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Governor Dayton and Lt. Governor Smith's 2016 Supplemental Budget for a Better Minnesota

Fiscally responsible budget would protect Minnesota’s financial future, while making critical investments in an economy that works better for all Minnesotans

Budget prioritizes investments in Minnesota children, families, and communities
 
ST. PAUL, MN – Today, Governor Mark Dayton and Lt. Governor Tina Smith proposed a supplemental state budget that would protect Minnesota’s financial future, while making critical investments in an economy that works better for all Minnesotans. Their plan would ensure long-term fiscal stability for Minnesota, protect the state’s finances from future economic downturns, and secure needed investments for Minnesota children, families, and communities. 
 
“When I took office in 2011, Minnesota faced a $6 billion budget deficit, and Minnesota's children, families, and communities suffered the consequences,” said Governor Dayton. “The Supplemental Budget that Lt. Governor Smith and I are proposing would protect the financial stability of our state government, while making essential investments to continue to build a better Minnesota.”
 
The budget proposed by Governor Dayton and Lt. Governor Smith would deliver tax cuts for over 400,000 Minnesota families, make needed investments in early learning to eliminate achievement gaps, rebuild the state’s aging infrastructure, assure clean and affordable drinking water in our communities, and expand economic opportunity for all Minnesotans.
 
“The investments that Governor Dayton and I have proposed will help build an economy that works for everyone, everywhere in Minnesota, not just those at the top,” said Lt. Governor Smith. “These investments would work to eliminate economic disparities, expand essential infrastructure across Minnesota, and ensure that all Minnesotans have a fair shot to get ahead in today’s innovation economy.”
 
 
A Responsible Budget that Works for All Minnesotans
When Governor Dayton took office, the state faced a $6 billion budget deficit, following a decade of deficits. Now, Minnesota is finally on sound fiscal footing. Governor Dayton and Lt. Governor Smith are proposing a fiscally responsible budget that balances the needs of the state while protecting Minnesota’s structurally balanced budget. Governor Dayton and Lt. Governor Smith’s budget would leave $571 million on the bottom line in the next biennium, on top of a record-high $1.6 billion budget reserve and $350 million cash flow account. 
 
“Governor Dayton’s prudent leadership has righted the fiscal ship in Minnesota,” said Management and Budget Commissioner Myron Frans. “By focusing on balanced budget proposals, Governor Dayton and Lt. Governor Smith have paid back our schools, turned a $6 billion deficit into six straight projected budget surpluses, and expanded essential investments to ensure Minnesota’s economy continues to grow and thrive.”
 
Investing in Kids, Families, and Communities
Governor Dayton and Lt. Governor Smith are working to build an economy that works for all Minnesotans, not just the wealthy few. Governor Dayton and Lt. Governor Smith are proposing smart new investments in early learning to get every child off to a great start. These proposed investments would help narrow our state’s achievement gap, ensure every kid is ready for Kindergarten, save families tens of thousands of dollars on child care costs, and help prepare every child, everywhere in Minnesota to access greater opportunity.
 
Voluntary PreKindergarten for More Minnesota Families – Out of the 41 states that offer preschool programming, Minnesota ranks last in access for four-year-olds. This leaves too many of our kids unprepared to succeed in Kindergarten and beyond. To help close this opportunity gap, Governor Dayton and Lt. Governor Smith are proposing a $25 million investment to make voluntary PreKindergarten available to 3,700 more Minnesota four-year-olds. This optional preschool program, combined with existing preschool scholarships serving roughly 5,600 children, would help ensure about 12.6 percent of Minnesota four-year-olds are enrolled in quality early learning programs, setting them up for success in school and life.
 
Child Care Assistance – Minnesota’s Child Care Assistance Program provides financial assistance to help low-income families pay for high-quality child care. This assistance makes a profound difference for parents and their children – allowing parents to pursue education or work, while helping Minnesota kids access high-quality child care. Governor Dayton and Lt. Governor Smith’s proposal would invest $28.3 million in this initiative with additional resources in future years to increase provider payment rates and removes red tape for families and providers. These investments will result in more stable assistance for families and increase the number of child care providers who can participate in the program, improving care for the more than 30,000 children of low-income parents.  
 
Paid Parental Leave – The first six weeks after a child is born or adopted are an exceptionally important time for Minnesota families, and a critical moment in a child’s development. The Governor and Lt. Governor’s budget includes $2 million to provide six weeks of paid parental leave to state employees and would give an estimated 500 parents per year guaranteed paid time off to bond with a new child. This proposal would also save hard-working Minnesotans an average of $6,200 per year, at a time when they need it most.
 
Alleviating Minnesota’s Teacher Shortage – Each year, Minnesota schools lose about 5,800 teachers to retirement, other states, and career changes. And right now, our state isn't producing enough new teachers to fill the gap. This problem is particularly acute in Greater Minnesota communities that are attempting fill open positions in science and math. Similarly, Minnesota's teacher workforce doesn't reflect the growing diversity of our state. Only 3.8 percent of teachers are people of color, while 30 percent of their students are children of color. And these teachers play important roles in closing the achievement gap: serving as cultural mediators, advocates, and role models. To develop a diverse and robust teacher workforce, Governor Dayton and Lt. Governor Smith have proposed $12.4 million to help train and attract 1,200 teacher candidates by 2021.
 
An Economy that Works for All Minnesotans
Governor Mark Dayton and Lt. Governor Tina Smith are working hard to build an economy that works for all Minnesotans, not just the wealthy few. That’s why Governor Dayton and Lt. Governor Smith are proposing significant new initiatives to expand economic opportunities and eliminate disparities for Minnesotans of color across our state. Governor Dayton and Lt. Governor Smith are also proposing investments to ensure our economy works for everyone, everywhere in Minnesota, including modern, reliable infrastructure.
 
Closing Economic Disparities – Governor Mark Dayton and Lt. Governor Tina Smith are working to build an economy that works for all Minnesotans, not just the wealthy few. That’s why they are proposing significant new initiatives to expand economic opportunities and eliminate disparities for Minnesotans of color across our state. These investments would help more Minnesotans access opportunity in our state’s growing economy, help entrepreneurs start and grow small businesses, and expand educational opportunities for all. Governor Dayton and Lt. Governor Smith are also proposing investments to ensure our economy works for everyone, everywhere in Minnesota, including modern, reliable infrastructure, access to affordable housing, and doubling the diversity of our state’s government workforce.
 
An Economy that Works for Everyone, Everywhere – Governor Dayton and Lt. Governor Smith are also proposing investments to ensure our economy works for everyone, everywhere in Minnesota, including a comprehensive transportation solution, essential investments in infrastructure, $100 million for rural broadband expansion, and critical relief for unemployed steelworkers on the Iron Range.
 
Cutting Taxes for Over 400,000 Minnesota Families
 
• Targeted Tax Cuts to Raise Family Incomes – Governor Dayton and Lt. Governor Smith have proposed cutting taxes for over 400,000 Minnesota families – improving incomes for ordinary Minnesotans, not giving more tax breaks to big businesses and those at the very top. These middle class tax cuts would be on top of the tax cuts Governor Dayton and the DFL Legislature delivered for two million Minnesotans in 2014. They include an expanded Child Care Tax Credit, more Working Family Tax Credits, tax cuts for education expenses, and more.
 
Creating Jobs Through Essential Infrastructure
 
39,000 Jobs and More Than 200 ProjectsGovernor Dayton and Lt. Governor Smith’s Jobs Bill would invest $1.4 billion in more than 200 infrastructure projects statewide, creating more than 39,900 Minnesota jobs. This new Jobs Bill would help addresses many of the state’s critical infrastructure needs, including essential water infrastructure, while putting thousands of people to work and building an economy that works for everyone, everywhere in Minnesota.
 
Connecting to the 21st Century Economy – Broadband internet is the basic infrastructure of the modern economy – our students rely on it, our businesses depend on it, and our statewide regional centers need it to foster innovation and entrepreneurship. That’s why Governor Dayton and Lt. Governor Smith have proposed a $100 million investment – to jumpstart our expansion efforts and ensure that all Minnesotans are connected to the 21st century economy. This investment also would leverage at least $100 million in additional funding. 
 
Investing in Transportation
21st Century roads, bridges, and transit are the foundation of a modern economy that works for all Minnesotans, everywhere in Minnesota. Our businesses need reliable roads and bridges to export their ideas and innovations to consumers around the globe. And to attract and retain the best workers, Minnesota needs roadways and transit systems that make it easy to get to work safely, affordably, and on-time. 
 
Driving Innovation and Prosperity – Right now, more than half of Minnesota’s roads are more than 50 years old, and 40 percent of the state’s bridges are more than 40 years old. Our businesses need reliable roads and bridges to export their ideas and innovations to consumers around the globe. And to attract and retain the best workers, Minnesota needs roadways and transit systems that make it easy to get to work – safely, affordably, and on-time. That’s why Governor Dayton and Lt. Governor Smith are calling for a comprehensive transportation plan this year, to make the sustainable, long-term investments necessary to build a modern transportation network and spur Minnesota’s innovation economy.
 
Clean, Affordable Water for Minnesotans
 
Clean, Affordable Drinking Water – Governor Dayton and Lt. Governor Smith have proposed a $220 million plan to modernize Minnesota’s aging water infrastructure and protect groundwater from contamination. Their plan would allocate $167 million of his Jobs Bill proposal to assist communities across the state that cannot afford to make critical investments in aging water infrastructure. The Governor and Lt. Governor’s plan also would invest an additional $53 million for water quality protection initiatives to help leverage millions of federal dollars to implement conservation practices to restore and protect water quality across the state. 
 
 
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QUICK LOOK: A quick look at the overall numbers in the supplemental budget proposal [Link]
SPREADSHEET: Supplemental budget recommendations, net general fund impact [Link]
DETAILED SUMMARIES: Detailed summaries of supplemental budget line items, by agency [Link]
 
FACT SHEET: A Responsible Budget that Works for All Minnesotans [Link]
FACT SHEET: A Fiscally Responsible Budget for a Better Minnesota [Link]
FACT SHEET: Investing in Kids, Families, and Communities [Link]
FACT SHEET: Investing in Early Learning [Link]
FACT SHEET: Building an Economy that Works for All Minnesotans [Link]
FACT SHEET: Tax Cuts for Over 400,000 Minnesotans [Link]
FACT SHEET: Fixing Our Roads, Bridges, and Transit Systems [Link]
FACT SHEET: Transportation Investments Listed by County, City [Link]
FACT SHEET: Broadband: Connecting to the 21st Century Economy [Link]
FACT SHEET: Critical Needs: Mental Health and Public Safety [Link]
FACT SHEET: Investing in Infrastructure, Creating 39,900 Jobs [Link]
FACT SHEET: Cleaning Up Minnesota’s Water [Link]
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