Session ends with passage of $2 billion tax increase

Posted at 1:10 AM on May 21, 2013 by Tim Pugmire (0 Comments)
Filed under: MN Legislature

Minnesota lawmakers worked right up to their midnight deadline to put the final pieces of a two-year, $38 billion state budget into place. They then adjourned for the year.

The last votes included the Senate's passage of a massive tax bill, and House approval of a measure to finance state government operations. Both votes were delayed most of the final day by negotiations on a new, smaller bonding bill that covers repairs on the state Capitol.

The last day of the session began with the House resuming debate on a contentious bill to allow for the unionization of two groups of workers whose customers are eligible for taxpayer subsidies: in-home child care providers and personal care assistants who work with the elderly and disabled.

Several Republicans, including Rep. Linda Runbeck, R- Circle Pines, described the effort as a money grab by organized labor.

"This is just shocking," she said. "What's happening is we're taking taxpayer dollars that are intended to help small children and the vulnerable elderly and disabled, and we're giving them over to the union."

But Democrats argued that the two groups of workers deserve a right to organize for collective bargaining. Rep. Michael Nelson, DFL- Brooklyn Park, said his bill doesn't, as critics claimed, intrude on small businesses.

"It also does not form or create a union, or force anyone into one," he said. "It just gives those that have expressed an interest a chance to have a vote on whether or not they want to form a union."

The passage of the bill ended a 10 hour debate that stretched over more than two days. But it also triggered a harsh reaction from opponents on the floor to applause coming from supporters in the gallery.

Three days after an $800 million bonding bill failed to gain the necessary 81 House votes needed for passage, a pared down $156 million package of public construction projects passed.

The measure includes money for flood mitigation projects and improvements to the Minneapolis Veterans Home. But most of the bill, $109 million, is for the next phase of renovation work on the deteriorating State Capitol building. Rep. John Ward, DFL-Brainerd, said keeping the renovation going is critical.

"This Capitol is a 108-year-old building that is an iconic gem for the state of Minnesota," he said. "But it is at its tipping point, members. It is at its tipping point."

The backroom House negotiations to reach a deal on the bonding bill held up Senate action on the tax bill. That critical debate finally began with two hours remaining in the session.

The DFL-backed tax bill raises more than $2 billion in new revenue, through an income tax increase on the wealthiest 2 percent of Minnesotans, a cigarette tax increase of $1.60 per pack and the elimination of some corporate subsidies. It pays for new spending for public education and property tax relief, as well as erasing the state's $627 million projected budget deficit.

Sen. Julianne Ortman, R-Chanhassen, said the tax bill is the result of excessive government spending under Democrats

"Our Minnesota state Legislature, led by the DFL, has said yes to virtually every request of every special interest group that has come and asked for something more," she said. "Nearly every spending proposal is included in the state budget. On a day like this we realize how much the cost is going to be, and it's going to be enormous."

Republicans also argued that the tax increases will kill jobs and drive businesses out of the state. But DFL Senate Majority Leader Tom Bakk of Cook said the CEOs he's met with place greater importance on the state workforce.

"This state is going to be successful if we have the best workforce around," he said. "Lower taxes would be nice, but you have to continue to invest in what has made you strong. And I would argue that, and I think the CEOs I met with would argue, it's been the investment Minnesota has made in its workforce that has created all these Fortune 500 companies here and all the vendors that serve them."

DFL leaders were unable to reach a final agreement for a minimum wage increase. Bakk said he expects a bill to be passed next session.

Lawmakers return for the 2014 session in late February.

Legacy bill goes with commission's parks recommendations

Posted at 4:15 PM on May 20, 2013 by Mike Mulcahy (0 Comments)
Filed under: MN Legislature

From Elizabeth Dunbar:

Parks in the Twin Cities metro area won't get a bigger piece of the Legacy bill's parks pie, but lawmakers decided the metro should get more outdoors money.

The conference committee report on the Legacy bill allocates 40 percent of the parks money to state parks, 40 percent to metro parks and 20 percent to regional parks in greater Minnesota. The distribution was recommended by a commission appointed to solve a perennial dispute between metro and rural lawmakers over where the parks money should go.

The Senate version of the bill adopted those recommendations, but the House version gave 43 percent to metro parks. As part of a compromise, metro parks will get 40 percent of the parks money, but they will also get $6.3 million from the Outdoor Heritage Fund to restore habitat within metropolitan regional park system.

The money was not part of the Lessard Sams Outdoor Heritage Council's recommendations. The council reviewed a similar proposal from metro parks for habitat projects, but it received low marks.

In the arts portion of the bill, county fairs will not receive any Legacy money. County fairs received $2.8 million in the last two years for arts and cultural heritage programs. Lawmakers decided to give county fairs $2 million in the agriculture spending bill instead.

Overall the bill allocates $496 million in money raised from the extra three-eighths of 1 percent added to the sales tax by voters in 2008. The House and Senate still must vote on the final conference committee package.

UPDATE: The House has passed the bill 77-57.

UPDATE AT 6:30P: The Senate passed the bill.

Minnesota Public Radio is slated to receive $3 million in the next two years from the Legacy's Arts and Cultural Heritage Fund.

House passes union bill with clock ticking on session

Posted at 2:56 PM on May 20, 2013 by Tim Pugmire (4 Comments)
Filed under: MN Legislature

State lawmakers are trying to wrap up the 2013 legislative session before a midnight deadline for adjournment.

They've already passed most of the big pieces of the next two-year budget, but several key issues remained unresolved in the closing hours.

The House concluded a debate that stretched over a couple of days over the unionization of two groups of government-subsidized workers . The bill allows in-home child care providers and personal care assistants that work with the elderly and disabled to hold elections on whether to join unions. It passed 68-66, with a few DFLers joining the GOP opposition.

Republicans accused Democrats of paying back their allies in organized labor for their help in last fall's election. Rep. Peggy Scott, R-Andover, said the union bill is unnecessary and inappropriate.

"I see this unionization of self-employed people, mostly women-owned businesses, as an assault on women-owned businesses," Scott said.

There were also claims that the bill would wrongly divert tax dollars to pay union dues. But the bill's author disagreed. Rep. Michael Nelson, DFL-Brooklyn Park, said the state reimbursement to providers is for services rendered, and at that point the money no longer belongs to the taxpayers.

"It is the day care providers' money. It is the PCA's money," Nelson said. "What they do with it is their business."

On a more bipartisan note, the House also passed an omnibus elections bill, 99-32. It includes a provision to expand the use of absentee voting in the state, by eliminating the requirement that a voter have a valid excuse for not voting in person on Election Day.

The state Senate is expected to take up the tax bill passed by the House early this morning. The measure raises $2 billion in new tax revenue through an income tax increase on the wealthiest 2 percent of Minnesotans, a $1.60 per pack cigarette tax increase, an elimination of some corporate subsidies and other tax code changes.

Both chambers must also pass a finance bill for state government operations.

Two other proposals-- a bonding bill for state Capitol renovations and a minimum wage increase-- remained unresolved.

Last day of session underway

Posted at 11:40 AM on May 20, 2013 by Tim Pugmire (0 Comments)
Filed under: MN Legislature, Mark Dayton

Minnesota lawmakers are back in action this morning, trying to complete their remaining work before a midnight deadline for adjourning the 2013 session.

The House was expected to resume debate on legislation to allow the unionization of state-subsidized child care providers and personal care assistants. Lawmakers have already logged many hours on the issue, but House Speaker Paul Thissen, DFL-Minneapolis, said a vote is expected this afternoon.

"We have an agreement with the Republicans on a time limitation on how long further debate is going to go, and then we're going to take a vote," Thissen said.

The House is also taking up a state government finance bill, the legacy bill and elections bill.

In the Senate, lawmakers will take up the tax bill passed by the House early this morning. The bill raises $2 billion in new revenue to erase a $627 million deficit and pay for new spending.

The Senate's first action of the day was to unanimously reject the confirmation of state Tax Court Judge George Perez. Gov. Mark Dayton had requested the action. Perez is facing suspension and censure.

House and Senate negotiators were expected to meet later to discuss a minimum wage increase compromise. The House is still pushing for an hourly rate of $9.50 by 2015, while the Senate is at $7.75. Rep. Ryan Winkler, DFL-Golden Valley, said he expects the conference committee to work throughout the day.

"I think passing a significant wage minimum wage increase for low-wage Minnesota workers is very doable in the last day of session," Winkler said.

A smaller bonding bill to cover the State capitol renovation, which passed in the Senate, is also still in play.