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Legislative News and Views - Rep. Jennifer Schultz (DFL)

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Rep. Schultz: House GOP HHS budget unthoughtful; leaves Minnesotans behind

Friday, April 7, 2017

St. Paul, Minn. – Today, the Minnesota House debated the Republican Majority’s Omnibus Health and Human Services bill that cuts $600 million from vital services in Minnesota. 

“This is the first time in my 25 years working in health policy where the intention of a piece of legislation is to actually cover fewer people,” said Rep. Jennifer Schultz (DFL – Duluth). “With each of their budget bills, the picture of Republican priorities at the Legislature becomes more clear. Over and over this session they have placed the desires of insurance companies and the wealthy ahead of Minnesota families. The HHS bill brought forward by House Republicans is just another example.”

While the bill does contain some minor reforms and short-term grants, overall, the bill failed to make substantial investments in areas such as mental health, the Minnesota Family Investment Program, child care, chemical dependency, and many others. The bill also fails to make overdue investments in staffing upgrades at the Minnesota Security Hospital in St. Peter, leaving a dangerous situation for staff who are frequently asked to work double shifts.

“Serving on the HHS finance committee this year we have heard many terrific ideas to address our shortcomings in many key areas, but by leaving these solutions out of the bill, the Republicans do nothing but leave Minnesotans behind,” Rep. Schultz said, “Instead they focus their energy on so-called ‘reforms’ – like shifting MNsure to the federal exchange – which does nothing to improve care, costs $5 million per year and gives away state control to the federal government where uncertainty abounds.”

One area that hits many Minnesotans particularly hard is the lack of a pay increase for those who deliver services to the disabled and elderly in home and community-based settings. Care workers, as well as those who depend on their services, have advocated for an increase to address staffing levels, but it’s absent from the bill.

“If wages for workers who take care of some of the most vulnerable members of our society continue to remain stagnant, the lives of those who rely on these services are put in jeopardy,” Rep. Schultz said. “We should be committed to giving all Minnesotans the opportunity to live their lives with dignity and respect, and not recklessly cut services for them.”

Beyond specific initiatives included or left out of the bill, Rep. Schultz is concerned with how the bill is funded. The legislation banks various savings which the Minnesota Management and Budget department has characterized as “fake” while shifting various payments into the future in order to meet the committee’s budget goal set by the House Speaker.

“In one way or another, we’ve already appropriated over $500 million in giveaways to health insurance companies through the ‘reinsurance’ program with no guarantees of decreased premiums or improved access so their approach of using fake savings isn’t surprising,” Rep. Schultz said. “With uncertainty at the federal level and inflation eating up most of our ‘surplus,’ we should budget responsibly, honestly, and in a way that provides needed health care and other services to Minnesotans. This bill does none of these.”

After its passage, the bill will head to a House/Senate conference committee where differences between each body’s version will be considered. This work will likely commence when the Legislature returns following the Easter/Passover recess, which starts when the House adjourns today.