A Fair and Responsible Budget that Invests in the Middle Class
Today, Governor Dayton released a revised budget plan today that responsibly resolves the state’s budget deficit and makes crucial investments in Minnesota’s future. The Governor’s proposal focuses on improving the lives of Minnesotans by making major investments in education, job creation, and a stronger middle class.
First, Governor Dayton’s budget makes $640 million of long-overdue investments in education. The Governor’s budget would provide access to high-quality early education for 10,000 young children, fund all-day Kindergarten for 46,000 kids, and increase school funding for every district in the state. His budget would also deliver the largest increase in direct student aid in 25 years, along with needed investments in the MnSCU system and the University of Minnesota to train our workforce for the jobs of the future.
The Governor’s budget also makes needed investments in job creation. Minnesotans need a strong economy we can depend on for good jobs, living wages, and a strong middle class. That is why Governor Dayton’s budget invests $86.5 million in proven economic development initiatives that will create thousands of jobs and leverage nearly $1.5 billion in additional private investment in Minnesota’s economy.
Governor Dayton’s budget plan would also provide property tax relief to Minnesota families and businesses. His budget would increase funding for the renter’s credit, fully-fund the homeowner’s property tax refund program, and increase aid to local governments by $120 million.
These new investments are made possible by asking the wealthiest 2 percent of Minnesotans to pay their fair share in taxes and closing unfair corporate tax loopholes enjoyed by just a handful of corporations.
According to the Department of Revenue’s most recent tax incidence study, most low- and middle-income earners in Minnesota pay about 20 percent more as a share of their income in state and local taxes than the wealthiest Minnesotans. In order to address that disparity, honestly resolve our state’s budget deficit, and make long overdue investments in education and job creation, the governor’s budget asks the wealthiest 2 percent of Minnesotans to pay their fair share of income taxes.
Finally, the governor’s budget delivers on his commitment to a Better Government for a Better Minnesota – ensuring Minnesotans get better public services for a better price. His budget delivers $5.1 billion in cost savings and reductions over four years through reform and responsible fiscal management.
For more information about Governor Dayton’s Budget for a Better Minnesota, visit http://mn.gov/governor/budget and follow the conversation on Twitter at #BetterMN.
In 2012, Gerdau Long Steel broke ground on a renovation project at its St. Paul plant. The renovation, made possible in part by a $249,000 MIF loan, will create a state-of-the-art facility for casting steel. This project helped create 40 new jobs.
The Minnesota Investment Fund (MIF) helps Minnesota compete with other states and nations for new high-tech and manufacturing jobs. MIF helps encourage local firms that have options outside the state to expand here, and provides incentives for firms outside Minnesota to locate in our state. Over the last 8 years alone, the program has funded 53 projects, creating thousands of jobs and leveraging $587 million in private economic development.
Governor Dayton has proposed investing $30 million in MIF to enhance Minnesota’s competitiveness, create thousands of new jobs, and leverage an estimated $990 million in private investment in Minnesota’s economy.
Polaris Industries in Wyoming, MN
MIF Loan: $400,000 Est. New Jobs: 115-350
Polaris Industries, the Medina-based maker of all-terrain vehicles, snowmobiles, and motorcycles, broke ground in September 2012 on a 144,000 square foot expansion project at its research and development facility in Wyoming, Minnesota. The project, made possible in part by a $400,000 MIF loan, will double the size of the facility and create capacity for up to 350 more jobs. Polaris has committed to creating 115 permanent jobs within two years.
Gerdau Long Steel in St. Paul, MN
MIF Loan: $249,000 Est. New Jobs: 40
In 2012, Gerdau Long Steel broke ground on a renovation project at its St. Paul plant. The renovation, made possible in part
by a $249,000 MIF loan, will create a state-of-the-art facility for casting steel. This project helped create 40 new jobs.
Governor Dayton understands that in order to achieve a world-class economy, we must prioritize investments in our metro area transit system.
That is why the governor’s budget includes a commitment to a multi-modal transit system that will give Minnesota a competitive edge for growing business and jobs, drawing new talent, and serving the transit needs of a growing and aging population. In support of Governor Dayton’s increased transit funding is Shakopee Mayor Brad Tabke.
I write to express the support of the Shakopee City Council for your proposal to increase the sales tax for transit purposes by 1/4 cent in the seven-county Metropolitan Area. On Tuesday, February 19, the City Council and I voted to support this proposal. We share your belief that the development of a complete and competitive transit system in the Region is key to its long-term economic competitiveness and vitality. The development of a complete and multi-modal transit system in the Twin Cities Region will also be of great benefit to the Region’s workers and residents. The $200 million per year your proposal is expected to generate is essential to completing important rail, LRT, and BRT projects in the Region, as well as assuring that areas like Scott County can continue to expand local and express bus service that will help to best utilize the investments in regional roadways. In Shakopee, we have been committed to the beneficial expansion of transit options that serve our residents and businesses. Most recently, this has been expressed in the partnership between the cities of Shakopee and Prior Lake, and Scott County. This partnership led to the creation of the BlueXpress in July of 2007, a commuter service which has continued to experience among the greatest rates of growth of any regional bus service provider (9% increase in 2012). We look forward to working with you, your office, and the Legislature on the implementation of this important proposal.
Brad Tabke Mayor, City of Shakopee
Today, Minneapolis Mayor R.T. Rybak, St. Paul Mayor Chris Coleman, and Metropolitan Council Chair Sue Haigh were joined by a group of mayors and county commissioners at a Capitol news conference urging legislators to support Governor Mark Dayton’s proposal to increase Minnesota’s investment in transit.
Joining Rybak, Coleman, and Haigh were Hennepin County Commissioner Peter McLaughlin, Eagan Mayor Mike Maguire, West St. Paul Mayor John Zanmiller, Shakopee Mayor Brad Tabke, Savage Mayor Janet Williams, and Golden Valley Mayor Shep Harris. In their words, Governor Dayton’s transit plan: "would create a 21st century transit system in Minnesota, which is critical for job creation, economic prosperity and our ability to be globally competitive."
This afternoon, Office of Higher Education Director Larry Pogemiller will meet with college students in Winona to discuss student debt, and Governor Dayton’s plan to increase higher education funding – including $80 million in direct financial aid to students. The governor’s proposed investment in the Minnesota State Grant Program would help make college more affordable students like Rahel Theodros. Under the governor’s plan, Rahel would receive an additional $1,200 in direct student aid. More information about Rahel’s story is attached and below.
Later today, Human Services Commissioner Lucinda Jesson will visit with hospital administrators and medical professionals in St. Cloud. Commissioner Jesson will discuss health care investments in Governor Dayton’s budget proposal, and other strategies to reform Minnesota’s health care system.
In the News
Winona Daily News
William Mann: Budget proposal helps make college possible for some
As the president of Saint Mary’s University, one of the three institutions of higher education that call Winona home, I am compelled to speak for our students and families and commend Gov. Mark Dayton for making quality, affordable college education a priority in his most recent budget proposal.
Particularly meaningful among the priorities he has laid out is a 25 percent increase in funding for the Minnesota State Grant program. The state grant is a need-based state award which offers low- and middle-class students at Minnesota colleges or universities an annually renewable grant for tuition, books or living expenses while attending college. The program benefits students attending both public and private institutions of higher education.
The proposed increase to the state grant would help even more low- and middle-class families pay for college. According to the state Minnesota Office of Higher Education, current grant recipients would see their grants increase by an average of $300 per year. And 5,000 additional students would become eligible to receive grants. Many of these newly eligible recipients come from middle-class families that earn $50,000 or more per year and are ineligible for the federal Pell Grant.
Today, St. Paul Mayor Chris Coleman submitted a commentary to the Star Tribune, strongly supporting Governor Dayton’s proposed investments in aid to local governments and $1.4 billion in direct property tax relief to homeowners. Mayor Coleman’s commentary is provided in the attached document. The governor has proposed a $120 million increase in aid to cities and counties, and a $500 property tax rebate for every Minnesota homeowner. More details on the governor’s property tax relief plan are detailed below.
Today, Governor Mark Dayton signed legislation (HF6/SF119) that will extend key tax benefits for 250,000 teachers, college students, homeowners, businesses, senior citizens, and other Minnesotans. The bill, authored by state Rep. Ann Lenczewski and state Sen. Rod Skoe, will also make it easier for Minnesotans to claim these benefits by eliminating time-consuming and confusing paperwork.
“As Minnesotans file their income taxes over the next several months, this legislation will deliver the simplicity and relief they deserve,” said Governor Dayton. “I want to thank legislators from both parties for working together to quickly pass this important legislation. Hundreds of thousands of teachers, students, senior citizens, and middle-class families now stand to benefit as a result.”
According to the Minnesota Department of Revenue, over 250,000 Minnesotans will benefit from federal tax conformity, including:
By signing the bill into law today, Governor Dayton has ensured that Minnesota taxpayers can claim these deductions without filing an additional form to complete their taxes.