Terri Bonoff

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,