Dear Neighbor,
Thank you to the Future Farmers of America students and teachers from Paynesville, ROCORI, Barrett, and Morris for coming to my office for a meeting this week. I thoroughly enjoyed talking with these future leaders about their ag. interests and more. Thanks again for the visit!
In other news from the House this week:
State surplus update
We received an updated state economic forecast this week and it shows a $17.5 billion surplus for the new biennium. That’s similar to the figure projected in the last forecast, issued in early December, with one caveat: The new forecast factored for inflation for the first time in decades, resulting in a downward departure of around $1.5 billion. The surplus would be more like $19 billion using the November metrics for an apples-to-apples comparison.
In other words, the forecast shows Minnesota’s revenue continues to surpass previous projections and it is time to get serious about giving the surplus back to the taxpayers so they can afford their lives in the face of historic inflation driving up the cost of basic necessities.
We are now in the ninth week of legislative activity this session without major tax relief for Minnesotans, but spending and divisive policies are moving quickly through the legislature to reach the governor’s desk. Republican legislators are rolling out our own tax plan because we know it’s never too early to give the money back and we have plans to do so. (More on that in a moment.)
Overall, revenue tabulations for the current forecast continued to surpass previous projections for individual income taxes ($565 million) and corporate taxes ($125 million). Sales taxes were down $26 million.
The new $17.5 billion surplus figure will serve as the official framework as the Legislature works to establish a new two-year state budget this session before adjourning in late May.
Republican “Give It Back” tax plan
House and Senate Republicans followed the forecast news this week by unveiling our “Give It Back” tax plan, which provides $13 billion over two years in permanent tax cuts and one-time rebates.
The package features tax relief benefiting Minnesotans both now and in the long-term, such as:
- Lower first and second tier rates
- Full elimination of Social Security tax
- $1,800 tax credit per child
- Property tax relief
- $5 billion in rebates
The House majority may not be treating tax relief as a priority, but to hardworking Minnesotans it is. Our state government is swimming in cash at a time when Minnesotans are struggling to afford their lives. With a $17.5 billion surplus, if we can’t give tax relief to Minnesotans now, when can we?
This is the perfect opportunity to give bipartisan tax relief and put more money back into Minnesotans’ pockets. There is no excuse not to get this done.
Reading RESET
With half of Minnesota’s students unable to read proficiently at grade level and no real science-based reading plan in sight to address this urgent problem head on, House and Senate Republicans this week announced our “Reading RESET” plan to take on our state’s reading crisis.
The plan would establish a special revenue fund, similar to a disaster relief fund, from which schools can apply to cover costs related to aligning their curriculum and instructional practices to the Science of Reading.
Reading RESET has three primary components: funding for schools that would like to replace the ineffective literacy materials they are currently using and purchase proven Science of Reading curriculum and instructional materials and books; funding for teacher training and professional development in the Science of Reading, and funding for tutoring to help struggling students who have fallen behind in reading.
We owe it to our children to help them achieve success in the classroom and beyond and this plan would help them in that regard.
Sincerely,
Lisa