On Thursday, March 14, Gov. Mark Dayton unveiled his updated budget plan in response to February’s budget forecast that shows a lower projected deficit of $627 million for the next two year budget.
Despite projections of nearly $1 billion in new revenue reflecting modest economic growth, the governor’s plan still calls for $1.8 billion in new taxes to support his overall spending of $37.9 billion for the next two years. Notably, the governor has pulled from his plan $2.1 billion in controversial sales tax increases through an expansion of the tax to new goods and services, as well as a host of business to business services. The governor’s tax increase plan still counts on his original proposal to create a new 9.85 percent top tier in the income tax, a 94-cent per pack cigarette tax increase, a "snowbird" tax on part-year residents and a host of corporate tax increases. Some of the spending supported by the sales tax increase was also pulled, notably the $1.4 billion in spending for the $500 homestead property tax rebate.
While the governor has backed off his plans for a sales tax increase, it appears to remain in play as the Senate-DFL majority begins weighing in with their budget plan. When asked about the issue earlier in the week, Senate Majority Leader Tom Bakk didn’t dismiss the possibility of keeping at least some business service sales taxes on the table. Next week DFL leaders are expected to release their budget "targets" that will set the framework for the blizzard of budget and tax bills yet to be voted on in both the Senate and House.
Environment and Energy Policy Committee
On Tuesday, the committee stalled a bill that would have expanded subsidies for solar power, passed a bill to mandate solar power on state buildings built or renovated with state bonding funds, passed bipartisan bill to require certificate for need for a high voltage power line shorter than 10 miles and located in the metropolitan area as well as two bills to strengthen landowner rights in high voltage power line sitting process. The committee also passed a bill, SF183, to Judiciary committee that would broadly expand eminent domain law to increase compensation for landowners in utility eminent domain proceedings.
To complete the evening, the committee passed SF1166 to ban triclosan – an antibacterial chemical found in hand washing soap – from any product sold in Minnesota with exceptions for the restaurant and medical industries. On Wednesday, the bill was tabled in Commerce on a bipartisan vote.
A previously passed ban on bisphenol-A (BPA) and formaldehyde passed Commerce and is headed to the floor. As is a similar ban on formaldehyde found in trace amounts in shampoos and other cosmetics.
Sen. Eaton’s bill (SF466) was killed on a bipartisan vote. The SF466 and the delete-all amendment offered in Commerce, would greatly modify how the PCA and Department of Health regulate chemicals including broadly expanding chemicals for review and institute new programs and fees on manufacturers for review of products sold in Minnesota. No fiscal note was provided. A similar program in Washington State cost manufacturers $25 million in the first year.
Another environment bill, would mandate product stewardship programs for carpet, batteries and paint. The cost of the program for paint would be $.75/gallon and have an aggregate cost to consumers of more than $4 million. The committee stripped all provisions that would apply to carpet product stewardship. All three products have voluntary, private programs of varying degrees of success in place.
Education
The Senate Education Committee completed weeks of hearing various overviews and individual legislative proposals, and it concluded its main work of the Session by consolidating several smaller bills into a large, single "omnibus" bill (SF 978). That bill will be referred next to the E-12 Finance Division because it contains state appropriations and local levies (property taxes) as well as policy. Although some provisions are non-controversial and/or have bipartisan support, consensus broke down over accountability issues. The main sticking point is the proposed repeal of Minnesota’s statewide student tests for reading, writing, and math that are required to be passed in order for a high school diploma to be awarded. Republicans argued against striking these academic measurements because they help to ensure students are properly educated and prepared for college and/or the workplace.
However, the majority on the Committee believe these tests are not appropriate for students and do not want the test scores to be binding. Another controversy emerged over a Republican amendment to protect students from being put in classrooms year-after-year with teachers who had been evaluated at the lowest end of the rating scale. The amendment would have prevented a principal from assigning a student to a teacher rated "ineffective" in consecutive years, but it was not adopted.
Higher education
Outside consultants studying University of Minnesota administrative structure and staffing reported to the Higher Education Committee this week. While improvements were suggested, nothing was pointed to as being significantly out of order. According to the report, UM spending breaks down in broad categories as follows:
■ 50 percent on direct mission (instruction, outreach, and research);
■ 32 percent on mission support (libraries, advisers, student services, IT);
■ 9 percent on administrative leadership and oversight (direction, control, and management of the institution includes president, vice presidents, and deans);
■ 9 percent on student aid (scholarships and grants from the UM).
Senators on the Higher Education Committee also heard and indicated support for a bill (SF 940 – Senator Fischbach) that would provide veterans with a "positive factor" when admissions decisions are made for graduate or professional academic degree programs. The bill directly applies to campuses in the MNSCU system (Minnesota State Colleges and Universities) and is urged to be adopted by the University of Minnesota and Minnesota’s private colleges. MNSCU testified in support of the measure and said that its undergraduate programs are already completely open and such a preference would not be necessary. A veteran testified that the unique circumstances of serving overseas in the U.S. military can complicate the ability of returning military personnel to meet the necessary timetables and application criteria.
Transportation
The Transportation Committee passed its Omnibus Transportation Policy Bill (SF 1270), which includes numerous changes to traffic regulations. The bill would increase the default speed limit on two-lane state highways from 55 to 60 miles per hour, require MnDOT to sell unused parcels of real estate, and creates a MnDOT office to coordinate public-private partnerships. The committee also passed a bill (SF 583) that would allow counties to collect up to $20 per year on each vehicle registered in the county. This bill would also allow county boards to increase the county’s sales tax by half-cent without having to hold a referendum of the voters on the sales tax increase measure.
Bruce Anderson, R-Buffalo, serves Senate District 29, which includes the Annandale-South Haven area.