Today, the Senate Omnibus Tax Bill was released. The committee will now proceed to public testimony and amendments on the bill.
“I am excited that the bill I authored for a Tax Reciprocity Study is included in this bill,” said Senator Reinert. “This is a necessary step to get the process going again. However, realistically a new deal is not likely to be in place until tax year 2012 at the earliest.”
There were only three bills authored by DFL members included in the Omnibus Tax Bill. Also included is a bill Senator Reinert co-authored, which sets the parameters of negotiating a new tax reciprocity deal with Wisconsin, once his study has been completed.
The bill also includes Senate Republican recommendations for Local Government Aid. These proposed cuts are more favorable to Duluth than the proposal in the House, where LGA would be totally eliminated. Right now the Senate bill would reduce LGA to Duluth by around $3.5 million in 2011. This would make the aid the same amount the city received in 2010, or $27.4M. The amount for 2012 would also be the same.
“Overall, this bill is a good starting point,” Senator Reinert said. “This session is going to be about making the best of a bad situation. If we can examine the bill in a thoughtful way, and spread cuts equally and fairly, that’s the right starting point.”