Terri Bonoff

Dear Friends,

The 2009 Legislative session has come to a close. We began the session with great apprehension, keenly aware of the looming deficit that demanded our resolve. As we embarked on the challenge to solve the problem, our federal government responded to the broader issue. Most states were confronting the same problem with inadequate resources to solve it.  The federal government stepped in. They provided states with the American Recovery and Reinvestment Act (ARRA).  While these funds will provide essential services for programs and people who are in the greatest need, they also complicated the legislative problem.  There was less urgency to reach a forward-looking, innovative solution to the Minnesota Structural Deficit problem because emergency funds bridge the gap.

Yet we as leaders have an obligation to accept these funds conditionally. We should not take them unless we are willing to do the real work that is required to restore the economic security of our state and lay the path for future growth. That did not happen. The Governor, the House and the Senate did not accomplish that mission.

It was not an easy mission. 67 Senators, 134 House members plus a Governor are an unwieldy group. Reaching consensus would have been possible only if each member, most importantly the Speaker, the Majority Leader and the Governor, were unequivocally committed to reaching consensus. They were not. I can only hypothesize why that was. I would guess they believe so strongly in the merits of their viewpoint that they believe any consensus would be worse for Minnesotans than deadlock. I heartily disagree.  The arrogance of that view is what is detrimental to Minnesotans.

I began the session talking about using the crisis as an occasion for fundamental structural change. I introduced legislation that would require school districts to explore restructuring the way they deliver the business of running our schools. This legislation stated that most of the savings arising from this change would go back to the classroom. While this initiative was supported by the Senate and introduced as a joint project with the Governor, this proposal was strongly resisted by all of the special interest groups and the House of Representatives.

I was not in favor of a fourth tier tax bracket. I believed it put an undue burden on small business and in the midst of a recession was the wrong approach.  I made my views known loudly and wrote about my thoughts often.  I advocated for compromise and suggested additional ways to obtain revenue. I proposed a tax on clothing with a low-income offset. Some were supportive, yet this was never discussed publicly. I have opposed gambling yet told my colleagues that in the spirit of compromise I would be open to exploring a Racino. At the end of the day, the only revenue increase I was able to vote on was the proposal I favored least. Yet I voted for compromise, funding our schools and not cutting health services for those who need it most.  It is time to demand that kind of compromise from each of our elected officials. None of us has the magic solution.  If we squander the opportunity of the federal stimulus infusion and do not enact meaningful tax, business and spending reform, then we are abdicating the responsibility we have to the people of Minnesota. It is never too late to act. Please demand excellence and results from those you elect as your leaders.

Below you will find a Session Recap of the 2009 Legislative Session. If you have questions or would like additional information regarding legislation this session, feel free to contact my office.

The staff, Senator Murphy and I wish you and your family a wonderful summer.

Pictured here are the Members and Staff of the Capitol office I share with Senator Steve Murphy(Center-Left) of Red Wing. My outstanding assistant is Jon Eichten pictured at far left.

2009 Legislative Session Recap

Education

The 2009 E-12 Education Budget Bill holds school funding flat, using Federal American Resource and Recovery Act (ARRA) dollars to sustain education budgets for the coming biennium. Approximately $500 million of ARRA money is used to bolster the state's education budget and avoid cuts for Minnesota school districts. Ultimately, the 2010-2011 biennial education budget totals $13.89 billion. There is no funding formula increase; base funding for schools remains at $5,124/pupil for the coming two years.

This bill does not use a payment shift to help fill the deficit. The bill contains numerous policy provisions, including charter school reform, mandate reduction, and statewide testing changes. The bill cuts $1.5 million from the Department of Education and uses that money to fund Reading Corps and Math and Science Teacher centers. Though supported by the Senate and Governor, the final negotiated agreement with the House does not include the shared-services provisions I introduced earlier in the session that would have required school districts look at cooperative purchasing and shared business services as way of reducing costs and driving more money into the classroom.

To help ease school district budget woes, districts will be allowed to again transfer $51 per student from capital accounts to General Fund accounts. There is no expansion of QComp, although a grant program is established using unexpended QComp funding to be awarded to school districts in Greater Minnesota that are working to implement QComp programs.

A provision allowing school district residents to either invoke or revoke a school district referendum has been deleted from state law.

Literacy Provisions - A new literacy provision is designed to ensure effective reading strategies for Minnesota students. The new law includes the definitions of the five strands of reading, requires a teacher candidate to successfully complete a reading instruction assessment and to measure the knowledge, skill, and ability of pre-kindergarten and elementary licensure candidates in comprehensive, scientifically-based reading instruction before being granted a license. Higher education institutions are also required to prepare licensure candidates for the reading assessment. In conjunction with the literacy program, the Minnesota Reading Corps program will provide Americorps members with a model of literacy instruction to train local Head Start and pre-kindergarten teachers and school staff to evaluate and teach early literacy skills to children age three to Grade 3.

GRAD Requirement Changes - A House-Senate working group designed legislation

to make changes to the Graduation Required Assessment for Diploma (GRAD) test, giving students more time to become proficient in the math standards and pass the test. The provisions give students a five-year window to graduate without the appropriate passage rate if they participate in remediation, retake the test, and pass all school mathematics requirements.

Early Childhood Quality Rating and Improvement System - The Quality Rating and Improvement System framework is created to ensure all children have access to quality early-learning programs. The voluntary QRIS includes quality opportunities to improve the educational outcomes of children so they are ready for school. The framework shall be based on the Minnesota QRIS rating tool and a common set of child outcome and program standards.

The departments of Human Services and Education will develop a study to determine how to effectively transition basic sliding fee child care, MFIP child care, and child care development grants from the Department of Human Services to the Department of Education; and determine how to create an early learning system with one common set of standards. The departments must report the results of this study to the Legislature by February 15, 2010.

Transportation

A transportation budget, reflecting collaboration with Mn/DOT, the Metropolitan Council, the Department of Public Safety, and the Governor's Office was signed into law. Although most transportation funding comes from dedicated sources of revenue (gas tax, vehicle registration tax, and motor vehicle sales tax), the General Fund portion of the budget was subject to a 7% cut to address the state's budget deficit. This amounted to a nearly $13 million cut from Metro Transit and a $3 million cut from Greater Minnesota Transit.

Primary Seat Belt - After years of successful passage in the Senate, both bodies of the Legislature finally passed a primary seat belt law. All vehicle passengers are required to wear a seatbelt and police are allowed to pull over those in violation. Any passenger over 15 not wearing a seatbelt is subject to a $25 fine (and state surcharge). The vehicle driver is subject to a $25 fine for each violation of the law by the driver and passengers under 15.

The 2009 Legislative Session was the last opportunity for Minnesota to receive federal transportation funding incentives, amounting to $3.4 million, for passing a primary seat belt law. Estimates show that annually, 30 lives could be saved and 400 serious injuries could be prevented if Minnesota had this law in effect.

Ignition Interlock Pilot Program - A law was passed that expands Minnesota's ignition interlock device pilot program. This program has been underway in two counties since July 2007 and will be expanded statewide for the next two years. This program allows DWI offenders to have their driver's license reinstated to operate a vehicle with an installed ignition interlock device. An ignition interlock device prevents a car from starting unless a driver successfully blows into the "breathalyzer" device. This program is supported by law enforcement and the courts, as it is safer to monitor these offenders with these devices than to have them on the roads with suspended licenses.

A provision was also included in the Transportation Omnibus Policy Bill that directs MnDot to include a feasibility study of the Little Crow Transit line(running from downtown Minneapolis through downtown Wayzata and west to Marshall) for possible commuter rail development.

Health and Human Services

A budget for Health and Human Services programming was passed by the Legislature and signed into law by Gov. Pawlenty. This bill cuts $613 million for the 2010-2011 biennium.

Because of $110 million in federal funding from the American Recovery and Reinvestment Act, the cuts were reduced to just over $500 million. For 2012-2013, the bill cuts an additional $804 million. Because there is no anticipated federal stimulus dollars available in 2012-2013, there were no additional funds available to mitigate the $804 million cut. Federal stimulus dollars were used to augment child care assistance, food shelves, improve quality in child care settings, invest in homeless-youth programs, and support long-term homelessness-prevention programs. Additional cuts to Health and Human Services are expected as the Governor begins the process of unallotment.

GAMC - The bill did receive a line-item veto of an appropriation to the General Assistance Medical Care (GAMC) program. GAMC is a state-funded health care program for individuals with income below 75% of the federal poverty guideline. This is approximately $675/month. GAMC also provides coverage for hospital-only care for people between 75%-175% of the FPG.

The result of this line-item veto results in the elimination of the program starting in FY 2011. This is a $381 million savings to the General Fund. I am very troubled by the elimination of this program. These are our most vulnerable citizens, many suffering from mental illness and relying on the program for access to needed medications.

Higher Education

With the state's $6.4 billion shortfall, reductions to nearly every aspect of government were needed to balance the budget. Under the budget passed by the Legislature, the higher education General Fund budget is reduced by 6% over the next biennium. It will be left mostly up to the University of Minnesota and MnSCU to decide how to absorb the reduction of funding, but they will be aided by the federal stimulus funding dedicated to Minnesota's higher education system. After federal stimulus funding is included, the University of Minnesota will see a 2% reduction. The Minnesota State Colleges and Universities system will see a 1% cut after including stimulus dollars.

Knowing that these reductions would have an impact on students, the Legislature took several steps to keep college affordable, including an increase to students' Living and Miscellaneous Expenses (LME) and a raising of the cap on state grant. The Legislature also accepts the federal Pell Grant increase and keeps all current State Grant funding.

Maximum Tuition Increases. Recognizing that tuition has been on a steady increase for several years and that family budgets are getting smaller due to the poor economy, the Legislature adopted language that will limit tuition increases over the next two years for Minnesota residents. The University of Minnesota and Minnesota State Colleges and Universities (MnSCU) will use federal money to reduce the amount of the increase that students pay. For the U of M, the amount a student pays will not increase more than $300 each year of the biennium. The amount a student pays at MnSCU will not increase more than 3% each year.

Economic Development Budget

As part of the Legislature's overall budget deficit reduction plan, lawmakers were forced to reduce spending in the Economic Development budget by 7.5%. While many difficult decisions had to be made, House and Senate negotiators were able to use administrative reductions at state agencies to target spending towards job-creating initiatives and job-skills training for Minnesota workers.

The bill includes agency budgets for the Department of Employment and Economic Development, Department of Labor and Industry, Housing Finance Agency, Public Facilities Authority, Minnesota Historical Society, the state's tourism board, and several other boards and commissions.

Notable initiatives funded in the bill include:

• Bioscience business development programs to promote and position the state as a global leader in bioscience business activities.

• The Minnesota Office of Science and Technology, which brings business, academia, and government together as partners to research, develop, and market new products and services.

• Several small business-support services, including a statewide small business growth acceleration program.

• New assistance for businesses impacted by local road construction projects

• Job-skills training for youth, individuals with disabilities, and those facing barriers to employment.

In addition, the bill includes a small fee increase to support the Workforce Development Fund, which supports employment and training programs for workers who have permanently lost their jobs. State officials warn that the fund is already at dangerously-low levels due to the high demand for reemployment assistance, and could be depleted by the end of the year without additional resources.

Public Safety and Judiciary

Friday, May 15, the Public Safety Budget Bill was signed into law. The bill was part of the larger effort by the Legislature to balance the $6.4 billion budget deficit, and it provides funding for the Judiciary Branch, as well as the departments of Corrections and Public Safety for the next two years. It reflects a total base reduction of $99.3 million for the Public Safety and Judiciary budgets. The bill includes a one-time federal appropriation of $38 million allocated to the Department of Corrections to bring the reduction down to $61.3 million. The bill also includes $46.7 million in revenue adjustments - including $38.9 million in fee and surcharge increases to offset reductions to the judiciary.

Solicitation of Children - The Legislature expanded the crime of soliciting children online to include all electronic and communications systems, which would include texting and video/e-mail over cell phones. Currently, the statute only addresses Internet or computer programs and systems.

Human Trafficking - Human trafficking is not new to Minnesota and it affects communities throughout the state - not just the Twin Cities metro area. In many of the known trafficking cases in Minnesota, traffickers bring young women from underdeveloped countries to the United States with promises of a better life. But when they arrive in the states their freedom and movements are restricted; their documents are kept from them; and they are forced to work without pay or forced into the sex industry and prostitution.

The legislation passed this session clarifies and expands on Minnesota's existing laws relating to human trafficking and it gives law enforcement and prosecutors better tools to apprehend traffickers. It enhances penalties for traffickers with aggravating factors like previous trafficking crimes and it redefines trafficking crimes as crimes of violence. The bill authorizes a victim of human trafficking to bring a civil lawsuit against a person or entity that engaged in labor or sex trafficking, and it requires retail and places of accommodation licensees who have been cited as locations for sex trafficking activity to post a sign in a public and conspicuous location that states sex trafficking is a crime.

Additional legislative Accomplishments

I was pleased that Governor Pawlenty signed into law two other important pieces of legislation that I authored this session. Iran Divestment Legislation(Senate File 131) will direct the State Board of Investment to divest all state holdings in companies that do business in the Iranian energy sector. This is part of a larger strategy undertaken by 14 other states to lend added pressure to the Obama Administration's efforts to curb nuclear development in Iran. In addition, legislation, I authored earlier this session was included in the Omnibus State Government Budget bill that directs use of the State Cooperative Purchasing Venture by municipalities and requires consideration of this contract for all purchases exceeding $25,000. My hope is that this initiative is a step down the road of bringing some of the best practices in the private sector to state government.

Once again, please feel free to contact my office by e-mail, (sen.terri.bonoff@senate.mn) or by phone (651-296-4314) if you would like additional information or if there is anything with which we can assist you.

Governor Vetoes Tax Bill and Asserts Line-Item/Unallotment Authority
The Legislature sent the Governor a budget bill last week that would have raised $1 Billion in new revenue and dedicated the funds to state government's core functions: education, nursing homes, and hospitals. This was one third of the Senate's three-part plan to balance the budget with one third spending cuts, one third federal stimulus funding, and one third new revenue. While the bill was vetoed hours after passage, the Legislature remains interested in providing a long-term, sustainable funding source that will maintain high quality in our classrooms, nursing homes, and hospitals.

The Governor has stated that he will pass the Legislature's Omnibus bills and then use his line-item veto authority to remove certain provisions. Because he has vetoed the Tax Bill, this will still leave a significant budget shortfall which he will address beginning in July using his unallotment authority. My colleagues and I remain hopeful that a compromise can be reached before the end of the Legislative Session on Monday night that will allow stable and adequate funding for education, public safety and other vital services.

Senate Passes Health Care Budget Conference Committee Report
On May 11, the House and Senate passed their Health and Human Services Finance conference committee report.  The Health and Human Services Omnibus Finance Conference Committee was given a budget-cutting target of $613 million for the 2010-2011 biennium. Because of an additional $110 million in federal funding from the American Recovery and Reinvestment Act, the conference committee was able to reduce their cuts to just over $500 million.  For 2012-2013, the target was $804 million. An overall administrative cut of $12 million was made to the Department of Human Services and $4 million to the Department of Health in 2010-2011 and 2012-2013. Without the additional revenue the Tax Bill would have brought, the conference committee must consider an additional $400 million in cuts for 2010-2011 and over $600 million for 2012-2013. 

No additional health care eligibility cuts were made in this conference committee. Governor Pawlenty, in signing the bill, employed a line-item veto to strike $381 million for the General Assistance Medical Care program for childless adults in fiscal year 2011. I strongly oppose this measure. It devastates hospitals and is harmful to vulnerable adults.

I was pleased to welcome my own Rabbi, Simeon Glaser, of Temple Israel to the Senate last week, where he offered the opening prayer.

Senate Passes Major Conference Committee Bills
With the final days of the 2009 Legislative Session upon us, the Minnesota Senate passed six major conference committee reports and sent them to the Governor for his signature. Bipartisan groups of legislators from both legislative bodies met to iron-out the differences between the House and Senate versions of the bills.

Among the bills passed was the Omnibus Energy Policy Bill. This legislation included numerous provisions to encourage the development of solar energy, other renewable resources, and energy conservation.  Experts feel this legislation will help utilities and the state reach the goals established by the Legislature and Governor in recent years requiring 25% of the state's energy to come from renewable sources by 2025 and an 80% reduction in Minnesota's greenhouse gas emissions by 2050.

The Senate passed a comprehensive $299.9 million Capital Investment Bill designed to create thousands of Minnesota jobs, while focusing on important infrastructure needs in every part of the state. This included more than $50 million in much-needed funding for flood prevention and relief efforts. The bill also completed the state's share of investment in light rail between downtown Minneapolis and downtown St. Paul, and furthered the study of a high-speed rail line between the Twin Cities and Chicago.

Heeding the Governor's call for cuts in state agency funding, the Senate passed an Omnibus State Government Finance Bill that reduces nearly every state agency's budget by 5%. The bill enacts cuts of more than $40 million per year across state government over the next two years, while making strategic investments in efforts such as tax compliance. The House, Senate, and Governor's Office all take 3% cuts under this bill.

The Omnibus E-12 Education Bill holds school funding at its current levels, using federal American Resource and Recovery Act dollars to sustain education funding without cuts for the coming biennium. Approximately $500 million of federal stimulus money is used for Minnesota school districts. The 2010-2011 biennial education budget totals $13.89 billion. There is no funding formula increase. I was disappointed that many of the Senate proposals for education did not make it into the final version of the bill, including provisions for early childhood education allowances and efforts at systemic reform and cost savings.

The bill contains numerous policy provisions, including charter school reform, special education reform, mandate reduction, and statewide testing changes. The bill cuts $1.5 million from the Department of Education and uses that money to fund Reading Corps and Math and Science Teacher centers. School districts will also be allowed to again transfer $51 per student from capital accounts to General Fund accounts, helping to ease school budget deficits. While it was positive that education was spared further cuts, and I was honored to be part of this process, I was again disappointed that the outcome wasn't stronger.

The Higher Education Bill includes tuition caps at both the University of Minnesota and the MnSCU system, capping tuition increases at 3%. The University of Minnesota's funding is cut 2%, when federal stimulus funding is included. The Minnesota State Colleges and Universities system will see a 1% cut after including stimulus dollars.

The Governor has three days to sign the bills and legislators will know by Saturday, May 16 at midnight if the bills will become law. The session will end Monday, the 18th of May, and I will send out a Session Recap after an opportunity to fully digest the final outcome. Please join me in offering a prayer for all Minnesotans, that we as your legislators come together and reach a bipartisan solution that provides the foundation for economic recovery and lays down a path for future growth and restoration.

Sincerely,

Session Enters Final Weeks

As the Session enters its final weeks, my colleagues and I continue to work to find a balanced approach to fixing the state's $6.4 billion shortfall and end the legislative session on time. With 10 days left before the constitutionally-mandated deadline to adjourn, I believe that a compromise can be found that will both protect the most vulnerable citizens in the state and position Minnesota for a strong economic recovery that will create jobs.

The details of several of the budget bills have already been negotiated with the Executive Branch, but the larger bills, including the E-12 Education and Health Care bills, are yet to be finalized.  The biggest differences remain in the area of health care, where proposed cuts to hospitals and health care coverage for Minnesotans remain very concerning to me and my colleagues.

In this time of hardship, not only for our state but for all Minnesota families, we can not allow partisanship to get in the way of real solutions.  I continue to urge my colleagues to work toward consensus solutions that will allow for the continuation of vital services, the stable funding of education, and the economic recovery of our state. I appreciate all those who have offered their thoughts and ideas on how best to cope with the budget deficit. I continue to bear the words of my constituents in mind as I work to be a faithful representative of their interests at the Capitol

Senate Passes Revenue Vehicle

Senate File 885 became a vehicle for taxes and spending associated with Education and Health and Human Services.  This was created in an attempt to break the logjam and open up the negotiating process.  It passed off the Senate Floor last night with little detail in it, and it then went to a Tax Conference Committee where various provisions were added in that would raise around $990 million in new revenue and provide spending for programs. The tax provisions include the creation of a fourth tier in our state's income tax structure for those earning more than $250,000 per year, tax cuts for others and additional taxes for alcohol and cigarettes.

On principle, I believe this budget cannot be balanced with cuts alone, and new streams of revenue must be found. I have both written in previous newsletters as well as am speaking out in caucus that I do not favor raising the income tax as the preferred method. Creating a fourth tier places a large burden on small business and families at a time when both are struggling. In addition, the income tax reliance results in such great fluctuations in our revenue stream.  Unfortunately, at this juncture in the process, this is all that is before us. I voted for this bill with great reluctance. In the next week, I will be working very hard to influence the final outcome.  Yet, I have learned that part of the political process demands compromise, so I will not be the obstructionist when it comes to doing what is necessary for our children and our families. You can count on me to demand greater accountability and significant reform as this process unfolds.  This is one step in a several-step process, and I am determined to find a consensus approach that will result in a timely, effective end to session.

Education Conference Committee Continues Policy Work

The Education Conference Committee has been meeting without having a financial target. That means we are debating policy at this point, rather than discussing what we are going to do from a funding perspective. I am beginning to have some sense of optimism regarding our financial outlook for E-12. I will not say too much, because it is premature, but I continue to advocate for maximizing all that we can for E -12 Education.

With regard to policy, the conference committee experience has been frustrating. The Senate began the process by offering many House and Senate provisions that we felt offered real reform and innovation for our system and our kids. The offer we received in return omitted most of the Senate reform provisions.

We are now in the middle of a protracted negotiation. Some of the important issues I will champion are:

1. Shared Services Provision - I support both the Senate and the House versions of this provision, and the Senate has offered to include both.

2. Early Childhood Allowances

3. Literacy

4. Compromise Language on Alternative Licensure

5. Charter School Reform

6. Technology Provisions

I will keep you updated as we get a target and the real work of negotiating the final budget occurs. If you would like to view for yourself an overview of the Senate's Compromise Offer on Education, simply follow the link below. To view specific articles of the bill, follow the second link and click on each article for more information:

http://www.senate.mn/departments/scr/billdraft/09_sen_policy_offer_2.pdf

https://www.revisor.leg.state.mn.us/bin/sbs.php

Transportation Budget Passed into Law

The Transportation Budget was passed and signed into law this week.  The Senate-House conference committee worked closely with the Minnesota Department of Transportation (Mn/DOT), the Metropolitan Council, the Department of Public Safety, and the Governor's Office to craft this compromise legislation.

Transit, which is funded through Minnesota's General Fund, was subject to a 7% reduction in light of the state's $6.4 billion budget deficit.  This bill addresses these cuts and the deficits already facing Minnesota's transit systems by accelerating the phase-in of Motor Vehicle Sales Tax (MVST) dollars to transit purposes.  Once MVST is fully phased-in to transportation in 2012, these funds will still be split 60% to roads and 40% to transit, which was passed in the constitutional amendment by Minnesota voters.  Increasing the percentages phased-in to transit over the next two years will simply provide the resources to make ends meet for Greater Minnesota and Metro Transit. Monetary caps are put in place to ensure that any overages will go to roads if MVST performs above forecasted expectations.

This bill reflects the fact that MVST, gas tax, and vehicle registration taxes are declining in the failing economy by reducing the appropriations from the Trunk Highway Fund by $150 million.  Several areas of Mn/DOT's budget were trimmed to reflect these revenue declines, but the influx of $510 million from the federal American Recovery and Reinvestment Act for construction projects will more than make up the difference.  The bill also provides $40 million in trunk highway bonds for intersection improvements or local matches to federally-funded projects.

We continue to work late into the night. This is why the update is coming so late.  I wish all Mothers a very Happy Mother's Day and hope you all have the opportunity to share it with those you love.

Sincerely,  

Senate Passes Health Care Budget
On April 27, the Minnesota Senate passed a Health and Human Services Budget Bill that reduces spending by over $700 million in the next biennium and nearly $1 billion in 2012-2013. The Senate was able to do this without cutting health care eligibility to individuals and children. The bill produces a savings of $104 million in 2010-2011 and $291 million in 2012-2013 through health care reform measures.

The Senate bill maintains the integrity of the Health Care Access Fund (HCAF). This was something I follow closely, as I think it is unacceptable to use this fund for non-health care related expenditures. The HCAF pays for MinnesotaCare, a state health care program for Minnesotans who pay a monthly premium that is based on a sliding fee scale. The HCAF is financed by a 2% tax on all hospitals and health care providers. Some have proposed raising this tax as a way to increase revenue. I am opposed to this. The health care community has expressed great concern around how we have used this fund in the past as a tool to balance the budget. I will do all I can to keep that from happening.

While state funds are scarce, federal recovery funds are used in the budget to augment child care assistance, increase funding to food shelves, improve quality in child care settings, invest in homeless youth programs, and support long-term homelessness- prevention programs.

Emergency Preparedness

As stories of the latest serious flu outbreak continue to make the news, a bill to update the state’s emergency preparedness plans was passed by the Senate on April 28. The measure was brought forward by the Minnesota Department of Health and pertains to a number of actions that must occur if there is a pandemic or natural disaster. These provisions include isolation and quarantine rules, procedures for mass medication dispensing, pharmacy prescribing and possession of legend drugs, and changes to the Minnesota Responds Medical Reserve Corps.

The bill provides liability protections for those sites that act as a closed “Point of Dispensing” (POD). POD’s are public places that have been designated to dispense medications during an emergency to employees or members affiliated with the building such as schools or other public buildings. The final provision of the bill clarifies that the Commissioner of Health can modify requirements for drug labeling during emergencies. The proposed bill passed the Senate with bipartisan support.

BPA-free babies Bill Moves Ahead

On April 28, the Senate passed a measure that will prohibit Bisphenol-A from children’s products such as sippy cups and baby bottles. Bisphenol-A is a chemical used to harden plastics and has been shown in animal laboratory tests to act as a hormone disruptor that mimics estrogen and can result in abnormalities of the male reproductive tract, heart disease, prostate cancer, miscarriages, and diabetes. My colleague, Senator Sandy Rummel(pictured above at right) authored this legislation, and I was happy to see it pass off the Senate floor.

BPA is one of the most studied chemicals on the market today. It has been phased-out of children’s products in Japan and Canada. Wal Mart and Toys R Us no longer carry BPA products. Debate on the floor focused on a recent ruling by the Federal Drug Administration that BPA does NOT pose a risk to human health. However, advocates of the bill pointed out that the FDA’s own scientific advisor admonished them for not doing a thorough review of all the available research.

There are two phase-out periods in the legislation. The first is January 1, 2010, when manufacturers and wholesalers can no longer sell children’s products with BPA. The second phase-out is January 1, 2011, when retailers can no longer sell these products. The bill passed with large bipartisan support.

Clean Water, Land and legacy Fund Bill Advances

The Environment, Energy and Natural Resources Budget Division recommended passing legislation that appropriates over $300 million in new funds for outdoor and environmental projects over the next two years. The funds originate from an additional 3/8ths of one percent in sales tax approved by voters in the 2008 Election with the passage of the Outdoor Heritage Amendment and are to be divided among outdoor habitat projects, cleanup of polluted lakes and rivers, and parks and trails.

The bill was referred to the Finance Committee. The bill includes 18 projects recommended by the Lessard Outdoor Heritage Council, as well as a conservation partners small grant program, a major water protection and cleanup plan containing recommendations of the Clean Water Council, and a plan to significantly enhance state, metropolitan, and regional parks throughout Minnesota. A final component of the Legacy amendment funds, dedicated to cultural heritage and arts groups and projects, is expected to emerge from the Economic Development Budget Division next week.

In addition to appropriating funds, the bill establishes a new state website that will provide information to the public on projects that receive money from the dedicated sales tax revenue. The bill was approved on April 29 and sent to the Finance Committee.

Conference Committees

As we move into the next phase of the Legislative Session, Conference Committees are meeting to work out differences in legislation between the Senate and the House, so that this legislation can be presented to the Governor for his signature. I am participating in the E12 Education

Conference Committee as a sixth member, and I will use this opportunity to voice the many concerns of my constituents regarding potential cuts to education and the impact that these cuts could have on our schools. Please continue to offer your input on how best to handle this budget deficit we face. It is very valuable as my colleagues and I work to find solutions to our state’s budget problems.

I also want to thank the many people who have offered their thoughts and prayers as I deal with a family medical emergency that has required me to be absent from Senate business. I left MN unexpectedly mid-month to care for my son and was not able to return home until this past Wednesday. I appreciate the generosity of the MN Senate and the many people who have been so thoughtful and supportive during this time. In particular, I thank the Senate Education Chair, Senator LeRoy Stumpf, who has made a point of including me as an active member of the conference committee.

Have a great weekend,

Senate Takes Up Omnibus Tax Bill
The Senate will today take up the Omnibus Tax Bill, one part of a three-tiered approach to solving the $6.4 billion budget deficit. The Senate is filling one-third of the budget gap by cutting state spending, another one-third by committing federal stimulus funds to the budget, and the final one-third by raising new revenue.

The bill raises new revenue by restoring tax rates close to the 1998 levels for all tax brackets. In addition, a fourth tax bracket is created for the wealthiest Minnesotans. I oppose these increases in the income tax because I think now is the wrong time to unilaterally place more burden on every Minnesotan. I do think we need to raise revenue, and I have been a long-standing advocate for a clothing tax with a low income offset. We are one of five or six states to omit clothing from our tax structure. When I ran in 2005, I stated my view on this. I think it’s time to close this. We would generate 1.5 billion dollars in the biennium. With a low income offset, those who buy more pay more. I began my career in retail clothing and even felt back when my family had its stores that this tax would have provided much needed resources for things like education and health care. In addition, I believe that before all is said and done we ought to use the education payment shift, if in fact this shift would go directly to schools. This shift, as I see it, would add an additional 1.5 billion dollars of revenue for the biennium. I would oppose the shift if it was going to balance the budget in some other area.

It is my position that we must maximize the value of every dollar we spend in state government and seek efficiencies in our operations. This has been my focus this session. A comprehensive approach to balancing the budget must begin with this reevaluation of our processes. Cuts should be made strategically to ensure that vital programs are left intact, and new, more palatable sources of revenue should be looked at to shore up any remaining gaps.

After the House passes its tax bill, lawmakers will be assigned to a conference committee to find a compromise plan and, after re-passage, the bill will be sent to the Governor for approval.

State Agencies Cut Significantly in Senate Bill
Nearly every state government received a significant budget cut in the Omnibus State Government Finance Bill.  The legislation included $641.7 million in direct appropriations, with an overall cut of roughly $44 million in each year of the 2010-11 Biennium.

The legislation cut 5% or more from most state agencies including:  a $6.8 million reduction for the State Legislature, a $2.4 million cut from the Attorney General’s office, a $7 million cut from the Office of Enterprise Technology, and an $8.2 million cut from the Department of Revenue.

Among the notable policy initiatives in the bill were increased use of electronic business entity filings with the Secretary of State, and establishment and implementation of a statewide electronic licensing system for professional license holders. The bill also eliminated base funding for the Campaign Finance and Public Disclosure Board, which will mean a reduction in the public subsidy to some candidates in the future.

Due to the lack of funds, there was no action taken on many proposed programs in areas such as state procurement, computer security, and consolidation of data centers.

Senate Passes Judiciary Budget Bill
This week the Senate passed a Judiciary Budget Bill that provides funding for the state courts, public defenders, and other judiciary-related state agencies. The bill reflects a 7% base budget reduction of $52.6 million. The bill includes a one-time federal appropriation of $5.6 million for the district courts and several cost-saving judicial policy reforms. The bill also gives the Judicial Council the authority to raise approximately $34 million in increased fees. The bill is part of a larger effort by the Senate to proportionally reduce state spending in all budget areas.

The bill includes a number of policy changes to streamline court processes by keeping less serious crimes out of court, ensuring that our courts can focus on the most serious criminals.                                                                 

The bill:

• Authorizes courts to use special masters, in place of judges, for pretrial matters in district court cases.
• Automates the process of handling approximately 1.2 million annual citations and parking tickets processed by the courts.
• Improves the court collection program relating to misdemeanor payable offenses, which will result in increased revenue for state and local governments.

The House is expected to approve their companion bill this week. The differences between the two bills will then be worked out in conference committee before it is sent to the Governor for final approval.

Senate Committee Hears Minnesota Stimulus Proposal
The Senate Business, Industry and Jobs Committee this week heard a proposal aimed at jumpstarting the state’s “vertical construction” industry, the sector of the economy based on commercial, housing, industrial and institutional building projects.

The bill is designed to augment the federal stimulus package, which provides substantial new funding for road and transit projects but does little for the vertical construction industry and its workers. Despite the federal stimulus package, the Minnesota construction industry is expected to lose a minimum of 12,000 jobs in 2009. While some details are still being finalized, the Minnesota stimulus bill sets a framework for jumpstarting the state’s vertical construction industry.

The bill:

• Creates a state-backed loan guarantee program to thaw the frozen credit market for businesses seeking to expand and grow Minnesota’s economy.
• Gives local governments more flexibility to grow new jobs through capital investments and local tax incentives.
• Establishes state income tax credits to provide incentives for historic structure rehabilitation and the construction of low-income housing.
• Creates an advance loan program for first-time home buyers receiving an $8,000 tax credit through the federal stimulus bill.  This is modeled after similar programs in Missouri, Ohio, and other states, and will help first-time home buyers take advantage of one of the best buyers’ markets in a century.
• Funds new senior continuous care housing projects.
• Streamlines the environmental review process for stimulus projects.

Have a great weekend,

Senate Votes to Accept Federal Stimulus Funding

The Minnesota Senate passed legislation this week to ensure Minnesota is eligible to take advantage of federal stimulus funding for laid-off workers and for clean water infrastructure projects.  The funding is available as part of the American Recovery and Reinvestment Act (ARRA), and  includes more than $130 million for Minnesota’s Unemployment Insurance system, and an additional $107 million to construct and improve drinking water and wastewater treatment facilities in the state.

Before the state can receive the federal funding, the Legislature needs to enact conforming language that meets specific guidelines laid out by Congress in the ARRA.  The Senate’s action this week puts the Legislature on the path to meeting these requirements and bringing these critical dollars to the state.

The potential for new funding for the state’s unemployment system comes at a critical time, as Minnesota’s Unemployment Insurance Trust Fund is nearly depleted.  If the fund does run dry – which it is projected to do by the end of the year – it will force the state to borrow funds from the federal government in order to continue making payments to laid-off workers.

The clean water infrastructure funding will provide about $83 million for regional drinking water treatment projects and $25 million for regional wastewater treatment projects.  The funding will be used to partner with local governments on funding these important community infrastructure needs, reducing the burden on local taxpayers.  Also included in the bill is a requirement that at least 20% of the new funding must be used for projects that address green infrastructure, energy and water efficiency improvements, or other environmentally-innovative activities.

Senate Education Committee Passes 2009 Omnibus Bill

The Senate E12 Education committee took up a bill on Thursday that would accomplish necessary cuts to education funding in light of the multi-billion dollar budget deficit faced by the state this biennium. The Senate Budget Proposal includes an across-the-board cut of 7 percent to all areas. Funding from the stimulus package mitigated the impact on education, reducing cuts from 7 percent down to 3.2 percent. Still, this was an incredibly difficult task to undertake as legislators. Proposals were offered that would have minimized the cuts for certain districts, while forcing others to shoulder more of the burden. I opposed these efforts and ultimately the committee chose to make these cuts on a per-pupil basis, affecting every child in the state equally.

The bill also included provisions related to early childhood education, ensuring that current programs will continue and providing for additional scholarship dollars. The bill also fully funds QComp and allows schools that have previously been unable to participate to have access to an alternative grant program. Moreover, technology provisions that I have been working on for the last couple of years were included in the bill. These provisions lay the foundation for all students to have access to the best technology tools available in education. In addition, I am pleased to announce that the Education Shared Services bill passed on general orders on the Senate Floor this past Thursday, and I am now hopeful that it can be amended onto the Education Omnibus bill. It is my belief and strong commitment that negotiations will take place as the session progresses that will allow us to further minimize cuts to education.

Ninth-graders from Hopkins North Junior High came to the Capitol for a visit on Wednesday and Thursday of this week. I was happy to have the chance to share with these students the story of how I first got involved in politics, as a parent serving on the Hopkins Legislative Action Coalition.

Mandate Reduction Bill

As the Legislature struggles with a $6.4 billion budget deficit over the next biennium, the DFL has put forward, with the consideration of several committees, a Mandate Reduction Bill.  The intent of the bill is to relieve counties, cities, schools, and local governmental units of legislative mandates and onerous agency rules that make their work more difficult to perform and lowers their efficiency.  Highlights of the legislation include:

Human Services

Allows cremation in lieu of burial for destitute persons and eliminates requirement of funeral services if attempts to contact the decedent’s next of kin were unsuccessful.

Local Government

Authorizes local units of government to submit a group application to the State Auditor for a waiver or temporary exemption of an administrative rule. Under current law, each application must be submitted separately.

Removes the requirement that counties must pay for the cost of an administrative hearing in a statewide ballot question or for a statewide or legislative office election.

Taxes

Repeals the 3.9%, three-year local government levy limit mandate that was passed in the 2008 Omnibus Tax Bill in exchange for increased state police and fire aid. That state aid has since been drastically cut by the Governor.

Repeals the mandate to republish entire lists of delinquent property taxes if there is one or more errors included in the original publication. Instead, only corrected material must be reprinted.

In addition, the Omnibus Education bill contains several meaningful mandate reductions that will give our school financial flexibility during these tough times.

Outdoor Heritage Fund Recommendations

On March 27, the Environment and Natural Resources Committee unanimously approved the recommendations of the Lessard Outdoor Heritage Council, which proposes to spend $69.5 million (one-third) of the revenues collected from the Clean Water, Land and Legacy Constitutional Amendment that was passed by voters in the November 2008 election.

Under the recommendations, 19 projects are funded from the newly- created Outdoor Heritage Fund.  Collectively, the projects will protect and enhance 232,000 acres of habitat, including 129,000 acres of forests, 71,000 acres of wetlands, 24,000 acres of prairies, and 343 miles of shoreline.  The plan finances the purchase of 202,000 acres of easements and 8,749 acres of land.  Overall, projects are distributed to 77 of the state’s 87 counties.

There has been a great deal of concern that legislators would not follow the recommendations of the Council. The public can rest assured that these recommendations have been followed.

Have a great weekend!

Senate Faces Committee Deadline
It was a very busy week at the Capitol, as legislators and staff worked into the night in the days leading up to the first committee deadline. As of today, Friday March 27th, for a bill related to policy to have a chance of becoming law this session, it must have been passed out of all relevant policy committees in either the House or Senate. As a result, much of the time of the Senate this week took place in committee, as chairs worked to compile omnibus policy bills and members worked to ensure their legislation made deadline

I was pleased that the policy bills I have authored this session made deadlines and are able to continue on in the legislative process. To give you an example of this process and the role constituents can play, I was approached by a constituent regarding increased rates of unemployment and the high cost of COBRA coverage. I authored a bill that would allow persons receiving unemployment benefits to opt into the MnCare program, with the cost being shared by the employee, the employer and the state. As it related to both employment and health care, the bill had to be heard by both the Health Housing and Family Security Committee and the Business, Industry and Jobs Committee this week, as required to make deadline. The bill has now been referred to the Senate Finance Committee.

The next committee deadline is April 7th. By this date, bills must pass out of policy committees in both the Senate and the House.

Health Care Reforms Announced
The Senate Energy, Utilities, Technology and Communications Committee this week approved an Energy Omnibus Bill meant to help utilities reach the state’s Renewable Energy Standard and Conservation Improvement Program (CIP) goals.

This legislation:

• Asks the Office of Energy Security to annually submit a report to the Legislature analyzing Minnesota’s energy-transmission needs for the next 15 years.
• Orders the Legislative Energy Commission to do studies on the CIP program, the creation of a residential energy-use disclosure to allow individuals to learn about their home’s energy use, and how the state can best implement a Low-Carbon Fuel Standard for transportation fuels.
• Encourages utilities to help interested customers install solar technologies.
• Requires fuel oil and propane dealers to report information on their deliveries of heating oil to low-income families.
• Exempts large renewable wind projects from the state’s certificate- of-need requirements in order to reduce administrative burdens for the Public Utilities Commission and Office of Energy Security.

In a report submitted to the Legislature by the Department of Commerce’s Office of Energy Security earlier this session, the office stated that due to the Conservation Improvement Program, utilities statewide saved as much energy between 2006 and 2007 as would be produced by a 100 megawatt power plant and enough natural gas to supply 40,000 homes for a year.  The office also reported that utilities are making a good-faith effort to meet their interim Renewable Energy Standard requirements of providing at least 7% of their energy from renewable-energy sources in 2010.

In the midst of a busy time in the session, I was happy to receive a visit from the Providence Academy Middle School Student Council. Please contact my office at (651)296-4314, if you would like to set up a visit.

Minnetonka Superintendent Dennis Peterson Named Superintendent of the Year
I was joined by Senators Haan and Olson as well as Representatives Doepke and Benson in congratulating Superintendent Dennis Peterson at a reception in the Governor’s Reception Room on Thursday. Superintendent Peterson deserves great praise for his work in Minnetonka Public Schools. It is a privilege to have the Superintendent serving in our community.

Green Jobs Zone Proposal Advances
A bill currently advancing through the Legislature would help local communities attract new green manufacturing companies while revitalizing shuttered manufacturing facilities.  The proposal, known as Green Job Zones, would provide targeted tax incentives to new or expanding green manufacturing companies who redevelop former manufacturing sites that no longer support jobs.

Companies eligible to locate in a Green Job Zone include new and expanding businesses that manufacture products that reduce environmental impacts or promote the efficient use of energy and natural resources.   The bill also includes language that would allow the program to be used to support continued operations at the St. Paul Ford Plant, which is due to be closed in 2011, as long as the site was used to manufacture fuel-efficient vehicles.

Before establishing a Green Job Zone, the bill requires the Department of Employment and Economic Development to conduct a thorough review process to ensure the state is receiving a favorable return on investment, whether more cost-efficient financing options are available, the impact the new company would have on other local businesses, and whether the expansion could still occur if the tax benefit was not provided.  Supporters say this detailed assessment would ensure that the tax incentives provided under the bill are invested wisely and in the state’s best interest.

Study of West Metro Line Included in Omnibus Transportation Bill
On Thursday of this week, we compiled the Senate Transportation Committee’s Omnibus Transportation bill. I was pleased that this omnibus bill included Senate File 933, a bill I authored that would direct the Minnesota Department of Transportation to conduct a feasibility study of a commuter rail line on existing track that would run from the soon-to-be completed Minnesota Twins stadium to downtown Wayzata and on west from there to Marshall, Minnesota.

I am excited by the possibility of this transit line to both provide alternate means of transportation to downtown Minneapolis and the western suburbs as well ease gridlock on I-394. At the same time, we should not allow long-term efforts to improve the transit system to distract us in any way from the very necessary improvements required for our roads, highways and bridges.

Have a great weekend!

Governor Pawlenty Releases Revised Budget
Governor Pawlenty sent a letter to the legislature on Tuesday, transmitting revisions to the budget proposal he outlined in January. The budget revisions take into account the February Budget Forecast, the availability of federal stimulus funding and other updates. Under the Governor’s revised budget, the total amount of state general fund expenditures in FY 2010-11 would be $32.6 billion, a reduction of approximately 4 percent from the $33.9 billion in general fund expenditures in the current FY 2008-09 budget.

The most significant changes to the Governor’s budget plan would increase K-12 education funding beyond the level first proposed by the Governor in January, restore some funding for the University of Minnesota and the Minnesota State Colleges and

Universities system, delay eligibility changes for parents on Medical Assistance or MinnesotaCare, reduce the state’s General Assistance Medical Care program, put short-term offenders in state prisons, and provide an additional $10 million for operation of state courts. Following the lead of Congress and the President, the Governor’s budget would also exempt unemployment insurance benefits from state taxes up to $2,400 per individual.

I am very concerned by reductions in the Governor’s budget to Health and Human Services. Cuts to health and Human Services must be made strategically and with great care, as federal matching funds are dependent on these decisions and reductions in coverage can often result in increased emergency health care costs.

Health Care Reforms Announced
Several lawmakers unveiled a package of health care reforms on Monday intended to save taxpayers’ money, lower health care costs, and help balance the budget. The current budget deficit highlights the need to reform health care.  If our current health care spending trend continues, Minnesota will be paying nearly $50 billion/year on health care by 2015. The health care reform proposals focus on reforming both the health care payment and health care delivery system.  Other proposals will reduce administrative costs and leverage additional federal funding.

Health care payment reform proposals presented at the press conference included eliminating payments for services and lab work that is duplicative or of no value, eliminating payments for medical errors, and requiring patients to enroll in medical homes where choices are available. In the realm of health care delivery, reforms proposed included licensing and giving preference to birthing centers for normal deliveries, paying for 24-hour emergency dental and mental health services through clinic settings, discouraging over-use of C-section deliveries and psychotropic use of drugs for children, and creating a mid-level dental practitioner position. Lastly, reforms were proposed to address administrative costs in health care. These included bulk purchasing of medical supplies and equipment for governmental and private health care providers and a return of certain services to state government that can be administered at a lower cost.

Minnesota has always been a leader in health care and these ideas allow us to continue that tradition while cutting costs and improving quality. We must encourage everyone involved with the health care system to focus on payment reforms which involve transparent prices and reportable outcomes.

Shared Services Goes to the Floor
Senate File 10, the Shared Services initiative, came up for a vote on the Senate floor on Monday. Colleagues on both sides of the aisle supported the initiative; however, it failed to pass off the Senate floor by a narrow vote of 33-31.

As part of the floor debate, I reviewed the provisions of the bill and attempted to clarify misconceptions that remained regarding what the legislation would actually require.
The bill, as it stands now, would require purchases be made through some form of a cooperative purchasing venture, be it the Department of Administration’s state contract, a service cooperative, or through an inter-governmental agreement. This only applies to goods and services that are not currently purchased in-house, and so would not require that business services performed within the school be out-sourced, as some have thought.  Exceptions have been built into the bill for lower prices, regional needs such as supporting local businesses, urgent needs, quality standards and proximity of delivery.

The second part of the bill would require that school districts contract with a consultant to help them move into the realm of Shared Services. It is my belief that there are efficiencies that can be found in our educational system, and as the saying goes "we do not know what we do not know." Schools have done a very good job of saving money and would take advantage of any opportunities of which they are aware. The consultant would assist in efforts that go beyond what is currently practiced in terms of shared services and would only be paid on a percentage of cost-savings basis, with the school district having the ultimate say as to the degree of cost savings.

Though the bill did not pass off the Senate floor this week, I will continue to work with colleagues and stakeholders to fashion the bill into a final form that will help the state move forward with efforts at efficiencies and cooperation in our schools. Because the bill was introduced on General Orders, it can be brought up again at any time.
Bills Would Help Hi-Tech Businesses Avoid “Valley of Death”

The Business, Industry and Jobs Committee, on which I sit, advanced a package of bills this week aimed at improving Minnesota’s ability to attract and grow bioscience and high-technology companies.  Specifically, the bills will help companies turn new and innovative ideas into marketable products and new jobs.

Minnesota’s strong scientific community, skilled workforce, first-class research and educational institutions, and innovative entrepreneurial spirit have made the state a world leader in the bioscience industry.  While Minnesota has the infrastructure in place to continue to grow high-paying bioscience jobs, other states have moved beyond Minnesota in offering financial assistance to start-up companies, which has led to a significant migration of new high-technology companies out of the state.

As investors cope with the expanding economic recession, they have become less willing to invest in high-risk, high-potential companies.  Experts in the bioscience field have warned lawmakers that Minnesota bioscience companies face a “valley of death” between laboratory innovation and turning a profit.  The bills advanced this week will help spur private investment to help entrepreneurs survive the “valley of death” and create successful, profitable companies.  The proposals included a tax credit to “angel investors,” who fill the void in early-stage financing and put their money into promising, but unproven, companies before they qualify for bank loans. Another proposal would raise $200 million in private investments for growing high-tech companies from the insurance industry, in exchange for a short-term fractional tax credit.  These tax credits wouldn’t begin for several years after the investments are made, guaranteeing the cost to the state’s General Fund never exceeds the economic benefits generated by these investments.  The program is modeled after successful programs in ten other states.
I have been joined by a few of my colleagues from the Business, Industry and Jobs Committee in meeting with business leaders from around the state. These meetings have taken place off-site in an attempt to stimulate candid discussion regarding how we can help create a positive economic environment. If you have ideas to share, please let me know.

Have a great weekend!

Senate Budget Plan to Focus on Fairness and Saving Jobs

Senate leaders introduced their plan to fix the state’s $6.4 billion budget deficit this week. The plan includes 7%, across-the-board cuts to state spending and is balanced through 2013. The balance is primarily achieved by the $5.1 billion in cuts over the next four years. The proposal is an “umbrella” for the committees to work under as they fashion their budgets. This proposal represents shared sacrifices and is an attempt to be as fair as possible to the people who will be affected by these cuts. One should also note that not all federal recovery dollars are taken into account in the targets.

In addition to cuts, the plan from Senate leadership calls for $2 billion in new revenue in 2010-2011. Senate leaders did not specify streams of revenue; however, they indicated that they were hopeful that the Governor would provide workable revenue ideas in his supplemental budget. It is my belief that any attempt to increase revenue must be made with the recognition that many Minnesotans are struggling and unable to shoulder the load of greater taxation; moreover, we need to create an environment where our job creators are not hampered in their efforts to move our economy forward and get more Minnesotans working again.

Jobs the Focus of 2009 Bonding Bill

In the face of job losses that are crippling economic recovery efforts in Minnesota, the State Senate this week took a huge step toward reversing that trend. A job-creation package worth more than $360 million will be voted upon by the full Senate within days. The legislation creates thousands of jobs and kick-starts progress on many shovel-ready projects.

State Economist Tom Stinson, testifying before the Senate Capital Investment Committee, said that Minnesota will need more than the federal stimulus to get real economic recovery underway and get people working again. He said funding for projects that can begin almost immediately, such as repair and renovation of existing facilities, would be a positive step, and added that delaying construction for a year or two will simply delay the problem.

The legislation calls for a total of $367 million invested in projects throughout the state. Of that, $329 million will come from the state in the form of general obligation bonds, and the rest will be user-financed. The lion’s share of funding – nearly $150 million – will go for asset preservation and other improvements to higher education facilities within the University of Minnesota system and the Minnesota State Colleges and Universities system. The bill contains several worthy projects that were passed by the Legislature in 2008 but vetoed by the Governor.

Experts estimate that this legislation will mean the creation of more than 3,600 jobs in the construction phase of these projects, and more ongoing jobs once renovations and facilities are completed. In addition, with the construction business suffering through the same slowdown plaguing the overall economy, and the prices of building materials dropping to levels not seen in many years, these projects can be completed at significant savings to Minnesota taxpayers.

Shared Services/Cooperative Purchasing

With recent figures indicating a larger-than-expected budget deficit, the need to increase efficiencies in our state operations has become all the more urgent. It was with this in mind that I introduced the Shared Services Bill(Senate File 10) for education earlier this session. The bill passed out of the Senate Finance committee on Wednesday and is headed to the floor on Monday for a vote by the full Senate.

In that same vein, I have partnered with Governor Pawlenty on another cooperative purchasing initiative, this one for local governments. This legislation(Senate File 1459) would direct cities and counties to make their purchases, when practicable and cost-effective, through the state’s cooperative purchasing venture, increasing economies of scale and reducing costs not only for local governments but for all entities that make purchases through the cooperative program.

Our state faces a daunting budget deficit, and there is no single solution to the problem. We must take this opportunity to reevaluate our operations and find opportunities to reduce costs and increase efficiencies wherever possible.

Legislative Mandate Bill Moves Forward

As the Legislature struggles with a $4.6 billion budget deficit over the next biennium, a bill to reduce mandates on counties and human services organizations was heard in the Health, Housing and Family Security Committee on March 9. The bill was the result of a working group that met last fall and into the beginning of the legislative session. The intent of the bill is to identify legislative mandates and onerous agency rules that make the work human service agencies do more difficult and less effective, thus making the delivery of such services easier and reducing costs in the long term. One such mandate reduction would relieve school districts and charter schools of the responsibility to provide health care information and assistance to students and families and instead allow the information to be provided on the school website.

Photo Cop Moves Forward

The Transportation Committee advanced legislation this week that would allow local jurisdictions to implement automated traffic enforcement systems (photo cop) at traffic signals. In 2005, Minneapolis had the photo cop system in place for nine months, resulting in a 31% decrease in traffic accidents at the monitored intersections. A lawsuit was filed and the Supreme Court ruled that photo cop was illegal because city ordinances are pre-empted by state law, which requires uniformity in traffic laws. State law holds that the driver, not the vehicle owner, must be cited for traffic offenses, unless specified otherwise. The court ruled that the city would need specification in statute that they could ticket the vehicle owner in order to legally use the photo cop system. This bill provides the statutory authority for cities to implement photo cop. Some changes have been made to the legislation to address concerns over the vehicle owner receiving the citation.

Before a citation can be issued, all images must be inspected and certified by a police officer. Citations must be issued via mail and postmarked within 21 days and include a copy of the photo image taken by the device. The vehicle owner is guilty of a petty misdemeanor unless they can provide: a police report showing that the vehicle was stolen; a lease agreement with the name/address of lessee; documentation of a title transfer; or the vehicle was an emergency vehicle. The committee also added an amendment providing that a vehicle owner may use the photo images sent to them as evidence that they were not driving the vehicle at the time of the violation. Because the committee felt that improvements were made that will help hold the actual signal violator responsible, and the photo cop system will positively affect driving behavior, the bill was re-referred to the Judiciary Committee.

Have a great weekend!

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A Visit from Representative Paulsen

Members of the Minnesota Legislature who represent parts of the Third Congressional District were visited on Tuesday by newly-elected Representative Erik Paulsen. It was a great opportunity to discuss with Representative Paulsen the potential impact on our community of the recently-passed Economic Recovery package. It was nice to visit with a former colleague of the Minnesota Legislature and discuss his new role in the U.S. Congress.

Governor’s Commission Releases Suggestions for Tax Reform
The Governor’s 21st Century Tax Reform Commission has been meeting throughout the summer and fall to “examine how Minnesota can improve and modernize the state’s Tax Code for businesses to encourage economic growth in a fast-changing, highly-competitive and global economy.” The group of business and tax leaders was charged with developing a revenue-neutral proposal for effective tax reform and presenting it to the Governor and Legislature in 2009.

The commission’s report, released last week, focused mainly on reforming business taxes and paying for the change through an extension of state sales taxes. Specific suggestions include repeal the state corporate income tax (The Governor’s budget proposal recommends reducing the tax from 9.8% to 4.8% over six years), simplifying the state property tax system by reducing 55 classes to four classes, extending the sales tax base to a broader range of consumer products and consumer services and increasing the excise tax on cigarettes by as much as $1 additional per pack.

The commission did not recommend raising specific sales and use taxes, although members suggested items such as food and fuels should not be taxed, but clothing and most services should. The group also did not recommend a specific sales tax rate that should be applied.

Senate Takes Steps to Save Taxpayer Money and Address Budget Deficit
In an effort to make government more efficient and save taxpayer money, Senate Majority Leader Larry Pogemiller, DFL - Minneapolis, today announced several initiatives designed to cut the Senate budget.  Effective immediately, the Senate has frozen wages and promotions for employees, and allowed any member of the Senate to voluntarily cut their salary simply by submitting a written request.  In addition, the Senate is imposing a hiring freeze for the remainder of this year.  Some Senators had previously announced their support for a salary reduction across the board and Senator Pogemiller responded with this alternative. I prefer the wage freeze/hiring freeze alternative because several of my colleagues only means of support is their salary and benefits at the legislature. Our salary has not been raised since 1999 and is approximately $31,000. Last year our per diem was raised from $66.00 to $90.00 per day. I did not personally take the increased per diem but appreciated it for those of my colleagues on both sides of the aisle who sacrifice so much to be able to do this job.

These common-sense measures reflect our commitment to share in the budget balancing process. Other reductions the Senate has made include cutting $710,000 after the last legislative session and voluntarily agreeing to an additional cut through unallotment to the budget of $800,000 this December. The Senate also enacted an out-of-state travel ban, made a reduction in postage expenses and implemented a salary savings program by eliminating or holding open 24 positions, including not filling the position of Secretary of the Senate upon his retirement.

Student Achievement
The E-12 Education Budget Division heard from Dr. Angie Eilers, who presented the Growth and Justice Smart Investments proposal for Minnesota students.  The core of the Growth and Justice proposal is to increase student achievement, and increase the rate of students who finish post-secondary education by 50% by the year 2020.

To achieve this, there has to be strategic investments made across the “entire education continuum, addressing the whole child,” according to the Growth and Justice report.  The investments will follow the students: 40% for “Ready to Launch,” geared to children birth to age three, and other education-specific programs for children age four to Grade 3; 25% for “Ready for Higher Learning,” geared to students in grades four through eight and grades nine through 12; 35% for “Ready for Life” for children to transition to post-secondary education.

Please contact my office if you would like copies of the Growth and Justice proposal.

Federal Stimulus Update
The Business, Industry and Jobs Committee this week received an update from the state’s federal stimulus coordinator on how the American Recovery and Reinvestment Act would impact Minnesota. Commissioner Tom Hanson from Minnesota Management and Budget told committee members the state expects to get at least $4 billion from the bill, plus additional tax reductions for residents and additional funding to local governments and school districts.

Commissioner Hanson told lawmakers that of the estimated $4 billion coming to Minnesota in the plan, only between $2.6 billion to $2.8 billion would be available as General Fund spending. This money will come as one-time funding for specific needs; it cannot be used to resolve the state’s ongoing budget shortfall, which could grow to $7 billion by the time the state’s March forecast is released.  This funding is designed to stimulate the economy, and I feel the funding should be used to fulfill its intended purpose and not to balance the budget.

While the money will not help address the state’s current budget deficit, it will provide significant new funding for critical state needs.  The package includes $600 million in transportation infrastructure funding, with $502 million going to highways and bridges and $92 million going to transit. The package also includes $820 million for a State Fiscal Stabilization Fund for education. Some of this money will be allocated through the state, while some will be allocated directly to school districts. Moreover, there is additional money for law enforcement, weatherization projects, unemployment benefits, food stamps and community infrastructure needs.  In total, the package is expected to save or create 66,000 jobs in Minnesota and an estimated 3.5 million jobs nationwide.

Commissioner Hanson said that he expects the Governor will have to significantly modify his previous budget proposal to incorporate funding now available through the stimulus plan. A significant amount of the new federal funding requires the state to continue its existing financial commitments to certain programs, meaning several of the Governor’s proposed budget cuts and shifts will need to be eliminated from his plan. Hanson said that these changes should be reflected in the Governor’s updated budget proposal scheduled to be released in early March.

I hope you can attend the next Town Hall Meeting, which will be held at 7 p.m. on Thursday, February 26th, at the Plymouth City Council Chambers, 3400 Plymouth Blvd.

Have a great weekend!

Impact of Economic Recovery Package on West Metro
I was joined today at the Capitol by Mayor Jim Hovland of Edina and other lawmakers from the west metro area for a press conference regarding benefits to our community from the economic recovery package. Under the bill, the west metro area stands to gain significant economic recovery funds.  Transportation projects that appear to be in this proposal are:

•    Completion of the 494/Hwy 169 Interchange,
•    Final completion of the Hwy 610 project, and
•    The 494 lane expansion project at Hwy. 212.

These projects are ready to go right now, and that will create hundreds of jobs in our area. Many people are out of work, businesses are struggling to survive and school districts are looking to maintain their quality. This package infuses our community with welcome capital. We are also hopeful that with the transit/rail dollars in the bill, construction of the Southwest Transitway can be accelerated. Moving this project forward would greatly benefit our part of the metro area. In addition, preliminary reports indicate significant money is proposed to be allocated to education. Of critical importance are the funds targeting dollars to at-risk pre-schoolers.  

The total compromise package amounts to $789 billion, an amount that is smaller than the bills passed by both the House of Representatives ($820 billion) and the Senate ($838 billion). I am concerned by the scope and scale of this package. 

At the same time, inaction is not an option, and the potential benefits in terms of economic development and jobs in our community are many. While I expect deliberation over this package from our federal legislators and recognition of the burden of debt we are putting on future generations, I also hope they are courageous and are willing to work bi-partisanly for our greater good.

Budget Deficit Update
The mood at the Capitol remains somber regarding the tremendous budget deficit before us this session. While initial projections put the budget deficit in the area of $5 billion, revised projections from the Governor’s office indicate the deficit may go as high as $7 billion. I recognize, as do my colleagues, the great responsibility we as legislators have to balance our budget while protecting our most vulnerable citizens and maintaining the high quality of life that Minnesotans enjoy. This task will not be easy, and it is certainly one that none in the legislature take lightly.

Revenue collections in January were just .1% ($1.5 million) less than forecast. Individual income and corporate taxes were slightly less than forecast, offset by slightly higher-than-expected sales and motor vehicle sales taxes. However, as economists always caution, monthly collections are not a good indicator of the economy or the next forecast.
We will be holding town hall meetings around the state in February and early March to solicit citizens’ input on the state budget recently proposed by Gov. Tim Pawlenty to tackle the state’s budget deficit. The District 43 meeting will be held on Thursday, February 26th, at 6:30 p.m., at the Plymouth City Council Chambers at 3400 Plymouth Blvd. I hope you can attend.

Charter School Lease Aid Discussed
The Senate Charter School Working Group met on Feb. 9 to discuss charter school lease aid and strategies some charter schools have used to pay for building construction.
Lease aid is the major public funding source charter schools use to pay for building/classroom space. Questions about appropriate use of lease aid came up after some charter schools, through nonprofits and holding companies, were able to construct new buildings without asking voters for approval, as regular public schools must do. The state appropriated $40 million in lease aid for 2009. Currently, there are 150 charter schools in Minnesota.  Charter schools do not have the authority to levy.

Lease aid appropriations increased by 10.4% over 2008 levels. That’s after a 13% increase in 2008. Currently in Minnesota, there are 15 charter school buildings that were constructed using a nonprofit building company. No action was taken during the hearing.
Transportation Committee Gets Tough on Inattentive Driving

This week, the Transportation Committee addressed the issue of inattentive driving and its results.  Currently, there is a gap in Minnesota statute between speeding and careless driving.  The committee passed legislation enhancing the penalties for operating a vehicle without reasonable care for the rights or safety of other people and property. Later in the session, I hope to have a hearing on a bill I introduced that would outlaw the use of cell phones while driving, except when used in a hands-free mode.

The bill heard in committee this week states that a person is guilty of a gross misdemeanor if they cause substantial or great bodily harm to another or cause damage above $1,000 to another’s property.  Penalties may include one year of prison or a fine of up to $3,000, or both.

The bill also provides that driver’s education curriculum and the Minnesota driving manual must provide a section on failing to exercise reasonable care while driving and the penalties for violating the law. The bill was referred to the Judiciary Committee for further consideration.

Clean Car Bill Introduced
Sen. John Marty and Rep. Melissa Hortman held a press conference this week to announce the introduction of the Clean Car Act.  This legislation would bring more fuel-efficient vehicles to Minnesota, starting with new cars, trucks, and SUVs in 2013.  The Governor’s Minnesota Climate Change Advisory Group reports that this legislation could save Minnesotans $265 million at the pump between now and 2025.  The state could save an additional $250 million in health care costs and environmental benefits. 
Minnesota’s transportation sector currently contributes nearly 25% of the state’s green- house gas emissions.  This bill would significantly reduce this amount, having the same effect of taking one million vehicles off the road.

Lawmakers were joined by citizens, environmental groups, clergy, and academics to advocate for this bill’s passage into law this year.  Currently, 13 other states have set this higher standard for cleaner and more-efficient vehicles.

Happy Valentine’s Day to you and your family.

Hearing from Constituents
It was a lively week at the Capitol, as many organizations held their annual “days on the hill” to provide their members and supporters a chance to visit the Capitol and share with legislators their priorities for the 2009 legislative session. I was glad to have the opportunity to visit with members of the Service Employees International Union and hear their comments on the Shared Services initiative being forwarded by myself and Governor Pawlenty to increase efficiencies in our schools and drive more dollars into the classroom. Their comments underscored the importance of reaching out to those serving in the districts, learning from their years of experience. I appreciated hearing from them. We also had visits from bankers, bikers, doctors and advocates for the disabled this week, all here to make their voices heard in state government.

In that same vein, The Senate Finance Committee is working with the House Ways and Means and Finance Committees to put together hearings around the state to present the Governor's budget and solicit feedback from the public. The Senate District 43 meeting will be held on February 26th, 6:30 p.m., at Plymouth City Hall, 3400 Plymouth Blvd.

Legislative Auditor’s Report on QComp Inconclusive
A Legislative Auditor’s report released on Feb. 3 indicated insufficient data to determine if QComp was directly enhancing student achievement, recommending that the Minnesota Department of Education establish a better application and review process for the program. The report, requested by the Legislative Audit Commission, was presented in the Senate’s E-12 Budget Division. The report also noted that large school districts, such as those I represent, were the dominant participants in the four-year-old program, and that small districts struggled to set up the teacher pay/staff development initiative. Given how early we are in the process of implementing QComp, the inconclusive findings of the report highlight the need for accurate indicators of student growth that will allow us to determine the efficacy of the QComp program.

Transportation Committee Advances Child Safety Legislation
This week, the Transportation Committee passed a bill which would require appropriate child passenger restraints for children traveling in motor vehicles in Minnesota who are both under the age of eight and less than four foot nine inches tall.  Current law only requires passenger restraints for children under the age of four.  Research has shown that adult seat belts do not properly fit and protect children under the age of eight.  Minnesota is one of only six states in the nation that has not upgraded their laws to reflect this knowledge.

Child passenger restraints reduce the risk of injury in automobile crashes by 59%.  The risk of death is reduced by 28% if a child is properly restrained.  In most cases, an appropriate child passenger restraint for these children would be a booster seat, which retails for under $20.  There are also programs available to assist low-income families obtain these seats.

The family of Brynn Duncan, an eight-year-old girl who was paralyzed last summer in an automobile accident, testified before the committee.  They encouraged that this bill be passed, for if such a law would have been on the books, they would have ensured Brynn would have had a booster seat available for riding in her grandmother’s car.  They do not want other children to suffer from these preventable injuries or other families to experience such tragedies.

Law enforcement also spoke in favor of this bill.  They said parents turn to the law for safety guidance.  In this case, Minnesota law does not reflect best safety practices and should be updated to better educate the public.  They also said that this law would not be punitive, as anyone ticketed for a violation could have the citation dismissed if they purchased a child passenger restraint within 14 days.

Recognizing the lives that could be saved and the injuries that could be prevented, the Transportation Committee passed this bill on a unanimous vote.  It will next be considered by the Finance Committee.

Healthy Children’s Products
On Monday, the Healthy Children’s Products Bill was heard by a joint committee of the Senate Health, Housing and Family Security and the Environment committees.  The bill seeks to prohibit Bisphenol-A from children’s products, such as sippy cups, infant formula cans, baby bottles, toys, and scented baby products.  Bisphenol-A is a chemical that is used to harden plastics and has been shown in animal laboratory tests to act as a hormone disruptor that mimics estrogen and can result in abnormalities of the male reproductive tract, heart disease, prostate cancer, miscarriages, and diabetes.

This bill passed the Senate last year, but was vetoed by Gov. Pawlenty.  One change from last year’s bill is a phase-out, with the first phase-out for children’s products by Jan. 1, 2010, and the second phase-out for infant formula cans by Jan. 1, 2013.  The bill is controversial because BPA is one of the most studied chemicals on the market today.  It has been phased-out of children’s products in Japan and Canada.  Wal-Mart and Toys R Us no longer carry BPA products.  The FDA recently issued a statement that products containing BPA do NOT pose a risk to human health, however their scientific advisor admonished them for not doing a thorough review of the available research.  Dr. John Peterson Myers, founder and CEO of Environmental Health Sciences, said that of all the government-funded studies, 93% show harm from BPA, while of the industry-funded studies, none have shown harm.

Joint Transportation Committee Reviews Report on Mn/DOT Efficiency
The joint House and Senate Transportation committees met this week to hear a report from Mn/DOT’s Strategic Operations and Management Task Force.  This bi-partisan, bi-cameral task force was established in the 2008 Transportation Funding Bill to determine how the department could most effectively and efficiently use its taxpayer resources.  Legislators, along with representatives from labor, business, academia, Mn/DOT, and the Metropolitan Council served on this task force.

The task force developed several recommendations on how to improve efficiency in the department and improve project management, recommending a formal structural improvement process in the area of cost accounting. The task force also recommended that Mn/DOT identify the best practices of the design-build process and determine when they could be used in other projects, implementing pilot projects for innovative project execution. Representatives from Mn/DOT stated their commitment to implementing these recommendations as well as other improvements.

Thank you to those who participated last night in the Plymouth Town Hall Meeting. Representative Anderson and I appreciated the opportunity to speak with you and hear your concerns and suggestions. They are vital as we determine our future path.

Have a great weekend, 

January 6, 2009

We must pledge to work together beyond partisan posturing to confront our states challenges with wisdom, creativity, courage and compassion. In the coming days I will be introducing legislation aimed at solving some of our most pressing problems by reinventing the way we do business in Minnesota. I welcome your comments and counsel as we go forward. There is no "small" or "bad" idea. Join me in making this year the turning point for placing Minnesota on the path to prosperity by leading with a values-based strategy.