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MINNESOTA RUSHES TO PROVIDE STATE BENEFITS TO
VETERANS -- Lawmakers back home are trying to
show their support in tangible ways.

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State rushes to provide benefits to veterans
by Tim Pugmire, Minnesota Public Radio
At a time when thousands of Minnesota soldiers are serving in Iraq,
lawmakers back home are trying to show their support in tangible ways.
Gov. Tim Pawlenty is proposing a $75 million package of tax breaks and
other benefits to military personnel and their families. As you might
expect, it's a generally popular initiative, but some legislators are
raising questions about the long-term cost of the governor's plan.
St. Paul, Minn. — State lawmakers have introduced dozens of bills this
session designed to help active and retired members of the armed
services and their families. The benefits range from property tax
credits to special license plates. With 2,600 Minnesota National Guard
troops expected to return from Iraq this summer, Gov. Pawlenty says a
comprehensive package of military and veterans' legislation is at the
top of his agenda.
"Who should be a higher priority than the men and women serving in our
military to get some of the benefits of the budget surplus that we have
currently? I mean who should go to the head of the line ahead of them?
The answer is nobody. These people should be taken care of first and
foremost to the best of our abilities," Pawlenty said.
Pawlenty's $75 million proposal includes an exemption from state income
tax for military pay and pensions. Another proposal would give eligible
veterans and their dependents up to $1,000 per semester for college
tuition costs not covered by federal benefits.
Assistance, outreach and reintegration programs would get a funding
boost. There's also money to upgrade National Guard armories and state
veterans homes.
Clark Dyrud, commissioner of the Minnesota Department of Veterans
Affairs, isn't surprised by the outpouring of support. Dyrud, who's been
working with veterans since 1973, says policy makers learned an
important lesson from Vietnam.
"No matter what the issues regarding the war are, the warriors are
honored and respected," he said. Dyrud was at the Capitol earlier this
week for the announcement of an expanded military health care network in
the state. In his two years as commissioner, Dyrud says he's never heard
anyone question the need for veterans benefits.
"There's an understanding among the general public, there's an
understanding by this governor in particular as well as Democrats,
Republicans, House, Senate, there's an understanding that soldiers are
performing an amazing job right now. And there's a willingness to
recognize that service," he said.
Still, lawmakers' enthusiastic support for the troops hasn't stopped
them from raising questions about one of the governor's proposals.
Sen. Tom Bakk, DFL-Cook, chairman of the Senate
Taxes Committee, says he's concerned about the ongoing, annual cost of
an income tax exemption for military pay and pensions. The governor's
office estimates the initial two-year price tag at $16.5 million. But
after a four-year phase in, the cost grows to $42 million. Bakk says he
wants to help veterans, but he also wants to protect the state budget.
"A lot of other people are going to want to kind of get on that train,"
he said. "Firefighters are certainly going to come here and say, 'Gosh,
you know our lives are in jeopardy every day.' Police officers will come
and say that and are going to make a very strong case. So exempting
pensions permanently is a very large issue," according to Bakk.
Bakk says his immediate concern is for the people serving in the
military today. He supports the idea of targeted assistance to Minnesota
National Guard members and their families. The head of the House Taxes
Committee is taking a similar approach. Rep. Ann Lenczewski, DFL-Bloomington,
says she'll look at several options for helping military families,
including one-time tax breaks.
"We would certainly look at active military pay, which we're doing that
now," she said. "There could be enhancements there. There could be
additional straight up appropriations, which would certainly be in the
one time category but could be renewed biennially or more. But that
would get immediate relief to families dealing with financial situations
now."
Both Lenczewski and Bakk say their committees will begin looking at
proposed tax breaks for active and retired soldiers later this month.
Lawmakers are expected to pass some form of a benefits package in
advance of the scheduled return of Minnesota soldiers in July.
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Larry Scott --