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Update on Budget Bills
By Rep. Kent Eken
Minnesota House
The past week has been very busy at the State Capitol as the Republican
controlled legislature has brought forward several of their budget bills.
The first budget bill we took up was the tax bill. Unfortunately for rural Minnesota, it
should probably be renamed the property tax increase bill. The proposal calls for a
record reduction in local government aid that communities use to hold down
property taxes and fund basic services like police and fire. These reductions
include very large cuts in the renters’ refund, which thousands of Minnesotans
count on each year. Unbelievably, the bill completely eliminates the Market Value
Homestead Credit, which homeowners have counted on for years. In total, the
Department of Revenue estimates the property tax increase in this bill over the
next four years would be $1.2 billion statewide. This would be the largest property
tax increase in Minnesota history. Given that we have seen $3 billion in property
taxes over the past eight years, an additional $1.2 billion increase is the wrong
direction – especially considering rural Minnesota would be hit harder than other
areas of the state.
We also voted on a higher education bill that included deep cuts. In fact, the higher
education bill included the deepest cut to our state colleges and universities in
state history. The bill cuts $411 million to the higher education budget including a
17.7% cut to the University of Minnesota and a 15.9% cut to MnSCU. According to
non-partisan analysis, for every $1 cut from higher education, we see a tuition
increase of about $.50. As a result, tuition would increase $200 million for students
statewide.
This would accelerate a trend of higher tuition. In the 1980’s students and parents
paid about one third of the cost of public colleges and universities through tuition.
Now, parents and students must cover two thirds of the cost. Another $200 million
in tuition increases on top of the increase imposed on parent and students in
recent years will price a college education beyond the reach of many young people
in rural Minnesota. Like the property tax increases, tuition hikes hit rural Minnesota
families harder because income levels tend to be lower here.
The cuts to higher education will also mean fewer instructors and class offerings
for our students and could even mean the closure of some campuses in rural
Minnesota. This would reduce access to higher education for rural families and
also eliminate many jobs.
The Republican bills are again pushing more financial burdens on middle class
people of rural Minnesota by forcing property tax increases and higher tuition.
These bills are particularly troubling because while they continue to put a larger
burden on rural Minnesota, they do not ask more affluent suburbs to contribute
anything to solve the deficit. For these reasons, I spoke out against and voted no
on both of these bills. It’s time to stand up for rural Minnesota.
I will keep you up to speed as more budget bills come to the floor for debate.
Minnesota House
The past week has been very busy at the State Capitol as the Republican
controlled legislature has brought forward several of their budget bills.
The first budget bill we took up was the tax bill. Unfortunately for rural Minnesota, it
should probably be renamed the property tax increase bill. The proposal calls for a
record reduction in local government aid that communities use to hold down
property taxes and fund basic services like police and fire. These reductions
include very large cuts in the renters’ refund, which thousands of Minnesotans
count on each year. Unbelievably, the bill completely eliminates the Market Value
Homestead Credit, which homeowners have counted on for years. In total, the
Department of Revenue estimates the property tax increase in this bill over the
next four years would be $1.2 billion statewide. This would be the largest property
tax increase in Minnesota history. Given that we have seen $3 billion in property
taxes over the past eight years, an additional $1.2 billion increase is the wrong
direction – especially considering rural Minnesota would be hit harder than other
areas of the state.
We also voted on a higher education bill that included deep cuts. In fact, the higher
education bill included the deepest cut to our state colleges and universities in
state history. The bill cuts $411 million to the higher education budget including a
17.7% cut to the University of Minnesota and a 15.9% cut to MnSCU. According to
non-partisan analysis, for every $1 cut from higher education, we see a tuition
increase of about $.50. As a result, tuition would increase $200 million for students
statewide.
This would accelerate a trend of higher tuition. In the 1980’s students and parents
paid about one third of the cost of public colleges and universities through tuition.
Now, parents and students must cover two thirds of the cost. Another $200 million
in tuition increases on top of the increase imposed on parent and students in
recent years will price a college education beyond the reach of many young people
in rural Minnesota. Like the property tax increases, tuition hikes hit rural Minnesota
families harder because income levels tend to be lower here.
The cuts to higher education will also mean fewer instructors and class offerings
for our students and could even mean the closure of some campuses in rural
Minnesota. This would reduce access to higher education for rural families and
also eliminate many jobs.
The Republican bills are again pushing more financial burdens on middle class
people of rural Minnesota by forcing property tax increases and higher tuition.
These bills are particularly troubling because while they continue to put a larger
burden on rural Minnesota, they do not ask more affluent suburbs to contribute
anything to solve the deficit. For these reasons, I spoke out against and voted no
on both of these bills. It’s time to stand up for rural Minnesota.
I will keep you up to speed as more budget bills come to the floor for debate.
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