With under two months to go of this year?Äôs legislative session, things are moving quickly. Last Friday, my colleagues and I unveiled our tax relief proposal and, this week, we unveiled our comprehensive transportation budget proposal. Together with health and human services, these areas make up a large portion of our state?Äôs operating budget.
As we look toward adequately funding our state?Äôs agencies and departments, we must keep in mind that we are spending taxpayer dollars and have an obligation to do so responsibly. I will continue to be an advocate for budget proposals that meet the needs of Minnesotans in a fiscally-responsible manner. I expect that the entire Senate body will begin debate on these budget bills over the next week.
Higher Education Budget Bill
As chairwoman of the Senate Higher Education Finance and Policy Committee, I have spent the past several weeks working on the state?Äôs
higher education budget. This week, our budget proposal was vetted by our committee and passed with bipartisan support. The budget includes funding for the University of Minnesota, the Minnesota State university system, the Office of Higher Education, and various other state-funded agencies and departments. Among the more notable provisions of the budget proposal:
?Ä¢ A two-year tuition freeze for students in the Minnesota State colleges and university system, formerly known as MnSCU. The bill also contained language requesting that the University of Minnesota enact a tuition freeze.
?Ä¢ Funding for workforce training and development of our state?Äôs students, authorizing grants for our rural colleges and universities, low-income teachers of color, large animal veterinarian loan forgiveness, and other areas.
?Ä¢ Additional $10 million in new funding to the state grant program.
Tax Relief Proposal
Senator Chamberlain unveiled his tax relief package, which offers $900 million in relief to over 2.3 million households across Minnesota. Among the provisions:
?Ä¢ A permanent cut to the lowest income tax rate.
?Ä¢ A property tax credit for agricultural land to make it easier for rural school districts to pass referendums.
?Ä¢ A phase-out of the tax on Social Security benefits for seniors.
?Ä¢ A tax credit for college graduates paying off student loans.
?Ä¢ This bill will be making its way through the legislative process.
Transportation Proposal
On Monday, the Senate unveiled a comprehensive transportation funding package that amounts to a $1.3 billion investment over the next biennium, without raising taxes.
?Ä¢ $791 million in one-time funding will come from a mix of trunk highway bonds and federal grants.
?Ä¢ $400 million in funding will be drawn from a dedicated revenue stream that uses the sales tax on auto parts, vehicle leases, and vehicle rentals. This provision is similar to my bill SF990, which was heard in the Transportation and Taxes Committees this session.
?Ä¢ $127 million in redirected funds from MnDOT?Äôs Flex Highway Account
?Ä¢ $53 million from requiring a 15-percent efficiency at MnDOT
Representatives of the Eden Valley city government visited with Michelle Fischbach at the State Capitol last week. From left, Pat Becker, Fischbach, Troy Huschle, Jan Sheets, and mayor Brent Bengtson. Submitted photo.