Another state budget surplus — this time 1.3 billion dollars — has re-ignited the longstanding dispute between Republicans and Democrats over tax cuts versus more spending. Governor Tim Walz argues, even though Minnesotans did the right thing and overwhelmingly voted to raise their property taxes for schools, “I’ve made the case that that becomes harder to do, especially for Greater Minnesota schools.” Walz says the state needs to kick in more for public schools.
But Senate Republican Majority Leader Paul Gazelka says now that the surplus has topped off the state’s “rainy day” budget reserve, “it’s time to give the rest back.” Gazelka says the legislature should completely eliminate the state income tax on Social Security benefits and give Minnesotans a “tax holiday” on vehicle tab fees — only fair after all the problems they struggled through with MN-LARS.
Minnesota House Republicans say part of the state’s 1.3-billion-dollar surplus should be used to repeal the state’s tax on medical providers — what they call the “sick tax.” Governor Tim Walz says to Republicans, “that’s not happening” because rural hospitals would close, with catastrophic impact on families. House Minority Leader Kurt Daudt responds the governor “campaigned on lowering health care costs. He gets here. He directly raises health care costs on Minnesotans…. I think he’s a better guy than that.”
But Paul Gazelka the Republican leader of the Minnesota Senate, says he doubts whether either the medical provider tax or Democrats’ push for a gas tax increase will be revisited in the 2020 session.