Dear Neighbor,
We have been working hard this week on the omnibus supplemental budget bill that covers issues like education, economic development and health and human services.
Meetings have lasted until at least 10:30 each night this week and things are going well. We will also be meeting this weekend. I also had breakfast with the governor this week to share thoughts on the how we can reach an agreement on the remaining big issues of the session.
As I mentioned in last week's update, the House so far has passed three omnibus bills which encompass eight topics: K-12 education, higher education, health and human services, state government finance, public safety, jobs, agriculture and the environment. The Senate passed a single omnibus bill.
Efforts to secure a long-term transportation plan also continue at the Capitol. Governor Dayton and his staff are expected to prepare his first transportation offer this weekend and announce it Monday morning. The governor and Senate have been advocating for a 16 cent per gallon increase in the gas tax, whereas the House has proposed a 10-year, $7 billion package that relies on existing revenue and does not raise taxes. I think a 16 cent per gallon gas tax increase would be a real hardship on a lot of lower and middle income people. Polls continually show Minnesotans object to raising the gas tax and the House honors that position.
On a different budget note, a joint House-Senate meeting took place Tuesday at the Capitol to discuss improvements that can be made in our budget-setting process, which is considered among the nation's most complicated. I developed the idea for the hearing and gained support for the meeting from Senate Finance Chairman Dick Cohen, D-St. Paul.
I was very frustrated by the end of last year’s session, in which budget agreements were not finalized until the Friday before Monday’s adjournment. As in past years, this led to 'round-the-clock meetings, with limited transparency, in circumstances that are not ideal for the Legislature doing its best work. This hearing was an effort to learn about what other states to do avoid these situations.
The hearing included testimony from two officials of the National Conference of State Legislatures, who presented information about the budget processes of other states. One potential solution some states employ is a joint budget committee, which sets final spending levels earlier during the legislative session.
Minnesota has fallen into a pattern where everyone is often waiting on the governor, Senate majority leader and House speaker to reach an agreement on the amount to spend in different budget areas. This agreement typically doesn’t arrive until the last minute. There are 49 other states that also have to adopt a budget, and this hearing was meant to learn about their experience and see what we could do differently.
I have personally authored a provision that would set up an interim study on how to change the state’s budget process to reduce the likelihood of last-minute target setting. The provision is part of negotiations in the Supplemental Finance Conference Committee, which I co-chair with Sen. Cohen.
Next week is the final full week of the legislative session, so time is at a premium as we seek compromise. I will pass along more news as developments occur. My best wishes for good luck to all (but probably not me) who will be fishing this weekend.
Sincerely,
Jim