Capitol View: March 12, 2012 Archive

Dayton puts forward supplemental budget plan

Posted at 11:52 AM on March 12, 2012 by Tom Scheck
Filed under: Campaign 2012, MN Legislature, Mark Dayton

Gov. Dayton is proposing a revised budget that would give tax breaks to companies that hire veterans and unemployed workers, restore some health care cuts and increase benefits for veterans.

Human Services Commissioner Cindy Jesson says the plan would restore cuts the governor and Legislature made last year to personal care attendants, medical research and emergency medical assistance.

"We chose to propose restoring these things because we see immediate risk of harm very much to people if we don't take these steps."

The governor's spends an extra $60 million, which would be collected by raising taxes on corporations that operate overseas and by requiring online retailers like Amazon to collect and pay state sales taxes on purchases. Republicans in the Legislature have opposed efforts to close what some call a tax loophole for corporations that operate overseas.

Dayton said the current tax break for companies with overseas operations doesn't make sense.

"Why do we want to give incentives to companies, big companies most of them, for putting jobs overseas rather than investing that money in the future of the people of Minnesota?," Dayton said.

Republicans have been reluctant to raise taxes on corporations that operate overseas. They say companies would be less likely to hire workers in Minnesota if the law were changed.

Here are the details put forward by Dayton's office.

Update:

GOP Senate Majority Leader Dave Senjem released this statement:

"Governor Dayton's supplemental budget is a surprise and a shock," said Senate Majority Leader Senjem. "We have managed Minnesota's budget well in the past year from a $5 billion budget deficit to over a $1 billion surplus and the first thing the Governor wants to do is raise taxes. Embarrassing!"

The Governor's "jobs" portion of this proposal actually costs $35 million and results in a temporary program. The bottom line is this: the Governor's proposal is a temporary tax credit for a permanent tax increase.

In a letter last year, Joy Lindsay of the Minnesota High Tech Association Board said, "Minnesota's foreign royalty deduction was enacted during the Perpich administration to encourage companies to invest in research and development in Minnesota which creates high-paying, high-tech jobs here." Governor Dayton's proposal would jeopardize thousands of technology workers' jobs, whose average wages are much higher than the state's average.

In addition to the permanent tax increase, the Governor is also recommending fee increases on hunting and fishing licenses.

"What we are doing is working for Minnesota," Senate Majority Leader Senjem concluded. "I can't believe the Governor wants to retreat to raising taxes with the surplus just announced."

Michelle Obama to visit Minnesota military families on Friday

Posted at 1:42 PM on March 12, 2012 by Brett Neely
Filed under: Campaign 2012

WASHINGTON - First Lady Michele Obama will visit Minnesota this Friday to meet with military families.

The March 16th event will include families with members serving in the National Guard, as well as representatives of several organizations dedicated to helping armed forces members and their families, including the Armed Forces Service Center, Defending the Blue Line, a group that provided hockey equipment and financial assistance for children of military members and GreenCare for Troops, which provides lawn care and landscaping help for wounded veterans.

As previously reported by MPR News, Mrs. Obama will also attend a fundraiser for her husband's presidential election campaign at the Walker Art Center in Minneapolis.

Gerlach not running for reelection

Posted at 5:22 PM on March 12, 2012 by Tom Scheck (3 Comments)
Filed under: Campaign 2012, MN Legislature, Mark Dayton

Sen. Chris Gerlach, R-Apple Valley, announced today that he won't be running for reelection. In a prepared statement, Gerlach cited family considerations as the reason for stepping down.

"While serving in the Legislature is truly an honor and privilege, the family and financial sacrifices are great," he said. "Now is the time to reassess my personal priorities."

Gerlach was criticized late last week for how he handled mailings regarding the so-called "Right-to-Work" amendment. His firm was hired to print mailings that targeted Republican senators onr the issue.

Gerlach's district leans Republican but will be another open seat that Republicans will be forced to defend.

Republicans not running for re-election to the Minnesota Senate:
Chris Gerlach
Gretchen Hoffman (running for Congress)
Doug Magnus
Al DeKruif
Amy Koch
Gen Olson
Geoff Michel

Note: Republican Mike Parry is running for Congress but has not ruled out a run for re-election if he fails to win his party's endorsement.

DFLers not running for re-election to the MN Senate:
Keith Langseth
Linda Higgins

Endorsement contests:

- Republicans Michelle Benson and Michael Jungbauer were paired in the same district and are battling for the Republican endorsement. Both say they would abide by the party endorsement.

- DFLers John Marty and Mary Jo McGuire were paired and are battling for the DFL endorsement. Marty and McGuire say they'll abide by the party's endorsement.