House and Senate Leaders Announce Details on Supplemental Budget

Saint Paul, Minnesota – Today, Finance Committee Chairman Richard J. Cohen (DFL-St. Paul) and House Ways and Means Committee Chairman Lyndon Carlson, Sr. (DFL-Crystal) announced more details for a supplemental budget package (HF 3172) focused on improving the state’s education system, providing needed support for community-based healthcare providers, keeping our roads safe, and growing Minnesota’s economy.

Together with this session’s tax cut bills, which will total $550 million in tax relief for families and businesses, the $283 million supplemental budget package will address most of what remains of the state’s projected surplus. The overall target for the supplemental budget has been reduced by $10 million from budget targets agreed upon by House and Senate leaders last week. The budget will be structurally balanced in the long-term, with a $604 million projected surplus in FY 16-17.

“This is a budget that invests in bread-and-butter priorities important to Minnesotans,” said Carlson. “We can continue to grow our economy by focusing on priorities that will expand middle class opportunity, create more jobs, and improve the quality of education for our children.”

“Minnesota is on sound financial footing for the first time in years, and this fiscally responsible budget package will keep us moving in the right direction,” added Cohen. “We have an opportunity to make smart investments in schools, roads, and economic development while at the same time keeping our budget in the black going into the next cycle.”

Sub-targets for the supplemental budget bill (HF 3172):

E-12 Education – $54 million: Additional investment for Minnesota learners from pre-K through high school.

Higher Education – $22.25 million: Enhance post-secondary opportunities across Minnesota.

Health and Human Services – $103.9 million: Provide an additional 5 percent increase for home and community-based health care workers who provide care for the elderly and disabled.

Jobs & Economic Development – $19.8 million: Invest in statewide job creation such as broadband infrastructure (Assumes a total of $30 million in spending when including transfer from Assigned Risk Plan of $10.5 million).

Transportation – $15 million: Provide investments for potholes repairs as well new investments in roads and bridges.

Environment & Agriculture – $12 million

Judiciary & Public Safety – $35 million

State Government & Veterans – $705,000

Other Bills – $20 million: Includes funding for provisions such as the Women’s Economic Security Act and synthetic drugs legislation.

Other spending bills outside the supplemental budget bill (HF 3172):

Capital Investment – $200 million: Provide debt-service for $846 million GO bonding bill and supplement that investment with further investments for statewide infrastructure projects.

Propane Assistance- $20 million: The legislature has already approved $20 million in LIHEAP funding to help Minnesotans who were struggling from the propane crisis.

FY 14-15 Budget Balance: $30 million

FY 16-17 Projected Budget Balance: $604 million

The state legislature has already approved about $450 million in tax cuts this session and over $1 billion in FY 16-17 for Minnesotans and businesses. House and Senate leaders have agreed to an additional $103 million in tax cuts for Minnesota homeowners, farmers and businesses. If this tax bill becomes law, the Minnesota Legislature will have provided $550 million in tax cuts this session – providing tax cuts for nearly 2 million Minnesotans. About one million Minnesotans received tax cuts in the first tax bill passed this session. 940,000 Minnesotans will see property tax relief in Tax Bill 2, including 500,000 homeowners, 350,000 renters, and 90,000 farmers.

The conference committee on the Supplemental Budget bill is expected to meet this evening and tomorrow to work on specifics now that budget sub-targets have been set.

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Senator Richard Cohen
Richard Cohen represents District 64, which includes portions of the city of Saint Paul in Ramsey County.

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