming full participants in our economy. We need to do more to address this problem, and I’m disappointed the House Majority didn’t see fit to use a portion of our surplus to aid debt relief and freeze tuition for ordinary Minnesotans.
Yesterday we debated the Jobs, Agriculture, and Environment finance bill. Some shortcomings of this bill include the inadequate proposed new dollars for expanding broadband internet to all Minnesotans, but more distressing is the fact that Republican leaders are raiding job creation funds to pay for that inadequate internet expansion instead of using our budget surplus. Gov. Dayton has proposed $100 million toward broadband and the Senate Majority has targeted $85 million for it, but the House Majority puts just $15 million toward it this year. The House Majority doesn’t use surplus for their broadband target, they cut money from job creation funds that benefit regions like ours and create jobs.
Since 2011, 143 businesses expanded or located in Minnesota, an estimated 11,100 new jobs were created, and $1.8 billion in private investment was leveraged with the help of job creation funds. And in 2015, Minnesota was chosen for the first time by CNBC as America’s Top State for Business. That was the result of intentional investment in economic development, including the Minnesota Investment Fund (MIF) and the Minnesota Job Creation Fund (JCF), which have both expanded economic opportunity across our state and made Minnesota #1 on the Gallup Job-Creation Index.
However, the House Majority has passed the jobs bill we debated yesterday that would slash those two proven job creation programs to help pay for tax cuts that largely benefit big corporations. These cuts jeopardize $1.2 billion in private investment, over 6,000 jobs, and hundreds of millions in wages for hardworking Minnesota families. The jobs bill also does nothing to help close racial economic disparities.
Today we are debating the Health and Human Services finance bill and I invite your questions and input on any issues that matter to you. Email me at rep.jerry.newton@house.mn or call me at the Capitol at 651-296-5369 . You can also check the nonpartisan House Session Daily for updates. I appreciate hearing from you.
Sincerely,
Jerry Newton
State Representative