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~ Governor delivers on commitment to provide tax relief, balance budget, reduce spending ~ Saint Paul – Governor Tim Pawlenty and legislative leaders have agreed on a plan to balance the state budget without raising taxes while providing significant tax relief for Minnesotans. The agreement erases a projected $935 million deficit and includes the Governor’s plan for a property tax cap and tax relief for veterans and military members. During several days of negotiations leading up to the agreement, Governor Pawlenty fought for a property tax cap to protect homeowners from rapidly increasing property taxes. The agreement includes a cap that will limit cities and counties to an increase of 3.9 percent per year. Governor Pawlenty’s property tax cap and related relief is projected to save taxpayers $78.5 million in 2009 and $460.5 million over the next three years. Also, cities and counties will receive additional aid. “Minnesotans deserve tax relief and a state government that lives within its means,” Governor Pawlenty said. “This agreement delivers both. I want to thank legislative leaders from both parties for their hard work and willingness to seek out solutions. The result is a balanced budget, a strong property tax cap, additional tax relief, reduced government spending, no additional taxes, health care reform, a new state park and new facilities at the Minneapolis Veterans Home.” Highlights of the overall package include:
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