Gov. Dayton proposed his budget plan this week for the next biennium and it includes new taxes, tax increases, and a homeowner property tax rebate. Additionally, the expansion of the sales tax would impact families at all income levels.
Specifically, the budget would:
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Increase spending:
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We would go from $35.2 billion in spending for FY12-13 to $37.9 billion in FY14-15
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$3.7 billion in new taxes and $225 million in reductions
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Add a new sales tax on business services, clothing (items over $100), and personal services (haircuts, oil changes, etc.) Here's a list of things that would remain exempt and here's the complete list of the newly taxed.
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Increase the tobacco state tax by $.94 per pack
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Delay full repayment of shifted aid to Minnesota schools until 2017
You can read the entire budget proposal from the Governor online here. As a former mayor, I have concerns that business services (auditing, engineering and legal services) currently paid for by small cities and municipalities will amount to higher costs to taxpayers under this new tax. I look forward to a thoughtful and productive discussion about how we can provide good services to the people of our state effectively and efficiently.
On another note, I signed on to legislation which would rename State Highway 23 “Officer Tom Decker Memorial Highway” this week (HF 146).
As always, feel free to contact me with any thoughts or concerns you may have. I can be reached at 651-296-7808 or by e-mail at rep.tim.odriscoll@house.mn.