On Sunday Governor Dayton and House and Senate leaders announced that they had come to an agreement on budget targets for the next biennium. This announcement was particularly important for those of us in the health and human services field, as Governor Dayton and the legislative leaders had different ideas regarding the budget target for health and human services. House and Senate leaders were proposing a $150 million cut over the next biennium (one of two areas to receive budget cuts), whereas Governor Dayton’s supplemental budget had proposed an increase in funding by $210 million.
According to Politics in Minnesota, the agreed-upon budget target for Health and Human Services results in a $50 million reduction in funding over the next biennium. Although this budget target is certainly more appealing than the House and Senate target was, it is $260 million less than what the governor had proposed and it is the only area to receive a reduction in funding levels.
Sources for revenue
The budget agreement also lays out the next biennium’s revenue sources. In order to accommodate the increased funding for education as well as eliminate the budget deficit of $627 million, the budget agreement includes $2 billion in tax increases. These tax increases include:
- a new fourth tier income tax rate for couples making more than $250,000 per year and individuals making more than $150,000 (approximately 2 percent of Minnesota residents)
- a temporary surcharge on the state’s wealthiest residents to help pay back the delayed payments to school districts
- an increase in taxes on tobacco
- an expansion of the sales tax, more than likely not including clothing
What do you think of the budget deal? How do you think this will impact your work in child welfare? Leave a comment below!
