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State Representative Tim O'Driscoll
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-7808
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OP/ED COLUMN
State shutdown ends: Part 1
By Rep. Tim O'Driscoll
The Legislature wrapped up a nearly 12-hour special session at approximately 3:40 a.m. today (Wednesday). This session provided for the passage of a number of budget related bills that would end the current state shutdown.
I'm pleased to report that Gov. Dayton signed all bills that we presented to him into law, thus ending the state shutdown. State employees are to begin reporting to work at 6 a.m. Thursday, as the state comes back online. It is anticipated that some state services may take longer to reach full services level than others, but such things as rest stops, state parks and the like are expected to opened relatively soon.
On Thursday, July 14, Gov. Dayton sent word to legislative leaders that he was willing to accept their June 30 offer with some qualifications, which would end the shutdown. Over the past week, intense negotiations occurred between Gov. Dayton's office and legislative leaders to finalize bills, which brought about the special session.
General fund speeding was held to about a 6-percent increase and there was also the use of some one-time money to achieve this agreement. All parties agree on two major points: It is not a perfect budget solution and more collaborative work is needed to bring about changes that will help to stabilize future state budgets.
A quick overview of some of the changes that have been achieved through these budgets is listed below.
HEALTH AND HUMAN SERVICES
As the chairs of the health and human services committees are quick to point out, incredible reforms have been made that will help keep services in place and help to "bend the cost curve" for future spending. The changes that have been accomplished by the passage of this bill will result in nearly $2 billion in savings per biennium. Some of the reforms include:
· Reducing projected HHS spending from 22% to a more stable 4.8% increase.
· Repealing the "sick tax," which is a tax on medical services.
· Reforming the EBT Card (the cash card used by welfare recipients) to prevent the purchase of tobacco and alcohol products.
· Provides for the movement of certain persons that receive state paid healthcare a voucher to purchase private healthcare coverage.
· Increases funding to rural nursing homes and pharmacies.
HIGHER EDUCATION
The higher education bill allowed for a nearly 13-percent reduction in state spending and provide for a number of reforms as well. These reforms include:
· The University of Minnesota and MnSCU schools must meet higher performance standards to attain additional funding.
· Provides for increases in student online courses.
· Requires a hight completion and graduation rate.
· Places tuition caps on public two-year schools, which have a higher tuition rate than neighboring state two-year schools.
JOBS/ECONOMIC DEVELOPMENT
Our focus is on workforce development programs that are needed to help Minnesotans get back to work, along with programs that are providing a strong return on our investments. For example, the Youth Workforce Development Competitive Grant Program is a pilot project that if successful can be applied to future pass through grants for business development and adult services.
PUBLIC SAFETY/JUDICIARY
· Public safety spending is reduced 2.7 percent.
· For the first time in 15 years, the bill raises co-pays for prison inmate health care visits.
· It also will save counties money by allowing them to reimburse medical costs at a higher rate.
· Juveniles that are "sold" into prostitution will be treated as victims, not criminals.
STATE GOVERNMENT
The reforms we achieved this session lay the foundation for long-term costs savings and start to change how state government operates and delivers services. These systemic changes are necessary to a sustainable future as we face the demands of an aging workforce. Reforms we passed include:
· Statewide consolidating of technology.
· Auditing state employee health insurance using eligibility checks (Are those who are being claimed as "dependents" truly "dependents" and eligible for coverage under an employee's health coverage.).
· Reducing the number of job classifications and giving employees who come up with cost savings or reform ideas an incentive bonus for their creativity.
· Creating a system that reviews state employees on a pay-for-performance basis.
· Reduces funding for stage offices and agencies anywhere from 5 to 15 percent.
· Note: Veterans Services and Military Affairs were the only two areas that received funding increases this bill.
TAXES
There were no income tax increases. Other areas of reform include:
· Increase payments for the Property Tax Refund program, which is a direct property tax relief payment for certain payers.
· Reforms in the state estate tax that will help keep family farms and businesses in the family.
· Provides for certain county mandate relief.
· Provides Minnesota townships to make purchases without having to pay Minnesota state sales tax. The hope is to also provide cities and counties this same relief in future years.
This concludes Part 1 of the budget recap. Look for Part 2 shortly, where I will update you on K-12 education, bonding, Legacy Amendment funding, transportation and environment bills.
Again, thanks for your support during these difficult budget times. The words of encouragement I continue to receive are truly humbling and make me eager to enact even more lasting reforms in the 2012 session.
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