Minnesota Republican Budget Plan Features $2 Billion Tax Cuts

Daudt
Daudt

House Republicans want to cut Minnesotans’ taxes $2 billion and increase state spending $1.5 billion in the next two years.

House committees are to work out the details after GOP leaders this morning announced spending targets for each finance committee.

While Republicans promoted the budget growth, Democrats said the plan does not allow as much growth as already planned.

House Speaker Kurt Daudt, R-Crown, said the House Taxes Committee has not decided who would receive tax cuts. However, he said that most would go directly to Minnesotans, not businesses.

The idea is to “put money back into the pockets of working Minnesotans,” Daudt said.

House Minority Leader Paul Thissen, D-Minneapolis, said he expects tax relief to mostly go to corporations who politically support Republicans.

The Republican plan would send back in tax cuts the same amount as projected for a state budget surplus in the next two years. Daudt earlier had said that he did not expect to refund all of the surplus, but state Republican Party Chairman Keith Downey led a campaign to “send it all back.”

Overall, the GOP proposes modest health and human services spending growth from current spending, and Daudt said he expects at least $160 million more for long-term care spending, such as for nursing homes and home care for the elderly and disabled.

Thissen repeatedly compared the Republican proposal to 2011, when state government shut down after the two major parties could not agree on a spending bill.

“It’s a recipe for getting nothing done and shutting down government,” Thissen said.

Republicans said their plan matches what happens in families: not spending more than is available.

“Government spending should not grow faster than family budgets,” Daudt said, echoing comments Republicans made in last year’s campaigns. “We set our budget targets with that value in mind and aimed to prioritize education, roads and bridges and protecting our aging Minnesotans’ quality of life.”

Republicans propose increasing higher education spending $103 million and early-childhood-through high school funding by $1 billion.

Chairman Jim Knoblach, R-St. Cloud, said the increase would be enough to freeze either the University of Minnesota or Minnesota State Colleges and Universities tuitions, but not both. Dayton proposes to freeze tuitions for both systems.

Democrats tend to figure spending based on what had been expected to be spent in the next two-year budget, while Republicans compared it with what actually is being spent in the current budget.