Omnibus Season Continues
Budget bills continued to make their way to the House Floor this week and early into next. We've had some long floor sessions with lots of debate and amendments.
Again, we will undoubtedly see differently, hopefully better, versions of these bills after the conference committees - made up of members of the Republican Senate & Democrat House - work towards compromise proposals.
With a May 17 date for the Legislature to adjourn, there is enough time to bridge gaps.
Some of the bills we heard on the House Floor this week are summarized below:
Tax Omnibus: The Taxes Omnibus passed despite bipartisan opposition and, unfortunately, includes tax increases while our state has a significant budget surplus. I expect a very different bill coming back from conference committee.
Pro – Includes the $10,200 subtraction on the UI benefits for 2020. Provides $94M to counties to distribute in grants to businesses; makes student loan tax credits refundable.
Con – Lots of things in the tax bill that I do not support. It raises taxes by more than $1 billion at a time when MN has a $4 B surplus. It also is holding up the full PPP tax conformity fix for struggling businesses which threatens our economic recovery.
Public Safety: After the deaths of George Floyd and Daunte Wright there is a lot of attention to look at how we can prevent such tragedies from happening again. Last July in a special session of the legislature, I voted for, and the legislature passed, a police accountability bill that included funding for a separate investigatory unit of the BCA for peace officer involved deadly use of force and also included a stricter standard for use of force that is based on preserving the sanctity of every human life. Additional discussion on police accountability, improving community relationships and trust, and ensuring public safety for all Minnesotan's is on everyone’s mind and I support these on-going discussions that bring all parties to the table.
Pro – The bill does include the recommended changes to Minnesota’s criminal sexual conduct statutes, found in HF 707—which I wrote about recently in the Republican Eagle.
Con – The bill rewrites statutes to divert some violent criminals from prison, and reduces sentences and incarceration lengths, even for heinous crimes. It includes a provision to hide criminal offenders’ sentences from the public, including from their victims. It also allows governing bodies that oversee a law enforcement agency to create an unelected citizen oversight council, which could have broad powers over the agency and its peace officers with no requirement that members to have adequate knowledge of law enforcement procedures.
Jobs & Econ Dev Omnibus
Pro – Adds accountability to the Workforce Development fund by requiring outcome measurements for workforce training programs, such as number of people employed, wages, retention, and certifications achieved. I offered two amendments to provide even more alignment with employers’ needs who pay into this fund.
Con –There is nothing in the proposal about allowing businesses to fully reopen and rehire employees so they can leave unemployment. The bill contains zero provisions to assist employers at a time when so many are struggling and puts onerous mandates and regulations on employers including: a new earned sick and safe time program; mandating leave policy; onerous record keeping mandates; and increased fines and liability on employers. It also extends UI – again – at a time when we have thousands of job openings all over the state.
Commerce and Energy
Pro – I was successful in getting my bill for Review of the Rate Disparity in the Individual Insurance Market added as an amendment. This will provide the legislature with data and make recommendations on how to change the rating areas, which needs federal waiver, to decrease the extreme disparities in cost that our region of the state pays.
Con – The legislation also does not include an extension of Minnesota’s highly successful reinsurance program for plan year 2022. The reinsurance program is already funded and has achieved up to 20% reductions in rates for many regions of the state. This bill also includes many concerning provisions that lead MN down the path of following the California car mandates.
K12 Education
Pro – Funds a 2% and 2% increase to the school funding formula.
Con – While increasing the funding formula by 2%, bureaucrats receive a 10% increase in funding. This bill by the Administration’s own admission, is focused on “equity and inclusion” rather than high standards and focused academics. It includes zero provisions to re-open schools or prioritize the return students to in-person learning as quickly as possible. It also rolls back reforms to the Tiered Licensing System and closes off pathways for teachers of color to enter and remain in the classroom. Finally, it puts more mandates on school districts that crowd out local decision making without any added flexibility.
Higher Education
This is a largely uncontroversial bill, but there a few important items that I’d like to see changed in the conference committee:
The bill underfunds the Aspiring Teachers of Color Scholarship program. The administrators asked for $26 million, but the DFL bill only allocates $4.5 million. It freezes tuition for Minnesota State, but does not prohibit raising student fees, which are increasingly becoming a larger and larger financial strain. Additionally, simply instituting a tuition freeze for a year does not address the rising cost of college. Finally, despite moving testimony in committee from college students on mental health and the need for more mental health counselors in colleges, this bill does not provide enough funding to increase mental health resources to an adequate level.
Agriculture Omnibus
Pro – $30 million in additional funding in FY 2022 for the Border-to-Border Broadband Grant Program, and an additional $350,000 for operations in FY 2022 & 2023. $4 million to aid service stations in upgrading their facilities to handle higher concentrations of ethanol-blended gasoline as the state moves toward biofuels. Finally, increased funding for farmer mental health, farm safety, and food banks.
Con –Controversial provisions that raise fees on farmers and reduce legislative oversight of the Board of Animal Health.
Environment Omnibus
Pro – Provides support for our MN Zoo, DNR, Science Museum and appropriations to address the harmful impacts of PFAS chemicals.
Con – Includes nearly $20M in total fee increases over the next two years. Increases regulations that will make it more difficult to do business in our state.
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