For more information contact: Ted Modrich 651-296-5809

E-Update

Legislative Update -- March 13, 2012

Dear Neighbors,

Late last month, Minnesota Management and Budget announced that the state has $323 million in additional money for the rest of this budget cycle. Current law states that $5 million of that money must go to budget reserves with the rest beginning to pay back the $2.75 billion borrowed from Minnesota schools.

While any surplus is certainly better than a deficit, our state is still left with billions in debt and deficits over the long-term. Last year’s Republican budget — which I voted against — borrowed $700 million more from our schoolchildren, borrowed another $700 million through the use of tobacco bonds, and has left us with a $1.1 billion budget deficit next year. That deficit balloons to $2.1 billion when inflation is included.

This is the equivalent of finding a little money in your couch cushions and then realizing you have thousands of dollars in credit card debt.

In total, according to non-partisan House Research, it would take $5.339 billion to pay off our debt and deficits next year.

I fully support paying back our schools and kids — and the sooner the better. I also support balanced approaches to future budgets that don’t rely on short-term gimmicks. The time has come for lawmakers to sit down and dedicate themselves to the hard work of restoring Minnesota to responsible budgeting.

Unfortunately, the Republican majority is showing little interest in responsible budgeting. After just finally refilling our budget reserves — our savings account — they are now proposing using most of our reserves to pay back part of the money we still owe our kids. This payment is a drop in the bucket and an election year game. We need a plan to pay back the entire amount, not just a little. Also, if we exhaust our savings account and have another economic downturn or large natural disaster, we’ll be right back where we started.

It’s not good fiscal management to use up your savings account — as any family knows.

DFL members have proposed closing corporate tax loopholes that let companies shelter money overseas in places like Bermuda, Bahrain, or the Cayman Islands a to pay back the entire amount we owe our kids. The Republican majority has opposed this proposal. I don’t believe that corporations should come before our kids, but time after time, going back to last year, the GOP has placed corporations, special interests, and the richest few above our children.

Minnesota kids should be our priority and it’s time to pay them back. It’s time to stop siding with corporations stashing their money overseas, and side with kids going to school in Saint Paul and in cities across our state.

Supporting Responsible Homeowners and Stabilizing Neighborhoods Act

For the past few years, we have seen the impacts of the unstable housing market result in the home foreclosures of many in our community. While there are those of us lucky enough to have remained relatively stable during this housing crisis, foreclosures impact our neighborhoods and community as a whole.

In recognition that something must be done to address this issue, DFLers have introduced the Supporting Responsible Homeowners and Stabilizing Neighborhoods Act, HF 2823. The Act includes the following provisions:

Supporting Responsible Homeowners

• Expand refinancing options for responsible homeowners who are current on their mortgages, but face barriers, such as being “underwater," which prevents them from taking advantage of historically low interest rates.

• Prevent needless foreclosures by providing a 12-month stay of foreclosure proceedings for unemployed homeowners who have lived in their home for ten years.

• Increase transparency for homeowners applying for loan modifications by requiring banks to provide clear and straightforward eligibility criteria, and protect homeowners against unnecessary foreclosure, including right of appeal.

• Make “dual tracking” illegal so that banks are not allowed to foreclose on a house while a loan modification is pending.

Stabilize Neighborhoods

• Provides a 24-month stay of foreclosure proceedings for homeowners who have lost a job and hive lived in their home for twenty years.

• For homeowners who are pursuing a short sale to avoid foreclosure, lenders are required to respond within 30 days.

Holding Banks Accountable

• Require banks to notify homeowners of each and every loan modification option available to them so that no one is needlessly foreclosed upon when another solution available.

• Prohibits lenders and brokers from charging fees for services not performed.

In February, the Minnesota Attorney General announced that the state will share in the national mortgage settlement that involves the five largest national mortgage lenders: Bank of America, JP Morgan Chase, Wells Fargo, Citibank, and GMAC/Ally Financial. Minnesota borrowers will be eligible for up to $280 million under the settlement, including monetary relief, refinancing benefits, and principal reductions. To learn more, call the Minnesota Attorney General’s Office at 651-296-3353 or 1-800-657-3787 or the Minnesota Department of Commerce at 651-296-2488 or 1-800-657-3602, or visit www.nationalmortgagesettlement.com.

We know that in order to achieve prosperity, it’s important to have firm stable roots. The more we can provide for affordable housing and promote initiatives such as the Supporting Responsible Homeowners and Stabilizing Neighborhoods Act, the better chance our community has to thrive.

Puppy Mill Bill

I’ve introduced a bill — HF 702 — that would stop the unconscionable treatment of dogs and cats by unregulated puppy mills. We’ve heard far too many stories of animals being mistreated by breeders motivated more by profit than the well-being of the pets.

We inspect our cattle breeders to ensure their animals are healthy, but we allow pet breeders to self-regulate themselves. This has created a huge loophole in the process and allowed puppy mills to set up shop in our state. My bill would require puppy mill breeders to register with the state and then have the Minnesota Board of Animal Health conduct inspections, mandate veterinarian checks, and establish good standards for care.

Minnesota has allowed these terrible puppy mills to exist for far too long and it’s time to put an end to it. You can read the text of my bill here.

Saint Patrick’s Day

Saint Patrick’s Day is coming up fast and while I hope that folks enjoy their evenings, I strongly encourage everyone to celebrate safely, without the risk of drunk driving.

To support responsible consumption this St. Patrick’s Day, the Miller Lite Free Rides™ program will be offered on Saturday, March 17th in partnership with Metro Transit, J.J. Taylor Distributing and numerous community partners. Free rides will be available on all Metro Transit bus and light-rail routes, as well as the Northstar commuter train, from 6 p.m. through the last scheduled trip.

Drunk driving is completely preventable, and using the Free Rides program is just one option available to ensure people celebrating St. Patrick’s Day get home safely. More information on the Miller Lite Free Rides program can be found at www.millerlitefreerides.com.

As session continues to move along, I welcome input on these or any other legislative issues. Thank you again for the honor of serving you in the legislature.

John Lesch
State Representative
District 66A