Hello Neighbors and friends. Welcome to the week 11 newsletter of the 2018 Legislative session. You will read in my newsletter the highlights of the session this past week as well as the picking of a new Regent for the University of Minnesota. Some good news for our district is my work on the 169 and 101st exchange in Brooklyn Park was included in the Bonding proposal for the Senate. This collaborative effort will help ease traffic and expansion for Brooklyn Park and Champlin.
As Minnesota lawmakers we are expected to put forth big, bold ideas, especially in the form of a bonding bill that covers our infrastructure needs throughout the state. The current bonding plans within the House and Senate are roughly 825 million while the Governor is asking for 1.5 billion in investments. Now is the time to invest more as I am concerned if we continue to ignore the growing backlog of public works requests from local governments, Minnesotans’ quality of life will decline as a result and businesses will look to other states to invest and create jobs. A strong economy is possible when the private and public sectors work together hand in hand, but the current plans need a little boost to get closer to the Governor’s request.
I hope you have a great weekend and look forward to closing out the session next week.
Sincerely,
Senator John Hoffman
Minnesota celebrates Statehood Day
The State of Minnesota celebrated Statehood Day at the Capitol this week. This week marked the 160th anniversary of Minnesota becoming a state, after President James Buchanan approved its statehood in 1858. The Minnesota Capitol Electrolier (a chandelier in which the lights are electrical) was lit as part of the celebration, creating an impressive spectacle to celebrate the statehood of Minnesota.
It is important to pause and reflect upon the inspirational moments of Minnesota’s history, and it is incumbent upon Minnesotans to recognize the parts of the state that have helped shape Minnesota into what it is today. Our history is important and Statehood Day is in place to remind us of that.
The Ojibwe and Dakota were among the first peoples who made what is now Minnesota their home, enriching the country and state’s character and culture. From then on, more and more communities began to make Minnesota their home, forming a diverse state that strives to be a place for all.
For 159 years, people from all walks of life have come to make Minnesota their home, drawn by impeccable landscapes and waterways, unlimited opportunities, and especially the state’s rich and growing diversity that enhances communities and culture. The chance to be part of a prosperous and dynamic state is what people expect from the state of Minnesota, and it is often what they receive.
Minnesota’s Statehood Day was proclaimed by Governor Dayton in 2017. It’s a day for Minnesotans to celebrate their state and all the importance behind its history.
Now is not the time for reckless spending
If you get paid on Friday and know your mortgage is due on Monday, do you spend every dime over the weekend and assume the problem will work itself out next week?
Of course not. And the Legislature certainly shouldn’t operate that way, either – but it is. The state currently has a modest $329 million budget surplus, and most of the legislative session has focused on how to spend that money. The Governor’s budget prudently leaves $261 on the bottom line, maintains the state’s direct deposit to the savings account, and is very limited on any long-term spending priorities.
In contrast, the current Senate budget plan leaves just $36 million in the state’s bank account, disregards the automatic savings mechanism for the future, and sets into place a series of long-term spending obligations that are certain to cause budget deficits.
What’s most concerning is that the current plan completely ignores many bills coming due in the very near future. They are intent on spending the surplus and then some, and refusing to have a conversation about serious obligations that will be facing the state as soon as 12 months from now.
The most pressing costs are related to health care: nearly $2 billion in revenue that helps fund MinnesotaCare and Medical Assistance will disappear by 2022 as a result of unanticipated federal funding cuts and the expiration of Minnesota’s 2% tax on providers. Medical Assistance insures the low-income and vulnerable in our state, and MinnesotaCare is a proven, affordable insurance option for working adults. Lawmakers will need to find a way to extend affordable health care options to the hundreds of thousands of Minnesotans served by these programs, otherwise every resident will carry the cost through higher premiums and a dismantled health care system.
Another looming challenge is related to education. Minnesota schools face a $700 million funding gap between what they spend on special education and the funding they receive from the federal and state governments. At the very least, Minnesota must whittle away at the state’s portion of that cross subsidy, which is about $288 million annually. Failing to do so will only compound the budget pressures already facing many school districts across the state.
One of the largest future costs is linked to last year’s massive tax bill, which will deplete $790 million from the state’s budget in 2020-2021, and nearly $5.1 billion by 2027. The merits of that bill can be debated, but the fact that it will permanently strain the state’s budget cannot be denied. There are real long-term costs that simply were not planned for when the bill was passed last year.
All of these items highlight the need to be conservative with spending during the final days of this legislative session. Governor Dayton and Senate DFLers have worked very hard to rebuild the state’s finances and will be fighting to protect that balance as final agreements on tax and spending bills are reached in the next several days.
Conference committee on omnibus supplemental budget bill begins work this week
The conference committee tasked with hammering out the differences in the Senate and House supplemental budget bill met several times this week. The conferees went through the various side-by-sides to review the differences between the articles in the bills to discover where and how the Senate and House versions differ.
Governor Dayton said he will not negotiate with the Legislature until they have negotiated one legislative version. He has repeatedly urged Legislators to send him bills he can sign, as he will not call a special Legislative Session if they do not complete their work. With only a handful of days left in the 2018 Legislative session remaining, the Dayton administration has sent Legislators 270 pages of input and concerns with legislation being considered this session. (SF 3656)
Senate takes bipartisan action to hold the pharmaceutical industry accountable
Bipartisan legislation was introduced early this session to raise money to combat the opioid overdose epidemic that claimed the lives of hundreds of Minnesotans last year. The original legislation would have charged pharmaceutical companies a “penny-a-pill” for every opioid painkiller they sold. The goal of this effort is to raise $20 million each year to fund treatment and prevention programs.
In the face of immense pressure from the pharmaceutical industry, Senators opted to eliminate the fee and replace it was a registration fee on opiate manufacturers and wholesalers. This small but important change garnered more support from lawmakers while still ensuring funding to address the opioid epidemic comes from the industry. The bill continues to seek $20 million for efforts to combat the crisis, just a small sliver of the sky-rocketing profits made by manufacturers of opiates.
The bill was heard on the floor late this week and passed with significant bipartisan support on a 60-6 vote. Several lawmakers called out the pharmaceutical industry for failing to provide any public testimony, opting to wage their campaign to avoid accountability in the shadows. The Senate bill has managed to stay far stronger than the version in the House, which is funded entirely by state dollars, letting the industry of the hook entirely.
Advocates argue that drug manufacturers need to pay their fair share for the harm their products have caused and alleviate some of the financial burden borne almost entirely by taxpayers to address the crisis. There have been lawsuits filed across the country contending that drug companies knew how addictive opioids were, but still pushed for them to be widely prescribed. (SF 730)
Legislature passes, Governor vetoes wild rice water quality standard bill
The Senate and House gave final approval this week to a bill that nullifies the state’s current 10 mg/L wild rice water quality sulfate standard, and prevents a more recently developed equation-based standard from taking effect. The bill was sent to the Governor, who vetoed it, calling it overreach by state legislators and a violation of the federal Clean Water Act. He said it ensures ongoing litigation that will prolong current regulatory uncertainties.
The bill holds strong support among communities in northern Minnesota, who worry about high costs related to tougher water discharge standards. Supporters say the bill puts a stop to current activities and allows time for industry, municipalities, government, and other stakeholders to work on a solution that can move forward. Opponents, including environmental organizations and Native American tribes, maintain the bill ignores the scientific research behind the Minnesota Pollution Control Agency’s work, and will inevitably result in litigation.
In his veto letter, the Governor appealed to legislators to use the remainder of the legislative session to bring stakeholders together and find a resolution that respects federal law, provides regulatory certainty to affected companies and municipalities, and protects Minnesota’s wild rice for future generations. Supporters of the bill were disappointed with the Governor’s rejection of the bill and said they would work with Governor Dayton and other groups to find a workable solution.
The Senate approved the bill for final passage on a vote of 38-28. (HF 3280)
It’s time to hang up and drive
Senate DFLers attempted this week to amend the ban on handheld cell phone use for drivers into a non-controversial traffic safety bill in the Senate. The amendment would have prohibited the use of cellphones while driving except if the driver was using a voice activated or hands-free device. According to the Office of Traffic Safety, distracted or inattentive driving is a factor in one in four Minnesota crashes.
This legislation is about saving lives and making sure no parent or family member ever receives a phone call about a death of a loved one due to distracted driving. Minnesotans all need to take more responsibility for the safety of ourselves and others when we’re behind the wheel. It’s time to hang up and drive.
If the measure is passed, Minnesota would join 14 other states and the District of Columbia in banning hand-held cellphone use while driving. Minnesota is already one of 46 states to ban texting while driving. Devices that are exclusively for navigational purposes will be exempt from the hands-free ban as are first responders and someone contacting emergency assistance.
Unfortunately, Senate Majority doesn’t seem interested in allowing this bill to become law, as the amendment was ruled not germane to the underlying transportation bill.
The bill was heard in the House Ways and Means Committee this week and passed on a voice vote. The bill will now be considered for debate on the House floor. (SF 837)
Increasing access to child care and supporting providers
A small step was taken this week to address the shortage of childcare providers across the state when Senators voted to pass a package of bills on child care. This shortage means a lack of access to care for many families, particularly in rural Minnesota, and some remaining providers are struggling to keep their business afloat.
The first bill allows child care providers to make some modifications to staffing levels and qualifications that do not compromise health and safety, and requires the Department of Human Services to work with providers to address some challenges with the licensing and corrective order process.
The second bill clarifies a change made last year that required a family child care providers’ own children living in the home to submit to background checks that included fingerprinting and photographs. Many child care providers have expressed serious concerns with this requirement. The bill retains the previous background study process that requires only a name and date of birth for each child, unless there is cause for a more comprehensive review.
The third bill exempts child care providers from a rule that requires additional training and activities for providers who serve children with disabilities. Providers assert that they were improperly included under the rule and that the additional requirements will result in fewer providers who are able to accept children with disabilities into their programs.
It is critical that the Legislature ensure there is consistency and clarity in the oversight of the state’s child care system. The changes contained in this legislation will help those who dedicate their lives to caring for our children. However, this legislation is only a part of the solution. Reversing the negative trend in available child care options will require continued discussion and significant investments that ensure providers are able to focus on what matters most and not whether they can afford to keep their doors open. (SF 3310, 2685,2683)
Emergency responder’s medication administration expanded
Minnesota Senators passed legislation this week to direct the development of guidelines for emergency responders to administer life-saving medications that are carried by people with rare medical conditions. The goal would be to allow EMTs, AEMTs, and paramedics to assist a patient in emergency situations with administering a patient’s own prescription medications.
The legislation came about when the parents of an eight-year-old girl from Courtland, MN found out their child, who has a rare condition and carries the medicine she needs just in case she falls ill in public, could not have an emergency responder legally administer medicine to her if she ever had a medical crisis.
The Emergency Medical Services Regulatory Board is directed to propose to the Legislature any guidelines and necessary legislative changes that would be required to make this change before the start of the 2019 legislative session. The legislation passed as part of a larger bill. (SF 3415)
Senate passes bill to remove fee when creating or lifting credit freeze
The Senate passed a bill this week that would allow the parents or guardians of children under the age of 16 to freeze their child’s credit. Child identity theft or fraud is one of the fastest growing forms or fraud, and the bill will help parents protect their child’s financial record and credit.
As part of that bill, an amendment was passed that would eliminate the $5 fee credit reporting bureaus are able to charge consumers that want to create or lift a credit freeze. The bill passed the Senate 62-0 and the House 130-0, and is waiting for final action before being sent to the Governor. (HF 1243)
Bill to protect Minnesotans from predatory landlords passes Senate
The Minnesota Senate passed a bill this week to protect renters from predatory landlords with bipartisan support. The bill addresses two problematic leasing practices – unit specific leasing and short leases.
Minnesotans who rent apartments in large developments may assume they will be living in one unit when they sign a lease and then on move-in day, find out it’s a completely different unit with completely different roommates. The bill requires the specific unit they are renting to be listed in the lease.
It also requires a start and end date to be listed on the front page of the lease. Some management companies are exploiting renters by shorting the 12-month lease, requiring them to move out three weeks before the end of the month. They are not pro-rating the rent paid. This leaves Minnesotans scrambling to find housing and storage space for their belongings during this gap.
An amendment that provides additional protections to renters was added during the floor debate. It requires that landlords give equal length notice of a rent increase as tenants have to quit a lease. For example, if a renter must give 60 days-notice before vacating rental housing, the landlord must give 60 days-notice of an increase in the cost of rent before it takes effect.
The bill now goes to the House where it awaits a vote on the floor. (SF 2949)
Senate bonding bill released
The Senate bonding bill was released this week to the public. The proposal spends $825 million in general fund supported debt. This amount is nearly identical to the House proposal, but is significantly less than Governor Dayton’s proposal, which allocates $1.456 billion.
The Senate committee will meet at the end of the week to start working on a proposal that can earn the required votes in the Legislature and earn Governor Dayton’s signature. It is important to remember a bonding bill requires bipartisan support because a 3/5 majority, or 41 votes in the Senate, is required for its approval.
A comparison of the proposals can be found here. (SF 4013)
New U of M regent chosen; newest regent not recommended for selection by joint committee
The House and Senate voted this week to elect Randy Simonson of Worthington to the University of Minnesota Board of Regents in a joint convention that took only one ballot. Simonson won on a vote of 103-86-1. Simonson was not recommended by the joint House-Senate Higher Education committees that met on May 7, 2018.
First Congressional District Regent Patricia Simmons resigned in April of this year. That same month, Senate and House Higher Education Committee Chairs Sen. Michelle Fischbach and Rep. Bud Nornes issued a press release seeking applications for the open position with the Joint Legislative Committee meeting to interview and screen applicants. Applications closed in mid April. The Regent Candidate Advisory Council (RCAC) was not involved in the vetting process which is the usual procedure during a regular regent selection cycle.
Five candidates applied for the open position: Mary Davenport, Mankato; Dr. Brooks Edwards, Rochester; Wendy Shannon, Winona; Jeanne Hankerson, Owatonna; Randy Simonson, Worthington. Applicants were required to be residents of the First Congressional District and will fill out the remaining three years of the term until 2021.
The members of the House and Senate Higher Education committees heard opening statements from the candidates and posed questions, ultimately recommending Mary Davenport and Brooks Edwards for consideration by the full House and Senate. Davenport has extensive experience as an educator and higher education administrator. Dr. Edwards is a cardiologist at the Mayo Clinic.
Simonson was nominated from the floor, which is allowed by selection rules. This was Simonson’s third run as a regent candidate. He graduated from the U of M veterinary school and has been involved in various business ventures in the Worthington area.
Senate Tax Bill finally revealed
The Senate finally released their plan to conform to federal tax change this week – just 20 days before session is required to adjourn. There are many points of agreement in the bill, including a policy that breaks the link between state and federal tax code in order to retain most of the state deductions and exemptions Minnesotans enjoy.
The bill also contains several troubling policies, however, and doesn’t provide meaningful tax relief to average Minnesota workers, families, and senior citizens. In fact, the overall bill provides an average $10 tax cut to the lowest income-earners but an average $159 cut to those earning over $150,000. Much of the savings come from a cut in the lowest tax rate, but that doesn’t mean the lowest earners see the benefits. The highest earners receive the largest cash benefit.
One of the most glaring provision spends $82 million for even more estate tax cuts for about 350 Minnesotans inheriting between $3 million and $5 million. This does nothing to help small businesses and farmers, who already have a $5 million exemption in current law.
Another concerning provision requires future budget surpluses to trigger a 0.1% rate cut. Requiring future surpluses to fund tax cuts sounds like a good plan, but the truth is that just like family budgets, the state’s finances ebb and flow. This is a risky way to budget and a disingenuous way to provide tax relief. Recent state surpluses have allowed the Legislature to invest in statewide all-day Kindergarten, tuition freezes, and workforce development, and the Legislature has finally restored a savings account to avoid property tax increases and school funding shifts the next time the state’s in budget trouble. If this bill were in place, the Legislature wouldn’t have been able to invest in any of those priorities.
In contrast to this plan and the House plan, which is heavily tilted toward corporate tax breaks, Governor Dayton’s tax proposal ensures more than 300,000 Minnesotans are protected from tax increases created by President Trump and Congress. With tax cuts for more than 2 million Minnesotans, Governor Dayton’s plan is much more efficient at helping Minnesotans save more money while keeping the state on strong financial footing.
The next several days will be dedicated to finding compromise to protect Minnesotans from tax increases next year. It is a goal Senate DFLers all share and one that can be accomplished if the Legislature also adopts a shared goal of protecting the state’s budget and services from long-term harm. (HF 4385)
North River-view Apartments Visit
Constituents of mine stopped by Tuesday morning to discuss the concern over numerous and dramatic rent increases in their senior living apartments. This discussion has Senator Abeler, Senator Newton and myself hearing the concerns of our seniors and we plan on holding a town hall to listen to and respond.
Steve Lyons Recognized for Excellence
I had the honor of presenting a Certificate of Achievement from Governor Dayton as well as a Senate Proclamation for Steve Lyons of Champlin Park for 33 years of excellence as a music educator. Steve is a first class teacher and an awesome drummer who has shared his talents and passion for music education with thousand of people throughout his career. He still plays in bands, including the St. Louis Park Community Band. Thank you Steve and Tami Lyons for your dedication to our community and your continued excellence in education.
If you have any questions or concerns feel free to call my office at 651-296-4154 or by e-mail at jhoffman@senate.mn.
