Minnesota Budget Solutions

Minnesota’s budget stalemate centers on two things – the Governor’s insistence on spending $35.8 billion over the next two years and the Legislature’s unwillingness to raise taxes to bring in more than $34.4 billion.  That’s a $1.4 billion difference.  Neither side will budge.

The only solution to this problem is to somehow increase the state’s income without raising taxes.  This can happen in three different ways: 1) the income of individuals or corporations increases; 2) the amount of money spent on taxable items increases; or 3) the value of taxable property increases.  We can make some law changes that will achieve these goals even in our current stagnant economy.

1. Several major projects are being held up due to overly restrictive environmental concerns. We should allow them to proceed.
   • There are copper mine projects in northern Minnesota that are waiting on state approval.
   • Build the new bridge in Stillwater.
   • Approve the power lines needed to expand our wind-power industry.
2. Allow new forms of gambling in our bars and taverns.
3. Legalize the medical use of marijuana and tax it.
4. Permit “smoking-allowed” bars.  The state could collect a permit fee for these locations.
5. Require counties to more accurately value agricultural land.  Sale prices and rents have increased dramatically over the past few years, but property tax values have not kept pace.  This would allow the state to reduce its aid to schools and local governments.

There are ways to increase revenue without increasing taxes.  It’s the only way out of our budget stalemate because it’s the only win-win solution for both the governor and the legislature.