Plymouth State Rep on Minnesota's Budget, Xcel Energy Hollydale Line and Daycare Unions

by Minnesota State Representative Sarah Anderson (44A)

Last week the Democrat-controlled House and Senate came out with partial spending targets for each area of the budget. Below are highlights of the House Democrat proposal compared to Governor Dayton's revised budget, along with a recap of our current state of affairs.

State of Minnesota's Economy

• over $3 billion surplus for 2012-13
• $782 million surplus projected for 2016-17
• repaid 2011 education shift
• improved 2014-15 budget by $3.8 billion
• 5th straight forecast of economic improvement

House Democrat Budget Outline

• $2.4 billion tax increase
• Tax increase includes adopting Governor Dayton's 4th income tax bracket of 9.85 percent for couples at $250K
• Tax increase adds 5th tier income tax bracket
• Increases spending from $35.2 billion to at least $39.3 billion (11.6 percent increase)
  · Includes $800 million bonding bill in non-bonding year
• Cuts spending to Health Human Services budget by $150 million
• Cuts transportation spending by $20 million

In response to the Democrat House addition of a 5th tier income tax bracket, Governor Dayton had this to say, "I'm not enthusiastic about it. I do think it goes too far increasing the rate on the top earners." (MinnPost)

You can view Dayton's response to the House plan here along with Democrat Senate Majority Leader Bakk's comment that he's looking to increase income taxes on the top 5 percent rather than Dayton's top 2 percent.

http://www.myfoxtwincities.com/story/21750405/tax-surcharge-dayton-says-house-tax-on-rich-goes-too-far

Governor Dayton's Tax Plan

• Adds 1,000 state employees—an 11 percent increase
• Increases spending $2.7 billion - a more than 7 percent increase in spending
• Raises $1.83 billion in taxes
• Applies $1.1 billion tax increase on small businesses
• Increases metro specific sales tax

Hollydale Power Line

My bill requiring Xcel to obtain a certificate of need for the Hollydale Power Line passed out of committee and goes to the House Floor next.

Daycare Unionization

This week I met with Plymouth daycare providers about the bill to unionize their private businesses.  The response from the group of women was that if the state is going to unionize them, they would rather quit.  That doesn't help families who need child care providers.

The bill unionizing in-home daycare providers continues to move forward in the Legislature despite opposition from the independent, privately-owned daycare providers.  Here is a breakdown of what unionization will mean to these daycare business owners and to families who have children in child care.

http://www.mnactionnetwork.org/ChildcareUnionization

Health Insurance Exchange

The bill creating the Minnesota Health Insurance Exchange (HIX) was signed into law.  The Exchange is supposed to offer consumers a more affordable health care option.  Unfortunately, as it is designed, you will see an increase in your premiums. 

It's beginnings are telling.  Just this week, HIX unveiled their brand of MNSure for which they paid $160,000. 

The former House Health and Human Services Chair, Jim Abeler, sums it up best in this article: http://www.startribune.com/opinion/comment