Posted: 3/7/07

Tax hike proposed to help fund education


Rep. Mindy Greiling has proposed a hike in the state income tax to fund education.

By T.W. Budig
ECM capitol reporter

House K-12 Finance Committee Chairwoman Rep. Mindy Greiling, DFL-Roseville, on Monday (March 5) proposed a hike in the state income tax to fund education.

"It's shameful if we don't try," said Greiling about raising extra dollars for education.

Only the state can fairly fund education, she explained.

Greiling proposes to raise the state's top-tier income tax bracket by about a percent, raising some $250 million a year to be deposited in a designated K-12 education account.

Speaking on Minnesota Public Radio, Greiling explained the need for extra funding as a means of avoiding "devil's choices" in education.

That is, deciding between two bad options.

"I was bitterly disappointed," Greiling said of last week's budget forecast.

"To me, the promises should be kept," she said of campaign door stop support for early childhood and all-day kindergarten.

Greiling's proposal, which already has 32 co-authors in the House, drew support and condemnation from local lawmakers.

"I'm very supportive of it," said Rep. Ken Tschumper, DFL-La Crescent, who appeared at a Capitol press conference Monday morning along with Greiling.

Tschumper, too, views the proposed tax increase as a means of following up on campaign promises.

The school districts in his district are struggling, he explained.

Tschumper hopes Gov. Tim Pawlenty rethinks his stance on vetoing tax increase bills.

Pawlenty has indicated he would veto any tax increase.

Rep. Rick Hansen, DFL-South St. Paul, was cooler in his reaction to the proposed income tax increase.

All options should be considered, he explained. And he wants to learn more about Greiling's proposal, he explained. But Hansen said if he votes for a tax increase this session, it more likely it will be for transportation than education.

Two conservative Republicans rejected Greiling's proposal completely.

"No, it's not a good idea," said Rep. Sondra Erickson, R-Princeton, who serves on the House K-12 Finance Committee.

Erickson indicated she was concerned the proposed increase would hit teachers in their pocketbooks.

Rep. Mary Liz Holberg, R-Lakeville, also nixed the proposal.

"It's not uprising," she said of a proposed tax increase.

"It was expected," she said.

The state already will have a nine percent increase in spending in the next two-year budget cycle, Holberg pointed out.

The residents in her district aren't seeing a nine percent increase in their salaries, she opined.

"People in my district are struggling," she said.

The proposed increase would impact married couples filing jointly making more than $123,750 a year.

The threshold for unmarried individuals would be at $69,990 a year.

For the unmarried head of household the threshold would be $105,410.



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