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Click here to view the Governor's 2010 Supplemental Budget Recommendations Summary
Saint Paul – Governor Tim Pawlenty today released his supplemental budget recommendations, eliminating the state’s projected $1.2 billion deficit and providing tax cuts to spur job growth. The Governor’s budget maintains funding for priority areas including military and veterans, core public safety, and K-12 education classrooms. Many other programs would be reduced including Local Government Aid, welfare and social services, and state government agencies. “The historic drop in the economy has caused an historic drop in state revenues. Government has to live within its means by setting priorities and tightening its belt just like everyone else,” Governor Pawlenty said. “While this budget maintains funding for priority areas, it contains dramatic spending reductions in many programs.” Today's balanced budget proposal is in addition to Governor Pawlenty's executive actions to resolve the $2.7 billion budget deficit projected in July 2009. The Governor also renewed the request he made in the State of the State address that the Legislature ratify those actions. The Governor’s budget plan includes: In addition to spending reductions, Governor Pawlenty outlined details of his Jobs Creation Bill. The six-part plan would improve Minnesota’s business tax climate in order to spur job growth. “There’s bipartisan agreement that Minnesota’s tax system is costing us jobs,” Governor Pawlenty said. “In addition to balancing the budget without raising taxes, we need to improve our tax system if we are going to compete for jobs.” Governor Pawlenty’s Jobs Creation Bill has six parts:
20 percent reduction in corporate tax rate – FY 10-11: $10 million / FY 12-13: $150 million
20 percent tax reduction for small businesses - FY 10-11: $0 million / FY 12-13 $118.2 million
Angel Investment Tax Credit – FY 10-11: $10 million / FY 12-13: $20 million
Research and development tax credit – FY 10-11: $0 million / FY 12-13: $34 million
Capital gains exclusion for qualified investments – FY 10-11: $0 million / FY 12-13: $0 million
Incentives for companies to invest in Minnesota small business – FY 10-11: $0 million / FY 12-13: $0 million |