Over 300,000 low- and moderate-income Minnesota tenants will get a Renters’ Credit refund this year. Many households report using the refund to cover essentials (e.g. food, school supplies, car repairs, medications, etc.).
Monday, May 17, 8 a.m.: As I am typing, the Senate is taking up HF 1 of the 2010 Special Session (the House has not yet convened). This is the final budget accord between the Minnesota Legislature and Governor Pawlenty. While yet to be voted on, this is a done deal. And unfortunately so.
The Legislature will be ratifying almost all of the Governor’s unallotments. And that includes the average $129 tax increase on low-income renters through the cut to the Renters’ Credit. The cut appears to apply to the 2010 Renters’ Credit solely.
Why would the Minnesota Legislature want to take action on an issue that is still in the courts … something, by tradition, they never do? The lower courts are currently considering whether the Governor make policy through unallotments. The Legislature makes policy. The Governor executes policy. What the Governor did in unallotting the Renters’ Credit is change the equation that leads to a household’s renters’ credit. That’s policy-making; and, we believe unconstitutional.
To review the details of HF 1, follow this link.
