| For Immediate Release | For More Information Contact: |
| May 11, 2001 | Dan Wolter (651) 296- 0640 |
As the Legislature enters final budget negotiations, significant differences exist between the omnibus bills that have passed the House, Senate and those recommended by the Governor. A close look at all three plans shows that House Republicans are the only ones to put forth a balanced plan focused on the right priorities.
The Senate spends the bulk of the state surplus and provides for a puny tax cut. That is hardly 'balance'. The Governor has the right balance with prudent spending increases and significant tax cuts, but his priorities neglect schools and nursing homes. The Republican budget bills provide a balance between spending and tax reductions while at the same time prioritizing education, nursing homes, roads and bridges.
With all omnibus spending bills passed, the DFL-controlled Senate has spent $1.5 billion more than the House and Governor in the current and next biennium and provides a tax cut that is only 40 percent of the House-passed tax bill. While that significant level of spending increase has not been supported by the House or Governor Ventura, it would substantially reduce the tax cut Minnesotans would receive. Under the Senate tax plan, every man, woman and child would receive $300 less in tax cuts than under the House plan, the majority of the $300 being a permanent tax cut.
The Governor does provide for a 5.3 percent spending increase over the next biennium, which is consistent with total House spending. Governor Ventura's budget also provides for significant tax cuts, but it also provides for almost $500 million in sales tax increases to services and labor. House Republicans have said 'no' to those increases strongly believing that tax burdens should not be increased, especially at a time of a substantial surplus.
Living under the same spending parameters as the Governor, the House spending bills reprioritize, putting a greater value on education, nursing homes, roads and bridges. We believe that these priorities, combined with returning 100 percent of the surplus to taxpayers adequately reflect the priorities of Minnesotans.