Dear Neighbor,
Even though this is not an official budget year for the Legislature, the recent release of an updated economic forecast for our state will play a major role in how this session takes shape.
Minnesota Management & Budget is now calling for a $1.5 billion surplus for 2020-21. That figure has increased by $180 million since MMB reported a $1.3 billion surplus in November. A small increase to the general fund revenue forecast, along with a similar-sized reduction in spending estimates are reported by MMB.
Our economy continues to thrive, our reserves are statutorily full, and tax relief should remain a top priority for this session, starting with ending the state tax on our seniors’ social security. House Republicans are working on a comprehensive package of tax relief that would benefit virtually all Minnesotans, so look for more on that subject soon.
We saw lots of FFA members around the Capitol earlier this week. They are all great advocates for agriculture and tell our story well. Had students from the Albany and Melrose chapters in my office Tuesday and had good discussions with both groups.
On another note, the House Agriculture and Food Finance Policy Division heard a bill (H.F. 3699) that would, over time, increase the ethanol in most gasoline sold in Minnesota from E10 to E15. The bill also requires fuel retailers to have at least one hose available for E10 because pre-2001 vehicles cannot use E15.
E15 is gaining in popularity, with cheaper prices and at a higher octane. While there are kinks to work out of the proposal during the committee process, this move would be good for the consumer, good for farmers and good for our rural economy. Sen. Torrey Westrom is carrying the companion bill.
In a recent email I mentioned efforts were underway in the House to replenish the depleted Rural Finance Authority loan program which aids farmers. Tonight, a bill providing $50 million for that purpose received overwhelming approval (127-2) in the House and now is in the hands of the Senate.
RFA loans are popular among farmers because the RFA partners with agricultural lenders to provide low-cost financing to farmers on terms and conditions not otherwise available from other credit sources. It was important to get this bill done now to eliminate uncertainty for farmers and help them prepare for the upcoming growing season. I am pleased we did our part in the House and urge the Senate to pass the bill quickly so it can get to the governor for enactment.
Sincerely,
Paul