Republicans Release First Plans For Budget Surplus
ST. PAUL, Minn. (AP) -- Minnesota lawmakers took their first steps toward handling a $900 million budget surplus, as House Republicans laid out a rough roadmap Thursday that would split the extra cash between tax cuts and a transportation funding package.
The GOP's approach sets up a wide divide with Gov. Mark Dayton and Democrats who control the Senate, who have called to put more money into broadband Internet development for greater Minnesota and some extra funds for schools. Those disagreements likely won't be solved until legislative leaders meet for last minute negotiations -- if they can even come to an agreement.
Here's a look at what's on lawmakers' plates for the next five weeks.
TAX CUTS AND TRANSPORTATION
The House Republican budget plan calls to split the $900 million surplus between tax cuts and transportation. The exact mix will hinge on negotiations with the Democrat-controlled Senate, which plans to release its own budget framework next week.
But both parties are still dug into the same positions from last year that dragged out the debate, with Democrats pushing a gas tax increase to fund road and bridge repairs and a smaller package of tax cuts. Negotiators from each chamber haven't started meeting.
House Speaker Kurt Daudt mentioned removing taxes on Social Security income and veteran retiree benefits, college tuition tax credits and property tax relief for farmers as top priorities. But with Democrats aiming to put more of the surplus into new spending, Daudt noted it would be a tough road.
"It's not going to be an easy process," he said.
BROADBAND
Republicans and Democrats remain worlds apart, even in the areas they agree more spending is needed.
Dayton has called for putting $100 million into the state fund for broadband Internet. The Republican plan sets that mark at $35 million over the next two years, with some tweaks to how the state awards those grants to ensure they don't double-up with federal support.
"Better than nothing, which is what they had last time," Dayton said Thursday.
And despite the hefty surplus, Republicans are aiming to trim some parts of the budget passed last year to help fund the increase, such as nearly $10 million in unspecified savings from state government agencies.
EDUCATION SPENDING
In no area is the partisan divide starker than the question of how to share the surplus with public schools.
The governor has asked for $25 million to start phasing in a scaled-back version of a universal preschool program that would target impoverished areas with no early education options. Senate Democrats are advancing proposals to help schools hire and retain more teachers and school counselors.
Those proposals found no love among Republicans, who said they'd likely only make smaller tweaks. Daudt defended as adequate the two-year budget passed last year with a $125 million boost for public schools.
PUBLIC CONSTRUCTION
Dayton has laid out his vision to borrow $1.4 billion for a package of water infrastructure improvements, renovations at state-run psychiatric hospitals and upkeep at public colleges and universities. Republicans' counter-offer clocked in at less than half the size: $600 million.
Just what projects GOP lawmakers will include in their own so-called bonding bill remains to be seen. But Daudt said he'd like to earmark a "significant" portion to road and bridge repair -- something Democratic leaders have largely rejected.
Minority Leader Paul Thissen said the size is inadequate and that there's no way Democrats in the House would vote for such a bill unless it's expanded to include more projects.
"It's clearly a recipe for gridlock," Thissen said.
(© Copyright 2016 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
