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Dear Friends and Neighbors,
Spring is in the air and there is so much hope on the horizon! We received promising news about the pace of vaccine distribution yesterday and today we learned that Minnesota is on the road to economy recovery with the new budget forecast. “Thankful” and “hopeful” are good words going into the weekend!
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Executive Summary
- Updated Budget Forecast
- Vaccine Timeline
- PPP Forgiveness
- Social Studies Standards
- Minnesota Great River Road Named All-American Road
- Helpful Links
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Updated Budget Forecast
This morning we learned that the state's budget forecast includes a $1.6 billion surplus. This is extremely good news and shows that Minnesota is well on our way to economic recovery after a devastating year of shutdowns.
However, the Governor has indicated he intends to continue to push massive tax hikes that would only hinder the economic progress we have made. His plan includes raising taxes on Minnesota families and businesses which would only slow our recovery.
Much of the money in the forecasted surplus is one-time money tied to increases in federal payments to the state during the pandemic. We should use this one-time money to provide tax relief to businesses who took out a PPP loan (see below) and fund other recovery measures. Government should not count on the surplus to fund on-going future expenditures and should still look for ways to reduce the growth of state spending when setting the new budget.
Our economy needs to grow, not the size of state government. Instead of increasing Minnesotans' taxes, we need to look at ways to streamline services and cut wasteful spending.
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Vaccine Timeline
Yesterday, we learned about Gov. Walz's timeline to provide a vaccine to every Minnesotan who wants to be vaccinated. This new plan shows that once 70% of those aged 65 and older have received the vaccine, vaccinations will become available to people with specific high-risk health conditions and targeted essential workers. The current target is to have vaccines available for the general public by summer.
I am encouraged that the Governor is starting to prioritize our elderly citizens for vaccine distribution, which is something many of us have been asking him to do. 90% of the deaths in Minnesota have been among those aged 65 and older and getting them vaccinated first will provide protection and also significantly reduce future hospitalizations. In addition, for elderly residents of long-term care facilities, it will help end their nearly year-long lockdown and enable them to see family in-person again.
We also received news that the Johnson & Johnson vaccine will likely receive approval from the FDA this weekend or early next week. This vaccine does not use the Messenger RNA (MRNA) technology and does not require ultra-cold storage. It also only requires one dose.
This is promising news as we continue to fight to reopen our economy and get all kids back in school. Our businesses have been devastated by shutdowns and our students have been harmed academically and in terms of their mental and emotional health. Now that our hospitalizations, deaths and cases are declining, we need to begin to transition back to normal life as quickly as is safely possible.
I have also heard from many people who have concerns about the Covid vaccines. As I have said in previous newsletters, the government cannot mandate any of the vaccines because they were approved under the “Emergency Use Authorization” authority of the FDA. In addition, Minnesota continues to have medical and non-medical exemptions to its vaccine law for childhood vaccines. You can find more details here.
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PPP Forgiveness
I have been fighting for small business relief since the pandemic started. In the Tax Committee, we recently had a hearing on one of the most important issues facing businesses who are struggling to survive. Most Minnesotans were not aware that the "forgivable" federal Paycheck Protection Program (PPP) loan would be counted as "income" by the State of Minnesota and taxed at the corporate rate of 9.8%.
Unless Minnesota “conforms” to the federal forgiveness of PPP loans, business owners will have to pay state tax on a loan that is already spent and many do not have the cash-flow to do so when businesses are still not able to operate at full capacity.
Most businesses owners I have heard from spent all of their PPP loan on keeping their workers employed and on overhead costs such as rent and utilities - bills they couldn't keep up with during the Governor's shut-down or reduced capacity orders. They thought they were doing the right thing by spending all of the money as required by the conditions of the loan and didn't save any to pay state taxes. This loan money was not "profit" - it was essential to keep businesses afloat when they were closed.
I support finding a way to conform to the federal forgiveness of PPP loans so small businesses owners are not forced to pay state taxes on these loans. Whenever money is not collected that the state is expecting, it is considered a "cost" to the state. In this case, conforming to federal forgiveness of PPP loans will “cost” the state about $440 million. I support using some of the projected $1.6 billion surplus to provide this much-needed tax relief to small businesses.
Given the February Forecast is now projecting a $1.6 billion surplus for the coming biennium, I believe the state can "afford" the estimated $440 million it will cost to do full conformity and should get it done as quickly as possible.
Government shut-downs forced these businesses into the position of needing the loans - the state should now not be increasing revenue at their expense.
Unfortunately, the PPP conformity language is part of a much larger bill (HF 501) that has many other provisions and is not likely to be done until the end of session in May. I support doing a "clean" bill focused only on PPP conformity and getting it done by April 15th so businesses can have some certainty.
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Social Studies Standards
Minnesota students deserve a well-rounded education about our nation's history. State law require us to review our academic standards in all areas, included social studies, every ten years. The Social Studies standards are currently undergoing this review.
Unfortunately, the first draft of the new social standards lacks balance. It appears to be focused on indoctrinating rather than giving our children historical perspectives that recognize America's contributions and successes throughout history. You can read the proposed standards here.
Students should be taught to recognize all cultures and their contributions to our country. Our social studies standards need balance. We can recognize the tremendous accomplishments of the United States, while also discussing our mistakes. This current version of the social studies standards leans too heavily into a negative portrayal of our country, without teaching students about America's great accomplishments.
Given these concerns, I have co-authored a bill that would suspend and restart the process of reviewing our social studies standards. We cannot give our children an incomplete lesson in the history of our country.
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Minnesota Great River Road Named All-American Road
This week, the Minnesota Great River Road received an All-American Road designation by the Federal Highway Administration. This is the highest byway designation and is awarded to roads that “possess nationally significant qualities and have one-of-a-kind-features that exist nowhere else – making the byway a ‘destination unto itself.’"
As a member of the Mississippi River Parkway Commission, I am extremely proud of the Minnesota Great River Road for receiving this honor. The Minnesota Great River Road is truly an All-American Road, telling the rich history of not only our state, but also our country. From the beauty of its natural scenery to the historic landmarks, the Minnesota Great River Road has something to offer everyone.
With this designation, “communities and attractions are included in a broader All-American Road experience along with other Mississippi River states, and they enjoy promotion on a larger stage.”
More information on the Minnesota Great River Road can be found here. Plan your road trip along the Mississippi River here.
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Helpful Links
Vaccines at Hy-Vee: The Walz administration announced that Hy-Vee is joining Walgreens, Walmart and Thrifty-White in Minnesota as part of the Federal Retail Pharmacy Program. More than 30 Hy-Vee locations across the state administered over 10,000 doses last week. You can find out how to get your vaccine at your nearest Hy-Vee on their website.
NASA Internships and Fellowships: I am a total space nerd and love following what is going on at the International Space Station, NASA and our private-sector space partners. This week was exciting to watch the Mars Perseverance Rover land and send back the first images and sounds from Mars. If you don’t follow the Perseverance Rover, you can get updates on Facebook, Instagram or Twitter.
Do you know someone who is interested in space exploration? Encourage them to apply for one of NASA's internship opportunities here.
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Photos
Donating blood Friday afteroon at a Red Cross Blood Drive at the Jersey Mike's in Maple Grove.
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Please Contact Me
Many of you have already been in touch to discuss your thoughts on the issues that matter most to you. Thank you for sharing your ideas! Please continue to contact me to discuss any matters to which I can be of assistance.
During the continuing COVID restrictions, the best way to reach me is by email: rep.kristin.robbins@house.mn. You can also leave a voicemail on my office number, 651-296-7806, which is checked a couple of times/day. I hope you all have a great weekend!
Have a great weekend!
Kristin
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225 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, MN 55155
ph: 651.296.7806 |
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