Rep. John Persell
NEWS RELEASE
Minnesota House of Representatives
FOR IMMEDIATE RELEASE
CONTACT: Matt Privratsky 651-296-6860
March 19, 2013
Minnesota House Announces Investments in Schools and Local Aid in Release of Budget Targets
ST. PAUL, MN– Minnesota House DFLers announced their framework for the state budget today, which calls for historic investment in education - including a plan to fully pay back Minnesota’s schools for the first time since the Great Recession began. The House DFL budget targets call for a structurally balanced budget without gimmicks as well as new investments in priorities that will position Minnesota for future economic growth and success. The proposed budget:
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Closes the state’s $627 million deficit in the FY 14-15 budget cycle using new revenue, spending cuts and reforms and provides for structural balance in FY 16-17.
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Fully pays back the $854 million IOU to Minnesota schools for the first time since 2007, utilizing a temporary income tax surcharge on only the very wealthiest Minnesotans.
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Invests $1 billion in priorities to strengthen Minnesota’s economic future, including $700 million for early childhood education through post-secondary education, $250 million in middle class property tax relief, and another $46 million in job creation.
Rep. John Persell (DFL – Bemidji) is happy to see a budget that is balanced without borrowing.
“When we borrow to balance our budget, we end up paying for it later,” said Rep. Persell. “Now is the time to balance our checkbook. This budget will pay back the budget deficit and the money owed to schools while still investing in education. It’s always tough to raise revenue, but if we want to strengthen our communities then we need to invest in our children.”
In the last biennium, the legislature borrowed a record $2.4 billion from Minnesota schools. Under this budget framework Minnesota schools would be fully paid back this budget cycle through a temporary income tax surcharge on Minnesotans who earn more than $500,000 per year (less than 1% of all Minnesotans). The surcharge would blink-off once Minnesota schools are paid off, which would occur in two years or sooner.
Also included is $250 million in property tax relief to be implemented through increases in Local Government Aid and direct relief for tax payers. This, combined with increased aid to schools, is expected to lower local property taxes because of the reduced dependence on local levies for operating funds.
Rep. Roger Erickson (DFL – Baudette) is happy to see investments in local communities.
“The state has been cutting Local Government Aid and school funding for the better part of a decade and eventually you get down where there’s nothing left to cut,” said Rep. Erickon. “Those cuts meant that local units had to raise levies and raise local taxes. With these new investments, you should see schools and communities that can offer the services that we all need without having to raise local taxes.”
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