Greetings,

The second to last full week of the 2016 session is now complete, and we are entering the final hours before adjournment. Many of our major bills are now in conference committee and discussions between legislative leaders and the Governor are taking place to find common ground on major needs like a transportation and bonding bill.

In transportation, the conference committee between the Senate and House has met multiple times this week and we have exchanged proposals. While my colleagues in the Senate and I continue to prioritize a comprehensive long-term approach that increases new dedicated funding, the House has continued to support using general fund money, which would take significant amounts of money away from other state priorities.

This final week is critical to finding solutions to the issues facing Minnesota. I am committed to working with my colleagues in the Senate as well as the House in helping make progress this year.

-Sincerely,

Melisa

Supplemental Budget Conference Committee starts working

The Supplemental Budget Conference Committee met this week to review differences and come to an agreement on how the $900 supplemental budget surplus should be invested. The biggest disparity lies in a $453.5 million difference in bottom lines. While the House is proposing under $3.2 million in net supplemental spending for the biennium, the Senate proposal would invest an additional $456.7 million.

The Senate supplemental budget bill includes increases for education, rural broadband expansion, and programs to tackle racial economic disparities. The House budget cuts funding from a number of budget areas and includes policy issues that are traditionally not a part of budget bills. The Governor has been critical of the House’s policy provisions and their efforts to tie controversial policy changes into essential spending items.

The Senate balances their supplemental budget investments with nearly $300 million in targeted tax cuts to help families through the working family tax credits and paid family leave, to boost our economy through business incentives, and to help our students with student loan debt by implementing targeted tax credits.

The conference committee devoted hours this week walking through detailed side-by-side comparisons of language. The next step will be to agree on viable targets and finally negotiate the details for a final budget compromise.

On the Floor

Supplemental tax omnibus includes tax relief, paid leave

The Senate supplemental tax omnibus bill provides tax relief for working families, helps combat the growing burden of student debt, and creates a new paid leave program for Minnesota workers. The bill passed the Senate with a vote of 37-30 Wednesday.

Targeted tax relief provisions in the bill include:

• Working family credit: $48.8 million in 2017, $109.9 million in the next biennium. This provision reduces the tax burden for 386,000 low and middle income tax filers by an average of $125, and expands eligibility for the credit to an additional 109,500 Minnesotans – including young workers without children.
• Student loan credit: $36.1 million in 2017, $74.6 million in the next biennium. This provision creates a credit of up to $1,000 for eligible individuals and their parents who are paying for student loans. The percentages of student loan payments eligible for the credit are:
  • 50% of qualified educational loans.
  • 65% of qualified loans for eligible individuals in a public service job.
  • 75% of qualified loans for eligible individuals in an education profession.
• Tax conformity: This bill conforms to federal changes made in 2015, including the Slain Officer Family Support Act, Don’t Tax Our Fallen Public Safety Heroes Act, Bipartisan Budget Act, and Protecting Americans from Tax Hikes Act.
• Nameless job application credit: $1 million each year through 2019. This provision creates a tax credit that incentivizes businesses to adopt nameless job application processes, where an applicant’s name is withheld during primary screening rounds of the hiring process. The total credits are capped at $1 million annually.
• Citizenship credit: $1.3 million in 2017, $2.9 million in the next biennium. This bill removes the financial barrier to citizenship for many immigrants by providing a credit of up to $700 for naturalization expenses.
• Credit for parents of stillborn children: $800,000 in 2017, $1.6 million in the next biennium. This provision helps families pay for uncompensated costs that often arise after a stillbirth by creating a $2,000 one-time tax credit.

The supplemental omnibus tax bill is a responsible approach to maintaining a balanced budget while providing $120.2 million in relief for Minnesota taxpayers in 2017 and $214.1 million in the next biennium. This bill will now be considered in a conference committee along with provisions passed by the Senate in the 2015 Omnibus Tax Bill (H.F. 848). (H.F. 3931)

Minnesota Senate passes bill to switch to presidential primary system

The Senate passed a bill to switch from a caucus system when picking presidential candidates to a presidential primary system. As a result of long lines and general confusion during the 2016 caucus held on March 1, some elected leaders called for a presidential primary as opposed to Minnesota’s current caucus system.

Switching to a primary system would allow Minnesota voters a full day to cast a ballot for their preferred presidential nominee. A caucus, on the other hand, is limited in its appeal and convenience. In addition to allowing for all-day voting, the primary also gives people the ability to vote absentee, further increasing access to participation in the process. The bill also requires separate ballots to be created for each party so that voters are only able to participate in one party’s nominating process at their polling place.

It is important to note that the primary system would only be used for presidential primaries once every four years. The caucus nominating process would still be in place for all other state and local elections. The bill does not make any other changes to general election law.

The bill also outlines guidelines for the Secretary of the State to reimburse counties and municipalities for expenses incurred. The costs of preparing and printing ballots, preparing electronic voting systems, and payments to temporary staff, election judges, and county canvassing board members can be costly for municipalities. This bill passed the Senate. (S.F. 2985)

REAL ID moves closer to implementation

This is the second bill related to REAL ID the Legislature has heard this session. The first repealed the prohibition on planning, and required DPS to report to the Legislature about the next steps for implementing the law. The department reported back with the next steps Minnesota needs to complete for compliance. This second bill allows the department to make technical changes to bring Minnesota’s statutes and licenses into compliance with federal REAL ID standards.

One of the main features of the Senate bill allows for a noncompliant license which would allow those who are concerned about the data collected and those who have no plans for air travel to have a state-issued driver’s license or ID that is not REAL ID compliant. One major difference between the Chambers is the Senate’s date for implementation of these new driver’s licenses and IDs would be Jan. 1, 2018 when the new Minnesota Licensing and Registration System (MnLARS) is scheduled to be completed. This later implementation date saves Minnesota taxpayers millions of dollars while still being completed before the federal deadline.

In addition to the issues of federal compliance, the bill includes a provision allowing the commissioner to add lifetime game and fish information to the back of the new Minnesota driver’s license or ID, in writing or as a graphic.

An amendment was adopted on the floor that requires legislative approval of any changes made to the REAL ID Act at the federal level.

The bill passed off the Senate floor. (S.F. 3589)

Met Council reforms

In close conjunction with local governments, stakeholders, and policy advocates, legislation recommending changes to the Met Council were passed off of the floor Tuesday. Many of the recommendations come from the Citizens League Metropolitan Council Task Force that met between September 2015 through March 2016 to consider governance changes to the Council and gather input from interested stakeholders.

The task force provided four recommendations to the Governor and the Legislature, which have been incorporated into this bill:

• Adopt four-year, staggered terms for Met Council members, to continue to be appointed by the Governor, including the chair.
• Provide more citizen input regarding the member selection process by increasing the nominations committee from seven to 13 members with seven citizen-at-large members appointed by the governor and six representing local governments (three appointed by the Association of Minnesota Counties and three appointed by the Association of Metropolitan Municipalities).
• Require the nominations committee to recommend three finalists to the Governor and require the finalist list—including their qualifications—to be made public 14 days prior to a final selection by the Governor.
• Add member qualifications to the selection process, including experience in transportation, housing, environment, and regional development.

The Citizens League Task Force recognized the need for accountability and transparency in the governance structure of the Met Council, and the proposed reforms will help ensure people’s concerns are addressed.

The bill also requires the Met Council to establish an advisory committee to look at ways to reduce concentrations of poverty. The advisory committee must develop an equity policy plan, evaluate existing transit routes relative to job centers and high-growth industry centers, and evaluate strategies to reduce poverty and mitigate demographics challenges relating to aging.

The bill passed off of the Senate floor. (S.F. 2385)

Week in Review Video: