MN SENATE vs. HOUSE POSITIONS ON $900 MILLION SURPLUS

The positions of the DFL majority in the MN Senate and the Republican majority in the MN House are becoming clearer regarding current and future state spending. 

The Republicans want to hold the line on the state budget and split the surplus between infrastructure needs and tax reductions. 

The DFL wants to spend half of the surplus on several state government initiatives, offer some tax relief while primarily relying on a gas tax increase to fund infrastructure needs.

MID-APRIL POSITION ON THE 2016 SURPLUS

  • Senate DFL:  allot 37% to transportation spending and tax reductions; 50% to other government spending; 13% TBD
  • House Republicans:  allot 99.8% to transportation  spending and tax reduction; 0.2% to other government spending

MID-APRIL POSITION ON 2016 ROAD AND BRIDGE MAINTENANCE SPENDING

  • Senate DFL:  allot 3.5% of budget surplus to transportation; pass a $1.4 billion bonding bill; raise rest of needed funding through an increased gas tax
  • House Republicans: allot TBD % (likely $300-500 million) of budget surplus to transportation; pass a $600 million bonding bill ($7 billion over 10 years);  transfer of $300 million in sales taxes on auto parts and repairs

PROPOSED TAX REDUCTIONS

  • Senate DFL:  $300 million focused on property tax relief and credits for veterans; impose a new gas tax to raise $billions for transportation spending over the next decade
  • House Republicans:  $ TBD (likely $400-$600 million) in income tax reductions

PROPOSED 2016 SPENDING ON RACIAL EQUALITY

  • Senate DFL:  spend $91-$100 million of the 2016 surplus on new programs
  • House Republican:   implement education reforms and shift current budget funding to workforce programs

For more details on where the legislature is at the mid-point of this session, please CLICK HERE to read “Not Adding Up:  Halfway through Session, Legislative Leaders Remain Far Apart on Key Issues,” by Briana Bierschbach in the April 19, 2016 edition of MINNPost.

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