Governor Dayton Vetoes Republican Tax and Omnibus Budget Bills that Put Special Interests Ahead of Minnesota Families

Press Release

Governor Mark Dayton today vetoed the Republican Tax Bill (Chapter 205, H.F. 947), and the Republican Omnibus Budget Bill (Chapter 201, S.F. 3656), which put powerful special interests, multinational corporations, and the rich ahead of Minnesota schoolkids and families.

"I am vetoing this bill because of its misguided priorities that give tax cuts to corporations and the wealthy over the education of our children," said Governor Dayton in his veto letter on the Republican Tax Bill.

"This terrible bill and the resulting veto are your creations," said Governor Dayton in his veto letter on the Republican Omnibus Budget Bill. "Never have I seen a legislative session so badly mismanaged, less transparent, and more beholden to monied special interests."

Throughout the 2018 Legislative Session, Governor Dayton urged the Republican Legislature to support compromises that would deliver on priorities important to Minnesota families, including: tax cuts for over 2 million Minnesotans; Emergency School Aid; school safety; requiring big pharmaceutical companies to contribute funding to address our state's opioid crisis; reforms to protect seniors and vulnerable adults from abuse and neglect; and more. Unfortunately, Republican Legislators repeatedly sided with powerful special interests over Minnesota's kids, families, and seniors.

About the Republican Omnibus Budget Bill Vetoed by Governor Dayton

The Republican Omnibus Budget Bill vetoed by Governor Dayton put the priorities of powerful special interests ahead of the needs of Minnesota schoolchildren and families. The bill totaled 990 pages, was riddled with controversial policy provisions, and was introduced just two-and-a-half hours before it was put up for a final vote in the Legislature. The bill played politics with school safety, protected big pharmaceutical companies, sided with industry lobbyists over older and vulnerable adults, and protected health insurance companies from competition -- denying Minnesotans access to more affordable health care.

Governor Dayton also vetoed Chapter 212, SF 799 today. This bill would have removed certain provisions contained in the Republican Omnibus Budget Bill. To read Governor Dayton's veto letter, CLICK HERE

About the Republican Tax Bill Vetoed by Governor Dayton

The Republican Tax Bill vetoed by Governor Dayton would have spent $136 million in the first year alone, and protected multinational corporations from paying nearly $200 million in state taxes on profits they have sheltered overseas. Corporate tax benefits and protections in the legislation would have unsustainably grown to more than $280 million in this biennium and $482 million in the next biennium. And the bill overwhelmingly favored rich Minnesotans, over low- and middle-income Minnesota families. To learn more, read Governor Dayton's veto letter by CLICKING HERE.

About the Republican Legislature's Fake Plan to Address School Deficits

Unfortunately, the Republican Legislature refused to provide $137.9 million in one-time Emergency School Aid for Minnesota schools. Instead, they proposed a fake plan to address school deficits, claiming they were giving schools $225 million. The truth is, nearly 80 percent of that funding was existing money that had already been allocated to school districts. The other 20 percent (roughly $50 million) would have been transferred to schools from the State Budget Reserve. In fact, their proposal would have:

· Taken $50 million from the State Budget Reserve in 2019, and distributed it to schools by making a one-time increase of $57.73 per pupil. By simply increasing the per pupil allocation, and not using the general education formula, there were no equity components to their school aid plan.

· Allowed schools to use existing funds, which were already appropriated for teacher development or other purposes in Fiscal Year 2019 only.

· Allowed schools to use existing fund balances, dedicated for community education or other purposes, in Fiscal Years 2019 and 2020.

Republicans put this fake education funding in their Tax Bill, which the Governor said repeatedly he would veto because it sheltered multinational corporations from paying their fair share of taxes on profits they sheltered overseas, unfairly favored the wealthy, and risked our state's fiscal stability.

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