By Rep. Jeff Howe
The 2016 session is underway in St. Paul and once again we face some challenging issues. Here is a quick overview of some items expected to make headlines in the coming months:
Transportation
The House passed a 10-year, $7 billion transportation plan last year using our surplus, bonds and rededicating current revenue from transportation-related sales taxes. Unfortunately, the insistence by some that we raise the gas tax by at least 16 cents per gallon stalled that package.
The good news is this plan remains in a conference committee and is still ready to move at any time.
A key provision in the package is legislation I authored to direct tax dollars we already pay when purchasing auto parts and services toward roads and bridges.
Last year we did pass $12.5 million in transportation funding specifically for small cities. If we pass the full House Republican transportation plan and extend this funding, it would mean more than $27.5 million more for the small cities roads program ($489,390 for towns in District 13A alone), helping to fix local roads by using taxes people are already paying on rental cars. Our plan focuses on filling potholes and repaving the roads people drive to work every day.
Taxes
A House tax bill which would have provided $2 billion in tax relief also remains a holdover from last year. It includes valuable provisions such as one that would end Minnesota’s practice of taxing our seniors’ Social Security retirement benefits. We also should work to lower property taxes for families and small businesses, along with providing relief for farmers are trying to make it on tight margins in a tough ag. economy.
Long-term care
A top achievement from 2015 was comprehensive nursing home rate payment reform that greatly assisted nursing homes in Greater Minnesota. It was the most comprehensive nursing home funding reform in 30 years, including $138 million in new funding. This revenue is not dedicated, so local facilities can determine how to put it to best use – anything from raising staff wages to buying new equipment, or enhancing their property.
House Republicans have assembled the CARE Act for this year, a package of proposals aimed at improving the quality of life for Minnesota's aging adults. In addition to phasing out the state income tax on social security, the CARE Act offers tools that help save for the future such as providing flexibility with life insurance policies.
Bonding
The most significant capital investment bills – to pay for construction projects throughout the state – come in even-numbered years. Whatever bonding bill takes shape in 2016 will be on top of a $373 million package approved in 2015. As was the case with the 2015 bonding bill, the focus in 2016 should be on nuts-and-bolts infrastructure projects such as local roads, bridges and water/sewer lines.
Please stay in touch throughout the session and let me know if you plan on visiting the Capitol and would like to arrange a visit. The best way to reach me during the session is by emailing rep.jeff.howe@mn.com.
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