Blackout Bill Passes + Walz Budget Released

Having trouble viewing this email? View it as a Web page.

January 27, 2023

Executive Summary

• Governor Releases Budget

• Carbon-Free by 2040 “Blackout Bill” Passes House

• Bill to Build Inflation into Budget Passes House

• Helpful Links

Governor Releases Budget

This week, as required by Minnesota law, Governor Walz released his budget proposal. Remember that our state has a nearly $18 billion surplus. Government should be focused on cutting taxes for Minnesota's families and businesses who are struggling amidst rising prices. Instead, the Governor's budget proposal was short on tax cuts, but long on tax increases and growing government. 

Here are some of the top proposals in Walz's budget:

• A 4% increase in capital gains tax. A 4% millionaire surcharge would increase Minnesota's capital gains tax to the highest in the country at 13.85% (even higher than California's 13.3%!)
• A 1/8 sales tax increase in 7-county metro area for transit
• Increase in Motor Vehicle tax – 160% of suggested retail price in first year and 10% increase per year in future year (raise $286 million)
• $1.2 billion Payroll Tax for Paid Family Leave on ALL employers – includes schools, cities, counties and non-profits, as well as businesses, even if you only have one employee or are a seasonal business.
• No full repeal of the Social Security tax. Ending the tax on social security had broad bipartisan support during the campaign. Now the Governor only wants to give only 43% of Minnesotans an exemption, with savings of an average of only $278 per household. 

Overall, Governor Walz is proposing to increase the state budget from nearly $52 million over two years to $65.2 billion – a 25% increase. The budget for the current biennium (2022-23) was a 9% increase over the previous biennium. We cannot keep growing government – it is not sustainable.

Rather than making Minnesota more competitive, the Governor significantly increases taxes on families and businesses and will make it much harder to attract the workers and investment needed for long-term economic growth.

Carbon-Free by 2040 “Blackout Bill” Passes House

Last night, the House passed a bill to mandate that Minnesota’s energy be completely carbon-free by 2040.  Also known as the “Blackout bill,” it would cost the state an estimated $313 billion and make our energy less reliable and affordable.  Estimates project that these mandates will increase every Minnesota household’s electric bill by $1,600 a year. Families will also face, on average, additional cost increases up to $3,900 per year as they pay more for goods and services when businesses pass on higher energy costs to consumers. It is also expected that these mandates and associated increased costs will destroy 79,000 jobs in our state.  I support a transition to increasing use of renewable energy.  I voted no on this bill, however, because: The technology for battery storage of wind and solar power is not yet developed sufficiently to completely end use of fossil fuels without putting Minnesotans at risk. The bill does nothing to address the environmental consequences of disposing of wind turbines and solar panels, which contain large quantities of toxic minerals that can harm the soil and water near landfills. Minnesota’s old wind turbines are currently trucked to landfills in WY, which is not environmentally friendly. We also need to develop supplies of minerals (cobalt, nickel, lithium, copper) that do not rely on slave or child labor and ensure that our supply chain is not dependent on China for geopolitical reasons. China currently controls 80-90% of both the polysilicon (used in solar panels) and the minerals needed to operate wind turbines (2 tons of rare-earth minerals for one wind turbine). The bill also limits “carbon-free energy” to reliance just on wind and solar, which are intermittent and currently hard to store. It doesn’t allow for other carbon-free forms of energy, such as small module nuclear, new hydropower, future fusion technologies, etc. We offered numerous amendments to improve the bill but all of them were rejected on party lines. I believe that if we allow the market to drive the research and innovation necessary to address these challenges, we can accelerate the transition to renewable energy while also preserving the reliability and affordability of our energy grid for families and businesses to keep our economy growing.

Bill to Build Inflation into Budget Passes House

We also passed a bill just before midnight last night to require the state to factor in the rate of inflation for state expenditures. This will effectively create automatic increases in all projected government spending. 

It will also effectively reduce the projected state surplus, so it will give the perception the surplus is lower and make it harder to cut taxes to return the surplus to Minnesotans.

Our oversight function as Legislators requires that we make hard decisions and set priorities. We need to be able to scrutinize the state budget and decide where to spend more or less. As the Governor’s proposal to grow the state budget by 25% demonstrates, we regularly exceed the rate of inflation in state government already. 

Taxpayers cannot afford to have an inflationary increase built into the budget – and it will necessitate even larger cuts when we invariably face a deficit (MN has a constitutional requirement to balance the budget, so we have to make cuts when there is a deficit).

Minnesota families' budgets don't get an automatic inflation increase in their budgets every year. They have to make hard choices during periods of high inflation. State government should do the same. I voted 'no' on this bill.

Helpful Links

Ice Dams: Ice dams can occur this time of year when an ice ridge forms at the edge of your roof and prevents melting snow from draining off. The water that backs up behind the dam can leak into your house and cause damage to walls, ceilings, insulation and other areas. Learn more about ice dams and what do to if you roof has one here.

Free Resources for STEM Interns: Small companies can access wage matches to cover 50% of a college STEM intern's wages through the SciTech Internship Program. Learn more about this program here.

TeenPact Leadership School: Is your teen interested in learning more about government? TeenPact is a leadership school that helps young people understand the political process, value their liberty, and engage the culture. It is run by my colleague, Rep. Chris Swedzinski and his wife and will be having a four day conference at the State Capitol April 24-28. You can learn more and sign up your student here. 

Photos

Fantastic “State of the Cities” luncheon with the I-94 West Chamber today! The cities in our area are vibrant and growing! So fun to catch up with so many local business leaders, who provide jobs and economic growth for our communities!

Please Contact Me

Many of you have already been in touch to discuss your thoughts on the issues that matter most to you. Thank you for sharing your ideas! Please continue to contact me to discuss any matters to which I can be of assistance.

The best way to reach me is by email: rep.kristin.robbins@house.mn.gov. For occasional updates, you can follow my Facebook Page at @RepKristinRobbins. You can also leave a voicemail on my office number, 651-296-7806, which is checked multiple times/week.

Have a great weekend!

Kristin

239 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, MN 55155
ph: 651.296.7806