Two years ago, Minnesota was facing a half-billion-dollar budget deficit, the state's savings account was nearly dry and the DFL Legislature was in the final stages of crafting a two-year budget to finally put Minnesota on solid financial footing. Republicans accused Democrats of overspending, overtaxing and not being careful with Minnesota's still-fragile economy.
Today — at the end of the two-year budget cycle — the deficit has turned into a $1.9 billion surplus, the budget reserve is at the highest level in history and Minnesotans are benefiting from historic investments in priorities like all-day kindergarten. Now, Republicans, who accused the 2013 investments of being too rich, are clamoring to send every penny of the state's surplus out the door.
The Republican tax bill cuts more than $2 billion in taxes (resulting in $4.5 billion in cuts once all provisions are phased in). If it sounds too good to be true, that's because it is. Republicans claim they are helping the middle class, but in reality they give the middle class a one-time tax break, while the very rich get ongoing tax cuts — which unsustainably balloon our budget in the future. This does not responsibly build a better Minnesota.
If we have learned anything from the first decade of the 2000s, it's that economic recoveries can disappear in a flash. Senate Democrats have crafted a budget with an eye to the future. We dedicate $250 million to the budget reserve and undo accounting shifts from previous legislatures. While we do not spend every dime, we do give a significant portion of the surplus back to Minnesotans. We keep Minnesota moving forward by focusing on Minnesota's youngest learners, property taxpayers, our veterans, and college students and their families.
Half of our investments are dedicated to students. We invest in our earliest learners to ensure that they are ready for kindergarten by expanding affordable, proven pre-K options. We expand the state's education credit, which benefits at least 16,800 new families paying for early learning or E-12 expenses, saving the average household $285 every year.
Every property taxpayer will see property tax relief from the Senate DFL budget — including farmers, businesses, and home and cabin owners. We reduce the statewide business property tax and extend more refunds to farmers and homeowners who have seen the highest property tax increases.
We also continue the state's important partnership with local governments by providing local government aid to cities and towns across the state — treating all equally under the formula.
Our budget focuses on our 369,000 veterans. Since 2001, Minnesota has had one of the highest veteran unemployment rates — especially those serving since 9/11. To address this problem, we offer the Veterans Jobs Credit to businesses that hire unemployed veterans.