Legislative Update, May 7, 2012

Good morning. Gov. Mark Dayton vetoed the tax bill Friday morning citing that the bill would reduce the state’s budget reserve for the current biennium and increase the projected $1.1 billion deficit for next biennium by another $145 million. Dayton also said in his veto letter that while the bill provides property tax relief to businesses, it would give very little relief to homeowners and none to renters, seniors and farmers. Dayton said the “imbalance is unfair.” Republican leaders said the bill would have created thousands of new jobs and said House and Senate conferees who negotiated the tax bill made a number of changes to accommodate Dayton’s concerns with the bill.

Dayton said he vetoed the bill early upon receipt so that it wasn’t tied to the stadium vote today; however, the veto could certainly put the stadium vote in jeopardy. Dayton told legislative leaders he is available to continue the development of a bipartisan tax bill. On Friday, he said he and legislative leaders were close on a tax bill, but could not agree on the fiscal tails that would increase the state budget deficit. House Speaker Kurt Zellers, R-Maple Grove, said he would like to negotiate a new bill, and said he believes it’s a “good idea” to pass a tax bill this session.

Lawmakers are back in session today; the House meets at 10:00 a.m., and the Senate meets at 1:00 p.m. The House is expected to take up the bonding bill and the Vikings stadium bill.

As for the bonding bill, a new bill has been released that will be taken up on the floor today. In the bill, Minnesota State Colleges and Universities would receive $132 million in projects and HEAPR, which is $94.7 million in state financing. The spreadsheet for the new bill can be found at the following link:

http://www.house.leg.state.mn.us/fiscal/files/bond12_2.pdf.

Thank you.

Melissa Fahning
Legislative Communications
Minnesota State Colleges and Universities
30 7th St. E., Suite 350
St. Paul, MN 55101
(651) 201-1757
(612) 483-3741 cell
melissa.fahning@so.mnscu.edu

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