Dayton rolls out revised budget plan

Governor Mark Dayton rolled out his revised budget plan today, reflecting adjustments required after the February forecast trimmed the projected 2014-2015 budget deficit from $1.1 billion to $627 million.

Here are the key changes in the proposal compared to Dayton’s original budget:

  • All sales tax reform is removed from the budget:  no business sales tax expansion, no expansion of consumer sales taxes to services, and no reduction in the sales tax rate.
  • The $500 property tax refund has been removed, although Dayton does invest an additional $18 million in increasing the pool for the renter’s property tax refund.
  • The cut in the corporate income tax rate has been removed, but changes to eliminate tax breaks for foreign operating companies and foreign royalty payments remain in the budget, raising about $370 million.
  • The proposed school shift payback in 2016-2017 has been removed from the budget.  Dayton would continue with current law, paying back the remaining shift as surpluses come in.

Dayton’s spending plan remains essentially unchanged from his original proposal.

Legislative reaction fell as expected along party lines.  Democrats, many of whom were wary of Dayton’s business sales tax proposals, were more positive about this budget.

“For too long we have seen our budget deficits resolved by deep cuts to the middle class and one-time fixes,” said House Speaker Paul Thissen. “That approach has only given us more deficits, higher property taxes, and larger classroom sizes. It is high time we reject the status quo and build a budget that positions our state to thrive in the future.” (via kare11.com)

One point of contention among DFLers is likely to be Dayton’s failure to address the school shift.  Expect a DFL legislative budget that includes a partial shift payback.

Republicans, meanwhile, continue to call for the budget deficit to be closed by reducing spending.

“I think it’s time for the people of Minnesota to weigh in on all of the taxes and just ask the question, do you need high taxes to grow the economy? We don’t believe so,” said Senate Minority Leader David Hann, R- Eden Prairie. (via MPR)

GOP legislators have yet to introduce a budget proposal of their own, continuing a regrettable trend of legislative minorities choosing to complain from the sidelines instead of producing something that can be matched up side-by-side.

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6 Responses to “Dayton rolls out revised budget plan”

  1. The GOP could produce a budget, but it would be a waste of time. It would never, ever, get a committee hearing anyway with the current goof balls in charge. In fact, I’m betting Dayton’s doesn’t either.

  2. Sounds like the budget may be too small for many DFL’ers. 40 billion still a possibility? Wait and see.

  3. Uh-oh. The wish list is getting bigger once again….. Wait for it…. Wait for it…. The DFL spendaholics are working hard to spend more of our hard earned money.

  4. Wow. I hear we’re up to 39.3 billion. Pretty close to my prediction of 40. Are we done yet?

Trackbacks/Pingbacks

  1. GOP’s phony baloney budget math | Brick City Blog - April 5, 2013

    […] the specific budget bills in each area shortly (in fact, they are overdue at this point).  Like Governor Mark Dayton’s budget proposal, the legislative budgets each total around $38 […]

  2. Which tax provisions will survive? | Brick City Blog - April 30, 2013

    […] committee where it will be reconciled against the House’s version of the bill as well as Governor Mark Dayton’s budget proposal.  This may prove to be more work than expected, given that all three parties in the negotiations […]

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