DFLers in the Minnesota Senate announce a budget that doesn’t include a tax increase
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Senate DFL leadership is putting forward a budget proposal that relies on existing revenue and doesn't include a tax increase. Lawmakers have been busy putting together their two year budget proposals this week after state finance officials announced last week that the state has an extra $2.1 billion to spend. Half of that money is left over from the existing budget. The other half is expected to come in over the next two years. Senate DFLers plan to put a large part of the surplus into the state's budget reserve to prepare for an economic downturn. The other priorities include more money for special education programs, increased health care coverage and higher education. Several lawmakers and special interest groups have been lobbying Governor Pawlenty and state lawmakers to increase taxes to pay for additional programs. House DFL leadership has not released their budget specifics. But they have said they can pay for new priorities like All Day kindergarten and property tax relief with the existing surplus, increased tax enforcement and by closing loopholes on foreign operating corporations. Governor Pawlenty opposes a tax increase.
Here's the info:
Senate Finance Division Targets -- 2007 Session
(target amounts are relative to Forecast Base) FY 08-09
Budget Division Target
(in thousands)
E-12 Education $498,000
Higher Education $296,000
Health and Human Service $245,000
Agriculture and Veterans $32,000
Environment, Energy and Natural Resources $20,000
Economic Development $34,000
Transportation $64,000
Public Safety $75,000
Judiciary $65,000
State Government ($10,000)
I'm not sure if the Senate plans to close a loophole on Foreign Operating Corporations or gets any money from increased tax enforcement. This also doesn't specify if there will be any property tax relief.
UPDATE :
Senate Tax Chair Tom Bakk says he intends to find money for property tax relief by closing a tax loophole on businesses with operations outside the country. Some Republicans call that a tax increase on businesses.
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