Building on Minnesotas Progress

House DFL Supplemental Budget & Plan for $1.2 billion surplus
Fresh off the success of passing tax cuts for more than one million Minnesotans, House Democrats are moving forward with a supplemental budget to build on Minnesotas progress. Minnesotas growing economy and strong budget passed in 2013 created a $1.2 billion budget surplus. The legislature has moved quickly to utilize about half of that surplus already, approving $443 million in tax cuts and directing $150 million to bolster the states budget reserve. The House supplemental budget, which includes $322 million in investments and the tax bill will build on that progress with priorities that put middle class families, students and seniors ahead of wealthy special interests:

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Statewide investments in Greater Minnesota job creation through broadband investments and economic development resources. Education funding increase for every school in the state. 5 percent wage increase for home-and-community-based health care workers who provide care for the elderly and disabled. Critical transportation funding to repair potholes and make investments in highways, roads and bridges. $103 million in additional tax cuts for Minnesota homeowners, renters, farmers and small businesses (will be carried in Tax Bill 2).

E-12 and Higher Education: $92 million

Funding increase for every school: Provide a 1 percent formula funding increase for K-12 schoolsan increase of $58 per pupilto help address the costs of teacher evaluations and to further improve education outcomes. Early education investment: Provide more Minnesota children with access to affordable, high-quality early learning opportunities.

Fully fund school lunches: Fully fund reduced price for school lunches to ensure no Minnesota child is turned away in the lunch line (passed off House floor). Reduce special education paperwork: Establishes an online, statewide special education paperwork system to reduce special education teacher time spent on paperwork. Higher Education investment: Invest in our higher education institutions to improve students access to an affordable college education.

Health and Human Services: Seniors & Caregivers$91 million

Caregiver increase: Provide an additional 5 percent increase for home and community-based health care workers who care for the elderly and disabled. Rural nursing home increase: Increase funding for rural nursing homes by $2 million, providing a rate increase to nursing homes for employees making $14.00/hour or less.

Senior Nutrition: Provide $425,000 for nutritionally balanced meals for seniors at community congregate dining facilities. This proposal mainly impacts rural Minnesota seniors.

Jobs and Economic Development: $37 million

Broadband Access: $25 million in broadband access grants for Greater Minnesota. Areas of the State with low broadband connectivity will receive priority.

Support for Greater MN Businesses: $6 million in one-time funds for the states six Initiative Foundations revolving loans and gap financing for small businesses. Since 1985, the six Greater Minnesota Initiative Foundations have leveraged more than $1 billion and created or retained more than 40,000 jobs. The bill also includes $500,000 to the network of Small Business Development Centers (SBDCs) to provide expert advice and consulting services designed to get small businesses up-and-running.

Job-Retraining for Minnesota workers: Provides a $1.6 million increase to the Job Skills Partnershipgrant program that assists businesses with training skilled workers and $1 million for a Job Training Grant pilot program that would offer grants to employers to offset the cost of training new employees.

Transportation: $50 million

Pothole repairs: Provide $25 million to help local governments throughout the state address the need to repair potholes after the worst winter in recent memory.

Corridors of Commerce: Build on progress last session with $10 million in further investment in Corridors of Commerce funding for statewide highway repairs.

Rail Safety: Increases firefighter training and adds rail safety inspectors to improve Minnesotas railroad and pipeline safety. Safe Routes to School: Increases funding for Safe Routes to Schools to help Minnesota students get to and from school more safely.

Public Safety and Disaster Assistance: $36 million

Increased public safety resources: Provide $36.5 million from the General Fund to support the Department of Corrections, in addition to funding specific public safety bills assisting crime victims, such as enhanced penalties for repeat criminal sexual offenders.

Ultimate Unsession Bill: Establishes a Disaster Assistance Contingency Account to provide critical disaster relief without the need for a special legislative session, saving time and taxpayer dollars.

Agriculture & Environment: $16 million

Farm-to-Foodshelf: Invests $1.5 million in Farm to Food-Shelf fundingfunding goes to Second Harvest to reimburse food producers for labor costs when producers donate surplus food to food banks. Second Harvest estimates this program would generate 10 million pounds of fresh food for food shelves around Minnesota, which would turn into 7.6 million meals.

Fight Invasive Species: Establishes the Terrestrial Invasive Species Research Center. The Center will conduct research on invasive and problematic plants and pests in MN and traveling to MN. The overarching goal of the center is to give farmers and growers more tools to address terrestrial problems facing the state.

House DFL Budget By the Numbers

ALREADY PASSED
$443 million in middle-class and business tax cuts for more than one million Minnesotans $20 million in assistance for Minnesotans affected by propane crisis. $150 million increase in state budget reserve

HOUSE SUPPLEMENTAL BUDGET

$37.4 million in targeted investments in job creation and bonding $92 million in targeted investments in E-12 and Higher Education $91 million in HHS funding, primarily for caregivers and nursing homes $50 million in transportation funding $36 million in public safety $16 million in environment and natural resources & agriculture

YET TO COME THIS SESSION

TAX BILL 2 $103 million in additional tax cuts for homeowners, renters, farmers and businesses. ($443 million in middle-class and business tax cuts already approved) BONDING BILL $132 million for debt service on $850 million bonding bill and additional resources for capital projects. WOMENS ECONOMIC SECURITY ACT Funding provisions included in the Womens Economic Security Act *$31 million left on bottom-line ($150 million already dedicated to the budget reserve) *$515 million surplus projected for our next budget cycle in FY 16-17.