What’s this whole unallotment thing anyway?

by Michael Dahl, Public Policy Director on 31 March 2010

Guest Blogger, U of M student Tess Gartenberg

Guest Blogger, U of M student Tess Gartenberg

I’d like to take this moment to thank some amazing public policy interns HOME Line is working with this year.

Allie, Carla, Addison, Brian, Mark, Rachel, and — this blog post’s author — Tess:  The Renters’ Credit and Tenant Bill of Rights campaigns are where they are now, in no small part, because of your great work.

Super-busy and feeling a little under the weather, I asked two of my interns — Tess and Brian — to contribute blog posts during the Minnesota Legislature’s Spring Break.  You’ll see Brian’s post on the Tenant Bill of Rights tomorrow.  Today, from U of M student, Tess Gartenberg …

What’s this whole unallotment thing anyway?

When I received my renters’ credit form in the mail at the end of December, I thought nothing of it.  I knew that I was not eligible to receive it because I am still listed as a dependent on my parent’s insurance.  Looking back, my privilege overshadowed the reality of the actual situation. At first, I thought that few people other than college students are renters.  This naïve belief was quickly changed as I began to learn how a cut in the renters’ credit will drastically affect tenants’ lives across Minnesota.

A brief re-cap: Governor Pawlenty has cut the renters’ credit by 27%.  The Minnesota Legislature has passed (and the Governor has promised to sign) budget bills for 2011 and 2012 that will restore the renters’ credit to its full amount while the restoration of the credit for the current year is still up in the air, pending a Supreme Court decision.

Travel back in time to late January 2005 — another time that Governor Pawlenty proposed unsuccessfully to decrease the renters’ credit.  A Pioneer Press article describes the outrage amongst housing advocates who argued that renters making the lowest incomes will be affected most by the cuts and, in effect, see their property taxes raised.   Five years later the fate of the renters’ credit is again up in the air.  Luckily, there are legislators like House Property Tax Chair Representative Paul Marquart who realize the importance of this tax rebate for low-income renters.  Keep up the good work!

By now you may be asking why is this girl obsessed with Pawlenty’s actions on unallotment?  The livelihoods of renters in this land of 10,000 lakes are at stake.  In times of economic crisis, it often appears easiest to cut from the bottom; but it is these very people who need the safety net of the renters’ credit the most.  Think back to Rahm’s Story (previously on the blog), are we really going to cut a veteran’s tax credit that pays for his vital medication in the name of the budget deficit?  Realistically, in the economic climate of the today, state governments must find ways to save money.  Citizens of Minnesota, please remind Governor Pawlenty that using unallotment to cut the renters’ credit will only further the financial plight of low-income tenants.

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