We All Do Better

Archive for May, 2007

Higher Education

May 31, 2007 Education, News

From the beginning of the session the Higher Ed. committee took testimony from students and others about the adverse effects of the rising costs of college tuition. We made considerable effort to remedy this problem and looked at other ways to keep college costs down, like measures students suggested on how to lower textbook costs.

Once again the Governor indicated what he objected to in the bill, we made adjustments and he vetoed the bill anyway saying it was 'uninspired.'

The Governor claims that our high schools are obsolete and then insists that what has been the high school curriculum of many years is what everyone needs to do to qualify for his ACHIEVE program. The Governor is promoting this program as a means to get students to take more rigorous courses in high school. But where is the rigor, and where is the relevance, and what are the results if the requirements are what every high school student should be taking? By the way the Governor has it wrong Bill Gates said, what our schools need for the new 3rs are Rigor, Relevance and Relationship.

What young people need to stay in school is a reason to believe in their future. Hope that there is a place for them at the table of life. Someone to remind them that they are capable, that they are up to the challenge and that they can learn.But they also need a reason to feel that what schools offer is something relevant to them. I wish the governor would study this and then come forward with a plan that would truly help students and not use them to get his pet idea through the legislature.

HIGHER EDUCATION highlights in the bill:
- Tuition: A halt to years of double-digit increases. Tuition increases held to about 4% per year.
- Financial Aid: $57 million increase in financial aid through a combination of $2.2 million in new money, formula changes, increased living and miscellaneous expense allowances, lower assigned family responsibility share, and other modifications.
- University of Minnesota: $174 million increase in funding (14%). Also, $5 million for matching scholarships to reduce tuition.
- Minnesota State Colleges and Universities: $150 million increase (12%) for MnSCU campuses. Also, $6.7 million in one-time funding for technology enhancements.
- Achieve Scholarship Program: A new scholarship program is created for students who take and receive at least a grade of C in college preparatory coursework, and whose families have an adjusted gross income of less than $75,000.
- Non-resident tuition: Nonresident tuition is eliminated at certain two-year colleges for two years: Century College, St. Paul College, Minneapolis Community and Technical College, Rochester Community and Technical College, Inver Hills Community College, St. Cloud Technical College, and Normandale Community College.
- Textbook pricing: New initiatives to address the financial burden that textbook prices and requirements place on students.

An Axe to Grind?

May 31, 2007 News

Yesterday it was announced that the Governor had signed three remaining budget bills and vetoed the tax bill. As far as I can tell the Governor’s vetoes were arbitrary and partisan, vetoing bills important to Democratic legislators and to districts that voted against him.

In the Higher Ed. bill he could not avoid a couple line item vetoes:

$100,000 appropriation to the Loan Repayment Assistance Program for awards to attorneys who enter "public interest law."

$50,000 appropriation for the Washington Center for Internships and Academic Seminars for students at Minnesota colleges/universities.

The Governor line item vetoed the following items from the e-12 Bill :

$75,000 to hire independent contractor to assist the education finance task force authorized in the bill.

$200,000 for the Independent Office of Educational Accountability, this Office would help us determine if we were getting the results we wanted from the implementation of No Child Left Behind. Perhaps the Governor is not interested in knowing the answer to that question.

$250,000 to pay teachers for National Board for Professional Teaching Standards certification, clearly a slight to teachers wanting to pursue rigorous certification.

$4.5 million for the merger of Hennepin County and Minneapolis library systems, the Governor fails to recognize that these systems are the core of the State wide library system. This merger would help all libraries improve.

Transportation:

$200,000 Humphrey Institute for participation in the Urban Partnership Agreement Congestion program.

The Tax bill vetoed:
- Minnesotans were counting on this bill for the property tax relief it provided directly to families and the communities in which they live. It would have increased the maximum Property Tax Refunds (PTR) homeowners can receive.
- There was $70 million dollars in the bill for communities to fund some basic services.

- There was also $13 million in County Aid and another $5 million in Township Aid.
- This bill addressed one of Minnesota's tax fairness issues by closing Foreign Operating Corporation Loopholes. That means companies would not be able to unfairly hide their domestic profits in another country. Closing that loophole is something Minnesotans overwhelmingly support.
- The bill would have provided help to businesses and property owners along the Gunflint Trail
- The bill included the Dairy Investment Tax Credit for farmers and Biotechnology Credit for small businesses that want invest in their operation.

Factoring inflation
- Ignoring inflation has only hurt Minnesota. It means we're not getting an accurate look at what it costs to build a road or hire police officers or a teacher.

- We need to be honest about what is in the budget and stop using gimmicks that make it appear we have funds to spend that are committed elsewhere.

- After months of debate about education, health care and roads, I think Minnesotans find it strange the governor would veto the tax bill over a basic accounting practice. It's something former governors and finance and revenue commissioners all support.

- This has become a trick the governor and others can use to make budget deficits look bigger and surpluses smaller.

What was in The Tax Bill

Property Tax Relief Increases the maximum Property Tax Refund for homeowners whose property taxes are high relative to their incomes

Money to help communities provide basic services -LGA
This is money communities across the state could have used to hire police officers, buy a fire truck or make repairs. It helps restore cuts made during the 2003 budget crisis. This link provides specific information on the LGA increase that would have been provided for each community:

Tax fairness – Closing FOC loopholes
Minnesotans overwhelmingly support this action. It stopped an unintended consequence of the tax law that allows companies to unfairly shelter domestic income in another country.

Doubles the Military Credit
This provision doubled the Military Service Combat Zone Credit from $59 per month to $120 per month, effective for service after December 31, 2006.

Economic development incentives
The bill included a Dairy Investment Tax Credit for farmers and a Biotechnology Credit for small businesses who want to invest in their operation.

Disaster relief
$250,000 each year to Grand Marais/Cook County fire relief assistance. $500,000 is appropriated to help fire victims whose property was more than 50% destroyed. Many businesses will continue to struggle this summer because they do not have phone service and it's hard to take reservations and process credit cards without it.

EDUCATION

May 30, 2007 Education, News

According to Bud Heidgerken, Republican Rep. from Freeport, Rep. Greiling's e-12 education Bill was the best education bill he had ever seen. The Governor didn't agree. We even came up with some good plans for how to pay for it. Again he didn't agree. The Governor never would agree to a budget target and would not negotiate to an agreement. He preferred to have a moving target and hold the option to veto what ever was sent him. In my opinion the Governor had no interest in bargaining in good faith and has his gaze so firmly fixed on higher office he’s not interested in the well being of his own State.

As I've gone through this process I have thought continually about another Governor. A Governor I met at a dinner in the mansion in the late 1980s and Rudy Perpich asked me what I did and I was proud to say that I worked in an Alternative High School that was enhanced by legislation he had signed into law.

He said he was glad I was doing that kind of work paused and put his hand on my shoulder, he looked down as if studying something that wasn't there and said, "You know I know what it means to be a child and go to bed hungry and there is not a night that goes by that I don't think of those children in Minnesota who go to bed hungry. I know my work as governor is all about creating a Minnesota where that doesn't happen, maybe I won't succeed but I work everyday for that goal, and I know that investing in education at all levels and in as many ways as we can is the way we do that."

I miss that Governor and the things that he believed in, the things he wanted to invest in, for all Minnesotans not just a few. Not just for the students who were already doing well. But all students at all levels, early childhood, k12, and post secondary, because in the end it is the people who are the wealth of our state.

I ran for office because I want to invest in the future of our state and I believe investing in education is the most important investment we can make, which is why I find this compromise bill although still a good bill inadequate.

In talking with two of the Superintendents in my district they report that it was significant that for the first time the legislature recognized the importance of making good on the promise to cover Special Education costs. What some call cross subsidy – making sure the state pays its share of Special Education moves us in the right direction toward making struggling school districts whole. It is simply wrong to have mandates that government is not willing to fund. That said it is unfortunate when we committed to make gains there it meant that there was not enough money to increase the formula as much as we would have liked.

Hopefully there will be some funds next year to accomplish this. Because although they will get by there will be little money to bring down class sizes and restore any programs or rehire staff. Another important consideration is that this bill does not rely on property tax increase to bring the full amount to districts as the past school budget increase agreement did. Unfortunately the Governor’s veto of our earlier Tax Bill would have helped schools and provided property tax relief with buy downs of school levies.

Here are some of the provisions of the bill:

K-12 AND EARLY CHILDHOOD EDUCATION
- Total new E-12 funding: $794 million.

- Special education: $329 million to help reduce the cross-subsidy, which will free up money for general education needs.

- Basic funding formula: The formula will increase 2% in fiscal year 2008 to $5,075 per pupil; and 1% in 2009 to $5,124. (Again we will see what we can do to help with the second year of the biennium.)

- All-day kindergarten: $32.54 million for a down payment on statewide, voluntary all-day kindergarten to help close the achievement gap.

- Early childhood programs: Restoration of budget cuts from previous years for ECFE, Head Start, and School Readiness to get kids ready for kindergarten. (This was the bill I introduced early in the session HF 5. I was helped by local leaders and educators in getting this bill through committee.)

- Safe school levy: The levy was increased $3 to help keep students safe at school. Permitted uses of the levy expanded to include voluntary opt-in suicide prevention tools, licensed school counselors, school nurses, school social workers, school psychologists, and alcohol and chemical dependency counselors.

- Gifted and talented: Increased Gifted and Talented funding from $9 per pupil unit to $12 per pupil unit for FY 2008 and later. For 2008-09, this results in an increase of $5,407,000.

- World languages: $500,000 appropriated to create a pilot program to award five world languages grants to school districts and sites to develop and implement world languages programs, and enhance existing programs.

- Library funding: Libraries across the state supported by providing an increase of 34.7% over the next two years to make up for years of neglect.

- Minnesota State High School League: The MSHSL rule that imposes one-year of ineligibility for varsity athletes who change schools without a change of residence was not overturned.

TO VETO OR NOT TO VETO

May 30, 2007 News

Currently the Governor has on his desk waiting for a signature or veto the Higher Ed. Bill, E-12 Bill and the Tax Bill. He is threatening to veto the tax bill primarily because he does not like the provision in the bill that insists that the Budget Forecast include inflation on both the income and the spending side of the budget. Currently the Forecast accounts for inflation only on the income side. This is what allowed the Governor and other Republicans to project a $3 billion surplus.

Actually the surplus was much smaller and caused Democrats to realize that there was need to raise some revenue if the state was going to meet all of its obligations and plan for the future.

Also included in the Tax Bill, which makes this a challenging veto for him, are provisions for property tax relief, increases in LGA and the provision the Governor insisted upon a line of credit for the Republican National Convention. The Republican Party insists that this be provided in order to grant a state the right to hold the convention.

No doubt this will be a challenging choice for the Governor, as he must secure the line of credit somewhere else in order to host the convention. He could go to St. Paul and Minneapolis as well as the Counties. But he has already denied through line item vetoes and outright vetoes many funding provisions that would help St. Paul get back on its feet after cutting funds very deeply in ’03.

Here are some of the tax related provisions passed by the House:

TAXES/CREDITS/AIDS/BUDGET

- Closed corporate loopholes: Closed tax loopholes used by Minnesota corporations to shelter income through phony overseas corporations to avoid paying their fair share of taxes.

- Tax compliance: Tax compliance efforts increased to ensure that individuals and businesses pay the taxes they already owe.

- Property tax refund: Expanded Property Tax Refund (PTR) program. An additional $32 million will be provided directly to eligible homeowners.

- Property tax relief: Increased local government aid by $70 million; county program aid by $13 million; and reinstated at $5 million township LGA, which was eliminated in 2001. These will help hold down property tax increases. (A property tax relief package that would have provided greater relief to 90% of Minnesotans was vetoed.)
- Homestead agricultural property rate reduction: Class rate on the first tier reduced from 0.55 to 0.50 percent.
- Tuition and related expenses deduction: For tax years 2006 and 2007 allow low- and middle-income taxpayers to deduct up to $4,000 of higher education tuition and related expenses.
- Classroom teacher expenses deduction: For tax years 2006 and 2007 extend the $250 deduction for K-12 educators of the amount paid for books and supplies for their classrooms.

End of the 2007 Legislative Sesssion

May 27, 2007 News

As I talk to friends and others who are still wondering what the events of the final hours at the state legislature will mean for us, I have been spending a little more time thinking about it. Some say we got the job done and did not have to go into special session, others say we didn't finish our work because we still had a bonding bill and an elections bill and the constitutional designated funding bill to bring to the floor. I suppose in a way both points of view are right.

The end was certainly dramatic. The minority party exercised the filibuster to stop the majority from governing; and the majority in the end used what tools it had to get a budget done. I don’t hold it against the minority for doing what they thought they had to do to represent the wishes of their special interest groups. I remember when the tables were turned I was glad to see Democrats attempt to hold the line on some things. I also think it is an unfair characterization to say the minority was silenced, they had ample time to express their objections and were clearly attempting to do what they could to hold us up. In the end Speaker Kelliher and Majority leader Sertich showed calm resolve in the face of a barrage of angry complaints.

We are constitutionally bound by a time constraint (90 legislative days) that prescribes how long we can be in session. Even in the electronic age it takes time to process and produce the bills we discuss and pass. The reality is that when you accept the constraint it is difficult to work everything out; and when you add to that an opposing minority party that uses what ever tools it has to derail the process a collision with the so called ‘endtime’ is unavoidable.

This was the first time since 1999 that the Legislature finished its work on time in a budget year.

In my ruminating I came upon the copy of the Centennial edition of our Legislative Manual or Blue Book from 1957. Chapter 1 describes "The Legislative Department" and on page 21 an interesting passage begins,

"Growth of the state and a parallel increase in the number and complexity of the problems each Legislature must solve has made it increasingly difficult for the Legislature to finish its work within the prescribed time limit.

"This has led to clock stopping and clock covering, much criticized but apparently unavoidable devices to extend the time. The Constitution give the Governor three days after adjournment to sign the bills. By suspending time (covering the clock), the Legislature can use these days to pass bills. In these cases the Journals of the House and Senate * the official records of their proceedings * show all actions, which took place after the legal bill-passing deadline as having taken place on the "last day." For example: The 1957 Legislature covered the clock on April 24, the last day for passing bills. This was done because many important bills were still being considered in conference committees. The last day for the Governor to sign bills was April 29. Therefore, the legislature was able to extend the time for passing bills on "April 24" to approximately 143 hours.

"Only one Legislature in recent years, that of 1953, adjourned on time. The 1955 and 1957, deadlocked over taxes, were unable to finish even by covering the clock and leaders were forced to ask the Governor to call special sessions. In each case the special session lasted one day."

I mention this not to judge the actions of my leadership, who I believe are to be commended for wanting to show that we could govern in a way that was respectful of the opposition and show a willingness to work with them but not let them manipulate the system to keep us from moving forward. For the most, part committee work and the dealing with bills, was handled fairly and in a way that put us ahead of schedule. The struggles were with a Senate and Governor that were often pulling in a different direction and a house minority that felt they needed to work against us at every turn.

In hindsight it may have been possible to ask for a one-day special session to complete the unfinished bills but considering everything (troubles in conference committees, a Governor who does not seem to have the constitution to agree on something and a house minority that loves to filibuster) I doubt it would have improved the situation.

Over all, I found my first session in the legislature a fascinating and rich experience. I treasure the friendships I made and the opportunity to serve the citizens in my district.

This session saw a renewed focus on the core issues facing Minnesotans. Our state's residents can be pleased with the reasonable and fiscally responsible approach the Legislature took in addressing Minnesota's needs.

The accomplishments of this year's session are diverse and meaningful: significant health care reform initiatives to control costs for the 93 percent of Minnesotans who currently have insurance; expanded access to health care for 37,000 children and 20,000 adults; important consumer protections including restrictions against predatory lending; major investments in programs that will help veterans and active military members who have made enormous sacrifices to serve our country; a historic renewable energy standard; goals for limiting greenhouse gas emissions and meeting energy efficiency/conservation standards; a comprehensive public safety initiative, which includes the hiring of more police officers; the closing of corporate tax loopholes; and an expansion of the property tax refund program.

In addition, in the area of education, the Legislature built a solid foundation for future progress. Highlights include:

stabilization of K-12 funding with an overall 6% increase including a 25% increase in special education funding, which has been an under-funded federal mandate for years; efforts to close the achievement gap by restoring past budget cuts to early childhood programs; progress toward statewide all-day kindergarten; and investments in higher education to end years of double-digit tuition increases.

Even with the historic successes of this year's session, there remain additional issues that must be addressed in the future. In particular:

permanent property tax relief. Property taxes have skyrocketed out of control—up $2 billion over the past four years.

There was a proposal put forward this year to deal with the problem, but the Governor had other priorities, and so the issue did not get addressed.

In the area of transportation, recent studies indicate we need an additional $1.5 billion invested in our transportation system every year simply to stay even when it comes to congestion and upkeep of our current infrastructure. The lack of adequate transportation funding has resulted in Minnesota drivers paying an annual "congestion tax" of over $740 in wasted time and fuel. The Legislature passed a major transportation initiative to start to correct the situation, but the Governor vetoed it.

As we look to the future, it is my hope that in upcoming sessions we can build upon the positive elements that were enacted this year, and strive to improve those measures in need of reform. I am committed to working in cooperation with all legislators for the good of our community and will always place Minnesota's long-term needs ahead of partisan politics. However, in a system that’s whole purpose is to acknowledge conflict and attempt to resolve it I recognize partisanship is something that will never be erased in a democracy. The alternative is dictatorship where only one voice speaks for the people and I am not hearing many say they want that.

In the coming days I will summarize the key measures in the various omnibus bills if you have questions please don't hesitate to e-mail me.

Memorial Day and Summary of New Legislation

May 26, 2007 News

With Memorial Day approaching and the Legislative Session just ending, I thought you might be interested in a summary of the Veterans Affairs provisions passed by the Legislature this year. Many of the provisions are signed into law and some are in the Tax bill which has not been signed yet and may be vetoed. Over the next few days I will publish other summaries and give you some sense of what my first year in the legislature was like.

DEPLOYED MINNESOTA SOLDIERS

Current Deployments: Currently there are 3,300 deployed service members from the Minnesota National Guard.

Returns: The National Guard expects approximately 2,600 back yet this summer before the end of the federal fiscal year (Sept 30th).

Next Deployments: At that time another 1,000 troops will be sent to Iraq, Afghanistan, and Kosovo.

VETERANS AND MILITARY AFFAIRS

MN GI Bill: This act, which provides the last dollar of financial aid to Minnesota veterans, is funded at $12 million. The act provides $1000 per semester and will be administered by the Department of Veterans Affairs (only for vets since 9/11/01). (HF 1063)
Heroes Earned Retirement Opportunities Act: This provision allows tax-exempt combat pay to be used as a basis for making IRA contributions. Without this provision, members of the military (including the National Guard) who are deployed to combat zones and have little earned income other than their combat pay will be required to track earnings on their IRAs separately for state and federal purposes. This was the first bill signed in the 2007 session. (HF8/Ch 1)
Unless otherwise noted, all following provisions are in HF 2227/Ch. 45, which the Governor did sign into law:
VETERANS AFFAIRS

Veterans' Budget: The budget for the Department of Veterans Affairs is increased by the 2007 Legislature by 70% to $24.7 million.

State Solider Assistance Program: There is a $2 million increase in the State Solider Assistance Program, an increase of 14% over current law.

County Veterans Service Officer: $1.5 million is provided for grants to counties to provide veterans' service officers.

Campus Vets Assistance: $900,000 will double from 6 to 12 the number of regional campus representatives serving the needs of students who are veterans at higher education institutions in Minnesota.

Veterans Outreach: $3.4 million is for more extensive veterans outreach by the Department of Veterans Affairs. Of this, $750,000 a year is for services to homeless veterans. Another $750,000 per year is for tribal veterans service officers.

Veterans Service Organizations: $500,000 is provided for grants to Veterans Service Organizations to reach out to veterans.

Department of Veterans Affairs: There's an administrative increase of $500,000 for the Department of Veterans Affairs to effectively implement the significant responsibilities enacted in the 2006 Session. An additional $200,000 is for staffing and information technology at the Department of Veterans Affairs.

State Veterans Cemetery: $75,000 is provided for increased operating funds to the State Veterans Cemetery in Little Falls.

Honor Guards: $200,000 is made available to provide honor guards at the funerals of deceased veterans.

War Survivors' Benefits: $52,000 will cover the estimated cost of extending education benefits to the spouses of soldiers killed in action. Prior to this change, only children, not spouses, of deceased soldiers are eligible for this benefit.

Depleted Uranium: Veterans returning from the first Gulf War and Iraq are concerned about the use of depleted uranium in shell casings and whether that exposure is causing sickness and death. This act provides $200,000 to be used to notify veterans they are eligible for federal testing for exposure to this toxin.

World War II Veterans Memorial Dedication: $250,000 is provided to invite and bring surviving Minnesota World War II veterans to the dedication of the WWII memorial in June.

Vets Hotline: $80,000 is allocated to fund a crisis hotline that veterans or their families can call if they need emergency help and/or guidance to obtain psychiatric services.

Veterans Homes Executive Director: This act gives preference to qualified veterans, but if fewer than three are qualified, the board can add non-veterans to the selection list. This modifies current law, which requires the executive director of the Veterans Homes be a veteran.

Firearms Licenses While on Active Duty: This act makes clear that the phrase "license or certificate of registration" in existing law includes, but is not limited to, a license or certificate of registration for a trade, employment, occupation or profession for which the state requires firearms and use of force training. Existing law states that when a holder of a license or certificate of registration is mobilized for military service, they are exempt from license renewal fees and making applications for renewal, and their license remains in full force and effect while they are gone. This act provides that any compensatory job-related education or training considered necessary by the licensee's or registrant's employer must be provided and paid for by the employer, and must not be permitted to delay the licensee's or registrant's reemployment. (HF 272/Ch 51)

MILITARY AFFAIRS

Military Affairs Budget: Overall, the Department of Military Affairs gets a 15.6% increase above the base to $39.8 million.

Armory Maintenance: This act provides $2 million for armory maintenance such as cleaning, maintenance, snow removal and grounds maintenance. This is less than the governor's request because the legislature preferred to fund programs directly helping veterans and their families rather than building maintenance during this time of war.

Camp Ripley: This act authorizes the Adjutant General to establish a Minnesota National Guard Non-appropriated Fund Instrumentality to create, operate and maintain morale, welfare and recreation facilities and activities at Camp Ripley.

Special Assessments: This act provides a one-time appropriation of $185,000 for special assessments levied by local governments against custodial property held by the Department of Military Affairs. The money will be used to pay for local improvements that will benefit the National Guard's property.

Reintegration: This act provides $1.5 million in one-time funds for the National Guard Reintegration Program—"Beyond the Yellow Ribbon". The program helps Guard members address critical issues as they return from war. Services will include speakers, counselors, and other specialized professionals, meeting halls, lodging and meals for Guard members. It will also pay for spouses' meals, mileages and centralized day care.

Support Our Troops Account: This act includes $676,000 for the Support Our Troops account, which makes grants to members of the National Guard, the Reserve, as well as Minnesota residents in active duty in any branch of the US military and their families.

Enlistment Incentives: $20.4 million is appropriated to the state's enlistment incentives program for 12,975 members of the Minnesota Arm and Air National Guard. The services include tuition reimbursement, extended tuition reimbursement (for service members ordered into active federal service), state re-enlistment bonuses and commissioning bonuses.

STARBASE Minnesota: This act appropriates $150,000 to STARBASE Minnesota to pay for the design of a new facility. STARBASE is a 501(c)3 nonprofit organization whose purpose is to increase the knowledge, skills and interest of inner city youth in science, mathematics and technology for greater academic and lifelong success.

Honor Guard Reimbursement: Upon the death of a person who has honorably served six years or more in active service in the Minnesota National Guard, the Adjutant General may activate members to serve as an honor guard at the funeral. This act provides $60,000 for Honor Guard Reimbursement.
National Guard Officer Reenlistment: A law change will broaden eligibility to allow for payment of a bonus to those accepting an officer's commission in the Minnesota National Guard. Currently, only enlisted personnel are eligible for the bonus. (HF1594/Ch 21)
Tuition (and Textbook) Reimbursement Grant Program: New authority will allow the tuition and textbook reimbursement program to pay up to 25 postsecondary educational grants of $1,000 each per year, with grants being awarded on a competitive basis to eligible members of the Minnesota National Guard. (HF 1594/Ch 21)
Expanded Support Our Troops Account: This account was established in 2005 by the Department of Military Affairs. It is funded with private contributions and proceeds from the sale of license plates. This act broadens the eligibility for soldiers and veterans to allow for grants to "current financial needs related to their service." (SF 1675/Ch 86)

MILITARY TAX PROVISIONS

Veterans and Military Tax Provisions below are from HF 2268 (Tax Bill) (note the Governor has said he might veto the entire bill, and if that happens these provisions will not become law):

Military Service Combat Zone Credit: Doubles the Military Service Combat Zone Credit from $59 per month to $120 per month, effective for service after December 31, 2006. The bill also ensures that the estate or heirs of a deceased member of the military can claim the credit for service since September 11, 2001.

National Guard Income Tax Exclusion: Ensures that the 2005 law change exempting Military Reservists out-of-state military services from the income tax also applies to the National Guard.

Class Rate Reduced for VFWs, American Legions and Other Service Organizations: Reduces classification rate for nonprofit community service-oriented organizations such as the VFW, American Legion, etc. Currently, these properties are taxed at the Commercial/Industrial rate.

Disabled Vets Property Tax Exemption: Allows disabled veterans to exclude a portion of market value from property taxes. The provision applies to honorably discharged veterans who have a military service-connected disability of 70% or higher.

The market value exclusion for disabled veterans would be:

$300,000 market value exclusion for a veteran with a service-connected disability rated as being total and permanent
$150,000 market value exclusion for a veteran with a service-connected disability rated at 70% to 100%Upon the death of the veteran, the market value exclusion benefit carries over to the person's spouse, if the spouse co-owns or inherits the home.

Veteran Hardship Assessment Deferral: Extends the option to defer certain assessments to members of the National Guard and military reserves ordered into active service. Currently a county, city, or town, at its discretion may defer the payment of special assessment for any homestead property of seniors and disabled persons that it determines causes a hardship. This provision adds National Guard and reserve members ordered to active service to that authorization.

Invest in Minnesota

May 3, 2007 News

Joel Kramer and Dane Smith will be in Northifield for a free public forum sponsored by Growth and Justice. The Forum called, 'Invest in Real Prosperity' explores how our state can invest in our future and pay for it fairly.