May 8, 2020
Dear Neighbor,
This week brought more news about the challenges and opportunities we face as a result of the COVID-19 pandemic. Taking time to celebrate and honor teachers and family child care providers was juxtaposed with an update on the budget that demonstrates the magnitude of the work we have ahead of ourselves. As things continue to change, I hope you’ll keep in touch and share your thoughts, concerns, and questions with me.
Updated Budget Projection
Minnesota officials received an interim budget projection from economic experts this week that provides a glimpse into the sustained effects the pandemic has had on state finances. The February economic forecast projected about a $1.5 billion budget surplus for 2020-21. This week’s numbers now project a deficit of $2.4 billion for the same period. That is a nearly $4 billion change in a matter of weeks.
Most of the dip is attributable to a $3.6 billion reduction in expected revenues coming into the state. Spending also is projected to be $391 million higher as the state responds to the pandemic. The state’s budget reserve account remains at $2.4 billion, largely because DFL lawmakers insisted on an automatic savings tool in 2014 that directed up to one-third of each budget surplus to the state’s savings account. Although lawmakers will use caution in dipping into the reserve account, it is a welcome resource that may prevent some harmful budget reductions.
Minnesota Needs a Bonding Bill
Senate DFLers introduced a 2020 jobs bill this week at a Capitol press conference. With less than two weeks left of session and no bonding hearings scheduled in the Senate, they expressed an urgency in getting a bonding bill passed. Minnesota has more than $5 billion in requests to improve our crumbling public buildings and infrastructure across our state, and the COVID-19 pandemic has made the urgency for the jobs these investments will create even greater.
If there was ever a time to pass a robust bonding bill, it’s now. The Senate DFL $2.3 billion capital improvements bill will ensure access to safe drinking water, affordable housing, public safety, and upkeep for the higher education institutions that prepare our future workforce in all four corners of the state. Passing a bonding bill will help address the need for infrastructure improvements and create the local jobs and economic stimulus our state needs during this public health crisis. This bill also includes funding for the 77th Street Underpass, a crucial project in Richfield that’s vital to our area’s transportation needs.
Equity in bonding is crucial in passing a robust bonding bill that benefits Minnesotans in every corner of the state. In order to ensure the diverse communities across our state are thriving, we must invest in meaningful initiatives that support communities of color. Bonding investments are critical for communities and this legislative proposal is a testament to the Senate DFL’s commitment to ensure no one is left is behind.
The Senate DFL is actively working with the governor and House leaders to lead the charge on passing a robust bonding bill that is good for all Minnesota communities. Their prudent and fiscally sound investments will address our backlog of needs, is regionally balanced, will create local jobs, and provide our communities sorely needed economic stimulus during and beyond this public health crisis.
Legislative Action
In committee this week, we took action on a number of bills. The Health and Human Services Finance and Policy Committee heard S.F. 3204, which would streamline the process for prior authorization of medical procedures or medication. This will help reduce delays and out-of-pocket costs for patients. We also heard S.F. 3970, which continues the process of establishing a safe importation action plan for prescription drugs, and S.F. 4500, which establishes a grant program for COVID-19 testing and public health response.
The Senate also passed a number of bills off the floor:
- H.F. 745 would raise the age of marriage in Minnesota to 18
- S.F. 3560 included a package of health-related proposals that I detailed last week
- H.F. 3429 is an omnibus elections policy bill
- S.F. 4494 establishes a distance learning broadband access grant program through the Dept. of Education and a telemedicine equipment reimbursement grant program through the Dept. of Employment and Economic Development
COVID-19 Update
Governor Walz this week announced further guidance on elective medical procedures. Previously, Gov. Walz had issued an executive order suspending certain procedures to set aside and conserve medical resources such as masks and hospital beds for COVID-19 patients. In light of the immense financial impact the suspension has made on medical providers along with stories of patients not getting the time-sensitive medical treatment they need, the Governor decided to, with care and caution, move forward on lifting the suspension.
Many of the important elective procedures administered by doctors, veterinarians, and dentists require time-sensitive action. Postponing these procedures could result in serious consequences such as inability to prevent the progression of life-threatening diseases. The governor has expressed concern with how not allowing these procedures could affect the quality of life and long-term health concerns of Minnesotans.
The Governor also announced his plan to form a Governor’s Advisory Council on a Safe and Inclusive Economy. This would include representatives from business, labor, higher education, and the Departments of Labor & Industry and Employment & Economic Development, as well as legislators. The Council would be tasked with discussing what reopening the economy looks like, what workforce development and skills training look like, and what efforts can be undertaken to create a more inclusive economy and reduce disparities.
Time to Appreciate
This week was both Teacher Appreciation Week and Family Child Care Provider Appreciation Week. I’ve been consistently amazed and impressed by how dedicated these professionals have been under trying circumstances. Time and time again, we’ve seen how they rise to the challenge and continue serving children and families. My hope is that as we look to building the future, our appreciation becomes more than just words — that we demonstrate with policies and investments that we value the people who make our state run, and the work they do.
Thank you for the opportunity to serve our communities in the Minnesota Senate, and please keep in touch.
Regards,
Melissa