Budget Forecast and Legislative Priorities Dear Northlanders, This legislative session is only three months long, and it is imperative that we get bills passed that matter to you back home. With the Minnesota House tied at 67–67, it requires true bipartisan cooperation to move any bill out of the House Chamber. As a result, the weeks are packed with committee hearings, meetings, and gatherings with visitors from back home who travel to the Capitol to share their perspectives and concerns. These conversations are invaluable in helping shape policy that reflects the needs of our communities. I am honored to serve all of you and always look forward to weekends back home across the district. Minnesota Budget Forecast Update The recent Minnesota state budget revenue forecast brought both good news and concerns for taxpayers. The good news is the forecast is better than previously projected, with a $3.734 billion positive balance for the 2026–2027 budget years. This is $1.3 billion more than the November projections. At first glance, that sounds like wonderful news. However, the reality behind this surplus raises an important question. The increase in revenue is largely the result of higher taxes on Minnesotans. Government revenue does not grow on its own, it grows when taxes increase. To put this in perspective, the 2023–2024 budget cycle began with an $18.5 billion surplus, and lawmakers approved more than $10 billion in new taxes. This raises a serious question for families and businesses across our state: How high is too high when it comes to taxes? Where Minnesota Ranks on Taxes: Minnesota has consistently ranked among the highest-taxed states in the nation for more than a decade. Currently: - Minnesota’s lowest individual income tax rate is 5.35%
- The highest individual rate is 9.85%
Across the country, many states have chosen a different path: - 10 states have no state income tax
- 12 states use flat tax systems ranging from roughly 2.5% to 4.95%
Minnesota also ranks: - 2nd highest corporate tax rate in the nation (9.8%)
- 6th highest personal income tax rate in the nation (9.85%)
When we compare Minnesota to neighboring states, the difference becomes even clearer: State Income Tax Rate South Dakota 0% North Dakota 2% – 2.9% Iowa 3.9% Wisconsin 3.5% – 7.65% Minnesota 5.35% – 9.85% These differences raise concerns about Minnesota’s competitiveness when businesses and workers consider where to live, work, and invest. Time to Put More Money Back in Your Wallet As I prepared for the 2026 legislative session, I asked residents across our district for their priorities. Northlanders responded clearly about the issues that matter most. 1. Reduce Car Tab Fees Many residents shared concerns about the rising cost of vehicle registration. Solution: I signed onto legislation aimed at reducing car tab fees and providing relief for Minnesota drivers. 2. Increase Government Transparency Taxpayers want confidence that public dollars are being spent responsibly. Solution: I signed onto legislation creating an Independent Office of Inspector General to strengthen oversight, accountability, and potential prosecution of fraud. I am also supporting legislation requiring stronger monitoring systems for providers billing Medical Assistance programs. 3. Lower Health Care Costs Access to affordable care remains a major concern for families. Solution: I signed onto a Direct Primary Care bill, which allows patients to access medical providers through a simple monthly membership—similar in cost structure to a streaming subscription. I am also working to ensure that critical access hospitals remain stable and that non-emergency medical transportation services remain available across Greater Minnesota. 4. Expand Workforce Housing & Property Tax Relief for Seniors Housing shortages and rising property taxes are putting pressure on many households. Solution: I signed onto legislation providing property tax relief for seniors and authored a home-sharing bill allowing seniors to rent a room in their home. This helps create additional workforce and student housing while allowing seniors to remain in their homes. 5. Supporting Investments I also support capital bonding investments to expand utilities in Proctor, helping create opportunities for new workforce housing. 6. Expanding Childcare Options and Lower Costs Childcare availability and affordability remain critical challenges for families and employers. Solution: I signed onto legislation expanding dependent care tax credits and supporting policies that grow family childcare options, especially in Greater Minnesota. Conforming to Federal Law We have two options when it comes to conforming to HR1 - Confirming to federal requirements = continuing to receive medical assistance matches.
- Chose not to conform = and the reality consists of losing billions of federal medical assistance dollars- which results in severe fiscal deficits in state budget unless state legislators pass bills to either raise revenue with revenue with higher taxes or make necessary cuts from lost federal money.
I will continue to support our district and make sure your priorities are heard. In Service, Rep. Natalie Zeleznikar Events and Visitors Farm Bureau event in Saint Paul.  Spoke at the Farm Bureau event.  Township day at the Capitol.  Visiting with students in St. Paul.  Time with the Townships.  Civility Caucus  Spent time connecting with the trades.  Meeting with department of transportation regarding road projects in our district. |