Democrats unveil rural plan

Call for sales tax cut, more funds for roads

By CHRIS VETTER

Journal Staff Writer

ST. PAUL -- Rural House Democrats unveiled a proposal Friday to improve economic health and education while cutting taxes for greater Minnesota residents.

Rep. Doug Peterson (DFL-Madison) promoted the package of bills and is seeking support from area Republicans, who control the House. Peterson said he is concerned about "cultivating rural prosperity."

"The DFL from rural Minnesota are very concerned about the rural economy," Peterson said. "I believe this agenda will address the concerns of a lot of people."

Key proposals include reducing the sales tax from 6.5 percent to 6 percent. Unlike the governor's proposal, the sales tax would not be expanded to include other services.

"I think we can do that within the parameters we have," Peterson said.

Twin Cities residents are prospering with a good economy there, but rural areas are falling behind, Peterson said. This plan will help level the playing field, he contends.

"We're trying to close this two-economy gap," Peterson said.

Other bills include a Constitutional amendment to dedication 100 percent of vehicle sales tax (MVET) to roads and transit projects. Currently, a portion of MVET goes into the general fund. Peterson believes the dedicated transit money will mean more road improvements for rural Minnesota.

"We deserve to have decent roads," Peterson said.

The Minnesota House DFL Rural Caucus is comprised of 25 legislators. The group is seeking more funding for rural drivers license examination stations to keep all 21 sites open. Other bills would fully fund clean-up projects on the Minnesota River.

Also, Minnesota would become more energy independent under the DFLers plan, developing more agri-fuels and maximizing use of biomass power and wind energy sources.

Peterson pointed to wind power already developed in Buffalo Ridge.

"We need to ove toward having energy independence," he said. "Why not have an economy based on energy production in rural Minnesota?"

Education funding is another key point in the DFL rural caucus proposal.

"School building and maintenance costs are a particular burden to rural property tax payers," said Rep. Leslie Schumacher (DFL-Princeton) in a DFL press release. "And this year, the need for emergency energy aid is also urgent. The cost of operating and maintaining a building shouldn't take resources away from education in the classroom."

Peterson said his proposal would include a $300 increase to the state's school funding formula. The bill also would eliminate school property taxes on homestead property and reduce the rate on commercial and industrial land.

Gov. Jesse Ventura's proposed budget features a reduction in the proposed funding for education, which Peterson believes is a big mistake.

"The governor's budget on education is not where Minnesota should be going," Peterson said, adding that rural schools would be hit harder under Ventura's plan. "An education in rural Minnesota should be the same as an education in Edina."

The University of Minnesota has already stated it will have double-digit tuition hikes if the governor's higher education funding plan is approved. Peterson said that will be bad for rural colleges.

"You know where (the students) will go? They will go elsewhere," Peterson said.

MinnesotaCare also would be expanded, allowing the self-employed and farmers to obtain the medical benefits.

"A great many rural people can't afford insurance," said Rep. Mary Ellen Otremba (DFL-Long Prairie) in a press release. "We should remove the barriers that keep them out of MinnesotaCare."

Peterson readily admits that the proposals will not move forward without the support of Republicans. But Peterson contends the issues are universal concerns to rural Minnesotans and deserve to be heard in committees. If not, the proposals will be brought up as amendments in House floor debates.

"These are issues that are not Republican or Democrat," Peterson contends. "These are issues about keeping the doors open in rural Minnesota."