Skip to main content

On final day, Legislature approves $38B budget, $2B in new taxes

  • Author:
  • Updated:

The Minnesota Legislature wrapped up its 2013 session late Monday night, approving the final pieces of a $38.3 billion state budget, which includes $2.1 billion in new tax increases.

The $38.3 billion budget marks an 8.8 percent increase over current spending, the Pioneer Press noted.

Lawmakers worked right up until the final moments before a midnight deadline for the session. The $2 billion in new revenue will be raised through an income tax increase on the highest-earning 2 percent of Minnesotans, a new tax that raises the cost of cigarettes by $1.60 per pack, as well as the scrapping of some corporate tax subsidies, MPR notes.

The new tax revenue, championed by DFL leaders in the DFL-controlled Legislature, would erase the state's forecasted $627 million deficit and create new money for public education and property tax relief.

The dramatic, last-minute vote on the tax bill came after Republicans for more than a decade had blocked statewide tax hikes, although many fees were raised during those years, the Star Tribune noted.

Republicans throughout the budget and tax debates criticized DFL lawmakers for promoting the tax hikes, killing jobs and over-reaching. They say new spending and higher taxes will slow the state's economic recovery.

"We are losing businesses in the state of Minnesota because of our tax code, and this (bill) will only make things worse," Sen. Julianne Ortman of Chanhassen, said, the Pioneer Press reported.

Lawmakers on Monday also gave final approval to a $156 million package of public construction projects. The bulk of that money, $109 million, is for renovation work on the crumbling 108-year-old state Capitol building. Money will also flow to flood-related projects, as well as to work on the Minneapolis Veterans Home, MPR reported.

Also on their final day, lawmakers approved a bill that would allow in-home child care providers and personal care assistants to unionize.

Among the measures that died in the final end-of-session negotiations was a proposed minimum wage hike. DFL leaders in the House and Senate could not agree on how much to increase the standard.

Another measure that was discussed but not approved: a lawmaker pay raise.

The Star Tribune has a tidy wrap-up of what the Legislature accomplished – and what did not get done – in the 2013 session.

Lawmakers in both parties had some final thoughts and parting shots. Star Tribune and MPR have reactions from both sides.

Just a few of the session's other highlights:

Vikings stadium funding - A plan to use tax revenue on new electronic pulltab gambling games in the state has fallen well short of expectations. So lawmakers plan to use a two-pronged approach to fill the gap for now: a one-time cigarette excise tax on current tobacco inventory, and the closing of what some consider a corporate tax “loophole,” MPR noted.

Gay marriage - The Legislature approved a gay marriage bill, and Dayton signed it. Same-sex marriage will be legal in the state effective Aug. 1.

Mayo's Destination Medical Center - Lawmakers approved $400 million in state money for Mayo Clinic's 20-year expansion plans. As part of the deal, the city of Rochester is expected to contribute $128 million toward the project, and Olmsted County is expected to pay $40 million. Mayo had asked for the money for infrastructure improvements in Rochester.

Education - Beginning in 2014, school districts will be able to offer all-day kindergarten free for parents and at state expense. In higher education, $250 million in new state spending will allow Minnesota state colleges and universities to freeze state tuition for two years.

Sales tax on clothing - Was not approved.

Gas tax - Was not approved.

Next Up

Screen Shot 2022-11-25 at 6.44.11 PM

Standoff in Prior Lake: Man assaulted officer, broke into home

The suspect allegedly assault an officer outside Kwik Trip, fled and broke into a home.

snow - 12-10-21 - Joe Nelson - 5

Accumulating snow possible in Twin Cities next week

The storm system could arrive in the Tuesday-Wednesday timeframe.

Target store snow

With Black Friday barely underway, Target reveals Cyber Monday deals

Plans for the two-day sale were revealed Friday morning.

Screen Shot 2022-11-25 at 9.37.25 AM

Man waves replica assault weapon at drivers in downtown Minneapolis

The alarming incident was spotted by the new MPD chief, Brian O'Hara.

Screen Shot 2022-11-25 at 9.29.58 AM

Extremely drunk driver arrested in Chaska

The driver was more than four times the legal limit.

Screen Shot 2022-11-25 at 8.21.21 AM

Stillwater police looking for suspect who stole vehicle with 1-year-old inside

The suspect abandoned the vehicle with the child still inside just 5 minutes after the theft.

Screen Shot 2022-11-23 at 5.01.34 PM

Suspected Bloomington restaurant killer arrested in Oklahoma

The 47-year-old Texas man was arrested around 12:30 a.m. Thursday.

Screen Shot 2022-11-24 at 9.16.39 AM

Minnetonka woman, 23, ID'd as victim killed in Minneapolis crash

The fatal crash happened near the Minneapolis Convention Center on Nov. 21.


More than 100 geese, ducks found dead on partially frozen MN lake

The discovery was made in Waseca at the weekend.


After losing sponsor, advocates fear Minneapolis' Nice Ride could shut down

They are calling on the city to provide financial support till a new sponsor is found.

Screen Shot 2022-11-23 at 3.32.46 PM

Colleen Lindstrom announces departure from MyTalk radio show

Lindstrom's last broadcast on the long-running show will be Dec. 9.


State Capitol

Legislature approves a state budget, averting government shutdown

Here are some of the things lawmakers agreed on.