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.