Phil Carruthers on last week of legislative session

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House Speaker Phil Carruthers discusses the ending of the legislative session. Topics include tax rebate, St. Paul arena, education, and Health and Human services bill. Carruthers also answers listener questions.

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Ikenberry 6 minutes now past 11. Today's programming is made possible in part by The Advocates of Minnesota Public Radio contributors include Deluxe Corporation foundation and Piper. Jaffray companies foundation on behalf of Piper Capital Management. And good morning. This is midday on Minnesota Public Radio. I'm Gary eichten glad you could join us legislature may be close to wrapping up. Its work legislative leaders have been hoping to finish by Thursday and time for Good Friday in the start of Passover. However, there are still lots of big issues that haven't been resolved like what to do about that big tax rebate. We've been hearing so much about what to do about a big bonding Bill including the Saint Paul arena there is education issues steal the resolve an and there's the issue of the Health and Human Services bill that's gotten caught up and caught up caught up rather in the debate over abortion. Lots of issues steel the resolved in joining us this hour to give us some Clues and how it's all going to work out is the speaker of the Minnesota House Bill Crothers, and we invite you to join our conversation as well. If you have a question or comment about some of those issues give us a call one last chance to weigh in if you will give us a call or Twin City area number is 227-6002 276 thousand. Twin City metropolitan area outside the Twin Cities 1 800 to +422-828-227-6000 or one 800-242-2828 speaker for others has literally just come down from the capital. Thanks for coming down this morning. You're welcome here. First of all is still look like you're going to be able to finish this week or is that in doubt? We certainly hope to there is no absolute rule that we need to finish by Thursday that that's our goal. But if need be we can carry over the next few days and Monday or Tuesday at the next week, but we certainly want to get done with by Thursday. If it's possible, I would guess immediate concern is the the tornado relief bill the house Ways and Means Committee had some testimony today from victims. It was talk that you might actually be able to get a relief package passed yet today. Is that true? We are going to take it up on the floor of the house today what's left to kind of help can people look for the package is about a 27 million. Power package, it has things like housing help for individuals Emergency Loans agricultural help for those agricultural areas that work at a time delays in terms of people having to submit their taxes or pay their taxes a number of items that help in terms of getting the Personnel to assist individuals and putting in their insurance applications. So so a lot of different Provisions, it's it's very much needed. I was down there and I couldn't believe the extent of Devastation. It's really really bad and this help is very much needed but it is only April of course and it's entirely possible that some other communities are going to get whacked yet this year it is there additional money set aside by the state to help help those communities to if they need extra help. What we do is we tend to piggyback onto a federal disaster declaration. So we don't just have ongoing funding of it as needed. We we we we Dental a federal disaster declaration is made and then the state assist because it's very important that the state the state has much more limited resources then say the federal government and we want to supplement the federal-aid but we don't want to get the situation where the federal government doesn't take the needed steps because the state has already stepped in so so that's why we try to work with opportunity with the federal government and in frankly get their resources online first before the state starts committing because otherwise than the federal government simply wouldn't come up with the money to help them Minnesota. Lots of taxpayers are really interested in the in the Surplus in the rebate at one point. The Senate was saying well we should do is almost all of the Surplus to pay cash for these building projects and the you folks in the house were arguing for a fairly substantial rebate tax rebate this year or it would be paid next to your house. Going to play. The house passed a 750 million dollar rebate plan part of that rebate would actually be paid this year an additional rebate to help the individuals pay their second-half property tax payment and then an additional $500 rebate next year. So I 250 this year a 500 next year that would be in addition to the over four hundred million dollars a permanent property tax cuts and income and sales tax cuts enacted by that the house so so we're calling for a major package of tax relief for the citizens of Minnesota. We believe that they are entitled to a big chunk of the budget surplus back to them in the form of tax relief is a sign of going to go along with that. We've got an agreement on the permanent property tax and income and sales tax portion that's over four hundred million. The question still remaining is the rebate they have moved our way. We're we're certainly pleased that they have done that there they are last for Rosa was I think 392 million dollar rebate we feel though that that it should be a bigger rebate that that's not sufficient. Are we we trying to compromise we don't want to I have a session go on forever. So we we've made an offer of $600 rebate. That's that's less than then we want to do. We think it should be 750 million but we understand that you have to make some compromises but four hundred million dollar rebate in our view is not sufficient. What is the governor said about this is he likely to veto a bill that doesn't provide for a pretty big rebate at the house in the government have been working very closely on this rebate issue. We're in sync what we're both in agreement that the taxpayers deserve major property tax rebate. So he has said that if there's not a sufficient rebate he will veto the bill. So that's one of the points that were making house Speaker fill Carruthers has joined us this first hour of our midday program today and take a look at some of that the big issues still to resolve on what could be Last week of the legislative session. If you'd like to join our conversation get an update on some specific issues. Give us a call or Twin City area number is 227-6002 276 thousand outside the Twin Cities. You can reach us toll-free and that number is 1 800 to +422-828-227-6004. 1 800-242-2828 Jim. Go ahead. Please comment on specific question and I admit I'm a partisan though not as skilled apart since it's the Caruthers. I was very happy to a stop by the capitol Saturday and see three or four thousand people yelling give back her money. It seems to me a big difference between house Democrats in Senate Democrats is the house Democrats are up for election this fall and my specific questions. Mr. Caruthers is this I have been told and I want to be corrected if I'm wrong it when you add together the increase in government spending all ready for the next Banyan Bay Sun last In the probable increase in this year you're dealing with a figure somewhere around 15% increase in government spending and this is probably just about the highest in the whole country and I wondered if that's correct. That would be an accurate figure what you have to keep in mind is first of all that's over 2 years not one ear and second of all that includes the property tax relief that was passed last year, ironically when we pass a property tax rebate, for example, that's considered spending and so that's including that 15% when we pass permanent property tax cuts as we did last year. We hope to again this year that's considered spending and so the actually the more property tax relief the bigger the property tax rebates. We passed the more the spending quote spending there is even though in I think most people wouldn't regard that as spending it all that simply sending it back to the taxpayers, but that's the way our accounting system works. It doesn't make sense, but that's the way it works. What that figure would be if you if you excluded the money that you sent back and property tax relief how much spending would have increased, you know, I do not know that I do not know that I'd certainly be happy to the research that but I don't know that in general. Do you think government spends too much money in Minnesota to keep it down lower but you got to keep in mind what the state's priorities were. We had a substantial increase in K-12 funding for many years that we didn't have much in the way of increases for K-12 higher education was another area for many years when the during the 80s and much of the 90s when budgets were tighter. There was a zero increaser for increases for higher education. So we have tried to do some ketchup funding for education and I think that's appropriate. So it depends are there are some areas of the funding of the budget that I don't agree with that. I wish we were lower but that's certainly when it comes to education. I believe that should be a very high priority and the same thing with the property tax rebate and property tax relief. I'm sad he's very appropriate to the state needs to do more to cut our high rate of a property taxes in the state. How do you interpret the the big budget surpluses that have been accumulating? Is that a sign that minnesotans are overtaxed or are these all kind of one-time deals that are contingent upon good Economic Times. I'd say some of both definitely the economy in the United States and in Minnesota has been very very strong. We cannot count on that lasting forever. Minnesota is a kind of bee has been stronger than the national average. We can't count on that lasting forever. So we have to be cautious that one of the things that the governor has said is that's why the governor has not supported permanent income tax cuts for that very reason because we don't want to overcommit the permanent tax cuts when we don't know that the economy will be as strong as it is right now, but at the same time I have to say that I do think that we are certainly overtaxed in the area property taxes are property taxes them is overly complicated. When you compare ourselves to other states particularly and certainly highly tax property such as Apartments second year of homes to a business Properties. Minnesota is overtaxed and that's why Democrats are saying we should make a major effort in the governor is green with us a major effort to cut property taxes for homeowners business owners apartment buildings at cabin owners. All of the type of property owners in the state that the governor is said he wants to see those property tax in apartment that rates reduced immediately this year rather than phase the men there's been some reluctance about to doing it all in one year. How do you see that playing out? I believe that is very important that we do address this issue of cutting a spec commercial industrial property taxes cutting apartment property taxes. They are too high in relation to other states. We have to be cautious. So in terms of trying to do it in one year, I think you know to you through 2 years or 3 years. Over two or three years is wiser. Because if we do it too quickly, there's a real risk that homeowners will see their property taxes going up or that small businesses will see their property taxes going up and so we want to provide property tax relief, but we don't want to do it at the at the cost of higher homeowner or small business property taxes business would argue. Of course. Well, if you if you delay you just never going to do it. If you can't do it this year with all that Surplus money to kind of cushion the blow you're never going to reduce those rates. If you do it over two years, first of all, you're phasing it in so they will definitely get released this year. If he if you do it over two years remember last year we cut the rate of commercial industrial property taxes from 4.6 down to 4.0. So we've already made significant cuts. And now the goal is to take it down to 3.5% There was no timeframe laid out to doing that but let's say you do it two years. You could bring it down to a 3/8 or 3/7 the first year and then the next year bring it down to three five. That would all be laid out in statute. The money would be set aside. We have a ways to do that to put the money aside in that in reserve accounts to make sure that the money is there the concern again is to make sure that this doesn't happen by increasing homeowners property taxes are increasing the taxes of small businesses. So we're trying to balance these various things, but we definitely don't want homeowners are average citizens property taxes going up. If your question for a speaker for others Place those people about what percentage to send back to the taxpayers a kind of a question. That was the seems to me as if those same people over payday loans at the bank and the bank told them they were going to consider what percentage they're going to get back to them what their reaction would be Well that that analogy does not really work here because what you have to remember is that this is a projected budget surplus this does not exist right now. We don't have an account that has 1.9 billion dollars in it. This is projected as of the end of the fiscal year 1997 June 30th a 1997. That's excuse me a 1999 I misspoke your 1999. So not this year but June 30th of 1999 in is when if the current economic conditions continue, we hopefully will have this money. That's why it's projected budget surplus. That's why the governor has stressed that we have to be cautious about not over committee either over-committing to spending or over-committing to permanent tax cuts. We're trying to do it in a in a way that's reason why we want to provide a lot of tax relief certainly the house. So that's a very important goal of ours at the same time because we don't have the money in the bank. We we've got to be cautious about not over-committing. How is it that now? You and Tony Romo are both from the same party in the house dflers in the Senate dfl is all members of the same party how much a picture so you have such different approaches to this issue again the Senate to supporting the idea of using most of his money to pay cash for these building projects returning a fairly small amount to taxpayers and terms of a rebate you folks talking about this big rebate. I would think you'd all be on the same page and maybe doing battle with the hated Republicans on this loud. Be nice to think that all Democrats would think alike just as all Republicans. It would be nice to have for them to think all alike. I do they have some of the same issues in their own party. Yeah, you have the the leadership in the House Republicans saying send it all back while many of the members of their caucus vote for the spending bills that they are criticizing. So there's never all wait. There's never a total agreement between everybody and there is disagreement. Trying to put out a a middle course, we're actually very close to the governor of any issues including this issue of tax relief and we think that that's the appropriate way to do what we think it's a good moderate course. What we're calling for is the major tax cuts. Also spending some of the money you increase in the budget Reserve setting aside some money in case the economy does turn down and then investing in education and an infrastructure. So we're trying to lay out a middle course that that we believe makes sense the people Minnesota truck your question. Please go out with me and excise tax and sales tax is payroll taxes that sort of thing and that being a caged. Why are we going to give them why we planning rebates to homeowners when the fact that the overpayment on the taxes on your home were busy and not the cause of this Surplus. Well, first Baldi the rebate would go not just a homeowners but also renters and in the house built a cabin owners as well. So it wouldn't just go to homeowners but there are a lot of different ways that you can buy tax relief and you're absolutely right. We could do it through through income tax or through sales tax in that that's a perfectly valid way of doing it. However, when we look at our property tax system, we believe that our property tax system is in serious need of Reform and a way to invest this money. This part of this budget surplus is to take on the issue of fixing our property taxes that we want totally fix it but making major efforts to reform it at the simplified the great create greater accountability and to reduce property taxes, which aren't based on ability to pay there an unfair tax. And so are we agree with the governor that that's are our highest priority house Speaker fill. Caruthers is our guests this hour and he's come by today to talk about some of the big issues still. In the process of being resolved up the state capitol legislative leaders. Hope to finish work yet this week. If you'd like to join our conversation got a question or comment give us a call to 276 thousands are Twin City area number to 276 Thousand Oaks at the Twin Cities 1-800 242-282-8227 6000 or 1 800-242-2828 speaker Crothers, you mentioned education a couple of times in the end. We repeatedly on this program get calls from people who say well let's spend more money on education. Now, I know that the village being talked about what appropriate I think it's 111 million dollars more but I think they're Siri is these callers theory is that the whole lot more should be put into education what given the Surplus? The house bill you write their the K-12 bill would actually the house bill was a little higher but we we reach a compromise with the Senate at 111 million dollars that would almost all of that would go to the classroom in terms of smaller class size computers in the classroom implementation of graduation rule. We think it's important that when you have a major budget surplus that some of the money be invested in in improving our education system so that we are competitive in a in a worldwide economy. And so that this this strong economy can continue in the future. We're also calling for repaying about 90 million dollars of what's called The Levee recognition ship that's a big word for saying that repay some of the money that was born from school district during the 1980s. So altogether about a 200 million dollar package for K-12 education. Yes, it could always be larger, but we think that that's an appropriate level of commitment to improving our education system. Collars for Mankato. Is a caller from Mankato rather is next JJ, please. The the negotiations are going on. The bill is a little less expensive than what we were talking about in the house. So the house passed a total bill about 90 million dollars. The agreed-on target was about 80 million dollars the they're making good progress, but that the issue that's really a sticking point is the issue of financial aid how that structured and they haven't come to an agreement yet. I were certainly optimistic that they'll do so quickly, but that's very important. As I mentioned. The education funding for higher education institutions has been very flat for a long time. They've gotten not even inflationary increases if we're going to keep College affordable is so that average people can afford to attend either 2-year or 4-year colleges. We have to make a major effort to to try to reduce the cost of college is increasing financial aid in and keep those tuition increases down. Now. This is a different building the one where the University of Minnesota would get money for its two big projects This Is Us the same thing. This is not the bonding bill or the capital investment bill. This is a supplemental Appropriations Bill to provide some supplemental Appropriations funding for the University of Minnesota and for our two and four-year higher educational facilities. How would the university bonding request? How's that going to play out? They wanted money for I believe it was a molecular biological shutter in a digital Technology Center and you folks approved won the Senate approved and other and well, that's they're working on that too. You're absolutely right that the Senate have the did they had the molecular biology building but did not find the digital Sciences building the house. Did it the other way around and we're hoping to come up with some kind of compromise. This is a major bonding package, but the university they they're requesting a good chunk of money. There are requesting 249 million dollars. And so we're going to do the best we can but there's probably not going All of the facilities that they're they're asking for it to be funded Kathleen your next I'd like to know if there's enough money in there to help provide the funding for the mass transfer to the light rail Transit down Hiawatha Avenue. I think that's an important thing to get started on since it's been over 25 years in the making that there was a plan for Metro white mass transit and nothing has been done about it yet and bus service is getting worse and worse. And I also wanted to make a comment on the earlier color. I was appalled when I heard about the Libertarians on the steps of the Capitol demanding all the tax money back. One of the reason that there is such a such an overflow or such a Surplus and you did say that you don't have in your hands the other that's a very good point but it's because the economy has been doing so well, I don't think it's that we have been overtaxed at least some people have not been overtaxed sir, that I would like since Bob with side sees fit to try to pass a constitutional amendment to guarantee hunting and fishing far into the future. How about maybe making a taking a constitutional amendment changing it so that some of that highway highway text guest access can be used for mass transit. Those are my comments. Thank you. First of all us some basic money for the Hiawatha light-rail project. Is that likely going to clear the legislature? It's got a very good chance. There is 50 million dollars is approximately in both the House and Senate capital investment bills. The governor has tentatively agreed with that. Although he's got concerns which he should which all of us should. How it would be operated what kind of funding source would be there to operate the system. The hope is that the United States Congress is probably going to provide a very significant match i-83 to 1 or 4 to one match with the the local funds that we would raise and that the county would that put together and so we're hoping to take advantage of that the Hiawatha Corridor. It's a corset anybody has driven through there hasn't unknown Ford what 20-30 years it's been that they the homes were cleared but there's never been the true type of Highway develop there and it probably will be under capacity at such time as it as it is finished. And so if we can use light rail Transit is a way to move more people on that quarter so that we protect the the neighborhoods from having even more homes destroyed. But at the same time I get people to and from the airport in the Mall of America in Downtown Minneapolis, and then we can do that in a way that that leverages some federal funds. So that's A good use of a wise use of resources the state money would be contingent though on the federal government coming up with its part of the cost. Yes, and what about a longer-term mass transit funding that time that they Kathleen referred to perhaps a Constitutional Amendment which would allow which would free up some of that gas money and so on for use for mass transit projects and very controversial issue very controversial issue in a lot of the state where there's a shortage of Highway dollars already people are very concerned about the idea of Dipping into the into the highway users cross bun is, you know, when you pay your gasoline taxes that goes into the highway highway usertrust fun. When you pay your license license tabs, which tend to be pretty high in Minnesota. That is all constitutionally dedicated for Highway purposes and to dip into that for a Ford Transit is very controversial. I personally think we should have some more flexibility at least in the metropolitan area, but it would be Difficult to pass such a proposal. There's also something moving in the house that would at least use some of the license plate tabs, which are right now constitutionally dedicated to be used for Highway purposes at least get some flexibility in the metropolitan area to allow some of those resources to be used for for Transit again, though that's running into a lot of Roblox and I'm not sure that there are the votes to pass it in the house so we could we could end up with some money for light rail, but probably not a brand new source of funding for Transit projects. Probably not this year. Probably not this year, but we got to keep working at it because they're up. There are a lot of needs in the metropolitan area not just for for better highways but also for better Transit house Speaker fill Carruthers is our guests this hour we're talking about some of the big issue is still to be resolved at the Minnesota Legislature. This could be the last week of the legislative session. And if you'd like to join our conversation, give us a call Twin City area number is 227-6002 to 7 6008 side the Twin Cities 1 800 242-2828 and we'll get this more collars and just a moment. Hi, I'm Chris Roberts on the next All Things Considered tornado devastated southern Minnesota a week later. We'll have an update. What's the latest from Minnesota? Tobacco trial and news from the state capital has the 1998 legislative session moves toward adjournment all of that plus the rest of the news on all things considered beginning at 3 on Minnesota Public Radio k n o w FM 91.1 in the Twin Cities. By the way, Chris mentioned the tornado cleanup efforts at the latest on that and all things considered this afternoon over the noon hour. Today. We're going to hear from Grand Forks mayor Pat Owens questions about a year ago that the Red River Valley got inundated paddling's became a national figure connection with the fight against the floods in the fires a tractor say he was down at a Peter yesterday and delivered a very emotional address to the residence of St. Peter. You'll be able to hear that over the noon hour and also over the noon hour. We will hear from dr. Vincent Harding who was an associate of Martin Luther King Jr's. He'll be along to talk about the Martin Luther King Legacy all of that coming up over the noon hour today Major funding for Minnesota public radio's documentary fund is provided by Phyllis Taylor in memory of Walter stremmel the weather forecast, maybe some rain in northern Minnesota, but the General Lee cloudy to partly cloudy. Cross the state High's mid-forties to the middle sixties the Twin City forecast calls for a sunny to partly sunny sky with a high temperature in the low 60s right now in the Twin Cities. We have a sunny sky and it's 54° Minnesota house Speaker fill. Carruthers is our guests this hour talking about some of the issues still on the table at the state legislature. If you have a question or comment give us a call 227-6000 or one 800-242-2828. Bob your next thank you so much to answer previous caller. I don't think she was answered. The reason the economy is doing so well, it's not an anomaly. It's because it's the it's because of the beauty of capitalism in the working proletariat, you know, it's not because of socialist government policy. So, you know just to straighten her out on that point number two, I wish feel would stop using and this isn't the only one but it's been going on for about 10 years erratic. Leftist euphemisms not the least of which is invest or investment. This assumes an implication of risk. There is no risk either working in government or or in Vulcan government policies that text people there's no risk. This is a bad way to talk about wasting our tax money, you know, stop using those words of second euphemism. I can't stand his children which brings me to a question. I understand that almost 60% possibly even more of our budget today at the state level can be attributed in one way or another to spending money on children. We've never spent more money on education than we are today across this nation. We have never spent more. There's no evidence that it's accomplish anything. We're starting more and more Head Start programs. We're going to have programs of a hundred-million-dollar whatever for children between the ages of one and three good refill. This isn't how you were raised. This isn't how I was raised when I went to school. It's been about $40 a year on me and I don't even consider myself smart. I mean you're much cleverer and smarter than I am because You down at the house. I want I want to know if this is true if we're spending that much already. Can we please back off from a little bit and just lower my taxes. I'm getting killed out here self-employed. I'm getting killed with taxes thinking about ya. I like most people in this state or a product of the public schools. I went to a public Elementary and high school. I went to the University of Minnesota and I I feel I got a good education there and I think it said something that is available to everybody interesting ly when the whole Northwest Northwest Act was passed by the United States Congress back when Jefferson was the president the United States, they had a real radical vision and that was that when the states were established and when there was westward expansion that a substantial amount of the money of land would be put aside to invest in our public education system. I believe that that's one of the reasons that the United States of America has a strong economy and is a great democracy because we do invest and we need to continuing to invest in our public education system. I don't believe I truly believe that it is an investment that you can disagree with me on that but I truly believe That spending money on education is an investment in all of us are not based on ability to pay. Everybody can go to public education do the University of Minnesota or to a 2-year or 4-year State University and everybody can go because of that is our right as Citizens in and I believe that we need to invest in improving our education system. Now that doesn't mean that we that we do everything right in public education. We have to continue to work hard and improving our education system, but we should do that. I think it's a high priority of the state. Now. The governor has vetoed forgive me. I don't know the official name of the bill basically this Earth family in early childhood bill, which among other things included a fair amount of money for child care subsidies. Any chance he said it was going to cost too much any chance that some part of that to measure will be revived. I think it's pretty unlikely. We we may revive part of the tax credit. Ironically the bill was vetoed of the collar toxic. Talks about that tax relief. There was a Child Care Credit expansion for the tax credit that there is available for people who have daycare expenses. There was an expansion of that. That was also be told we hope that that can be revived in the tax bill, but the rest of the funny I think it's unlikely. I just don't see that that there would be the votes to override The veto it's unfortunate wasn't a huge amount of money that total bill including the tax credit was 15 million dollars out of a 1.9 billion dollar budget surplus, but I think we'll probably just have to wait until next year to invest in in programs like a head start and early childhood programs end and making more daycare available to those people for example, or being a ass to and demanded that the properly so that they work instead of getting welfare. So so there a lot of programs that that are needed but I think we'll have to wait until next year Dennis your next. One comment. I have rental property and I was pleased that the legislature made some long-overdue adjustment in the rate that I paid and they lowered it as I'm providing affordable housing for people. Unfortunately, however, and I hope the legislature will continue Lord, but unfortunately the assessor has come along and increase the market value of the property. In fact, the properties have increased 30% The proposed market value is 30% more than it was a year ago for 1999 consequently any tax savings that had been passed on with by the Intensive legislature has been eating up. I hope they will continue to lower the rate but from my vantage point now, all I can do is raise around some people and this is very unfortunate particularly for those in who have affordable housing. My second comment has to do with the Roth IRA. I am really disappointed that the state of Minnesota has not adopted the federal guidelines. As he I'm 29 other states. Mr. Kelly a Steve Kelly had prevailed and has put some restrictions on this. It really makes it less than advantageous for people of Minnesota to take advantage of the Roth IRA. I would hope that if you have any influence on that that you might look at that again and see if we could adapt the federal guidelines. I thank you for taking my calls and I'll be looking forward to hearing you. Okay, let me take the first issue first a Roth IRA that's very much on the table before the conferees of the House and Senate to tax bills so that that still on the table and I hope we can do it. It only makes sense to conform our state law to the Federal Law changes that we have. Sometimes the same issues which are what are the appropriate priorities for tax relief. We we all want packs really but what are the appropriate priorities? Should it be a property tax relief. I should have be income tax. Sales tax relief in so they get into these issues. But I hope that they can address that too. And I hope that if if not this year than definitely next year that we can confirm because it is more efficient to have a tax system where the state is basically the same as the federal on the issue about apartment building tax relief. I very much agree with the the collars concerns. Minnesota does have a very high rate of apartment building taxation that's been true for a number of years. It's not the only reason because of a big part of the reason that the we have a shortage of of affordable housing and Rental housing in Minnesota is because of the federal tax changes that were made back in the tax reform Act of 1986. But but we need to address these issues at the state level as well. We do have such high property taxes that I believe that it interferes with the ability of people to want to build new buildings and to improve their buildings that they have and so a one of the reasons we have an incredible shortage of affordable housing in the metropolitan area and Statewide is because Am I view the high property taxes on apartment buildings Eleanor? Go ahead price for taking my call. I have a question. How are funds distributed to the school's is the amount of money that a public school gets dependent on the amount of taxes that are paid in the area of the school or is it evenly distributed throughout the schools in the state? For example, why do some of the Suburban schools have very nice new schools with good facilities in a good education compared to some of the city schools who seem to be a having trouble making ends meet I'll hang up and listen to the answer. Thank you 30 seconds on how they explain in-depth funds are distributed facilities are facilities are different than other forms of Education funding. Those are primarily handled by local referendum votes. In other words the voters decide whether to have their taxes go up to pay for new buildings. And so that's primarily how those are paid for. In terms of other funding the operating expenses a most of it is on a per pupil basis and not based on the property tax wealth of the area. Although again. There are sometimes local votes to increase operating referenda and that can be by local vote. And so there still are disparities but the basic funding is on a per pupil basis. Sounds like if you live in a poor area the odds are pretty good at your school buildings are not going to be Brand new top-of-the-line. Well that I wouldn't absolutely say but you you're probably right but they can still vote a modest up property tax increase to either fix up their buildings or build new buildings, but you're right though the wealth of the area and we do what's called equalize the funny to some extent but not totally and there are disparities. You're right. I carry your next I have to agree with that collar Bob how irritating it is. The choice of words that politicians. Will you lose investment in children is such a powerful simply to get the public to go along with what they want. I mean, let's face it. It's an expense. It's across the cost of Education the cost of educating our children which which wasn't my original point, but I do have to agree that we should be calling things. What they are. We my original point is I'm I'm just frankly amazed that this is a projected Surplus and everyone along the way is rushing to spend it. It's just so indicative of our society's problems. We have massive credit card. That's we have limited savings all because as a society we are rushing to spend money. We don't even have in our hands and this is very frustrating for me as the public and very typical as business and usual at the capital's. Everyone's going to take a chunk of this money along the way and in the end no big changes will be made for those business tax people those tax owners. It just is is just incredibly amazing to me speaker Crothers out of the budget surplus of 1.9 billion. The house is patch 1.2 billion in tax cuts. I believe that that's a very substantial emphasis on tap. Scotts and the business properties are going to get major tax relief. Remember last year. The rate was 4.6% for commercial industrial properties that was brought down to 4.0% and over either one or two years depending on what the country's workout. It will be brought down to 3.5% So businesses are going to get major tax relief, but we also want to make sure that the average citizens that homeowners and renters also get some tax relief that the business Community isn't the only ones that gets tax relief. So the house is past 1.2 billion dollar tax relief. We've also said that we should set some money aside in case the economy does slow down in case the projected budget surplus does not come to fruition. We should be cautious and set some money aside. And then also we should use some of this money to spend on improving our education system and investing in things like better roads and better buildings. And so I think we put together a balance packages. Anyone that the governor has also supported not all the details. He hasn't for example supported the quite the same level of K-12 funding but basically our budget package that we passed in the house is very similar to the governor's and I think it's a good moderate balance package back to the Senate position on on the bonding Bill Center mobile saying that the that the station pay cash for most of these projects as opposed to borrowing the money and then long-term taxpayers would save even more money than just getting getting a rebate check this year. What's wrong with that Philosophy from your point of view. First of all assumes that it won't just be spent two years from now on an even bigger bonding bill or in other ways and I guess I'm not quite so confident that in fact, it would truly be safe that it wouldn't just be spent. I believe that the taxpayers do deserve substantial tax relief that we've had a number of Surpluses how we passed some major tax relief last year. We should continue and passing more this year. The other thing that you have to remember about capital investment projects is a many of them are projects that last for a long long time. For example, when you buy Parkland that's going to last forever when you build a new University building that should last a 50 60 70 80 years. And so to say that the current taxpayers have to pay fully the cost of something that's going to last for a long time. If not forever. I believe is a is a fairness as you don't have a lot of time left, but certainly time for at least one more collar man Brothers. Thanks for answering our play me ask this question and maybe I'll be a free spinning liberal compared to the last two dollars, but I do not believe in investing in children and I'll take me into we invest in children enough and my question is I'm a guardian ad litem within the Hennepin County court system and I see families over and over again who are in crisis and we don't do anything until they've hit that pop hits crisis where they're hurting their kids and a cigar. I've been following the child protection Reform Bill very closely its main sponsor. I think I represented contenza and Center random, and I just checked with their offices this past weekend. He told me that the bill is being held by funniest his right now. Sorry. I just wanted my question is for a speaker for others. Will you commit to passing the bill with adequate funding at $39 this year? Cuz I think this bill is extremely important to performing the child protection system. So hang up now and just listen to the answer. Thank you. I I can't commit to that because I said that we're trying to put together a balanced package. We want to provide a very substantial amount of tax cuts to the citizens of Minnesota. We also we have other priorities in terms of improving our education system in financing infrastructure. This is not a regular budget year, even though we're lucky we have a because of the hard work of average citizens. We have a a major budget surplus we can't find everything we can't say yes to every single spending at him. So I don't know if there's going to be fun to do to do that one James quick question Place Human Services bill that's been held hostage by 75 people in the house that have wanted to tack on an amendment or defeat the bill. And I think this is absolutely shameful and I hope that the newspaper of for example, like the Star Tribune publishes the names of those people and I think they oughta older bald because they said it's a terrible thing that they did just a quick background for people who aren't following this Blow by blow a big Health and Human Services build a couple of abortion-related amendments that were attached to went the conference committee. 75 members of your body said that they would not pass the Bill unless those amendments were retained in the people on the Senate want to take the Amendments off. How's that going to work out? If the issue is in a conference committee there? They're trying to work this out. There are both pro-life members and pro-choice members on it. It's evenly divided between pro-life and pro-choice. I hope that they try to work on a compromise. And so that this whole bill will not be defeated. There's some very important funding Provisions for a senior citizens for disabled. Before the Flood stricken areas in northern Minnesota. There's a lot of programs in there that. That are very much needed the administration the governor very strongly supports this bill so they should try to work on a compromise. But if they can agree on a compromise, then they should not try to kill the bill at the conference committee. They should allow the bill to go to the floor of the house in the Senate and then I hope that members both the House and Senate and regardless of whether they're pro-life or pro-choice. I would hope that they would vote on what's in the bill not what's not in the bill. I hope we don't get in a situation where we are because of a provision that's not in a bill that people are voting against a bill. I know that the house feels very strongly in favor of the abortion amendments that were put on as they should however you give it your best shot and try to reach a compromise or try to Prevail on that issue, but we should not take down and defeat the entire bill because of of a few provisions Couple of quick questions here before we wrap up the amazingly the hockey arena has not come up this hour yet is a Saint Paul going to get at 65 million dollars for hockey arena. We're still working on that issue were trying to see if there's some compromise it can be reached and at this point, I don't know if it's going to happen or not. There is some talk that because the house supports money for the arena and a fairly sizable number of people over in the Senate support money for a Twins stadium that the east of two things yet this week we'll get linked together. Is that going to happen? I would very strongly oppose that the weather you were for the stadium or against the stadium that had a lot of discussion it was defeated and I don't think that they're the stadium issue should be linked to the to The RiverCenter refunding issue. I don't think that's the way the proper way to have legislation passed another a point of contention between the House and Senate has to do with this bill that would lower the blood alcohol limits are the DWI limit as I recall you folks a favor and across-the-board lowering 2.08. The Senate would only do so for repeat offenders. There's some talk that they has a car. When's the bill is going to die all together is that you're reading that's my reading. Yes, the Senate provision that to do it on a second offense at simply not workable because the equipment that is used by police officers at what does they can't I have two different calibration. They've got it as we have to decide what the standard is and it's either got to be .08 4.10. It can't be both education. What's holding up that their bill now is apparently everybody's agreed that the profile of learning will be moving ahead. It'll be phased-in. Is there any big hang up there? There shouldn't be any big hang out there. I have to say they're making painfully slow progress and I I hope they get that wrapped up tonight. There's no reason they shouldn't be able to get it wrapped up tonight. They should have got it done last week. But let's hope that they they keep working in and get those differences to result and it is there isn't time that Minnesota move back to every other year legislative sessions that you just drop these election-year sessions. Go back to the way things used to be. I think it's unlikely given their the modern world given the the the new of budgetary changes where we know for example of what the financial situation of the state is where we we know we have a either a short vowel or as in now a surplus that the legislature needs to be able to react working with the governor. When you have things like tornadoes when you have disasters that occur when there are some real needs out there. I think it's unlikely we'll go to do every other year session. So that worked at it when life was simpler early in the century, but unfortunately doesn't work now as hell but we're going to have a short session. I know it started in the mid January will be wrapped up here in the beginning of April in it. So it's a reasonably short session. We will have gotten a lot done. Thank you very much for coming in today. Define spirituality describe Faith. What is God and what do we tell our children? How important is Faith and family life or on the job? Listen, this month is Minnesota Public Radio presented series of reports call ins and special programming on religion in everyday life. That's this month on Minnesota Public Radio k n o w FM 91.1 in the Twin Cities. time now for Garrison Keillor and The Writer's Almanac

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