Greetings,
As I write this, we are roughly in the middle of the House floor process of deliberating and passing comprehensive budget bills within different areas of state government.
VETERANS RECEIVE UNANIMOUS SUPPORT
A bright spot was found on the House floor earlier this week after a bill that funds Minnesota’s National Guard members and veterans after their service to our state and nation concludes was passed unanimously.
In addition to increases in agency budgets, the bill also includes operational funding for three new veterans’ homes constructed in Bemidji, Montevideo and Preston; expanding the eligibility for free burial in Minnesota state Veterans cemeteries to spouses and dependent children of Veterans and Service Members who die on active duty; expanding the veteran bonus program; and other positive changes. It was great to see Republicans and Democrats find common ground on this topic, as a unanimous vote doesn’t happen often.
GOOD AND BAD IN TAXES BILL
Some good news to share in the area of state taxation. Republicans have been leaning on Democrats regarding the unfair taxation on Social Security benefits and progress is being made. In the current House majority taxes proposal, the income threshold from being exempt from taxation would be $78,000 if you are a single filer and $100,000 if you are filing as a married couple.
On the other hand, in the same proposal the House majority wants to raise taxes by $2.2 billion by creating a 5th income tax tier and forcing corporations to claim all worldwide income – not state income – on their Minnesota returns. Again, they are proposing these tax increases despite a nearly $20 billion surplus.
NEW STATE FLAG OR NURSING HOME NEEDS?
You hear the term “misplaced priorities” a lot, but in this instance, you be the judge: in the House majority’s proposed budget, $5 million is allocated to redesign the state flag. It also proposed allocating only $3.9 million to address Minnesota’s nursing home crisis, which isn’t even close to the amount needed to keep these facilities open and provide skilled care to our elderly residents.
TRANSPORTATION BILL INCLUDES $3.5 BILLION IN TAX AND FEE INCREASES
The House majority’s transportation funding plan grabbed headlines this week as it includes roughly $3.5 billion in tax and fee increases. This includes a 75-cent delivery tax that will be applied to most anything delivered to your front door – from pizza to packages. This will disproportionately hurt people in our rural areas who don’t have retail stores near them and often rely on mail access. License tab increases, motor vehicle sales tax increases, and a ¾ cent sales tax increase in the Metro Area are also included – despite the fact we have a nearly $20 billion surplus.
KEEP IN TOUCH
As always, I'm continuing to support constituent needs. Feel free to contact me anytime at rep.tim.odriscoll@house.mn or by phone at 651-296-7808.
Have a good weekend,
Tim