Governor Dayton Set to Release New Budget as Legislature Begins Crafting Own Plan

Last week Governor Mark Dayton decided to eliminate a business-to-business sales tax proposal from his budget plan.

The Governor’s decision comes as welcome news to business owners in my district and across the state who expressed concerns about the proposal’s impact on their competitiveness. By listening to people who did not agree with his initial proposal, Governor Dayton showed leadership and provided the kind of receptive, responsive government that Minnesotans deserve.

With the Governor releasing a supplemental budget based on our updated economic forecast, the Legislature will now begin crafting our own budget and tax proposals.

My constituents have told me time and again that they want to see a budget that invests in priorities like education and provides much-needed property tax relief to homeowners and businesses. They also want the Legislature to end the gimmicks, shifts, and one-time fixes that cause our ongoing cycle of perpetual budget deficits.

There is a strong consensus around the kind of investments that will grow the middle class, but I want to hear your ideas and feedback about the best way to pay for those investments.

I believe we should start by asking the richest Minnesotans to pay their fair share of taxes. According to the Minnesota Budget Project, an independent organization, the wealthiest 1 percent of Minnesotans pay 9.7 percent of their incomes in state and local taxes. That’s significantly less than the 12.1 percent rate paid by middle-income families making $31,690 to $41,161 per year.

Restoring fairness to our tax system will help end Minnesota’s perpetual budget deficits and pay for investments that set our state up to thrive for years to come. As the legislative session continues, please let me know your thoughts on how we can pass a fair, honest budget that makes smart investments without relying on accounting gimmicks or one-time fixes.  

You can contact me by phone at (651) 296-0171, by email at rep.david.bly@house.mn, or by postal mail at 559 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., Saint Paul, Minnesota 55155.