Dear Neighbor,
In a session where we have seen more than enough controversial bills, a veterans and military affairs finance package the House passed this week stands out as a nice example of bipartisan results in a time of polarized politics.
The bill (H.F. 1937) funds state’s National Guard members and veterans after their service to our state and nation concludes, with omnibus appropriations for the state’s next two-year budget cycle. It passed on a 131-0 vote and is now in the hands of the Senate.
Veterans are a top priority and I’m glad to see we did the right thing with this bill by leaving partisanship at the door and doing what’s best for those who have served. This bill passed with overwhelming support and just goes to show we can come together to do good work when we focus on serving the people of Minnesota – in this case veterans. It’s satisfying to see this bill receive such overwhelming support from both sides of the aisle.
Overall, the bill provides $367.7 million for programs to help veterans over the 2024-25 biennium, a $167 million (52%) increase. This includes $73.3 million for the Dept. of Military Affairs and $294.3 million for the Dept. of Veterans Affairs. This includes operational funding for three new veterans homes constructed in Bemidji, Montevideo and Preston.
In other news:
Crushing blow to electronic pull tabs?
House Democrat legislation would effectively end electronic pull tabs as we know them, dramatically reducing revenue generated for local charities and other organizations.
Language in the majority’s omnibus tax bill (H.F. 1938) eliminates the “open all” feature that has been in use in electronic pull-tab games for years. This move would diminish charitable gaming funds these popular games produce, compromising a critical revenue source for local charities ranging from veteran organizations to youth sports teams, Main Street business partners and beyond.
Electronic pull tabs have been available to establishments and charities for years. People have developed business models around these machines and charities have experienced nice revenue growth. To yank this out from under them is not right.
In 2022 alone, electronic pull tabs generated almost $2 billion in revenue that was then invested into communities. Without this critical revenue stream, much of the charitable efforts Minnesotans currently benefit from would not be possible.
If House Democrats want to throttle down electronic pull tabs, they need to provide tax relief to make these groups whole from the losses they will experience. This bill fails to do so.
In addition, these games bring customers to local businesses that already have been fighting an uphill climb in today’s economy. This provision would undermine this attraction to the detriment of establishments at a time many can’t afford any more setbacks.
I continue working with House Democrats to remove this provision from the tax bill, but it's critical that legislators hear directly from charities, bars, restaurants, service clubs, and other community organizations so they understand just how serious the consequences would be if this provision is passed.
More information regarding this bill can be found here.
Omnibus bills
The House majority has approved several of this year’s omnibus finance bills that will set the state budget for the next two years. There are many concerns in these bills, especially regarding the majority approving billions of dollars in tax increases despite a $19 billion budget surplus. Their tax hikes include more than $3.6 billion in the transportation bill alone – which Democrats approved this week – with a delivery fee (Amazon, food, etc.), an increase to your license tab fees, vehicle sales taxes and more.
Among omnibus bills House Democrats have yet to bring to the floor is an omnibus tax bill which itself raises taxes by $2.2 billion the next four years. Meanwhile, it does not fully eliminate the state tax on social security.
Watch for more from the House soon. Until then, please stay in touch.
Sincerely,
Matt