Posted: 11/14/07

Governor presents $51 million veteran's package


Gov. Tim Pawlenty presented his administration's $51 million veterans' benefits proposal at a Capitol press conference on Veterans Day, Nov. 12.

By T.W. Budig
ECM capitol reporter

Minnesota Veterans Affairs Commissioner Clark Dyrud styled the proposal "a grand coming together."

The Pawlenty Administration on Veterans Day (Nov. 12) presented a $51 million veterans' package it will submit to the Legislature this coming session.

It isn't a dream sheet, said Minnesota Military Affairs Adjutant General Maj. General Larry Shellito, speaking at a Capitol press conference.

The 35 initiatives contained in the proposal emerged out of a collaborative process, he explained.

Centerpiece of the proposal is a total tax exemption from state income tax for military pay and pensions — a $25 million a year tax break when fully implemented.

Gov. Tim Pawlenty said 42 other states provide some degree of tax exemption for military pensions — Minnesota had a provision that was repealed in 1987, he said.

"We believe, of course, veterans have paid enough," said Pawlenty.

Pawlenty said there was no need to cut other programs to fund his veterans' proposal.

Other items include encouraging the federal government to begin the process to create a new state veterans' cemetery in the Duluth-area.

Creation of the cemetery would take several years, Dyrud opined.

The administration is also proposing the creation of a Camp Ripley Land Fund to manage the natural resources at the camp, slotting revenue from timber harvest to military funding.

Some eight employer-focused initiatives are included in the proposal — a hiring/training incentive for businesses that employ veterans, for one — as well as a proposal to expand the "Proud to be a Veteran" license plate sales to motorcycles.

There are more than a dozen other military and veterans proposals.

Rep. Al Juhnke, DFL-Willmar, House Agriculture, Rural Economics and Veteran Affairs Finance Committee chairman, said the administration's proposal was a good package.

"I think a lot of it is a continuation of what we did last session where we increased by 70 percent veterans affairs financing," he said.

"From the legislative standpoint, particularly from our caucus, we're committed to not only passing most of these initiatives but also finding the money to do it after February — even if it means new money," said Juhnke.

"We're not afraid to go out and get new money for this," he said.

Juhnke explained the state's upcoming budget forecasts will help clarify the economic picture.



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