| For Immediate Release | For more information contact: |
| June 12, 2001 | Doug Champeau (651-296-4305) |
ST. PAUL -- Rep. Jerry Dempsey (R-Red Wing/Hastings) today called on Governor Jesse Ventura to break the budget impasse at the legislature by publicly lending his support to the House property tax reform plan.
"It's the Governor's property tax reform plan," Dempsey said. 'The House and the Governor are in agreement. He could break the budget logjam by publicly supporting the tax bill."
Dempsey said the budget impasse began when the Minnesota Senate reneged on a $28 billion biennial budget agreement reached May 25. House and Senate leaders could still not come to agreement on the budget right up to the start of special session on Monday. Dempsey said it was clear that the Senate went back on its word.
"I thought we had a agreement," Dempsey said. "It's very disappointing."
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Under the original May 25 agreement, more than $900 million would have been provided for property tax relief and reform and $912 million in new spending, with the bulk of the new money going to K-12 education. Dempsey said that the agreement would have provided $381million in new money for K-12 education and another $100 to $200 million in equalization aid for schools.
Dempsey said he was especially disappointed that the Senate wanted to rescind parts of the landmark property tax reform and reductions passed overwhelmingly in the House. The tax bill would lower all property taxes and come close to creating a flat property tax rate for homes. Significant rate restructuring would provide, on average, an 18.5 percent reduction for homeowners, 21 percent for apartments, 12 percent for seasonal recreation property, 20 percent for farms, and 10 percent for commercial/industrial property. The bill would also have the state pick up the cost of the General Education Levy.
Dempsey said Minnesota is one of only two states that taxes homes at different rates. At the same time, rental and business property pay some of the highest property taxes in the nation. Right now, House and Senate conferees have reached agreement on two of nine omnibus spending bills -- Higher Education and Environment/Agriculture. But other major spending bills are essentially on hold because they need a tax agreement in order to establish spending targets.
Dempsey says he's unsure what turn the budget negotiations will take. But there's growing speculation about a government shutdown on July 1, the end of the fiscal year.
"We do not need to close down the state government," Dempsey said. "We can get the work done. I'll do all I can to accomplish this goal."
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