Legislative Update: Budgets revealed and ag research funding bills introduced
By Amanda Bilek, Minnesota Corn Growers Association Senior Public Policy Director
Last week Governor Tim Walz released his first two-year budget proposal. Later this week, the Minnesota Management and Budget (MMB) will release a revised economic forecast, which will be used by legislators and the Governor to construct a two-year budget for Minnesota before adjournment in May.
In November, MMB projected a $1.5 billion surplus for the next two-year budget cycle, but projected slower economic growth could have an impact on the revised forecast.
Governor Tim Walz’ first budget proposal would be $49.4 billion for the next two-year budget cycle, approximately a $2 billion increase over the current budget. The budget proposal is a mix of base funding for existing programs, new spending proposals and increased revenues. A first step in the state budgeting cycle, the Governor’s budget proposal includes several items discussed during his campaign, and similar to initial budget proposals by his predecessors, is often a reflection of his priorities.
Included in the Governor’s budget proposal is buffer property tax relief for $15 million. As reported last week, buffer property tax relief is a key legislative priority for the Minnesota Corn Growers Association (MCGA). MCGA was pleased to see this priority included in the Governor’s budget proposal, which gives it a significant lift in the push to address this issue. The buffer property tax credit included in the Governor’s budget is based on the $50 per acre credit discussed last year in the legislature.
Rep. Paul Torkelson (R-St. James) has also come forward with a buffer property tax credit proposal. HF 1430 proposes to reduce property taxes on acres in compliance with buffer law to zero, and the state would annually reimburse local taxing jurisdictions for lost property tax revenue from buffer acres. We expect the Senate companion bill to be introduced this week.
We look forward to working with the administration and legislators towards a buffer property tax relief package that will fairly address the financial penalty of farmers paying ag land rates on buffer acres no longer in production.
The Governor’s budget proposal also contains another tax priority for MCGA and other agriculture groups: The need for the state of Minnesota to fully conform to section 179 expensing and depreciation limits. House and Senate legislators have also been considering bills for section 179 conformity, and we hope to see a final tax bill include this important priority.
Another important policy priority for MCGA is to increase funding for the Agricultural Research, Education, Extension and Technology Transfer (AGREETT) Program at the University of Minnesota. HF 1136 introduced by Rep. Rod Hamilton would increase funding for AGREETT by $5.7 million per year and would bolster agriculture research activities at the University of Minnesota. We expect the Senate companion bill to be introduced this week.
Be sure to follow the MCGA blog and its social channels (Facebook, Twitter) throughout session for updates from the Capitol. You can also follow me on Twitter (@AjBilek).
