Week 7 in Review

It’s Friday the 13th…

… and it’s the end of another busy week of session, with a miserable weather forecast. Where is spring?!

Taxes

Since we passed the policy deadlines, we’ve moved into the next phase of budget targets and finance bills. As many of you are aware, taxes are a major issue this session. The recent federal tax changes may have significant effects on Minnesotans, and many of us are committed to ensuring that working families don’t face tax increases as a result. Governor Dayton shared his proposal for taxes about a month ago, one that would provide tax cuts to 2 million Minnesotans. Unfortunately, the Republican chairs of the legislative tax committees have not offered their proposals to date, and we only have 5 weeks remaining in this session. If we don’t come to some resolutions, many Minnesotans may find their taxes going up, so this really needs to be a priority.

Congress’ tax bill passed late in 2017 put Minnesota taxpayers in limbo as they plan their finances. More than 300,000 filers will see an average $200 tax increase next year if the legislature doesn’t attempt to respond to federal changes, but if the state simply copies what the federal government changed word-for-word, more than 870,000 filers will see tax increases averaging $426 next year.

The legislature must carefully consider an appropriate response that protects Minnesotans from tax increases and doesn’t destroy the state budget. That is a monumental task that requires public debate and should not be rushed or entangled in end-of-session games. Regardless of personal feelings about the federal tax changes, most everyone can agree that the process by which they were adopted was inexcusable – written behind closed doors with no public input. As a result, the bill that passed is full of mistakes and unintended consequences that are still being discovered. It would be very disappointing to see Minnesotans Republicans walk down that same path but, with only five weeks left, it is becoming a troubling possibility.

Teacher Licensure

Another issue that has been a focus for me this week has been how Minnesota licenses our teachers. In 2017, I was part of a major overhaul of our licensing process, including the abolishment of the old system with the Board of Teaching, and the creation of a new body, the Professional Educational Standards Licensing Board, aka PELSB. As our workforce has changed, it’s become clear that the traditional process for teacher candidates to get their education and their training is no longer flexible to many wonderful potential teachers. The new tiered system creates opportunities for people of a range of professional and personal backgrounds to meet the high standards we hold for these professionals who are so important to our kids. This week in the Senate E-12 Policy committee, we held confirmation hearings for nominees to the new licensing board. 

WEEK SEVEN: Thursday, April 12

OVERVIEW

In final weeks of Session, Republicans could shut Minnesotans out. Again.

The legislative session last year ended in chaos – a result of the Republican majority’s decision to pursue shadowy last-minute backroom deals instead of conducting their work in a manner that is transparent, accountable, and consistent with Minnesotans expectations of their state government. The Republican majority this year appears to be comfortable with repeating an approach that shut average Minnesotans out of the conversation. With five weeks left before the Legislature is required to adjourn, Republicans have yet to release a tax, bonding, or supplemental budget proposal. Minnesotans deserve better than late-night deals that take place behind closed doors. DFL senators are holding the Republican majority accountable and will be talking about the need for fair, transparent conversations about major issues that affect all Minnesotans.

In The Senate

Empty boots on State Capitol steps raises awareness of veterans’ suicide rates

Families and friends of veterans that died by suicide were encouraged every day this week to place the boots of their loved ones on the steps of the Minnesota Capitol. The week-long commemoration was initiated by Operation 23 to Zero, a non-profit started by local Minnesota veterans that raises awareness about the suicide epidemic facing veterans. An average of 20 veterans die by suicide every day, and the group hopes that this gesture will call on lawmakers to improve mental health resources available for veterans. Around 100 boots of deceased soldiers were placed on the steps by the week’s end.

Minnesota African American Family Preservation Act

DFL legislators held a press conference this week to raise awareness of the Minnesota African American Family Preservation Act, a proposal to improve oversight of child-protection services and provide better outcomes for African American children and families who go through the system. The legislators were joined by parents and advocates who detailed first-hand experiences with the disparities in the child welfare system, calling for strong support of the bill.

The Minnesota African American Family Preservation Act seeks to remedy the disparities experienced by African American children and their families by preventing unnecessary removal of black children from their home and promote family reunification. The bill would create a new council within the Department of Human Services to better oversee how black children and their families are treated by child protective services. The proposal would also require local agencies to place black children with family members, make it harder to terminate parental rights, and allow for parents to petition to have their families reunified. (SF 3779)

Building trades day at the Capitol

On Building Trades Day at the Capitol, members from the Local 563 and Local 49ers spoke with legislators to advocate for living wage jobs, prevailing wages, and infrastructure. DFL legislators joined supporters and advocates at a rally in support of a $1.5 billion bonding bill to support state construction projects.

Wolf day at the Capitol

The organization “Howling for Wolves” led a rally at the Capitol this week to protect wolves for future generations. The group called for a ban on all wildlife snaring and requiring permission to trap on private lands, citing the dangerously low levels of wolves in Minnesota. Afterwards, participants at the rally were able to meet with legislators to talk about banning snaring and protecting wolves.

Governor advocates for expansion of broadband

Since taking office in 2011, Governor Dayton and Senate DFLers have made it a priority to expand reliable and affordable high-speed internet access Greater Minnesota. Significant progress has been made to connect every Minnesota home and business in greater Minnesota to broadband, but there is still more we can do. 

Governor Dayton urged the Legislature this week to support and pass his proposal to invest $30 million in rural broadband internet infrastructure. Leveraging $38 million in additional local and private investments, this proposal would help 11,000 more homes and businesses in Greater Minnesota access reliable, affordable high-speed internet.

The Minnesota Rural Broadband Coalition and its supporters called on the 2018 Legislature to provide funding of the Border to Border Broadband Development Grant program to allow economic development agencies, local governments, and others to be creative and collaborative in their approach to providing broadband services to underserved areas of the state.

 IN COMMITTEE

Agriculture, Rural Development, and Housing Policy

Grant heard for farmers legal action group

Lawyers Jim Massey, Lynn Hayes, Sarah Vogel, and Dale Reesman were successful in obtaining an injunction from a federal judge which halted the foreclosure of 80,000 farms. Because of this litigation, Mr. Massey was invited by Willie Nelson to a Farm Aid concert in the Summer of 1985. Shortly after the concert, Willie Nelson wrote the first check to Mr. Massey to start a nonprofit law firm (Farmers’ Legal Action Group, or FLAG) with the sole purpose of keeping farmers on their land.

A bill was heard this week that would appropriate $100,000 to FLAG. This nonprofit organization provides legal support to the Minnesota Farm Advocates program, legal aid organizations serving farmers, the Farm Business Management program, participants in farmer-lender mediation, and farmers seeking direct assistance. FLAG is asking for the money to meet the growing demand for their services that farmers are requesting. (S.F. 3210)

Rural mental health funding

Mental health services lag in rural Minnesota. Additionally, suicide rates are much higher for farmers in comparison to the average worker. An MPR story cited a study which, “…found that American farmers in the early 1990s to 2010 had a suicide rate three to five times higher than other occupations.”

A proposal introduced to the Agriculture Committee would appropriate $100,000 in general fund money to MnState for statewide mental health counseling to support farm families and business operators. Additionally, it provides $40,000 for farm advocate services. (S.F. 2850)

CAPITAL INVESTMENT

Bonding hearings scheduled

The Senate Bonding Committee this week held its first meeting of session. While committee hearings are welcome news given that Governor Dayton released his proposal roughly 10 weeks ago, there is concern about the process of the bonding bill.

The concerns stem from a bonding bill being introduced or amended with very little time left in the legislative session. The result will be limited public participation and the possibility of controversial provisions being put in the bill, jeopardizing the bill’s viability. Including controversial provisions in the bonding bill puts at risk funding for projects across the state. In recent years such antics have scuttled a bonding bill and jeopardized the passage of another bill.

Education

School safety bills take center stage

Legislation to enhance and help schools invest in school safety were the focus of a recent Education Committee meeting. Four bills with bipartisan authors were discussed, with funding for the proposals to be determined later in session.

The current Safe Schools program allows district to invest funds in school resource officers, drug abuse prevention programs (DARE), gang resistance education training, school security, and other crime prevention. Districts may also invest in student and staff safety measures and counseling, social work, and chemical dependency services provided by licensed professionals. Schools may receive up to $36 per student to spend towards safe schools. One reason there are so many bills increasing the per student amount is because over 90% of Minnesota school districts have reached the $36 per student levy cap and have no additional funds to spend on further safe school programs.

One bill would create a new school facilities improvement program to provide funding to schools to enhance school and student safety, new instructional space construction, facilities improvement, long-term facilities maintenance, and school lease agreements. Districts can levy for some of the funds, and the levy is equalized, which means there would be state funding to help hold down local property taxes. Districts would receive $212 per student each year. (SF2508)

Another bill includes a safe and secure schools provision from the Governor’s supplemental budget. The bill would (based on an amendment discussed):

  • Allow districts to issue bonds for public service announcements, emergency communications devices, or other equipment related to violence prevention and facility security.
  • Provide all districts and charter schools with an additional $54 per student in FY19 in Safe Schools revenue. School districts and charter would be guaranteed to receive at least $22,500 from the sum of the aid and the existing levy.
  • In FY20 and beyond: It would double the Safe Schools Revenue allowance from $36 per pupil to $72 per pupil and create a minimum revenue amount for school districts of $30,000.
  • The state equalization aid would help low tax base districts access to this revenue.
  • The levy aid must be spent on items identified in the safe schools levy statute, including facility enhancements, costs for school counselors, peace officers, and crime and drug abuse prevention and cybersecurity. (SF2507)

The third bill would allow districts to use long-term facilities maintenance funding, up to $100 per student, for districts to upgrade safety and security of school facilities. The funding would also be available to charter schools. The program would be effective from FY2020-2027. The plans would need to be submitted to the MDE commissioner by December 31, 2019. The levy would be equalized to hold down property taxes for local residents. (SF3243)

The final bill heard by the committee this week increases the amount districts can levy per pupil for safe schools projects. It also allows the safe schools levy increases for intermediate school district members to increase the same percentage amount as it does for school districts. The safe schools levy allows school districts to levy for costs associated with student and staff safety issues. For example, a 50% increase in the levy authority for school districts would result in a 50% increase in the pass-through authority for intermediate district members. (SF3472)

STAR program provides technology to help Minnesotans with disabilities

System of Technology to Achieve Results, or STAR, has a mission to help all Minnesotans with disabilities gain access to and acquire the assistive technology they need to live, learn, work, and play in their everyday lives. This bill provides one-time funding of $50,000 for 2019, which is crucial to ensure that Minnesota's children will be able to develop employment, academic, and social skills and school districts will be able to support student participation in trainings and conferences. (SF 3810)

Environment & Energy

Wild rice standard bill moves to the floor

The Senate Finance Committee advanced a bill affecting the state’s wild rice water quality standard to the Senate floor this week. The bill nullifies the state’s existing wild rice water quality sulfate standard and requires a new rulemaking process if the Minnesota Pollution Control Agency (MPCA) is to move ahead with adoption of a wild rice standard.

Wild rice quality standards have been in a state of ambiguity since January, when an administrative law judge rejected a new wild rice standard proposed by the agency. The standard in law is 10 mg/L, adopted in 1973, but a law enacted in 2015 prohibits MPCA from enforcing this standard until a rule-making process can be completed for an updated equation-based standard that evaluates individual wild rice water bodies and determines a protective standard tailored to individual lakes and streams. In January, the administrative law judge reviewed MPCA’s work and disapproved the equation-based standard, creating uncertainty about what happens next. The agency made some modifications and has asked the judge to reconsider.

The bill is sponsored by legislators from northern Minnesota and it removes the 10 mg/L standard as well as the equation-based standard and directs the MPCA to start over with a new rulemaking process if there is to be a wild rice standard. Many northern communities have been alarmed for some time about the potential costs of complying with the 10 mg/L standard that is in law (but not enforced). They argue it could put businesses, mines, and other industries out of business, and impose huge costs to communities for upgrades to wastewater treatment. Allowing either the 10 mg/L standard or the equation-based standard to stand creates more ambiguity and economic uncertainty for these communities. The labor community is concerned about the potential loss of jobs in northern Minnesota.

Opponents of the bill argue that ending the current rulemaking and removing the wild rice standard does not end uncertainty around this issue. The federal government has adopted the 10 mg/L standard, and this legislation does not follow the federal process for repealing or revising it, which will create more confusion and litigation. According to testimony from the scientific community, the current standard and the proposed equation-based standard are both scientifically solid and protective of wild rice. The Leech Lake Band of Ojibwe opposes the bill, stressing the significance of wild rice to Minnesota’s Ojibwe people.

The Minnesota Pollution Control Agency has offered limited testimony due to legal constraints. Those constraints were lifted on March 28, and the agency weighed in for the first time this week with opposition to the bill. The MPCA cites many concerns, including creation of a conflict with federal law by removing the wild rice water quality standard without replacing it with something at least as protective, jeopardizing Minnesota’s delegation of the Clean Water Act program authority from the U.S. Environmental Protection Agency, and the bill’s potential for unintended consequences. The agency also says the bill invalidates water quality standards for irrigation, except in cases where there is a clear water appropriation for irrigation purposes.

The bill has been approved by four Senate committees and will be heard next on the Senate floor. (SF 2983)

Outdoor heritage fund appropriations bill advances

The 2017 Outdoor Heritage Fund Appropriations Bill was heard this week and advanced to the Finance Committee. The bill appropriates $113.9 million from the Outdoor Heritage Fund to restore, protect and enhance the state’s outdoor resources.

This year’s bill funds 47 projects recommended for FY 2019 by the Lessard-Sams Outdoor Heritage Council. Of the total $113.9 million appropriation, $35 million goes to 14 prairie projects, $9 million goes to 6 forest projects, $28 million goes to 6 wetlands projects, and $50 million goes to 18 habitat projects.

  • Prairie projects include state wildlife management area and scientific and natural area acquisition, a Northern Tallgrass Prairie National Wildlife Refuge land acquisition, the Cannon River Headwaters Habitat Complex projects, and about $5 million for the Board of Water and Soil Resources’ Reinvest in Minnesota (RIM) “Buffers for Wildlife and Water” project.
  • Forest projects include a Camp Ripley partnership, a Southeast MN protection and restoration project, new acquisition for the Richard J. Dorer Memorial Forest, a Minnesota moose habitat collaborative, and more.
  • Wetlands projects include RIM wetlands ($10 million for the Conservation Reserve Enhancement Program), and $4.8 million for the Shallow Lake and Wetland Protection Program.
  • Habitat projects include the Mississippi Headwaters Habitat Corridor Partnership ($2 million), Fisheries habitat protection on strategic north central Minnesota lakes ($2.8 million), Minnesota Trout Unlimited coldwater fish habitat enhancement and restoration ($2.3 million), and others.
  • 43% of total spending goes to prairies, 31% benefits wildlife habitat, 16% affects wetlands, and 10% is used for forests.

The Outdoor Heritage Fund is part of Minnesota’s Clean Water, Land and Legacy Amendment, a constitutional amendment that was approved by voters in 2007. The amendment dedicates a small fraction of the sales tax to four areas: outdoor heritage, clean water, parks and trails, and arts and cultural heritage.

The Lessard-Sams Outdoor Heritage Council meets through the legislative interim to evaluate proposals and make recommendations to the Legislature regarding how these funds are to be spent to meet the intent of the constitutional amendment. While the Legislature has authority to make changes in these recommendations, the Senate has a long history of keeping them largely intact. (SF 2688)

Higher Education

Counseling for student loan debt

Student loan debt continues to be an issue for many Minnesotans. To help prevent students from falling behind on their student loan payments, legislation was heard this week to establish a grant program to pay for student loan debt repayment counseling. The counseling would be available to all state residents who attended a Minnesota post secondary institution.

The funds would be granted to a Minnesota-based non-profit with expertise in debt counseling. They would help borrowers better understand their loan and repayment options, manage loan repayments, and develop a workable budget based on the borrower's full financial situation regarding income, expenses, and other debt.

The Legislature in 2015 appropriated $150,000 to the Office of Higher Education for a temporary student loan debt counseling pilot program. The pilot program grant was awarded to Lutheran Social Services (LSS). The program is similar to the pilot program established in 2015.

Senate DFLers offered the bill in 2017 and it was heard in committee, but the funding was stripped from the bill in conference committee. (SF 3058)

Health and Human Services

Lawmakers seek funding to continue fight against tobacco

A bipartisan group of lawmakers are behind a bill presented to the Health and Human Services Finance and Policy Committee this week that would solidify the future of Minnesota’s successful anti-smoking efforts. QUITPLAN Services is a nonprofit organization that provides free tobacco cessation services to all Minnesotans. It was funded through a portion of the Minnesota tobacco settlement revenue that tobacco companies were ordered to send the state in 1998.

QUITPLAN was created with a strict timeline and funding is scheduled to cease in March 2020, which would make Minnesota the only state in the nation to not offer a free cessation service. The bill heard this week would permanently dedicate a portion of future tobacco settlement revenue to smoking-cessation efforts, ensuring at least some of that revenue is used for the intended purpose of preventing tobacco addiction among Minnesotans.

Smoking not only impacts personal health but it also has a large impact on state services and revenues. Statistics show smokers’ health care costs are 34% higher than nonsmokers, and that leads to an estimated $7 billion annual cost to the state through lost productivity and excess health care costs, according to advocates of this bill.

These statistics are one reason why DFLers fought so hard against more than $35 million in tax breaks for tobacco companies that were included in last year’s tax bill. The Governor has proposed repealing those tax cuts in this year’s budget. Pursuing that along with this new proposal would be the strongest, most effective step toward reducing tobacco use and tobacco-related costs in Minnesota. (SF 3006)

Republicans aim to impose further restrictions on SNAP recipients

A bill heard in the House Health and Human Services Committee this week would impose asset restrictions on recipients of SNAP, the Supplement Nutritional Assistance Program, and on certain medical assistance enrollees.

Republicans argue the bill will save the state money and prevent fraudulent use of the state’s assistance programs. However, SNAP is federally funded and has no direct effect on the state budget. Imposing an asset test in medical assistance for families with children and adults without children is not allowed under current federal law.

Asset tests do not protect the state budget from fraudulent activities, they simply put food support and health care out of reach for more people. There is also concern that the bill will add to counties’ already overburdened workloads, without providing funding for the additional staff or personhours required to determine eligibility under these new requirements. This bill is yet another approach by Republicans to chip away at vital programs under the guise of eliminating fraud and abuse.

The bill was only heard on an informational basis and no action was taken. (SF 3333)

Minnesota must address its opioid epidemic

Bipartisan legislation was introduced early this session to raise money to combat the opioid overdose epidemic that claimed the lives of hundreds of Minnesotans last year. The legislation would have charged pharmaceutical companies a “penny-a-pill” for every opioid painkiller they sold. This proposal would have raised an estimated $20 million in continued funding for prevention and treatment programs.

Unfortunately, the “penny-a-pill” legislation faces an uncertain future because of pressure from pharmaceutical lobbyists and the Americans for Prosperity organization founded by the conservative Koch Brothers. The House version of the bill no longer includes the fee on manufacturers. Instead, money for the programs would come out of the state general fund, which would be one-time funding. The Senate version of the bill was tabled by the author.

Minnesota Department of Health data shows the state had 395 opioid deaths in 2016, an 18% increase over 2015. Of those 395 deaths, 194 were linked to prescription opioids. It is disappointing this critical legislation—which has bipartisan support—is getting waylaid. Advocates argue that drug manufacturers need to pay their fair share for the harm their products have caused and alleviate some of the financial burden borne almost entirely by taxpayers to address the crisis. There have been lawsuits filed across the country contending that drug companies knew how addictive opioids were, but still pushed for them to be widely prescribed. Despite mounting pressure, the industry has largely managed to curb efforts to hold them accountable.

Separate legislation that expands response efforts was heard this week in the Health and Human Services Finance and Policy Committee. The bill creates a pilot project to provide $1 million in grants for community paramedics providing services in communities with high levels of opioid use. Grants would support the work of community paramedics to serve patients released from hospitals following an overdose episode by providing follow-up evaluations and health and safety assessments.

Last week, the Shared Solutions Addiction Summit met to address the opioid epidemic. They are working from the premise that states need to focus on addiction and substance use disorder (SUD) as a chronic health condition. This Summit was designed to be a catalyst for a coordinated state-wide prevention-intervention-treatment-recovery education campaign that provides essential training to both professionals and the public at large.

While efforts have been building across Minnesota to address this urgent public health crisis, there is still so much more to do. The legislature must continue to push for the kind of comprehensive solutions that are necessary for turning the tide and saving lives.

State and Local Government

Election protection funds

In the $1.3 trillion federal spending bill that was approved last month, $380 million in Help America Vote Act election security funds were appropriated to the Election Assistance Commission to provide grants to states. The funds must be used to improve the administration of federal elections, enhance technology, or make certain election security improvements.

The federal commission recently released state-by-state grant totals, with Minnesota scheduled to receive almost $6.6 million in federal funds to be spent over the next five years. The required 5% state match is $329,781 and will need to be appropriated in the next two years.

Requests for additional federal funding for election security have increased after the Department of Homeland Security announced Russian hackers scanned the digital voter registration systems in 21 states leading up to the 2016 election. These funds will provide security improvements to the statewide voter registration system and protect against future interference in Minnesota elections. (SF 3839)

Taxes

Tick-tock on the tax bill

With five weeks left in the legislative session, legislators still have not seen a tax conformity proposal from Republican leaders in either the House or Senate. Governor Dayton’s plan to cut taxes for 2 million taxpayers and better align state and federal code was released nearly a month ago.

Congress’ massive tax bill passed late in 2017 put Minnesota taxpayers in limbo as they plan their finances. More than 300,000 filers will see an average $200 tax increase next year if the legislature doesn’t attempt to respond to federal changes, but if the state simply copies what the federal government changed word-for-word, more than 870,000 filers will see tax increases averaging $426 next year.

The legislature must carefully consider an appropriate response that protects Minnesotans from tax increases and doesn’t destroy the state budget. That is a monumental task that requires public debate and should not be rushed or entangled in end-of-session games. Regardless of personal feelings about the federal tax changes, most everyone can agree that the process by which they were adopted was inexcusable – written behind closed doors with no public input. As a result, the bill that passed is full of mistakes and unintended consequences that are still being discovered. It would be very disappointing to see Minnesotans Republicans walk down that same path but, with only five weeks left, it is becoming a troubling possibility.

For more information on the Governor’s proposal released last month, click here.

Transportation

Hang up and drive

The bill to prohibit the use of handheld cellular phones while driving inched closer to becoming law this week. The Senate Transportation Committee held a quick hearing on the bill, moving it on a unanimous voice vote to the Finance Committee.

This bill prohibits the use of cell phones while driving—in motion, or as part of traffic, including use at stoplights, except when the driver is using a hands-free device. The bill allows a driver to use a cell phone while driving in an emergency situation. Use of navigation systems and listening to music, podcasts or other audio content is still allowed, provided the device is being used in a hands-free mode.

According to The Governor’s Highway Safety Association, 15 states, D.C., Puerto Rico, Guam, and the U.S. Virgin Islands prohibit all drivers from using hand-held cell phones while driving. (SF 837)

More MNLARS business in committee

The Senate Transportation Committee grappled this week with how the state should pay for costs related to the Minnesota Licensing and Registration System (MNLARS), the software that manages Minnesotans’ vehicle registrations, titles, and driver’s licenses. Since the rollout of MNLARS in July, the system has been plagued with errors that have caused vehicle registration and titling headaches for Minnesotans and caused losses for the business owners who operate deputy registrar offices throughout the state.

Governor Dayton has proposed a $2 fee on most driver and vehicle services transactions that will provide ongoing funding to permanently fix, maintain, and update MNLARS. He has also proposed $10 million go to deputy registrars to reimburse them for costs incurred since July 2017 due to difficulties they have encountered with MNLARS, including overtime costs and lost business. The Governor also proposed $10.76 million to fund the beleaguered public information call center, which provides assistance to Minnesotans having difficulty with driver and vehicle services transactions. (SF 3967)