Governor Dayton yesterday unveiled his revised budget for fiscal years 2014-2015. With Minnesota Management & Budget (MMB) recently projecting the FY 2014-15 shortfall at $627 million, down from last November's estimate of $1.1 billion, the Governor was able to make changes to his original proposal released in January. Among those changes are a $296 million reduction in proposed revenue and a $165 million increase in expenditures. An available balance of $8 million remains for the FY 2014-15 revised budget.
Most notably, the Governor excludes the sales tax overhaul included in his original budget. The overhaul would have included a broadening of the sales tax base coupled with a rate reduction, as well as a tax on business-to-business services. The fourth tier income tax still is included in the revised budget, at a rate of 9.85% on taxable income over $250,000 for married joint filers and $150,000 for single filers, and is estimated to bring in $1.1 billion.
The revised budget continues an investment of more than $640 million in education, from funding all-day kindergarten to investing in higher education institutions. An additional investment of $86.5 million is devoted to economic development.
More information on the revised budget is available at the MMB website.