A weekly message from your Senator
Dear Constituents and Friends,
This week we heard several bills on the Senate floor including two significant bills: the Education Policy Omnibus bill and the Tax Omnibus bill. Both of which I did not support. The education bill was filled with questionable provisions that do not advance the education and well-being of our students.
Senate majority leadership waited until May 1 to release their first draft of changes to Minnesota’s tax code. This plan prioritizes corporations, which already got a 40% tax reduction as a result of the federal tax bill, allowing them to keep money parked overseas tax-free, and gives tax cuts to a handful of multi-millionaires. It also sets the state budget up for fiscal instability and ballooning budget deficits, threatening services for children, seniors, and Minnesota families.
As a member of the Senate tax committee, we were given less than 24 hours to read the bill and provide public comment before it was scheduled for a full Senate vote. Minnesota tax payers deserve to have their voices heard before huge changes to the state tax code are introduced, not after. Now the public gets less than two weeks to weigh in before a May 21 constitutional deadline.
I encourage you to continue sharing your perspectives with me as we head into the final weeks of session.
Sincerely,
Melisa
Senate Tax Bill finally revealed
Senate leadership 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 us to invest in statewide all-day Kindergarten, tuition freezes, and workforce development, and we’ve 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 bill, which is heavily tilted toward corporate tax breaks, the Governor’s tax proposal ensures more than 300,000 Minnesotans are protected from tax increases created by President Trump and the GOP Congress. With tax cuts for more than 2 million Minnesotans, the Governor’s plan, while not perfect, 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 that can be accomplished if the Legislature also adopts a shared goal of protecting the state’s budget and services from long-term harm. (SF 3982)
Several members, myself included, stood unified for a number of tax bill amendments this week all aimed at the same goals: more tax relief for middle-income Minnesotans, converting expensive tax cuts for the wealthy into more money for K-12 school safety, and long-term budget stability.
Several amendments were offered to provide tax relief for middle-income Minnesotans. One amendment would divert the estate tax cut funds to the Working Family Credit program. The bill gives an $82 million estate tax cut to just 350 Minnesotans with large inheritances. Minnesotans expect more. Investing in the Working Family Credit provides more tax relief for more working families. The Working Family Credit offsets a portion of the significant state and local taxes that low-and moderate-income people pay. It is a proven program that encourages and supports work, helps working families across the state, and is one of the best tools the Legislature has to lift families out of poverty.
School safety is, and should be, a priority. An amendment was offered to convert expensive estate tax cuts into more money for K-12 school safety. This amendment would convert the existing safe-school levy to an all-aid program, make charter schools eligible, and increase amount of pass-through revenue available to districts – all in the name of safe schools funding. These dollars are specifically earmarked for school counselors, police officers, sheriffs, gang-resistance education and anti-drug programs, student and staff safety, school nurses and psychologists, chemical defense counselors, and other facility enhancements that all enhance our students’ safety. Investing in our children’s safety is a better use of state tax dollars than estate tax cuts for a small population of the state’s wealthiest.
The tax cut trigger mechanism in this bill is simply irresponsible budgeting. This idea would automatically trigger a tax cut and has the potential to cost Minnesota at least $186 million a year. If implemented, this provision will put us on the path to unpredictable finances. Tax cuts and new spending must be balanced in order to protect Minnesota’s economy from future instability. This trigger mechanism is a risky way to budget and a disingenuous way to provide tax relief.
Unfortunately, all the amendments we offered were rejected. This Senate tax bill just simply isn’t real relief for those who need it the most and it is a missed opportunity.
Senate bonding bill still missing in action
With about two weeks left before the Legislature’s May 21 constitutional deadline to complete its work, the Senate bonding bill is missing in action. The Governor released his public works bill three-and-a-half months ago, which would finance more than 200 infrastructure projects around the state to create an estimated 22,950 jobs. Needless delay leaves community leaders in the dark about whether their projects will be funded this year and makes it more difficult for the Legislature and the Governor to come to agreement on a final public works bill. We need to pass a strong bonding bill that preserves our public assets, including veterans’ homes, college campuses, and health care facilities. Minnesotans’ patience for inaction is running out.
Education policy omnibus bill passed after controversial Star Rating system was removed
The education policy omnibus bill passed this week on a 42-25 vote after a controversial school Star Rating system was deleted from the bill. The Star Rating system would have set up a system to track student achievement, academic growth, and achievement gap closure rates in Minnesota schools and districts. Many spoke in opposition of the Star Rating, including the MNPTA. Opponents say the provision would have done more harm than good and gives a shallow and inaccurate assessment for schools.
Legislators approved a provision that would allow schools to display a poster, framed copy or mounted plaque saying, “In God We Trust.” However, it’s possible the courts may view posting this in public schools as a state endorsement of religion, especially if it could be shown that the primary purpose for posting the sign or plaque is to promote religion. The bill also ignores provisions to ensure that more new teachers can be licensed in a timely manner.
On a positive note, the bill did contain a few of the Governor’s requests, including respectful treatment of students, early childhood scholarship changes, threat assessment team creation, school drinking water and lead testing and abatement requirements and GED equivalency tests. (SF 3086)
Sulfate standard for wild rice sparks debate
The Senate voted this week to nullify the state’s current wild rice water quality sulfate standard, which limits sulfate discharges into waters where wild rice grows. Developed in 1973, the current 10 mg/L standard has rarely been enforced. The bill also prevents a more recently developed equation-based standard from taking effect. I did not support this bill and voted against it.
The newly-passed bill prohibits the Minnesota Pollution Control Agency from adopting, modifying, or proceeding with rules pertaining to the standard without going through a new rule making process. An amendment adopted on the Senate floor appropriates $500,000 for the study of alternative solutions to restore and improve wild rice harvests.
The bill has 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.
The bill passed in a 38-28 vote and goes back to the House before it goes to Governor Dayton. The Governor has not publicly stated whether he will sign or veto the measure. (HF 3280)
Corridors of commerce projects released
The Minnesota Department of Transportation (MnDOT) this week announced the road projects selected to receive Corridors of Commerce funding for 2018. Corridors of Commerce is a special funding program within MnDOT for road projects that will improve the movement of commerce throughout Minnesota. Projects are evaluated for safety improvements, regional connectivity, return on investment, and community consensus, among other factors.
The projects selected for 2018 include:
- Highway 169 in Elk River– estimate up to $174 million
This project will convert Highway 169 in Elk River to a freeway. The proposed project will construct interchanges at Main Street and School Street, 193rd Avenue, and a partial interchange at 197th Avenue.
- Highway 494, France Avenue to Highway 77– estimate up to $149 million
This project will construct a MnPASS lane on Interstate 494 from France Avenue to Highway 77 in the eastbound direction and a MnPASS lane from Highway 77 to I-35W in the westbound direction. The proposed project is intended to improve the capacity of the interstate and dramatically improve the reliability of the average rush hour trip.
- Highway 494, Bush Lake Road to Interstate 35W– estimate up to $79 million
This project will construct the first phase of a turbine interchange that includes a directional ramp for northbound I-35W to westbound I-494 traffic. The proposed project is intended to improve interstate capacity and reduce crashes.
- Highway 94, St. Michael to Albertville – estimate up to $62 million
This project will expand I-94 from four to six lanes between Highway 241 in St. Michael and County Road 19 in Albertville. The proposed project is intended to improve the capacity of the interstate by adding a third lane in each direction and make interchange improvements at Highway 241 and at county roads 37 and 19 in Albertville.
Supporters of the selected projects are pleased that bottlenecks in our current system—especially those in the south Metro—will see relief in congestion. The I-35W and I-494 intersection is the 17th busiest in the nation and has needed improvements for decades. The addition of a MnPass lane between France Avenue and Highway 77 should reduce travel times on the busy stretch of highway.
Others have expressed concern that the projects selected do not truly reflect geographic balance throughout the state. All the selected projects are within a 50-mile radius of the Twin Cities. It is a program requirement that 50% of the funding be spent outside the MnDOT Metro District, and 50% be spent in the Metro District, which is the seven-county metro area plus Chisago County. I was pleased that after many years of strong advocacy, including authoring legislation with my colleagues, that I-494 was finally prioritized for investment.