Welcome to week 8 of the 2018 Minnesota Session. This was another deadline week with finance bills getting marked up and voted on to move eventually into an omnibus bill to be presented to the floor. We did vote on 5 bills this week in the Senate and moved those on to conference committees to be worked out and sent to the Governor: A bill for an act relating to transportation; designating a section of U.S. Highway 12 as Officer Bill Mathews Memorial Highway, A bill for an act relating to business organizations; regulating business corporations, nonprofit corporations, limited partnerships, and limited liability companies; providing for conversions and domestication, A bill for an act relating to public safety; establishing a crime for misrepresenting an animal as a service animal, A bill for an act relating to public safety; modifying motorcycle operating requirements for individuals possessing a two-wheeled vehicle instruction permit, A bill for an act relating to bio diesel; allowing the minimum bio diesel content level for diesel fuel to be modified during certain times of the year; extending Number 1 diesel exemption. Finally, A bill for an act relating to commerce; modifying licensing requirements for mortgage loan originators.
With just four weeks left in the 2018 session, there is no time to waste. Lets work together to get our work done in a manner that is transparent, accountable, and consistent with Minnesotans expectations of their state government, I will continue to stand ready and willing to work in that manner.
Come visit your State Capitol and stop and say hi to me Room 2231 Minnesota Senate Building or call Chris at 651-296-4154.
Sincerely,
Senator John Hoffman
Representative Paul Thissen appointed to the Minnesota Supreme Court
Mark Dayton announced his appointment of Paul Thissen to serve as the next Associate Justice of the Minnesota Supreme Court. Thissen will fill the vacancy created upon the United States Senate’s confirmation of the appointment of Minnesota Supreme Court Justice David R. Stras to the Eighth Circuit Court of Appeals.
Thissen brings 25 years of legal experience to the Supreme Court and has devoted 16 years to public service in the Minnesota House of Representatives, including prior service as Speaker of the House. Thissen has worked to expand access to justice for all Minnesotans and has led an effort to train Minnesota lawyers to better serve Minnesotans with disabilities. He will be a strong addition to the bench.
Governor Dayton’s E-12 budget invests in safe schools, early education
The Governor’s supplemental budget bill provides an additional $39.9 million for Minnesota schools with investments to make sure students are safe, to stabilize special education budgets, enhance opportunities for early learners, and help districts pay for internet connections. The Governor’s proposal is 12% of the state’s budget surplus.
The Governor’s budget not only provides increases for safe schools immediately, it also provides ongoing money for districts as they work to upgrade their facilities and provide more support staff. The Governor also invests $5 million in mental health grants to schools through the health and human services budget proposal.
Minnesota’s special education cross subsidy continues to grow and stretch local schools’ budgets. The Governor’s budget invests funds to help alleviate that and bolster programs for all students. It makes permanent aid increases for Minnesota’s tribal schools and narrows the funding gap between BIE schools and other public schools. Finally, the Governor invests additional money for voluntary PreK and expands which students can receive early scholarships each year. If additional funds aren’t invested or made permanent this year, children and their families across Minnesota will lose access to quality preK programs.
Intermediate and cooperative school districts also need to have safe and secure school buildings. The Governor provides them with additional safe schools’ revenue to do that. (SF 3928)
Governor, DFL senators want investments in PreK
An editorial in the Star Tribune this week advocated for maintaining investments in the state’s youngest learners, citing the differences on this issue at the State Capitol. The editorial came after Governor Dayton proposed that a $50-million one-time commitment to prekindergarten be made permanent. Senate majority lawmakers said this proposal should wait until there’s a new governor and legislature in 2019.
The investment in early learning opportunities would be an important building block added to the foundation that Governor Dayton has fostered over the last few years. The Governor is proposing ongoing funding for voluntary PreK and School Readiness Plus, with a 5% increase for 2020. The Governor estimates this will serve over 22,000 over the next three years.
Studies show that for every $1 invested in early education programs, there’s a $16 rate of return. Inaction on early education shows this is not a priority for the Senate majority.
Unless changes are made this session, schools and programs that received part of the $50 million in 2017 will lose out. Approximately 6,100 four-year-olds are attending free, school-based PreK this year in 109 school districts across Minnesota because of the Governor’s and DFL senators’ commitment to early learning.
However, the Legislature only provided one-time funding for some communities. 59 of those school districts would lose state funding for PreK if the Legislature does not agree to make that funding permanent.
Governor’s tax plan
With 30 days left in this legislative session, the majority has yet to present a tax conformity plan that is needed to avoid an automatic tax increase on 300,000 filers that will occur if no compromise is reached. In the Governor’s plan, no Minnesota wage-earner would see a tax increase and 2 million filers would see a state tax cut. In addition, the nonpartisan analysis shows the Governor’s plan makes the state’s tax system more progressive – in other words, the balance between what rich and regular Minnesotans pay becomes fairer.
This week, Governor Dayton highlighted a handful of the 2 million Minnesotans who would see tax cuts under his tax proposal – the only idea on the table at this late point in session. A centerpiece of his plan is a new, $60-per-person tax credit available to all but the highest-income taxpayers. His bill also makes necessary adjustments to avoid negative impacts of the federal bill and retains important tax benefits Minnesotans currently enjoy. Some of those include:
• Work-related travel: Under new federal law, Minnesota employees can no longer deduct money spent on work-related travel on federal taxes. The Governor’s plan would allow 111,000 Minnesotans to save an average $419 annually.
• Property tax subtraction: The federal government now limits the amount of state and local taxes that may be deducted from federal taxable income to $10,000. Governor Dayton’s plan retains the full subtraction in Minnesota, saving 40,000 Minnesotans an average $502.
• Casualty loss deduction: Families that suffer a fire, for instance, may no longer deduct losses incurred on federal taxes. The Governor’s plan allows roughly 800 Minnesotans affected by such loss each year to continue receiving state tax considerations, saving them an average $16,400.
• Mortgage insurance premiums: The Governor’s bill allows 70,000 homeowners paying mortgage insurance premiums to retain the tax break, saving $94 annually.
• Tuition payments: Minnesotans paying for higher education would be able to continue deducting a portion of these expenses under the Governors’ plan, saving 27,000 Minnesotans an average $96 a year.
The most important piece of the Governor’s plan is that, if passed, it avoids a $60 million tax increase on 300,000 Minnesotans next year. It is critical that we move on from distorting numbers and work together on tax proposals as soon as possible so the legislature can spend the remaining 30 days having a real debate about potential solutions.
Education E-12
The E-12 education budget provides less than half of the Governor’s investments and only 6% of the total surplus for schools and students in Minnesota. It also relies on shifts and gimmicks to fund small grant programs for 2019. As residents of the Anoka Hennepin and Osseo school districts, you can recall the time when shifts and gimmicks forced us to borrow money to pay for education. When I was a school board member, we had to borrow 83 million dollars of our already promised Tax Dollars our district paid for, due to the fact the State, at the time, decided to delay payment back to us hence, a shift in payment. I am still angry about how that was done and promised to be a solutions person to assure we never do it again. In this case, and those below, the safe schools’ aid increase provides just $3.65 per student and most of the bill provides only one-time funding for schools.
The bill also includes egregious policy provisions that dictate how schools and teachers can educate students on controversial issues and prohibits employees from advocating for important education issues.
Some of the programs the bill fails to address:
• PreK and early education funding;
• Long-term funding for safe schools;
• Cuts to American Indian schools;
• Full funding for Minnesotans pursuing their high school degree through GED testing;
• Help Me Grow expansion;
• and streamlined background checks for Head Start programs.
Funds are also shifted from the Bureau of Criminal Apprehension teacher background check fees, Perpich Center technology needs, and vision therapy school consolidation funds to pay for other small programs.
The bill was discussed and voted on by Education Finance Committee members this week. (SF 3928)
Second Harvest seeks bonding funds to expand distribution
Minnesota’s largest hunger relief organization, Second Harvest Heartland, held a press conference this week to highlight their need for $18 million in bonding for their distribution center in Brooklyn Park. Four-time James Beard Award-winning TV personality and chef, Andrew Zimmern, was on hand to advocate for the bonding project. Second Harvest Heartland’s current distribution facility is at maximum capacity and does not have the space to meet the demands of their food shelf and meal programs to feed hungry Minnesotans. The $18 million will allow Second Harvest to feed more hungry Minnesotans across the state.
Energy and utilities finance bill approved
The Energy and Utilities Policy and Finance Committee wrapped up its work this week with the passage of its omnibus bill, which will become part of the Senate’s supplemental finance bill. The bill includes several modifications to state energy policy, including:
• Capping Xcel Energy’s payments to the renewable development account at $16 million for each year the Prairie Island or Monticello nuclear waste plants are in operation, and at lower amounts following closure of those plants;
• Requiring investor-owned utilities to include assessments of energy storage systems in their resource plans, and a cost-benefit analysis of energy storage system;
• Authorizing solar energy systems of up to 40 kilowatts to be eligible for solar production incentives under Xcel Energy’s Solar Rewards program;
• and funding a uniform electronic data tracking system to be available to utilities for accurate measurement of the cost and energy savings of energy conservation improvements.
The bill will be heard next in the Finance Committee. (SF 3870)
Environment and natural resources finance bill heads to finance
• An extension for farmers for buffer requirement compliance;
• Youth ATV safety education and training provisions;
• Provisions affecting environmental permitting, rulemaking and fees sought by the Minnesota Chamber of Commerce;
• Modifications to make clean water legacy appropriations work more effectively;
• Provisions to involve local stakeholder participation in the state’s legal settlement with the 3M Company;
• and authorization of saltwater farms in Minnesota.The bill will be heard in the Finance Committee early next week. (SF 3141)
Higher education budget provides no new funding for colleges, University of Minnesota
The higher education omnibus bill released last week continues the funding decline for Minnesota’s college and universities. The bill provides no new money for higher education and reallocates $1 million in funds designated for free-tuition program at two-year colleges.
Funding for higher education had been on the decline, with the 2017 budget bill providing less than what the U of M and MinnState systems required. This session, both systems put the bulk of their requests into capital investment proposals. MinnState requested additional funding for campus and technology support. The U of M asked for an additional $10 million for core mission priorities. The Governor’s budget requested $29.9 million, including $4.82 million for the Office of Higher Education for FY19-21, $35.5 million for MinnState for FY19-21, and $10 million for the University of Minnesota.
Neither school received their request in the Senate bill. Instead, the bill re-appropriates $1 million from the two-year college program initiated in 2015 to help pay for two-year college costs for Minnesota students. The program is set to expire in June. The Governor used those unspent $1 million for a different program called MN Reconnect.
There is no campus support funding in this bill. The U of M receives no new funding at all. (SF 3671)
First omnibus health and human services bill heard in committee
One of two anticipated omnibus health and human services bills was heard this week in committee. The bill is the result of work done in the Human Services Reform Committee. The bill contains a mixture of policy and budgetary provisions that focus on child care, child protection, mental health, and people with disabilities. However, what was missing was the 55 million dollars that is in the surplus,also known as the 7%, directly related to the inflationary factor that was signed into law in 2014. I am concerned that without the full amount allocated in the forecast since 2014 protected this year and beyond will have consequences to our most vulnerable population of citizens in Minnesota. The original bill, that I am a co author, would have that fix but wasn’t fully funded in this committee. However, that bill is still active and fully operational in the House. The next chance for protecting people with disabilities will be in conference committee in the coming weeks. Several years of continued efforts to increase provider rates was hampered early this year when the federal government declined to match Minnesota’s investments, creating a hole in the budget that forces the state to stop paying increased rates.
Notable provisions in the bill do include funding for school-linked mental health grants for tele-medicine services, the creation of a foster care sibling bill of rights, a working group to address policies and procedure in child protection affecting African American families, and a new training program for child protection workers across the state.
The bill passed and was referred to the Finance Committee
MNsure funding
A bill that would drastically cut MNsure’s operating budget, prohibit the creation of the MinnesotaCare buy-in, and make other harmful changes to Minnesota’s insurance marketplace is working its way through the Legislature.
While some believe the bill will reduce healthcare costs and increase choice, reality, the bill does exactly the opposite. To lower costs, the bill cuts MNsure’s budget by lowering taxes on insurance companies without any evidence that those cuts will result in lower prices for consumers. Even more concerning, MNsure will be forced to cut back on things like customer service support, increasing call times for consumers and reducing the help available to Minnesotans as they navigate a complicated health care system. By preventing a MinnesotaCare Buy-in option, the majority party is reducing choice by taking away the opportunity for some Minnesotans to purchase quality health coverage at a competitive price.
After an attempt to completely bypass the Health and Human Services Committee, members raised objections and the bill was called back. The bill was heard and passed this week and is moving on to the Taxes Committee.
MNsure saw record enrollment last year and they have drastically improved customer experience. With increasing uncertainty at the federal level, Minnesotans cannot afford continued efforts to undermine the progress that has been made. This bill gives more money back to insurance companies and makes it more difficult for consumers to enroll in coverage, while doing nothing to reduce the cost of health care. (SF 3392)
Senate jobs finance bill released
The Senate Jobs and Economic Growth Policy and Finance Committee this week passed its jobs proposal. The committee was given a target of $15 million, out of a $329 million surplus. The entire $15 million is dedicated to border-to-border broadband development program. Governor Dayton in his proposal appropriated $30 million for this program. The Senate majority proposal makes line item appropriations buy cutting appropriations for two businesses within the state looking to retool their facility to retain jobs or develop new ways to make consumer goods.
Given the large budget surplus, it is unfortunate more could not be done to fund workforce training programs. This is especially true when businesses are clamoring for skilled workers across the state.
This bill does not include provisions requested by Governor Dayton that would increase the penalties on those who commit wage theft. On an annual basis, the Department of Labor and Industry estimates at least 39,000 workers are victims of wage theft in Minnesota. (SF 3945)
Diverging omnibus bills heard in Judiciary committee
Children involved in court cases will have to proceed without the representation of a Guardian ad Litem, forensic scientists will continue to be overworked, and the safety needs of county courthouses will go unmet if the supplemental judiciary finance omnibus bill introduced by the Senate majority becomes law. The bill was heard in the Judiciary and Public Safety Committee this week and passed on a party line vote.
The committee heard the Governor’s recommendations for corrections, the courts, and public safety earlier in the week. The Governor recommended $1 million to supplement a widely popular grant program for counties to make safety and security improvements to their courthouses. Nearly three times the amount of grants as funds were available in the first funding cycle. There is no funding for the program in the bill.
An evaluation by the Office of the Legislative Auditor found the Minnesota Guardian ad Litem Board, which oversees the activities of attorneys who represent the best interests of children in certain cases, was not meeting its state or federal obligations to protect children. In order to ensure all children who are entitled to representation receive it, the Governor recommended 45 new Guardians ad Litem be hired at a cost of $4 million annually. The bill includes no funding for the program.
With opiate and other drug crimes on the rise, the Governor recommended hiring six new forensic scientists, two new investigative agents and one analyst at the Bureau of Criminal Apprehension, and providing new equipment to the drug testing laboratory. The Senate bill only allows for the hiring of two scientists and new laboratory equipment. The shortcoming in funding for these provisions is attributable to opposition to a new opioid stewardship fee, which would amount to a penny per pill if enacted.
The Minnesota Constitution requires that offenders in its state prisons receive health care, and the Governor recommended ongoing funding to meet that mandate. The omnibus bill includes funding for offender health care, but cuts off funding starting in 2024. The Governor’s other corrections funding recommendations, including increased capacity to accommodate a growing prison population, and for providing opioid addiction treatment to offenders, are not included. (SF 2755)
State government budget passed
The State Government Finance Committee passed a supplemental budget this week but failed to garner a single DFL vote in favor of the bill, due to the inclusion of numerous controversial policy provisions. The bill would implement several contentious anti-union provisions, allowing the Legislature to put conditions on and reject portions of collective bargaining agreements.
The bill abolishes the state’s information technology agency, MN.IT Services, at a time when the agency needs more support, not additional bureaucratic hurdles. The supplemental budget also hamstrings the ability of agencies to develop, propose, and adopt rules by requiring most proposed rules to be reviewed by another layer of government–an administrative law judge–and delaying implementation until after the adjournment of the next legislative session. (SF 3764)
Transportation omnibus bill is heard
The future will remain uncertain for a fix to the Metro Transit operating deficit, many road and bridge projects will remain untouched, and funding will be temporary for developing and improving the troublesome Minnesota Licensing and Registration System (MNLARS), if the Senate majority passes the supplemental transportation finance omnibus bill heard this week in committee.
The Senate majority declined to take up any of the Governor’s budget recommendations for transportation and public safety, opting instead for one-time fixes and earmarks. While the Governor had proposed a $2 fee on most driver’s licenses, vehicle registrations, and title transactions to guarantee a steady stream of funding in the future to ensure MNLARS problems do not escalate, the current omnibus bill makes a one-year allotment of $15.1 million dollars for the vehicle services side of MNLARS. The bill also offers $9 million to deputy registrars across Minnesota who have suffered business losses due to problems with MNLARS. Governor Dayton suggested $10 million for deputy registrar reimbursements.
Roads and bridges all over the state are in need of reconstruction and repair, but the bill only provides $1 million in earmarks for feasibility studies to reconstruct two interchanges. In both cases, MnDOT has said they see no need for further study—they either already understand the challenges in those locations, or the project has already been determined to be a local concern. There is no further spending on any roads or bridges.
Despite a looming deficit of $95-100 million in 2020 and 2021, the Senate majority does not spend any money on transit, opting instead for further restrictions on transit expansion. The omnibus bill contains a provision restricting the use of state dollars for light rail transit operating dollars for expansion of the system—meaning Metro Transit would not be able to expand service hours using state dollars. Without dollars committed to fill the deficit this year, the state will need to find a solution so there are not drastic cuts to service. (SF 3806)
MNLARS customer service improvements continue to be a challenge.
One month ago, my DFL colleagues introduced a plan to help Minnesotans get timely answers to their questions about the new Licensing and Registration System (MNLARS). This was met with not much success due to being blocked by the chairs in the Majority. As a result, Minnesotans are waiting weeks to get their questions answered.
According to public testimony from the Minnesota Department of Public Safety, hundreds of thousands of calls are met with a busy signal each month, and some emails take weeks to get a reply. In February and March of this year alone, more than 500,000 calls were met with a busy signal.
Approximately 73% of calls are dropped or get a busy signal because there just aren’t enough people to answer the phone. That’s unacceptable. If you divide the average of 332,287 calls per month by the 43 customer service employees, it comes out to 7,740 calls per employee. Assuming a 40-hour week, employees would have to answer approximately 48 calls an hour, meaning each Minnesotan gets just over a minute to get their question answered. That’s not reasonable.
Minnesotans are paying the price. Hiring more driver and vehicle service customer service staff to answer Minnesotans’ questions in a timely manner is the right thing to do. Please press our Majority Chairs to listen to the needs of its citizens and give this a priority.
Minnesota moms demand action for gun reform
Hundreds of Minnesota Moms Demand Action for Gun Sense in America volunteers visited the Capitol this week to meet with lawmakers and hold a rally in the rotunda. Dressed in bright red shirts, Moms Demand Action volunteers are working with law makers, companies, and educational institutions to establish common-sense gun reforms.
DFL senators have introduced numerous gun safety proposals, including the Senate’s first and only comprehensive plan to address gun violence – it focuses on schools, research, and gun safety. Advocates, including many from Senate District 36 have asked the chairs of committees to hold public hearings about gun violence. However, many constituents feel that they are shutting Minnesotans out of an important conversation about the safety of our children and families.
Students lobby day and rally for equity
OutFront Minnesota hosted a “Lobby Day for LGBTQ Equity” this week at the State Capitol. More than 350 LGBTQ Minnesotans and allies came together to share the best actions to take to ensure the state is safe and equitable for all people. Participants also met with legislators to express why LGBTQ equity and safety is important.
I was personally visited by students from North West Passage High School in Coon Rapids. Thank you for visiting with me and sharing your stories as students.
Physical Assistant Day at the Capitol
On Tuesday morning Brittany Ayers, a Champlin Park High School Graduate and a couple of her fellow PAs came and spoke to me about the rigors of PA training, the unique clinical focus of their profession, their scope and capacity to care for patients autonomously, and the potential that the PA profession has to improve the access to care concerns in Minnesota and beyond. We absolutely need to hear from medical professions as the silver tsunami approaches. Thank you for visiting Brittany and thank you for being a core solution to our Medical needs in Minnesota.
Surrogacy conversation with Teri Searles
On Tuesday Teri stopped by to discuss surrogacy in Minnesota. Minnesota law is unclear in regards to the rights of parents, surrogates and the children born through the surrogacy process. There are currently two bills that try to fix this, SF 707 and SF 2740. Thank you Teri for your view points on how to solve this as I welcome the discussion as the two bills differ in addressing concerns with the surrogacy programs.
Manitoba Hydro
Thank you JR for bringing our partners from Manitoba Hydro by to discuss the future of Hydro electric in Minnesota and the relationships between Minnesota Power and Xcel Energy. I am amazed at the capacity strength that Manitoba Hydro has in relation to being a resource and solution for our carbon reliance for electricity. This partnership only highlights the importance our neighbors directly to the north of us have concerning ongoing sustainable clean energy for our needs.
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