Rep. Kim Norton Newsletter: 3/2/09
03/02/2009
Dear Neighbors,
Last Thursday members of the Minnesota Senate and House of Representatives visited Rochester to hear from area residents regarding the state’s budget deficit. Almost 400 people filled the Heintz Center at RCTC to offer recommendations and relay their concerns. I was proud of the way our community presented itself to the legislature. Thanks to those who took the time to share your thoughts with the committee, and for taking part in a forum that will help ensure Minnesota’s deficit is resolved fairly and responsibly.
Rochester residents sent a clear message to lawmakers that balancing the budget will require difficult decisions. Thursday’s hearing helped Minnesota legislators understand the concerns of our community – sentiments shared by people across the state. The testimony you provided will help us set priorities in Saint Paul and ensure our decisions this session reflect the needs and priorities of all Minnesotans.
Six weeks into the legislative session, the next step in the budget-balancing process is about to begin. Next Tuesday, March 3, the Finance Department will release Minnesota’s updated budget forecast. Early predictions put the deficit as high as $7 billion. The work of the Legislature is not nearly over. We await the governor’s revised budget and then the real work begins. I will need your continued input to help resolve the deficit responsibly and put our economy back on track.
I strongly encourage you to continue contacting me throughout the legislative session. You can reach me by phone at (651) 296-9249 or by email at .(JavaScript must be enabled to view this email address). I look forward to hearing from you.
Kim Norton
State Representative
District 29B
KIM’S BILLS HEARD THIS WEEK
- Requiring insurance companies to cover treatment for autism spectrum disorders – HF359
- Hearing in Commerce and Labor Committee – passed w/amendment, referred to State Government Finance Committee
- Allowing public schools to begin classes before Labor Day – HF195
- Hearing in K-12 Finance Committee – passed to general register
- Nursing home streamlining – HF666
- Hearing in Health Care Policy Committee – laid over for possible inclusion in Health Care Omnibus Bill
- Waste-to-energy steam pipes to RCTC – HF023
- Hearing in Higher Education Committee – passed and referred to Capital Investment Committee
You can find more information about bills I am working on online at http://www.house.mn/29B
HOUSE VOTES TO EXTEND FEDERAL TAX BENEFITS TO MINNESOTANS
With individual income tax deadlines approaching, the State House passed a bill (HF392) Thursday to comply with federal tax policies passed by Congress in May and July when the Minnesota Legislature was not in session. The tax conformity bill passed by a vote of 128 to 0 extending numerous new tax benefits that Minnesota teachers, seniors, and military veterans can take advantage of this year.
If the Legislature had not passed a tax conformity bill, taxpayers would have had to add income back into their calculation for state taxes after calculating their federal tax – making tax filing season an even bigger headache. If the Legislature had waited until May to pass the conformity bill, taxpayers who qualify for the deductions would have been forced to file amended returns later in the year. Tax conformity makes tax filing easier for taxpayers and helps reduce administrative costs.
The bill now moves to the Senate and then to Governor Pawlenty who has indicated he will sign it. Some provisions of the bill include:
- Deductions for teacher classroom expenses
- Allowing direct transfers to charities from traditional and Roth IRAs for tax years 2008 and 2009 to benefit elderly filers
- Expanding earned income and working family credits for members of the military by counting non-taxable combat pay as earned income
More information about HF392 can be found online at http://www.house.mn.
INDIVIDUAL BENEFITS FROM FEDERAL RECOVERY BILL
Last week Congress and President Obama approved a federal recovery bill in an effort to help stimulate the country’s struggling economy. You can find out more about the plan at http://www.recovery.gov.
Minnesota is expected to receive more than $4 billion from the federal government – much of which will be used for Medicaid payments, infrastructure projects, and education. About $800 million can be used to help resolve the state’s budget deficit.
The following is a list of key provisions in the bill that will directly benefit individuals.
Making Work Pay Tax Credit
Individuals earning less than $75,000 will receive a $400 tax credit. Couples earning less than $150,000 will receive an $800 tax credit. Roughly 2 million Minnesotans are eligible.
First-time Homebuyer Tax Credit
First-time homebuyers are eligible for an $8,000 tax credit for homes purchased between 12/31/08 and 11/30/09.
Child Tax Credit Expansion
The federal bill temporarily expands the existing child tax credit that provides a partially refundable federal income tax credit of up to $1,000 per child under 17.
Earned Income Tax Credit
A temporary increase in the ETIC (which primarily benefits low-wage working families with children) for 2009 and 2010 is provided, increasing to 45% the first $12,570 with three or more children.
Car Purchases
A tax deduction is provided for taxpayers earning $125,000 ($250,000 joint) for state and local sales taxes paid on the purchase of new cars, light trucks, recreational vehicles, and motorcycles through 2009.
Higher Education Tax Benefits
The HOPE credit is increased to $2,500 and extends the credit to all four years of college. Taxpayers will receive a credit for $2,000 of qualifying tuition and 25% for the second $2,000 to the maximum $2,500.
Energy Efficiency Credit
Homeowners will receive tax credits up to $1,500 for home energy efficiency investments such as installing new furnaces, water heaters, windows, doors, and insulation.
Health Insurance Subsidies for Laid Off Workers
Recently laid-off families earning less than $250,000 or individuals earning less than $125,000, may be eligible for a 65% subsidy for COBRA premiums over 9 months (health insurance for laid off workers).
Unemployment Insurance Increase, Extension & Federal Tax Benefit
Roughly 330,000 Minnesotans will benefit from the unemployment insurance extension through next December.
Job Training Expanded
Workers who lost their jobs due to trade will be eligible for an 80% health care tax credit and job training.
One-time Check for Social Security and Disabled Veterans Benefits’ Recipients
A one-time payment of $250 will be made to Social Security, disabled individuals, and Supplemental Security Income (SSI) recipients.
Nutrition Assistance
Food stamps benefits will be increased to cover the increased cost of food.
Higher Education Affordability
Pell Grant awards will be increased by $500 and other federal financial aid programs will be expanded.
Kim Norton
House of Representatives-29B