This morning at the Minnesota Department of Revenue, Governor Mark Dayton unveiled his much anticipated proposed budget for Fiscal Year 2012-13. He was joined by Commissioner Jim Schowalter, members of his Cabinet including Education Commissioner Brenda Cassellius, and officials from Minnesota Management and Budget.
According to a press release from the governor’s office, Dayton’s budget increases funding for education, holds down property taxes, and reforms state government to maintain core services. Dayton’s budget would increase taxes on the top 5% of earners while ensuring no tax increase for 95% of Minnesotans. The Governor proposes a new 4th income tax tier at 10.95% for joint filers over $150,000 and head of household filers over $130,000; and a temporary income surtax of three percent for all filers over $500,000. He also proposes a statewide property tax on home values over $1,000,000. In addition, Dayton’s budget promotes tax equity and closes numerous loopholes that allow businesses and residents to file taxes outside of Minnesota. Meanwhile, the budget would raise revenue to address Minnesota’s financial crisis and lingering deficits.
“I have always said that a budget is about values and priorities, as well as dollars and cents,” said Governor Dayton. “My budget represents my values and priorities, one of which is to keep my promises that I made to the people of Minnesota last fall.”
What else would Dayton’s proposed budget do (taken from our live Twitter feed?
• Increases eligibility requirements and rate reductions for longterm care programs.
• Cuts 7,200 people from MNCare, with incomes above 200% of fed poverty level.
• Places heavy emphasis on leveraging federal funds to improve health care delivery and enrollment systems.
• Protect core safety net programs and slow expenditure growth – both with fairness in mind.
• Includes $500mill in savings from “results management” initiative that will use “LEAN” techniques.
• Repay shift 10% per year, starting in 2014. Similar to previous shift payback.
• Includes optional all day K, early childhood rating system, “eliminates small programs that divert resources.
• No reductions in LGA programs, fully funds Property Tax Refund program.
• Includes increase in debt service, makes room for the bonding proposal.
• “Health care surcharges” will raise $877mill in the 12-13 budget.
• 95% of MN citizens will see no tax increase, top 5% will see increase in taxes, 10.95% 4th tier rate, top prop tax rate increase.
• Reduces HHS budget by 2.8% from forecast.
Dayton’s budget is included in its entirety, here.
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