After months of deliberating and working with divided government, we have finally agreed to terms on a budget proposal for Minnesota. The 20-cent gas tax increase proposed by Governor Walz has been dropped along with tab fee increases and sales tax to pay for transit. The proposed transportation tax would have been more than $1.64 billion.

 

Also included in the agreement is a significant tax cut for middle-class Minnesotans. This is the first income tax cut in nearly 20 years and will cut .25% to the second-tier income tax bracket. Minnesota taxes will also finally conform to the federal tax code, which will reduce extra steps required for filing taxes. 

 

Funding for K-12 schools was another important priority for many this Session. The budget deal includes new funding for a 2% increase to the per-student formula for the next two years. 

 

In order to find even more savings for the state of Minnesota, a Blue Ribbon Council has been created to identify $100 million and provide recommendations for legislative action in the area of Health and Human Services. The reinsurance program has also been given approval to continue its success and keep health insurance rates lower for families, farmers, and small businesses in the individual insurance market. 

 

The piece I don't like is the continuation of the provider tax, albeit at a lower rate of 1.8%, down from 2%. The Governor was very adamant about keeping the provider tax at the full 2% level, and not letting it sunset. Ultimately, this was the main area that we compromised on with the Governor, though thankfully at reduction to 1.8%. 

 

 

Last week in the Judiciary Conference Committee, the DFL-led House of Representatives pushed for anti-gun legislation including "Red Flag Laws" and universal background checks. In a tied vote, the measures were defeated and will not be moving forward again this year. This is a great victory for our Second Amendment rights and I am proud to know our rights are protected this Session. To watch the Conference Committee vote, click here. 

 

 

The Minnesota Public Utility Commission has approved Xcel Energy's proposal to facilitate the planned Google Data Center. Renewable energy was an important consideration for Google due to the large amounts of electricity that will be used within the complex. The proposed data center will create many new jobs during construction along with at least 50 new and permanent jobs with an average income of $80,000. The timeline is still in the works as we await $20 million in funding, which would come from a bill I proposed this Session and will hopefully be part of a bonding package. 

 

 

Last week during a break from negotiations, I was able to attend the Minnesota Peace Officers Memorial. It was a beautifully moving ceremony honoring those who have given their lives in the line of duty, which sadly includes three in the last year. I was proud to join the Minnesota Law Enforcement Memorial Association as they honored those who served our communities. 

 

Thank you for reading another update from the Capitol! Session is wrapping up, hopefully this week, and I will keep you informed on how things unfold. If you have any questions or would like to express your opinions, please feel free to reach out by phone or email. Have a great week!