Senate District 60 Session Update from Dibble, Hornstein and Greene

Editor's note: The following is a Senate District 60 session update from Sen. Scott Dibble, Rep. Frank Hornstein and Rep. Marion Greene. It details a number of issues that have arisen at the legislature this year: budget battles, property taxes and nuclear energy, among others.

Dear Friends,

We are now about seven weeks into the 2011 legislative session. This is the first session in nearly 40 years that Republican majorities in both the House and Senate are in control. It is very clear that they are listening to a very different constituency.

As your representatives we have been working hard at promoting ideas and key issues in order to stabilize the state’s economy, deliver results to Minnesotans and seek compromise where possible. At the same time, we have been vigorously defending priorities and values that we believe Senate District 60 voters elected us to represent. In the end, the budget is not about numbers, but people, our families and communities and the future of our state.

Below, you will find a summary of some of the latest highlights (and lowlights) from the Capitol. If you have any questions, comments or concerns on these issues, please do not hesitate to contact us.

Sincerely,

Senator Scott Dibble, District 60
Representative Marion Greene, District 60A
Representative Frank Hornstein, District 60B

Political Contributions
It is tax filing time, so we wanted to take this opportunity to remind you that Minnesota’s system for publicly financing campaigns is one of the most innovative in the country.  Candidates that voluntarily abide by spending limits qualify for public financing through the Minnesota Elections Campaign Fund.  This maximized fundraising in very small amounts from “regular” people and minimizes the necessity of funds from large special interest donors.

To support the Minnesota Elections Campaign Fund, please remember (or remind your tax preparer) to indicate your party designation on your tax form.  This is a confidential record, and does not increase your tax or reduce your refund!  The codes are: Independence-11, Republican-12, DFL-13, Green-14, and General Campaign Fund-15.

Senate District 60 Town Hall - March 5
Join us for juice, rolls and conversation at Senate District 60’s Legislative Session Town Hall Meeting, Saturday, March 5, 10:00 to Noon, Theodore Wirth House in Lyndale Farmstead Park at West 40th Street and Bryant Avenue South. Come see this historic house, learn more about the state budget and other issues before the state, and bring your views and questions.

The State Budget
Minnesotans are facing a $6.2 billion budget deficit for the 2012-2013 biennium, which begins July 1 of this year and runs through June 30 of 2013. That is the largest deficit in state history, representing about 20 percent of the state’s total two-year general fund budget.

Solving this deficit in a way that is responsive to the short- and long-term health of our state’s economy is the top priority of the 2011 legislature. However, there are very different views about how to solve this historic financial problem. In the end, compromise that upholds our most core values will be vital.

OUR PLAN: The $6.2 billion budget gap is the defining issue of the legislative session. We strongly opposed the Republican's initial piecemeal budget bill which slashed significant state aid to Minneapolis and other cities. As a consequence, the bill contained huge property tax increases as well as cuts to higher education and human services. At the same time it delivered $11 million in new dollars to out of state corporations. Governor Dayton properly vetoed the measure. We will continue to fight for a budget that asks the top 5% income earners (who now pay fewer taxes than everyone else) and large corporations to pay their fair share and will hold the line on property tax increases for most residents. With a deficit this large, difficult and painful cuts will need to be made. We will work, however, to ensure that the budget is not balanced on the backs of our most vulnerable.

REPUBLICAN PLAN: Legislative Republicans have promised to balance this budget entirely through spending cuts. Their sole focus is on state level cuts combined with generous tax breaks for the affluent that have exacerbated the mess we’re in and driven up local property taxes. They have consistently promised to vote against any tax increase proposal, although they broke this promise within the first weeks of session by passing an early budget bill that would have raised property taxes in Minnesota by $428 million. So far, Republicans’ budget cut ideas have targeted the elderly and disabled, children, property tax payers, higher education students and public employees. We are very concerned about these priorities and will be working to protect these vulnerable populations as the budget work continues.

GOVERNOR’S PLAN: Governor Mark Dayton released his budget proposal on Feb. 15. His plan includes a balance of spending cuts, government reforms and new revenue. The new revenue comes largely from increasing the tax rate on the state’s top earners. Right now, the state’s highest-paid individuals pay about 2% less of their income in state and local taxes than the rest of Minnesotans. The Governor’s plan adjusts that formula so we’re all paying the same, fair portion, and it would collect about $4.1 billion in new revenue for the state budget in the process. His budget creates “structural balance” by not relying on local governments to levy increased property taxes to backfill state cuts, and does not rely on accounting gimmicks and raids on one time revenues. In addition, the Governor’s budget includes painful and in most cases necessary spending and service reductions. These will be carefully reviewed by lawmakers in the coming weeks.

Protecting Property Tax Payers
Republicans attempted to pass a so-called “Phase One” budget bill in early February, jackrabbiting ahead of a collaborative and informed process to consider the consequences of their actions.. Although the bill was quickly vetoed by Governor Dayton, it provided insight into the services and people they plan to target with future budget cuts. It was particularly disappointing that the Republicans chose a go-it-alone strategy.  Public input was actively squelched and chairs of relevant committees either did not know or refused to answer specifics about the cuts to their areas of responsibility.

The bill broke Republicans’ continued promise to solve the budget deficit without raising taxes: It raised property taxes on homeowners, business owners and renters across the state by $428 million. The bill also contained higher tuition, reduced funding for child protection services, cuts to emergency assistance for low-income elderly and disabled residents, and harmful cuts to veterans, public safety and other state agencies.

We united with our Democratic colleagues to protect Minnesotans from this tax increase and these damaging cuts. We are committed to working with the Republican majority to find responsible spending reductions, but we are not willing to compromise important priorities, such as taking care of the most vulnerable, higher education or property tax relief, in order to accomplish this goal.

Lifting the Ban on Nuclear Energy
Despite Republicans’ promise to focus on job creation this session, one of the first bills through the House and Senate was a repeal of the state’s ban on nuclear power plant construction. Minnesota’s nuclear moratorium has existed since 1994.  The moratorium has made sense because the problems with it are many. In particular, there is no plan for building a new plant, and we have absolutely no idea what to do with the very dangerous nuclear waste.

We oppose the effort to lift the ban three reasons: First, it is not needed. There is no utility in Minnesota asking for permission to build a nuclear facility, nor is there interest from outside companies in doing so. Second, there is no plan to safely, responsibly store the waste that these facilities inevitably produce. For the safety of all Minnesotans, we should not discuss this option until there is a firm plan to address nuclear waste storage. Finally, the bill diverts attention and resources from renewable energy and energy-efficient industries in the state. Other states have put ratepayers and taxpayers on the hook for cost overruns even before any power has been produced.  Efforts to protect Minnesotans from these abuses were rejected.

We are committed to keeping our focus on the many economic opportunities that new forms of renewable energy in Minnesota provide. In recent years, we have laid the groundwork to become a national leader in renewable energy technologies and transmission. It’s important to stay focused on that goal, not on distracting issues that do not make any progress toward securing new, green forms of energy production.

 Creating Jobs
Job creation must be the focus of the 2011 legislative session. Solving the deficit is important to the state’s short-term economic health, and investing in policies that grow jobs is crucial for continued economic strength and long term success.

Legislative Democrats are working with the Governor to pass a bonding bill that will invest up to $1 billion in vital infrastructure across the state, while creating hundreds of new private- and public-sector jobs immediately. Gov. Dayton’s bonding proposal is focused on shovel-ready projects, meaning those that can begin as soon as this spring. In addition, it takes advantage of the state’s stellar credit rating and record-low construction costs, making wise investments that will save money in the long run.

Republicans have discredited the bonding proposal, saying that type of investment creates few long-term jobs and spends money the state doesn’t have. Interestingly, the only job-creation proposal introduced by the majority – cutting taxes for the state’s biggest corporations – also spends money. Granting tax breaks to a few corporations would add $200 million to the current budget deficit and leave most small businesses and individuals without any type of tax relief or job assistance.

Improving Health Care Access
Last year, Governor Pawlenty unilaterally eliminated health care for the state’s poorest and sickest citizens.  Thankfully, federal health care reform allowed Minnesota to restore coverage on an expedited basis if the state were to opt in. Former Governor Tim Pawlenty rejected this, but Governor Dayton made doing so one of his first actions as chief executive. Under the early Medicaid opt in, 12,000 currently uninsured Minnesotans will receive health care coverage, as will 83,000 Minnesotans now insured by other state insurance plans. 

The governor has also directed that this coverage commence March 1, a full seven months earlier than the Pawlenty Administration claimed was needed. Providing better health care coverage to 95,000 Minnesotans, and creating or retaining 20,000 health care jobs comes at no additional cost to the state.  Most affected are the 88% of those covered who are families with children, elderly and disabled adults, with more than 10% being veterans. Hospitals and providers benefit from payments that allow better quality health care at a fairer price.   Finally, every one else benefits by avoiding the “hidden tax” averaging $1,017 per year to cover the costs of the uninsured. 

Next Newsletter Preview
Stay tuned for more details on the budget, information about property taxes, and highlights on a few issues each of us is working on.

Contact:
There are many important conversations happening at the Capitol this year. Please do not hesitate to contact us with any questions or concerns. In addition, we encourage you to view audio and video archives of Senate hearings, track legislation and follow events at: www.senate.mn and www.house.mn.

State Senator Scott Dibble
115 State Office Building, St. Paul, MN 55155
(651) 296-4191
sen.scott.dibble@senate.mn
www.senate.mn/senatordibble

State Representative Marion Greene, 60A
331 State Office Building, St. Paul, MN 55155
(651) 296-0171
rep.marion.greene@house.mn
www.house.mn/60A

State Representative Frank Hornstein, 60B
213 State Office Building, St. Paul, MN 55155
(651) 296-9281
rep.frank.hornstein@house.mn
www.house.mn/60B