I have good news: Tuesday, Governor Dayton signed all the state budget bills into law. After weeks of negotiations and compromises, the budget contains the largest tax relief package in nearly two decades and the largest investment in roads and bridges ?Äì without raising taxes ?Äì in Minnesota history. Despite the need for a special legislative session, the budgets we passed in the legislature contain many great provisions for our area and the entire state, and represent a significant compromise between the House, the Senate, and the governor.
Unfortunately, the governor also line-item vetoed a portion of the state government budget that funds the legislature. With the completion of both the regular session and a short special session, barring any unforeseen events, the Senate stands adjourned until February 20, 2018.
I have included highlights from the session and the upcoming state?Äôs budget below.
2017-2018 State Budget
Taxes
?Ä¢ A tax credit for students paying off college loan debt.
?Ä¢ Creates a new school building bonds agricultural credit ?Äì a 40% offset for school building levies, helping smaller school districts meet critical building needs.
?Ä¢ Makes a permanent, yearly increase to Local Government Aid and County Program Aid.
?Ä¢ Reduces the statewide property tax by eliminating the inflator and exempting up to $100,000 of commercial/industrial property value.
?Ä¢ A subtraction for a portion of Social Security benefits subject to state income tax.
?Ä¢ Increases Minnesota?Äôs estate tax exemption to $3 million.
?Ä¢ Establishes a beginning farmer tax credit program, providing additional tools to encourage and support more individuals to be successful in their early years in farming.
Health Care
?Ä¢ This session, we provided emergency aid for families whose health insurance premiums skyrocketed, in some cases, nearing 67% because of Obamacare and MNsure.
?Ä¢ We passed the first major reforms to the health insurance market since the implementation of MNsure. Through ?Äúre-
insurance?Äù legislation, the state will share in the cost burden for the 2% of sickest patients, resulting in lower premiums.
K-12 Education
?Ä¢ We passed legislation to reform teacher licensure laws, streamlining the process and making it easier for schools to find, hire, and retain qualified educators.
?Ä¢ Language that repeals the ?Äúlast in, first out?Äù (LIFO) law was included in the education budget, so school districts can consider teacher effectiveness, and not just seniority, when faced with layoffs.
?Ä¢ Overall, our budget provides a 2% per pupil increase in each of the next two years, which goes directly to classroom expenses.
Transportation
?Ä¢ The transportation budget spends $300 million in new, on-
going funding for roads and bridges over the next two years, with an additional $256 in one-time funding.
?Ä¢ Small town and city roads and bridges will receive special funding of $45 million.
Higher Education
?Ä¢ Tuition increases at Minnesota State institutions are limited to 1% at two-year colleges during the 2017-2018 academic year, while frozen at both two- and four-year institutions during the 2018-2019 school year.
?Ä¢ Nowhere is the shortage of a qualified, educated workforce felt more than in our rural communities ?Äì and particularly in the agricultural industry. Through a loan forgiveness program, this bill will encourage large animal veterinarians to practice in rural areas.
?Ä¢ In addition, millions in supplemental assistance for two-year institutions whose campuses are outside of the metro area will allow, for example, a small community college to hire a new welding instructor and purchase program equipment ?Äì these smaller, rural institutions are often the sole provider of higher education in the area.
Agriculture, Environment
?Ä¢ Reforms to buffer laws, establishing an eight-month grace period for implementation, assistance to farmers and landowners for implementation, and allowing alternative practices in conjunction with local soil and water conservation districts.
?Ä¢ The streamlining of various state regulations, through the lifting of regulatory burdens that slow down economic growth ?Äì without abandoning our commitment to clean air and clean water.
?Ä¢ Assistance for farmers and local governments combating the spread of noxious weeds and plant pathogens, including Palmer amaranth, which was found in several Minnesota counties for the first time this spring.
State Government, Veterans
?Ä¢ Provides more job training and college opportunities.
?Ä¢ Helps active duty families faced with emergency expenses.
?Ä¢ Provides funding for better care for elderly veterans.
?Ä¢ Bans unnecessarily large severance payouts for government employees who are already highly-paid.
?Ä¢ Creates a Legislative Budget Office, offering an additional check-and-balance to the executive branch.
Other highlights
With our communities in mind, I am pleased to report that many of the bills that I authored this session gained traction.
?Ä¢ Providing supplemental aid to two-year community and technical colleges outside of the seven-county metropolitan area. This was included in the omnibus higher education budget.
?Ä¢ Allowing local governments and police departments to fundraise and spend the proceeds on activities related to National Night Out, a wonderful, summer community event designed to foster good relationships between police departments and the community. This bill was signed by Gov. Dayton!
?Ä¢ Requiring stricter guidelines on the licensing of abortion-performing facilities in Minnesota, much like is already required of other medical clinics. Unfortunately, the governor vetoed all pro-life legislation this session.
?Ä¢ Requiring the state to enact a ?Äúzero-based budgeting?Äù system, ensuring your tax dollars are well spent. This bill received a committee hearing, but did not go any further.
?Ä¢ Establishing a portion of Highway 23 in Paynesville as the ?ÄúMedal of Honor recipient Kenneth L. Olson Memorial Highway,?Äù honoring former Paynesville resident Ken Olson, who gave his life during World War II and posthumously received a Congressional Medal of Honor. This bill was signed into law by Gov. Dayton.
?Ä¢ Dedicating sales tax revenue from the sale of motor vehicle parts and replacement parts to the highway user tax distribution fund. This bill was also carried by Representative Jeff Howe in the House. This bill was included in the omnibus transportation budget.