End of Session Review (Part 1)

The 2013 session adjourned on May 20th shortly before midnight. It has been a full and busy session. Here I’ll share a brief overview of what was accomplished this session. Keep an eye out for issue specific session reviews from me in the coming weeks.

Putting deficits in the past and investing in the future

Senate Democrats set out at the start of the 2013 session with the goal of achieving lasting progress for Minnesota after a decade of deficits and deep budget cuts. By the session’s conclusion—which adjourned on time—the Legislature delivered a fair and structurally-balanced budget to put the state’s fiscal house in order and provide critical funding for education, job creation and property tax relief.

Before even beginning to discuss any investments in these priorities, however, the newly-elected DFL majority in the Minnesota Senate inherited a $627 million deficit along with an over $800 million I.O.U. to the state’s K-12 schools. For the past decade, Minnesota has faced budget deficits year after year as previous legislatures relied on reckless cuts and one-time money, failing to honestly address the state’s fiscal problems.  The result has been increased class sizes, tuition hikes, skyrocketing property taxes and economic insecurity.

This year’s budget solution reverses that trend. With a combination of reforms, cuts, and new revenues, the Legislature and Gov. Dayton delivered a structurally-balanced budget free of accounting shifts and gimmicks. The budget package not only resolves the $627 million budget shortfall for this year, but also balances the budget through FY2016-17 and puts Minnesota on course for long-term fiscal stability.

With the state on solid financial footing, lawmakers approved significant investments in priorities that Minnesotans broadly share and support. A new $735 million investment in education—from preschool to post-secondary—will give every Minnesota student access to world-class schools and colleges. This historic investment will fund free all-day kindergarten statewide, tuition freezes and financial aid to make higher education more affordable for low and middle-income families. Additionally, after the previous legislature borrowed $2.4 billion from K-12 schools, this year’s budget ensures the state will pay back Minnesota school districts on time. Beyond the immediate impact, these investments will keep Minnesota and its workforce competitive into the future.

Another $86.5 million investment in today’s workforce through proven job-creating initiatives—including an unprecedented $30 million dollars for the Minnesota Investment Fund and $24 million for the Job Creation Fund—will boost the state’s economic recovery.  By leveraging millions of dollars in private investment, these economic development tools will grow, retain and diversify job opportunities in communities across the state at a time when hundreds of thousands of Minnesotans remain out of work.

Additionally, this year’s budget package includes $441 million in property tax relief to begin to remedy failed policies of the past that have caused Minnesota property taxes to more than double over the past decade. This includes restoring aid to cities, counties and townships where most government services are delivered, as well as direct relief for homeowners, renters, farmers and small businesses who saw their homestead credit erased during the previous budget cycle.

The Legislature and the Governor agreed to an honest budget that does not spend more than it takes in, and these critical investments are made possible by major reforms to Minnesota’s out-dated tax system. First and foremost, this year’s budget restores fairness to the state income tax by asking the wealthiest 2% to pay a 2% higher income tax rate. This would affect taxable joint filers with taxable income over $250,000 and singles earning over $150,000/year, who currently pay about two percent less than the rest of Minnesotans. Additional revenue is raised by increasing the tax on tobacco products, which has the added benefit of deterring thousands of kids smoking. Other efforts to modernize the tax code include capturing online sales tax and closing the latest corporate tax loopholes. Taken as a whole, these reforms to Minnesota’s tax system will stabilize the state’s revenue stream and make the tax code fairer for middle-income Minnesotans.

From the start of the 2013 session, Senators were faced with the dual challenge of both resolving the state’s fiscal problems and investing in critical priorities that had been neglected for years. Gov. Dayton and the Legislature worked together to build a budget that will spur progress by finally resolving our deficit, investing in job growth, building a stronger education system and providing greater economic opportunity for all.

Around District 51
Class of 2013

Congratulations to all the graduating Seniors in District 51! Best of luck in all of your future endeavors. We are very proud of you!

Aviation Art Contest Winner

Eagan 5th Grader Sky Waters won silver for his painting, “Silent Flight” at the International Aviation Art Contest in Luzern Switzerland. Sky won first place at the state level, and 3rd place nationally. Congratulations, Sky!

Paragon Outlet Mall Groundbreaking

On Tuesday June 4, Eagan Mayor Mike Maguire and Paragon Outlet Partners Principal Robert Brvenik hosted the ground-breaking ceremony at the mall site on Cedar Grove Parkway. Paragon also announced which companies and stores will be filling the mall. Read more here on Patch.

Thank you.

Thank you for your interest in our community and our state. I am thankful to be serving our district and Minnesota this session.  You can also keep up with me at my Senate website, click on the “In Touch with Senator Carlson” link at www.senate.mn/senatorcarlson.

Sincerely,

Jim Carlson