Dear Neighbor,
We are flipping to the final chapter of the 2022 legislative session with adjournment just 10 days away and much of the story yet to be written.
Before we get to those details, I want to mention both bodies in the Legislature recently provided overwhelming bipartisan approval on a bill to support our veterans, sending it to the governor for enactment.
The veterans and military affairs package (S.F. 4233) appropriates an additional $2.2 million to the Department of Military Affairs and an additional $52.351 million to the Department of Veterans Affairs. It includes more than $10 million for construction cost increases for the three new veterans’ homes in Bemidji, Montevideo, and Preston, and more than $16 million for enhancements and furnishings to these facilities.
Veterans and Gold Star families who served post-9/11 will receive a total of $24.8 million post-service bonus payments. The bill also includes funding to address veteran homelessness, money for the State Veterans Cemetery in Redwood Falls, and other veterans-related programs.
The men and women of our armed forces risk life and limb and make other sacrifices we can’t begin to understand all in the name of keeping us safe and defending liberty. There is nobody I respect more than those who serve.
It also is worth noting this was a rare case of a single-subject bill coming to the floor without having heaps of unrelated material added to it. It serves as a great example of good things that can happen when we set priorities and focus on them. That’s how it always should be and that’s a key reason why the Legislature provided such overwhelming support for this veterans package – passing the House 122-1 and without opposition in the Senate.
In other news, discussions are starting to pick up in an attempt to reach agreement on the session’s biggest issues with only one full week of the session remaining. Conference committees are assembling to try to bridge differences between proposals issued by the House and Senate majorities. Time is of the essence in striking deals, but we also must once again remember the state already is fully funded for the biennium so there is no threat of a state shutdown if things remain unresolved.
There are significant gaps to close between the House and Senate, particularly on taxes. This year’s Hose tax bill (HF 36699) was among the last omnibus finance packages the majority brought to the floor for a preliminary vote. Few permanent tax cuts were provided in this bill despite the state enjoying a historic surplus.
For example, the omnibus tax bill for this session spends $1.645 billion in 2022-23 and another $1.6 billion in 2024-25 but focuses more on credits instead of permanent reductions and does not fully exempt the state tax on Social Security. Less than 10 percent of the funding would be dedicated to business tax relief and COVID grants, and most of those are one-time dollars.
Property taxes are on the rise as well across the state, but this bill does not include any permanent tax reductions and includes an increase in permanent spending. The bill would shift $18.7 million in rising property tax burdens back onto middle-class families.
In total, the House Democrats' proposed budget plans would spend $21 for every $1 in tax cuts. Meanwhile, the Senate approved $8 billion in tax cuts earlier this session. I support the Senate’s approach to meaningful, permanent tax cuts in general – especially as Minnesotans struggle with inflation, higher gas prices and food shortages in today’s Biden/Walz economy.
Until next time, have a good weekend and please let me know if I can be of assistance.
Sincerely,
Shane