The framework agreement which occurred at the end of the legislative session is effectively dead. As we see the various pieces floating like an aftermath of a shipwreck, we observe a few retrievable pieces.
- The House DFL will not support any permanent tax cuts except elimination of the Social Security Tax, which is a solid win for the Senate GOP, to which Governor Tim Walz (DFL-MN) has already agreed. The revenue loss is not overly significant.
- A direct onetime payment to Minnesotan’s originally named Walz Checks, and should be renamed as Surplus Checks, which Walz increased to $1,000/person $2,000/household should be bolstered to be available to every working family member even if they are below 18-years of age. This is a reflection of the fact there are 16-year old’s who also were laid off during the shutdown, but went uncompensated during the COVID shutdown.
- A substantial Cash Bonding Bill $2-3 billion, which based on current monthly tax receipts results is $100.1 million every 30 days, and means a $2 billion price tag will be replenished over the course of the next biennial session. This would have no fiscal tails and be an influx of money to address infrastructure concerns across the state.
- All agreed to expenditures are only supplemental to the current budget, because this is only one-time money and additionally one legislature is not to obligate future legislatures to any expenditures, other than General Obligation Bonds.
As a four-part compromise plan, we believe this provides each side with a win to run on in the November Election and a way for each to define their opposition. We will remind you Checks & Balances is the only media source which truly explained the component parts of the surplus, of which personal income tax only accounted for 36.74%. If our suggestions are incorporated it enables the current crop of retiring legislators (59) and possibly more, forced to retire post-Primary, to leave something behind as the ride off into the sunset.