2013 Legislative Session

What the 2013 state budget means for rural families... Rural Minnesota Pays More for Less
Rural Minnesota families will pay more for historic tax-and-spending increases, but receive lower priority for state funding. Families can expect to pay more for: Energy bills • Health insurance • Income taxes Vehicle registration • Paint • Groceries Rural Minnesota receives less: K-12 education funding • Local Government Aid (LGA) • Legacy funding Roads and bridges funding • Nursing home funding • Hospital reimbursements

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Government Overreach Burdens Our Quality of Life
Metro legislators proposed overreaching legislation that burdens our enviable way of life. Overreaching burdens: • Underfunded metro mandates imposed on our schools take away local control • Forced unionization of independent childcare providers • Anti-gun, anti-Second Amendment proposals

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Protecting Our Nursing Homes, Group Homes and Hospitals
Members of the Rural Caucus worked hard to protect our nursing homes, group homes and hospitals, because we understand the availability and accessibility to long-term care facilities and critical care is not only crucial for our aging populations and their families, but also fundamental to the survival of our rural communities.

Taxes & Spending
Every man, woman and child will pay more under the historic 2013 tax-andspend budget. EVERYONE PAYS MORE • $2.1 billion in new taxes • Hundreds of millions in fees WASTEFUL SPENDING • $3 billion in new spending • Government set to grow by 10%, while the economy lags behind at 2% growth • 1,300 new government jobs BURDENS ON RURAL MINNESOTA • New warehousing and storage tax will raise the cost of gas and groceries • 70% of property tax relief goes to the metro • Mom and pop shop taxes increased • Cigarette tax upped to $2.83/pack • Tens of millions of dollars went to Minneapolis, St. Paul bailouts

Education
Our schools will see a negative impact to their budgets when they are asked to do more with less. MANDATES CANCEL OUT FUNDING INCREASES • Per pupil funding increased by $158 • Underfunded special education • All-day kindergarten expansion creates undue hardships on rural schools that don’t have the necessary infrastructure to house more students • New layers of state bureaucracy have the authority to take away local control and withhold funding MINNEAPOLIS, ST. PAUL PRIORITIZED OVER RURAL SCHOOLS • Mpls/St. Paul schools: $13,700 per student • Rural schools: $9,900 per student • Rural students have higher graduation rates, test scores and better performance than many of the schools that receive the most funding

Agriculture
FARMERS WILL PAY MORE

Environment, Natural Resources & Energy
RURAL MINNESOTANS WILL PAY MORE • Energy bills will skyrocket because of new solar power mandates • Paint will cost more to pay for a duplicative recycling program • Dozens of new jobs at the DNR and MPCA NO PERMITTING REFORM • Permitting reform helps cut red tape that scares many job providers from expanding or relocating here, but no reform bills were heard in committee

• Sales tax expansion on labor for equipment repairs, plus new warehousing and storage taxes • Business-to-business tax expansion • Cost hikes (direct and indirect) associated with all tax increases

Jobs & the Economy
The 2011 Republican budget forced government to live within its means. Our commonsense approach resulted in surpluses, more investment in the private economy and lower unemployment. The 2013 budget changes the course of this economic recovery. AT RISK: JOBS & ECONOMIC RECOVERY • Government will grow 5 times faster than the economy • Historic new taxes competitiveness lower our state’s

Health Care
Even with over $2 billion in higher taxes, the health and human services (HHS) budget includes irresponsible cuts and unsustainable accounting gimmicks. Hardworking taxpayers will be on the line for over a billion dollars in HHS deficits by 2020. RURAL MINNESOTANS WILL PAY MORE FOR HEALTH INSURANCE • Federal health care expansion and overreaching mandates in the state’s health insurance exchange will drive up premium costs for everyone • Rural Minnesota is at risk of subsidizing expensive metro health care Caregivers Count • Nursing home caregivers received a 5% rate increase

• The Dakotas, Wisconsin and Iowa are already competing for our jobs

Billboard placed near Moorhead, Minnesota.

• Unfortunately, personal care attendants only received a 1% rate increase, making it difficult to retain local quality staff

Transportation
RURAL MINNESOTANS WILL PAY MORE • Metro Light Rail life support • Metro Transit subsidies for bus and rail • Driver’s license fee increased • Wheelage tax doubled

Local Government Aid
The Local Government Aid formula was changed to send more money to the metro. The split has traditionally favored Greater Minnesota 69/31 but it’s headed to 50/50. Out of the $80 million in increased funding this year, $22 million goes to Minneapolis/St. Paul.

TRANSPORTATION 0.6% ENVIRONMENT & AGRICULTURE 0.8% JOBS & ECONOMIC DEVELOPMENT 1.0% STATE GOVERNMENT 2.4% CAPITAL INVESTMENT 3.9% PUBLIC SAFETY & JUDICIARY 5.0% K-12 EDUCATION 40.9%

HIGHER EDUCATION 7.3%

How your tax dollars are spent
HEALTH & HUMAN SERVICES 29.9%

TAXES 8.1%

Your Tab for the 2013 Legislative Session

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