Dear Lakeville Neighbors,
Last week, Governor Tim Walz released his budget proposal for the 2020-2021 fiscal year. Minnesota law requires the governor to present budget recommendations to the legislature during odd-numbered years. The budget proposal serves as a snapshot of the governor’s policy and fiscal priorities and helps guide the budget conversation in the House and Senate.
One Expensive Minnesota
In total, the governor’s budget seeks to spend $49.471 billion in 2020-2021. This is an 8.6 percent increase from the budget that was approved in 2017.
In addition to increased spending, the governor’s budget proposes a number of substantial tax raises. In fact, it calls for $3 billion in new taxes over the next two years and $4.7 billion in tax increases for 2022-2023.
Tax the Roll – If it moves tax it!
Governor Walz’s proposal would raise Minnesota's gas tax by twenty cents—a massive 70 percent increase—vaulting Minnesota's gas tax to 4th highest in the nation. It also includes increases to tab fees, the motor vehicle sales tax, and an increase to the Metro Area sales tax. The proposal also calls for higher business property taxes, and reinstatement of the sick tax, which is set to expire at the end of the year— adding $1 billion to the cost of health care for Minnesotans over the next two years.
Such massive tax increases are even more outrageous when you consider that the state currently has a $1.5 billion budget surplus.
These tax increases are in contrast to the 2017 Republican plan that was the largest transportation bill passed in 10 years without raising taxes and using current funds. The Walz plan takes out a new mortgage against Minnesotans to pay for a shiny new Cadillac. I look forward to the debate that will ensue at the capitol regarding the budget now that the governor has released his proposal. As for myself, I will continue to fight against reckless spending and out of control tax increases. Stay tuned for more updates on budget discussions and negotiations as this is likely to dominate the rest of this year’s session.
Relationships Matter
Since coming to the legislature, I have worked hard to develop relationships with colleagues from both sides of the aisle. Anyone who visits the capitol understands that mutual respect is incredibly important here in St. Paul. Small victories are important, especially as Republicans are in the minority.
Just this week, I was able to meet with some of my Democrat colleagues to garner support for and successfully offer an amendment in committee to rewrite a bill that brings some much-needed reforms and oversight to the Met Council. Having worked hard to build trusting relationships, we focused to bring needed accountability and stronger local control to the Met Council by introducing staggered terms and more input from cities and counties in the Met Council member selection process. While the bill still has some legislative hoops to jump through and there are many more reforms needed, I am hopeful that it will eventually make its way to Governor Walz’s desk for his signature.
I was happy to be visited by a group of Lakeville residents that were here as part of “Catholics at the Capitol”. Thanks for stopping by!
Hold on to your wallets and try to have a wonderful and warm week!
Jon Koznick
Assistant Minority Leader
State Representative, Lakeville, 58A