Gov. Dayton Proposes Budget Plan With 10% Spending Growth

gas_pump_handle.jpgGovernor Dayton does not see in the Republican legislative gain any reason to moderate his spending plans for the 2018-2019.  In January, he sent to the legislature a biennial budget that calls for a $4.3 billion increase over the $41.5 billion two-year budget he signed in 2015.  This increase absorbs the current $1.4 billion surplus and demands almost $3 billion more in tax revenue.

In comparison, Minnesota’s economy grew less than 2.4% from 2014 to 2015, the last years for which economic data was publicly available.  The growth rate is projected to slow in 2017 to 2019.

What has Governor Dayton included in his budget?

  • A public option for health care

  • 2% increase ($371 million) in spending on education

  • Another $$75 million for expanded spending on pre-Kindergarten education

  • Continuation of the 2% state tax on health care providers

  • An increase in the gas tax

  • Increased fees for registration, hunting and fishing licenses

For more, including the reaction of Republican legislative leaders, read Anders Koskinen’s article, “So Much for a Surplus; Governor Releases Budget”, Alpha News, January 24, 2017.

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