State rushes to provide benefits to veterans

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State lawmakers have introduced dozens of bills this session designed to help active and retired members of the armed services and their families. The benefits range from property tax credits to special license plates. With 2,600 Minnesota National Guard troops expected to return from Iraq this summer, Gov. Pawlenty says a comprehensive package of military and veterans' legislation is at the top of his agenda.

"Who should be a higher priority than the men and women serving in our military to get some of the benefits of the budget surplus that we have currently? I mean who should go to the head of the line ahead of them? The answer is nobody. These people should be taken care of first and foremost to the best of our abilities," Pawlenty said.

Pawlenty's $75 million proposal includes an exemption from state income tax for military pay and pensions. Another proposal would give eligible veterans and their dependents up to $1,000 per semester for college tuition costs not covered by federal benefits.

Assistance, outreach and reintegration programs would get a funding boost. There's also money to upgrade National Guard armories and state veterans homes.

Clark Dyrud, commissioner of the Minnesota Department of Veterans Affairs, isn't surprised by the outpouring of support. Dyrud, who's been working with veterans since 1973, says policy makers learned an important lesson from Vietnam.

"No matter what the issues regarding the war are, the warriors are honored and respected," he said. Dyrud was at the Capitol earlier this week for the announcement of an expanded military health care network in the state. In his two years as commissioner, Dyrud says he's never heard anyone question the need for veterans benefits.

"There's an understanding among the general public, there's an understanding by this governor in particular as well as Democrats, Republicans, House, Senate, there's an understanding that soldiers are performing an amazing job right now. And there's a willingness to recognize that service," he said.

Still, lawmakers' enthusiastic support for the troops hasn't stopped them from raising questions about one of the governor's proposals.

Sen. Tom Bakk, DFL-Cook, chairman of the Senate Taxes Committee, says he's concerned about the ongoing, annual cost of an income tax exemption for military pay and pensions. The governor's office estimates the initial two-year price tag at $16.5 million. But after a four-year phase in, the cost grows to $42 million. Bakk says he wants to help veterans, but he also wants to protect the state budget. "A lot of other people are going to want to kind of get on that train," he said. "Firefighters are certainly going to come here and say, 'Gosh, you know our lives are in jeopardy every day.' Police officers will come and say that and are going to make a very strong case. So exempting pensions permanently is a very large issue," according to Bakk.

Bakk says his immediate concern is for the people serving in the military today. He supports the idea of targeted assistance to Minnesota National Guard members and their families. The head of the House Taxes Committee is taking a similar approach. Rep. Ann Lenczewski, DFL-Bloomington, says she'll look at several options for helping military families, including one-time tax breaks.

"We would certainly look at active military pay, which we're doing that now," she said. "There could be enhancements there. There could be additional straight up appropriations, which would certainly be in the one time category but could be renewed biennially or more. But that would get immediate relief to families dealing with financial situations now."

Both Lenczewski and Bakk say their committees will begin looking at proposed tax breaks for active and retired soldiers later this month. Lawmakers are expected to pass some form of a benefits package in advance of the scheduled return of Minnesota soldiers in July.

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