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Legislative News and Views - Rep. Paul Anderson (R)

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House focuses on budget work

Friday, March 24, 2017

Dear Neighbor,

The focus in the House this week turned squarely toward developing a new two-year state budget. This project began in earnest Monday morning when the House unveiled its budget plan.

High points include:

  • $1.35 billion in tax relief – the largest of any proposal so far this session.
  • $450 million in new funding for road and bridge infrastructure – more than double current general fund spending on transportation.
  • $1.1 billion in new funding for K-12 schools over the current biennium.
  • A lower overall budget total than what the governor and the Senate are proposing, indicative of our continued focus on slowing the growth of state government spending.

An especially important tax relief component provides $270 million to reduce the state tax on social security income, something that would be a great help to seniors. Other notable tax relief includes:

  • $203 million to reduce the extra state property tax on businesses, exempting the first $200,000 in property value from the extra tax on businesses and freezing its automatic inflator.
  • $42 million to reduce the burden agriculture land owners pay for school bond referendums. Farms also benefit from a measure conforming the state death tax to the federal exclusion.

Also, a provision I have authored to help Melrose recover from a fire is included in the tax bill. My legislation would provide tax exemptions on rebuilding costs after several structures suffered damage when a significant portion of a city block burned last September.

The transportation package the House proposes would invest $450 million into road and bridge infrastructure throughout the state by redirecting existing transportation-related funding streams to the Transportation Priorities Fund. We are addressing a statewide need and core function of state government (roads and bridges) by using existing resources. The plan, including transportation-related bonding, totals $6 billion over 10 years.

The House's finance package related to agriculture also has been assembled and we approved it in the Ag. Finance Committee this morning. One key measure provides $500,000 for the creation of a dedicated Pollinator Habitat and Research account to help us learn more about what is threatening the pollinator population. I spoke with a reporter about this issue today and expressed that research is a necessary component in helping us determine appropriate steps to sustain this important part of our ecosystem.

Look for more details on various finance packages as they move through the House. As always, your feedback is welcome.

Sincerely,

Paul