New Budget Begins Moving Minnesota Forward

This week, a number of new laws designed to move Minnesota forward went into effect.

The laws are part of a comprehensive budget passed by the state Legislature and signed into law by Governor Mark Dayton after the 2013 Session adjourned on time this past May.

The most significant laws that went into effect this week include historic investments in education, which is a big reason why many have dubbed 2013 as the ‘Education Session.’ In my view, this moment marks major progress for students, seniors, business owners, and middle class families.

As a physics and chemistry teacher of more than 20 years, husband of a former teacher, and proud father of three boys, I cannot overstate the importance of providing every child with a high-quality education.

By restoring our commitment to educational excellence, our new budget develops a highly-educated workforce that helps attract and retain major employers who provide great jobs for our residents. Our budget also provides a significant tax cut for Minnesota employers, which is a big deal for our businesses as we continue to emerge from the Great Recession.

Here’s a breakdown of the major pieces of legislation that went into effect this week.

EDUCATION:

All-day Kindergarten for every child and early learning scholarships to help thousands of families send their kids to preschool.

$485 million investment in K-12 education over the next two years, with roughly half going towards the basic school funding formula (1.5 percent increases each year).

Accelerated repayment of the school shift using any surplus in the General Fund at the end of fiscal year 2013.

Two-year tuition freeze for resident undergraduates at the University of Minnesota and all undergraduates at the MnSCU system.

JOBS AND ECONOMIC DEVELOPMENT:

$30 million investment in the Minnesota Investment Fund (MIF) to fund proven job creation strategies like low-interest business loans.

$24 million investment in the Job Creation Fund to help businesses make capital investments and create good jobs.

New funding to support the Minnesota Trade Office in China and build three additional offices (one of which is designated for Germany) to help Minnesota businesses sell their goods and compete in foreign markets.

TAXES:

$346.5 million in tax cuts for Minnesota employers by lowering Unemployment Insurance payments—the largest business tax cut in State history.

$400 million investment for middle class property tax relief, with direct relief for homeowners and renters as well as increased aid for local governments to help continue providing high-quality services like police officers and firefighters.

Wealthiest two percent of Minnesotans chip in a little more in income taxes to help pay for investments in priorities like education (only affects earned income above $250,000 per year for joint filers and $150,000 per year for single filers).

NURSING HOMES:

Five percent pay increase for nursing home workers and one percent pay increase for long-term care workers—the first raise in over four years.

A complete overview of the new laws can be found here. Please feel free to contact me with any questions, comments, or feedback.

You can reach me by phone at (651) 296-5387, by email at rep.will.morgan@house.mn, or by postal mail at 401 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.

I hope you and your loved ones have a great Fourth of July weekend!