Hello Neighbors and friends. Welcome to my first official newsletter of the biennium.
As you know, the second year of a biennium is historically reserved for a significant bonding bill and a supplemental budget. However, there is a small chance, given a positive February forecast, that we could have a supplemental spending budget this year as well. If that is the case, then I would hope we would focus our efforts on the issues important to our district and the state such as assuring safety and supports to our elderly population as well as fixing the care coordination for people with disabilities. Too many times I am hearing from individuals, including my own family, that our managed health care programs are not providing the necessary patient supports that lead to positive outcomes from Hospital discharge.
We must hold our HMO providers responsible for their lack of transparency not only in this venue of service applications but also with our support and services to our elder population. I am committed this year to fighting for that specific issue and those related to services to our elder and people with disabilities populations.
This year we will be addressing Minnesota’s response to the Federal Tax Bill such as tax conformity or not. The law passed Federally has some potential negative consequences to our State and I will definitely be supporting the bills that do what is right for our Minnesota Tax Payer. I have highlighted in this first news letter activities of the first week including visits from constituents as well as a video about the first week. Please contact my office anytime and make a point this session to come visit. Call my office at 651-296-4154.
Sincerely,
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Senator John Hoffman
My Welcome back message
Welcome back to the Legislature! Here’s what to look for in 2018
TAXES
There is typically agreement among lawmakers to conform Minnesota’s tax code to federal tax reform, but this year may be different due to the Trump Administration’s federal tax changes. If Minnesota does not conform, 2019 state tax filing could be more complicated for taxpayers. If the state does conform, significant state-based tax reform will be needed to avoid a potential $463 million tax increase on Minnesotans. Stay tuned as this conversation as only begun.
BONDING
Local governments and state agencies submitted $3 billion in bonding requests during the summer and fall of 2017, demonstrating significant need for public works projects throughout the state. Public works and construction projects are well known as economic development tools that create jobs in local communities. Governor Dayton released his bonding recommendations in January 2018, which totaled $1.5 billion. Senate Republicans do not have the same appetite for fully funding Minnesota’s needs, so the size and scope of a final bill remains to be seen. I have a couple of Bonding requests in this year including the 169/101st interchange in Brooklyn Park which is needed for the expansion and traffic flow of our Senate District.
BUDGET
Minnesota Management and Budget is scheduled to release a new budget forecast on Wednesday, Feb. 28, which provides the final reference point of the state’s fiscal health before debate on a supplemental budget begins. According to MMB, state revenues for the month of January 2018 were up $349 million, signaling that Minnesota could again have a hefty surplus in the state coffers. I would hope that we can prioritize resources to people with disabilities and fixing our safety concerns for our elderly population. As you know we will have, for the first time in our states history, more people in retirement then in the k-12 education system by 2020.
LEGISLATIVE FUNDING
The Legislature now has a budget of its own after months of using funds from the Legislative Coordinating Commission to pay staff and operations. A conference committee passed a clean funding bill with no amendments late Wednesday, which was approved by both legislative bodies on Thursday. I ultimately voted no on this bill due to the fact the State Employee Contracts, which were not ratified by the SER (Subcommittee on Employee Relations), were not included in this bill, leaving 30,000 working Minnesotans without their negotiated income increases.
Minnesota Senate welcomes Sen. Karla Bigham
We welcome Karla Bigham to the Minnesota State Senate. Karla represents the southeast metro, including parts of Dakota and Washington counties. She is joining the Senate DFL after winning a February 12 special election. Senator Bigham has extensive experience in improving Minnesotans’ quality of life by serving as a Washington County Commissioner, serving four years in the House of Representatives, and as a past Cottage Grove City Council Member. I look forward to a productive 2018 Legislative Session and working with Karla Bigham.
Tax Committee discussing federal tax bill
The Senate Tax Committee dedicated its first hearing of the session to learning more about the federal tax changes passed late in 2017. It’s the first step in what will be a tedious process of analyzing the law’s potential effects on Minnesota taxpayers and considering how the state should react.
The nonpartisan Department of Revenue has estimated that simply matching Minnesota’s tax code to the new federal changes would result in a $463 million state tax increase on Minnesota taxpayers this fiscal year, and up to $1.2 billion in the next budget cycle. That is because the federal government eliminated many deductions and credits that previously flowed through to state taxes to reduce Minnesota tax liabilities.
If Minnesota doesn’t conform to federal changes, state tax obligations would not change but tax filing could become quite complicated. Lawmakers from both parties are interested in finding a middle ground that better aligns state tax policies with the new federal changes but does not penalize taxpayers. That would likely require a batch of new state tax benefits to neutralize the increases caused by federal changes.
Because Congress passed this bill in about six weeks’ time and without public input, states are still trying to understand all of the implications for their own residents. This conversation will be a top priority this session as more information is available and lawmakers can better understand what changes will be best for Minnesota taxpayers.
Public testimony on Minnesota Elder Safety
Legislators are diligently working to understand the full scope of elder abuse in the state’s long-term care facilities. Members of the public were invited to share their stories this week in the Committee on Aging and Long-Term Care to inform discussions about ways to ensure the health and safety of Minnesota’s seniors. The experiences of family members and caregivers conveyed a powerful message that the time to act is now.
Late last year, Governor Dayton asked AARP to convene a working group in response to media reports about abuse and neglect in assisted living and nursing homes around the state. The group submitted their recommendations shortly before the legislative session to advise lawmakers on possible paths forward. Several bills are expected in the coming weeks.
Consortium for Citizens with Disabilities kickoff
On Tuesday I spoke at the legislative kick off of the Minnesota Consortium for Citizens with Disabilities. They are a nonprofit coalition that is dedicated to improving the lives of people with disabilities. They address public policy issues by collaborating with others, advocating, educating, influencing change, and creating awareness. It was wonderful to see constituents from Champlin, Coon Rapids and Brooklyn Park in attendance. We need to have a robust discussion of the potential impacts any federal changes to Medicaid will have on our communities that are comprised of People with Disabilities. I will be taking an active role this year in highlighting the importance of Medicaid to Minnesota in the coming weeks. Minnesota has a federal match of 50/50, meaning for every dollar we put toward life saving programs for people with disabilities the Federal Government matches that dollar. For example, right now Minnesota puts 53 Million Dollars toward providing services to children with disabilities in our schools, as such, the federal match is an additional 53 Million Dollars bringing the total amount to 106 Million Dollars. If our Federal Government goes to a per Cap or Block Grant model. We will lose ALL of that and placing the responsibility back to the local tax payer to provide those services that are constitutionally protected under FAPE (Free Appropriate Public Education) I will highlight next week a big overview of what Medicaid means to Minnesota but want to leave you with this: 68% of all Federal Money coming to Minnesota is for Medicaid. Medicaid covers Health Insurance and Services for People with Disabilities and our Elderly. Matter of fact, 60% of all Medicaid money goes specifically to those populations. Any discussion of cuts will have enormous negative consequences for Minnesotans.
Protect Minnesota Constituents Visit
On Thursday, constituents that are part of Protect Minnesota came to the capitol to advocate for common sense gun laws. I agree with their work that it’s time to treat gun violence like a public health crisis that puts every Minnesotan at risk. We have to have a serious conversation about gun violence in this country and leave the political rhetoric behind. I want to thank Nausheena, Van, Ellyn, Asiya, Julie and Dana for visiting with me and educating me on this important issue.
LeadMN Visit
Students from Senate District 36 came to the Capitol the first week. They are part of LeadMN representing 180,000 two-year college students in Minnesota helping them transform their lives and their communities. LeadMN helps by developing leadership skills so students can realize their potential, see beyond what they thought was possible for personal success, and to drive community-wide change. The students shared with me a bill regarding open source text books and fee increases due to binder text books being forced on students who would rather have an electronic way of gathering the same information.
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