For more information contact: Joan Nichols 651-29X-XXXX
This last biennium was extremely challenging. While the Legislature faced many discouraging moments in the midst of a very difficult recession, our accomplishments were significant. We started the session with a $1 billion deficit that grew to $3 billion when the Supreme Court ruled that the Governor’s unallotments were illegal. We were constitutionally mandated to eliminate the $3 billion deficit, and the final budget agreement developed by the Legislature and Governor Pawlenty accomplished that goal. I was extremely disappointed with that deal, so I voted against the corresponding bill, HF 1, in Special Session. Essentially, the Legislature ratified the Governor’s illegal unallotments and continued the education shifts, which will result in school districts having to borrow money for operating expenses. Our attempts to approve new revenue were once again blocked by the Governor, which means we are facing a $6 billion deficit in the next biennium. While I understand why my colleagues voted overwhelmingly for the bill, I felt that the Governor should have compromised more. Our procrastination in solving our fiscal problems will, in effect, create an even larger problem for our next Governor and Legislature.
The following are my thoughts on the session and a few highlights.
Capital Investments
State Economist Tom Stinson advised the Legislature that passing a capitol investment bill early in the legislative session would be one of the most effective tools for creating jobs in this down economy. Heeding that suggestion, the Legislature adopted a bonding package to put thousands of Minnesotans back to work building facilities, wiring and designing buildings, delivering materials, etc., while at the same time making vital improvements to our transportation system, clean water infrastructure, higher-education system, and other facilities. The Legislature made strategic, targeted investments in high-priority, shovel-ready infrastructure improvements to maximize job creation impact and strengthen Minnesota's economy. It is estimated that the bonding bill will put over 10,000 people back to work.
I was proud to be the chief author of one of the provisions in the bonding bills that passed the Legislature and was signed by the Governor--that provision provides $16 million to the Ordway in downtown St. Paul to build a new theater. In addition to the jobs created in completing the project, this endeavor will attract more tourist dollars and stimulate the local economy for restaurants, hotels, and shops downtown.
Economic Development
The Legislature passed an economic development bill that included tax incentives that will create thousands of new jobs in bioscience, manufacturing, construction, the emerging clean energy economy, and other job sectors. For example, the Legislature adopted a tax credit for early stage venture capital investments to help provide seed money for innovative small businesses.
I was the chief author of a package of tax credits that offers incentives to the Ford Motor Company to remain at its Highland Park plant. It includes a specialized tax credit to make the site viable to Ford or any other vehicle manufacturer ($2,500 per employee for the first 750 employees at the site, and a $3,500 credit per employee for each employee over 750). This innovative legislation was supported by Ramsey County, the City of St. Paul, UAW, DEED and was signed by the Governor.
Education
I was disappointed and dismayed that we extended education shifts of roughly $2 billion. While there is an expectation that the shifts will be paid back next year, I remain skeptical given the projected deficit. Hopefully, with an improved economy, new Governor, and revamped Legislature we can make the hard budget choices, which will mean some increased revenues.
I am a co-author of the New Minnesota Miracle that needs to be phased in as soon as practicable. The State should once again start funding our schools because it is the right thing to do and reduces local property taxes. At one time we were featured on the front of Time magazine as the “state that works". Minnesota can be that state again with bold leadership and a strong commitment to education at all levels.
Unfortunately, the K-12 education bill did not move forward this year. There was also considerable controversy over Alternative Teacher Licensure. While I did not support the House bill, I did support measures that would require longer periods of student teaching and teacher instruction for an alternative licensure. As a former teacher, the mentoring time I received student teaching was invaluable; despite intelligence and passion, real world teaching skills are essential when guiding our children intellectually, emotionally, and socially toward adulthood. Teachers are more than walking textbooks and need the skills they develop with the opportunity to interact with students while they are students themselves. Teach for America will still operate in Minnesota even though the alternative licensure bill didn’t move forward. It is also my hope that the Bush Foundation’s attempts to upgrade our university teaching schools will pay huge dividends in our schools, especially those with achievement gaps with our children of color.
While I remain concerned about the continued budget cuts at the University of Minnesota and MnSCU, I was pleased that in our Capital Investment bill we bonded nearly $200 million for new building and infrastructure improvements for our colleges and universities.
I was also pleased that Early Childhood Education Programs were not cut. It is common knowledge that opportunities for the youngest of students increase the chances of success in future education.
General Assistance Medical Care
We maintained GAMC, so the very poor will have health insurance—not a perfect plan, but it was the best we could do with this Governor. We also provided $188 million in state matching funds to secure $1.4 billion in federal funding to adopt “Early MA.”
“Early MA” will: (1) protect middle class families and businesses that currently have private insurance by preventing significant cost-shifting to them due to uncompensated care; (2) ensure that hospitals, doctors, and other health care providers get paid a reasonable level of compensation for the public health services they provide; (3) return to Minnesota some of our citizens’ federal tax dollars that would otherwise go to other states; and (4) provide basic health care to 102,000 Minnesotans who are on GAMC and MnCare, and others at or below 75 percent of the federal poverty guideline. Participation in “Early MA” is contingent on either the current Governor or the next Governor electing to participate by January 15, 2011.
Public Safety
As chair of the Public Safety Finance Division, I sought to preserve public safety, despite having to cut an additional $36 million from our budget. This was on top of the cuts we already made in the first year of the biennium. We made cuts between 1- 3% to the Courts, Department of Corrections, Department of Public Safety , Department of Human Rights, crime victim programs and smaller agencies under this division. These cuts were significantly less than what other departments faced, but we are approaching a critical point in which access to the courts will be challenged if we don’t have additional revenue. Public safety is a core government function and it must be a priority. We did manage to preserve drug courts, maintain correctional officer positions in our prisons, maintain programs for offenders re-entering the community, and preserve scientists at the BCA. We also provided a slight funding increase for police and firefighter training.
I was disappointed that my bill to close the gun show loophole did not pass when voted on in committee. The bill would have simply required that anyone purchasing a firearm at a gun show obtain a background check, which would be consistent with buying a firearm in a sporting goods store.
Gangs
I was the chief author of a bill, which was signed into law, to reform the way law enforcement confronts gang activity in our communities. My reform bill was the result of the Metro Gang Strike Force scandal. I worked closely with law enforcement, the County Attorney’s Association, NAACP, League of Minnesota Cities and the Department of Public Safety (DPS) to craft a bill that will ensure that the twenty-three gang strike forces in Minnesota have the tools to be effective, but also accountable for their activities. Future strike forces will now be certified by the Department of Public Safety, must abide by guidelines on forfeiture of evidence, include an oversight role for prosecutors, and increase audits. Additionally, they must develop narrowly objective criteria for determining gang affiliation to reduce racial profiling and the Commissioner of DPS will have the authority to decertify strike forces that don’t comply with state guidelines. My bill also eliminates the Metro Gang Strike Force Advisory Board and creates a working group to examine data bases used by law enforcement. I was encouraged when the bill passed unanimously in the House; it was a significant step in re-establishing trust between law enforcement and the people they serve.
Environment, Energy and Natural Resources
I was pleased with the huge commitment we made to environmental protection and our habitat with the revenue from the dedicated sale tax. We appropriated $26 million, with the majority going to land, habitat, and recreation. Significant investments were made for water resources, protection against invasive species, renewable energy and environmental education.
On other energy and environment matters, I voted against a bill to weaken the moratorium on building nuclear power plants in Minnesota. I’m convinced that we should not lift the moratorium unless there is proven and safe way to store nuclear waste. I did support, however, numerous bills that promoted and funded renewable energy, including a bill that we hope will usher in the largest solar project in the upper Midwest.
Unfortunately, a bill that I co-authored, creating additional safeguards for potential copper-nickel mining operations, never got a hearing. The bill would have aided in maintaining the pristine nature of land near the BWCA. Knowing how Minnesotans value our northern treasures, I hope to revisit this measure in the future.
I was also pleased that we were able to finish the deal of the Vermillion State Park.
Domestic Violence and Human Rights
I was the chief author of several bills that were included in the Domestic Violence Omnibus Bill. We have found that many abusers continue to harass victims from jail before hearings attempting to get them to drop charges. To end such harassment, one of my bills adds to our statutes a possible charge of tampering with a witness in the third degree. Another bill increases the cap on bail for higher risk offenders and clarifies the no-contact order provisions in the criminal code. And finally, I authored a bill that includes pets in an Order for Protection. Many victims are reluctant to leave an abusive relationship because they fear that a batterer will harm or kill their pets.
I was very disappointed that the Governor chose to veto the Final Wishes Bill, which I consider a cruel and unnecessary political move. This bill would have allowed a domestic partner to make a determination as to the disposition of the remains of a deceased person. His veto once again displayed his intolerance and disregard for basic human rights.
Last year, in the first year of the biennium, I passed a landmark trafficking bill that increased penalties for human trafficking. This year we were successful in getting federal training money for prosecutors, law enforcement, and human service providers to better detect cases where women and children are being trafficked.
Balancing the Budget
Of course, the greatest challenge we faced was addressing the deficit. Early in the session, House committees worked painstakingly to review all state spending to find new efficiencies and budgetary areas where strategic cuts could be imposed, while minimizing harm to vital state services and vulnerable citizens. Much of that work was enacted into law as part of an initial budget balancing measure, which made over $300 million in cuts.
Next year will be an even greater challenge. Unemployment is high and the deficit will be staggering—projections are $6 billion! The only way to resolve this crisis is with targeted budget reductions, government reform, and additional revenue through progressive tax increases. This is a balanced approach that most Minnesotans support. Our tax system needs to be reformed so we avoid the boom and bust cycles we’ve seen in recent years.
While our state is facing some difficult times ahead, I’m convinced we can do better when we all work together.