Governor’s budget protects E-12 education, boosts early childhood programs

Education Minnesota President Tom Dooher called Gov. Mark Dayton's budget plan an “honest, thoughtful” approach to the state’s financial crisis and praised the governor’s plans for investing in innovation and children’s future success.

Gov. Mark Dayton’s budget proposal would maintain basic E-12 education funding for the coming biennium. In addition, it would invest $52 million in these programs:

All-day, every-day kindergarten targeted to low-income students.
A rating system for early childhood programs.
New awards and grants to encourage excellence in education, innovation in closing achievement gaps and sharing of best practices.

“Gov. Dayton understands that investing in the education of our children is critical to Minnesota’s future success," Dooher said. "He’s keeping his campaign promise to increase funding for K-12 education, and his targeted investment in all-day kindergarten is one strong step toward closing the achievement gap.”

Repayment of shift delayed until 2014
The governor, however, proposes to delay repayment of the school funding shift until 2014, saving nearly $1.5 billion in the current biennium. After 2014, the shift would be repaid at a rate of 10 percent per year.

Dayton said he would focus education spending on priorities, cutting $15 million worth of unspecified smaller K-12 programs that “divert resources from primary priorities.” His plan also cuts higher education funding by 6 percent, but would protect higher education student grants from reductions, although it would target cuts at smaller and less “effective” grant programs.

The overall budget plan relies heavily on tax increases that are opposed by Republicans, who are determined to eliminate the $6.2 billion state deficit entirely through cuts.

Additional features
The governor's proposal also includes these features:

A fourth state income tax tier that would kick in at $150,000 in taxable income for joint filers.
A temporary surtax on taxable incomes over $500,000.
A new state property tax on homes worth more than $1 million.
A 6 percent reduction in the state government workforce.
Cuts and surcharges in health and human services.
Cuts in most budget areas by up to 10 percent.

Dayton said 95 percent of tax filers would pay no more under his plan. He would also maintain local government aid to cities and counties to limit property tax increases.

“Gov. Dayton’s budget proposal is an honest, thoughtful approach to the most difficult financial problems of our lifetime. We congratulate him for making the bold, courageous decisions necessary to return Minnesota to a course of prosperity,” Dooher said.

February 15, 2011