We got considerable help on recovery from the tornado. I got the Republican chair to put four different things in the tax bill. The most important is allowing the city to create a Tax Increment Financing district for revitalizing Northside housing, and using extra money from lucrative TIF districts around the city to fund our housing. Normally that pooling of money isn’t allowed because it takes money away from other cities. We also got millions to help homeowners with tornado damage pay for high deductibles, damage not covered, and meeting required codes.
Public safety is an important issue. However, there were cuts to services for women and children who are raped or battered, to anti-gang and drug efforts, and to firefighter training. Since many ex-prisoners live in our community, we will be harmed by the cuts to probation and reentry services which help them become responsible, working neighbors. There were a few good points. Reserve police officers and utility and postal workers were given new protections (I was the lead on this). An important law bars many new dangerous illegal synthetic drugs and allows the state agency to ban new substances which only slightly alter a molecule (much of this law was in a bill I authored). There are new penalties for unjustified attacks on police dogs and for organized retail crime, including shoplifting.
Dayton was elected Governor on a platform of making the rich pay the same rate in state and local taxes as the rest of us. However, the Republican-controlled legislature wouldn’t compromise to increase income taxes on the wealthy even a dime. Republicans convinced many voters that an increased rate for those making adjusted gross incomes over $250,000 (roughly $310,000 gross income) would kill jobs with small businesses who are taxed like individuals. That wasn’t correct; it only affected 5 percent of small businesses, (research shows businesses aren’t hiring because of uncertainty about the economy and the federal government). Thus, Dayton had to agree to borrow from school districts and from future revenue to pay present operating expenses. (Previously, 132 of 134 representatives voted against this).
Much of the state is unhappy about the Republican abolition of the Market Value Homestead Credit. It means over $500 million won’t go to cities to lower property taxes. While most of Minneapolis homeowners will see an increase in property taxes because of it, our area will see a reduction for a few years because we live in a city with high taxes in an area with comparatively low valued homes. Our homes under $170,000 should see a reduction. However, small business taxes will increase. (This analysis assumes total tax in the city remains constant). There is also an increase in the Property Tax Refund: the maximum is increased from $2,410 to $2,460, the income range for the max goes from $3,000 to $37,000, and the required co-payment is slightly decreased. The Renters Tax Refund is reduced from 19 to 17 percent. Property taxes would have increased much more if it weren’t for Governor Dayton stopping much of the Republican plan.
Minneapolis Public Schools will get an additional $9 million over two years, thanks to Dayton. The Republican legislature was going to cut MPS by $9 million (originally the House wanted to cut $27 million) including abolishing integration aid and slashing funding for low-income and special education students.
Dayton forced the Republicans to agree to a half billion dollars in capital investments (14,000 jobs expected). Our state economist said that was all we could do to boost our economy. It directly affects our community: Plymouth Avenue Bridge, Wirth Park facilities, University of Minnesota, Hennepin Technical College.
National studies show that a strong public college and technical school system is important to a state’s economy. However, there was a $250 million cut (the highest in recent history) which will probably cause tuition to rise by over 10 percent.
Services for the elderly and disabled are cut $200 million (Republicans tried to cut over $250 million).
Unless the attitude of the Republicans changes, I expect a more contentious session next year. They saved most of their extreme policy law changes for next year. They have already indicated their intent to repeal many abortion rights, health care rights, workers’ rights, women and minority rights, consumer rights (especially protections in insurance and banking), and rights against polluters. One Republican told me, “We’ve held back our ideas for 38 years because we knew the DFL controlled Senate would block them. Now they can’t.” I expect Dayton to veto most of them. But, they tell me they’re going to put dozens on the ballot as constitutional amendments. Moreover, it appears there will be a budget shortage, so there’ll probably be another showdown (and possibly shutdown) between the Governor and those Republican legislators who probably will again refuse to compromise.
Editor’s note: The Camden News asked Representative Mullery to write a recap of the Minnesota Legislative Session. The opinions expressed are his, and do not reflect the opinions of the Camden News.