ST. PAUL -- Minnesota military members would pay no state income taxes on salaries or pensions under a proposal outlined Monday by key state policymakers.
During a news conference packed with state military lea-ders, Gov. Tim Pawlenty and two Democratic legislators called for sweeping changes to assistance for military members, veterans and their families as a signal of respect.
"We need to make sure we say thank you," Pawlenty, a Republican, said of military members, adding that the legislation would ensure "that our deeds match up with our words."
The legislation was backed by Sen. Jim Vickerman, DFL-Tracy, who will sponsor the bill in the Senate. "There's some great things here," he said.
The proposal calls for $74.8 million in funding for two-dozen initiatives, led by the tax exemption.
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The push behind the package was twofold, Pawlenty added: Besides being a way to thank servicemen and women, the proposal might also serve as an incentive to make Minnesota a veteran-friendly state.
"These are very sought-after citizens," Pawlenty said.
Soldiers and veterans would deduct 100 percent of their pay for military service, military pensions and retirement payments under the proposal. Survivors of military retirees would be included, Pawlenty said.
The plan calls for supplementing the federal GI Bill by providing eligible veterans or dependents additional higher education funding aid. That could mean up to $10,000 in benefits, Pawlenty said, not including other grants and state or federal financial aid.
According to the governor's office, up to 7,000 veterans and 600 spouses and dependents could apply for the assistance each semester. The funds could go toward education at any public or private Minnesota college, university or technical school.
Though not a veteran, Vickerman said he's been eager to work with veterans' issues.
"We need to continue on," he said, referring to a 2006 veterans' aid package. "We did a lot last year, but we need to continue."
Vickerman, Pawlenty and Rep. Larry Haws, DFL-St. Cloud, he will be the bill's chief author in the House were joined by Larry Shellito, adjutant general of the Minnesota National Guard.
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The plan also calls for $3.5 million in workforce assistance and reintegration aid for returning soldiers, which Shellito praised.
"They want to get on with their lives," he said.
