Final budget agreement provides relief for small businesses and workers
The 2021 legislative session is officially in the books. It was a challenging session that was made even more difficult by Covid-19, but I am proud of the way that we were able to work together with House Democrats and the governor to reach an agreement.
All session long Republicans made it clear we would not support tax increases. Despite intense demands from the governor and House Democrats, the reality is that tax hikes just weren’t necessary. The state has a significant budget surplus — about $1.6 billion. We have plenty in our rainy day accounts, and we received billions from the federal government in Covid-19 assistance.
In other words, the state has plenty of money.
I am glad to say Republicans prevailed: the next budget does not raise taxes. That’s a significant victory — one that is important for every working Minnesotan.
One thing I wanted to address right off the bat: I will always fight to protect local charities from changes to our state e-pulltab laws. I hear about this subject almost everywhere I go. E-pulltabs have been incredibly successful for local charitable organizations, American Legions, VFWs, and other hospitality businesses. Gov. Walz and Lt. Gov. Flanagan now want to change the rules to protect and satisfy their political friends and supporters, but I will not jeopardize local charitable organizations by considering any modifications to e-pulltabs. An administrative law judge has already ruled on the legality of e-pulltabs. As far as I’m concerned, the issue is settled.
Another one of my top priorities was helping the small businesses, especially hospitality businesses and their employees, who were hammered by Covid-19 and Gov. Walz’s shutdown orders. A lot of these folks were forced into impossible situations. Businesses closed their doors for good. Of those who survived, many relied on the federal forgivable Paycheck Protection Program to keep their doors open and keep people on the payroll. It was a lifesaver.
Many workers relied on emergency pandemic unemployment benefits to make ends meet after being forced onto the unemployment line through no fault of their own.
Unfortunately, both forms of assistance were exempt from federal taxes but not state taxes. Republicans passed a bill months ago that would spare all of these folks from huge tax bills, but the House and Gov. Walz refused to act.
I am proud to say that this relief is included in the final budget agreement. It was ludicrous that Gov. Walz and the House waited this long to agree, but I am glad we were able to save these people from enormous tax bills.
Another important victory is legislative oversight of federal Covid-19 assistance. As you might know, the governor has been distributing all federal Covid-19 aid on his own, without the input or advice of the legislature. This is not the way it should work. The legislature is empowered by the constitution with the power of the purse. For good reason: we are the body that is closest to the public. We know the needs of each individual community better than any governor in St. Paul.
Here are some great examples of why the legislature needs to be involved in the process. The following items are things Gov. Walz spent emergency Covid-19 funding on. Had the legislature been involved, you better believe we would have stopped this.
- Nearly $100,000 to a non-profit which specializes in providing abortion doulas
- $12,500 payment to a radio station to broadcast the Governor’s press conferences
- $275/hour contract with a New York public relations company
- $20,000 per month to Stone Arch Strategies to “provide strategic communications support and services” to the Governor’s Communications Team.
- The point of contact on the contract is Brigit Helgen, a DC-based political consultant, and daughter of Henry and Michele Kelm-Helgen.
- $50,000 to a non-profit to establish talking circles, complete with $20 gift cards to incentivize participation
- Nearly $20,000 to a non-profit to recruit volunteers to put together “wellness bundles” including tea and non-traditional health supplements
- Contracts to several different entities, each promising to produce videos that will reach tens of thousands of viewers, with YouTube pages that show they reached tens of viewers
I will follow up with more information about the final budget agreement as more details get worked out, but if you have any questions feel free to contact me any time at sen.john.jasinski@senate.mn or 651-296-0284. It is a privilege to serve you!