People who ask about my decision to line-item-veto the Minnesota House and Senate's appropriations are mostly concerned about what I did. The more important question is: Why did I do it?
I don't want to permanently defund the House and Senate. I'm not engaging in some petty retaliation for the Legislature's last-minute shenanigans.
What I am doing is defending the integrity of the state of Minnesota: Our state's financial integrity, the integrity of our state's professional teaching standards and the integrity of the way decent Minnesotans must treat other decent Minnesotans if we are all to succeed together.
When I became governor in January 2011, our state government faced a projected $6.2 billion budget deficit in the upcoming biennium. Since then, we have worked very hard to restore Minnesota's fiscal integrity. We turned the state budgets from chronic deficits to consistent surpluses. We repaid more than $2 billion the state had unilaterally "borrowed" from our school districts. We eliminated other payment shifts and accounting gimmicks that had previously been used to disguise those deficits. We finally succeeded: The last eight state financial forecasts have projected budget surpluses.
Most Republican legislators opposed the tax reform most responsible for reversing our state's fiscal misfortunes. In 2013, we increased the state's income tax rate on the wealthiest Minnesotans. That 2 percent rate increase on the top 2 percent, along with the increase in cigarette taxes and the state's growing economy, have provided us with additional revenue and an estimated budget surplus of $1.65 billion this year.
Some of them repeat the falsehood that I have raised state income taxes on all Minnesotans, which are to blame for those surpluses; therefore, they argue that it all should be "given back."
That is untrue, and they know it. Our state's income tax rates have remained the same for 98 percent of Minnesotans since 2000.
But their tax bill doesn't give it back to everyone. Instead, its benefits are wrongly weighted to their favored friends: the rich and powerful. They increased the estate tax exemption for about 1,000 Minnesotans from $2 million to $3 million, at a cost of $109 million over the next four years. They gave special tax breaks to Big Tobacco, totaling $53.2 million in the next two biennia. Most incredibly, they even provided a special tax break for premium cigars.