Dayton Looks To Use Surplus For Broadband, Education & Tax Cuts
ST. PAUL, Minn. (AP) — Gov. Mark Dayton on Tuesday proposed using a $900 million budget surplus to expand existing tax credits for childcare and education costs, build out broadband Internet infrastructure into rural Minnesota and tackle longstanding racial economic disparities — all while socking extra funds away for a rainy day.
The Democratic governor's supplemental budget proposal clocks in at nearly $700 million in new and expanded government programs. While the state's good financial fortunes have given lawmakers a second chance at tweaking the state's $42 billion budget, Dayton's approach is also a nod to the signs of a slipping economy as evidenced by a shrinking budget surplus: He left $200 million unspent in case it takes a turn.
"That wasn't done in the past, and we saw the catastrophic consequences of that," he said. "I went through the nightmare of coming in here with a $6 billion projected deficit ... in 2011. I don't want to repeat that and I don't want my successor or the people of Minnesota to repeat that."
Dayton's proposals set up nine weeks of wrangling with the Legislature, because Republicans who control the House have said they'll press the governor to offer up more for tax cuts and plan to tap the surplus for a transportation funding package.
The budget addresses several topics Dayton cited as top priorities during his State of the State address last week, such as using $100 million to better connect rural Minnesota with broadband Internet. Stressing the importance of aiding middle-class residents, the budget renews his previous calls to expand a child care tax credit to 92,000 families and to offer an estimated 18,000 families extra help for educational expenses. Another tax credit expansion would boost tax refunds to working families making less than $55,000.
Related Links:
- Gov's Supplemental Budget Recommendation – Summary
- Gov's Supplemental Budget Recommendation – Details
- Gov's Supplemental Budget Recommendation – All Funds By Agency
Republican Senate Minority Leader David Hann said those cuts don't go far enough, saying in a statement that Dayton's priorities were "out of whack." Recognizing a coming push from GOP lawmakers to dedicate more of the surplus to tax relief, Dayton cautioned against carving out too much in tax reductions.
Dayton made a big statement on tackling economic gaps for black and minority residents, outlining $100 million to better fund loan programs for minority- and women-owned businesses, initiatives that help low-income people buy their first home and job-training programs. He left $33 million unspecified for the Legislature to work out.
After getting rebuffed in last year's push to offer preschool statewide, the governor went back to the drawing board. Tuesday's proposal pitches a scaled-back version, requesting an initial $25 million in funding to fund voluntary programs, specifically targeting poor school districts without other early education options.
While Dayton stressed that his wish list was flexible, he deemed some criminal justice and health care improvements "absolutely imperative." Tens of millions of dollars would go toward Minnesota's psychiatric hospital and mental health facilities, where employees have reported a string of violence at the hands of patients.
There's also an olive branch to the federal judge who declared Minnesota's controversial sex offender program unconstitutional. In tandem with separate proposals to build less-restrictive facilities, Dayton is recommending millions of dollars to perform regular evaluations of offenders for possible release — a key requirement from last summer's court decision.
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