In this issue:
- No New Gas Tax
- Sunday Sales
- Reducing State Debt
- IRRRB Reform
- Minnesota Trivia
Dear Neighbors,
While ongoing negotiations are taking place between the House and Senate on bills including taxes, transportation and supplemental budget bills, the House took up a number of additional bills this week.
Here is an update from the Capitol.
No New Gas Tax
Governor Dayton has informed House Republicans that he will come up with a counter transportation proposal this weekend. Republican leadership offered to meet with him over the weekend for negotiations but he declined, saying he'll come back Monday with his own plan.
I am hopeful that the governor will make a good faith effort to offer a transportation plan that is palatable to all sides and does not include a gas tax increase. When I polled people in my community last year, a large majority opposed a gas tax increase, mirroring similar survey results across the state. Additionally, when a gas tax increase was brought up for a vote on the House floor last year, 132 members voted against it.
We can fund transportation without raising the gas tax or taking more from hardworking Minnesotans by using existing taxes paid for auto related purchases, automobile rental taxes and other already existing revenues. I will continue to advocate for a common sense approach to fix our roads and bridges this year and am hopeful we can find common ground with the Senate and Governor.
Sunday Sales
Nearly every year the legislature passes an omnibus liquor bill that makes needed, minor, non-controversial changes in state law. The omnibus bill is also the vehicle for a discussion of whether to legalize Sunday liquor sales in Minnesota.
This year’s Sunday sales amendment would allow municipalities to authorize off-sale licensees or municipal liquor stores under its jurisdiction to sell alcohol any day of the week. It would also prohibit any liquor store from accepting alcoholic beverages on Sunday. Both provisions in the bill are meant to address some of the concerns of various groups previously opposed to Sunday sales.
I believe that state government should not be unnecessarily limiting the choices of consumers and businesses, and I have consistently supported Sunday sales. Many people find it convenient to shop on Sundays and would like to go to the liquor store when they're out running other errands. Additionally, many liquor stores would like the option to sell their goods on Sundays.
A majority of people in the northwest suburbs support the legalization of Sunday alcohol sales in Minnesota, and I will continue to vote in support of this change to state law.
Reducing State Debt
There has been much discussion of late about the “capital investment,” or “bonding” bill. The bonding bill is legislation that authorizes the state to issue bonds – essentially use the state’s taxpayer-provided credit card – to make needed improvements and enhancements to state owned facilities. Such facilities include colleges, prisons, state parks, water treatment facilities and other similar infrastructure.
When interest rates to borrow money are low, it is tempting to want to use the state’s credit card. However, just like families have to place a limit on borrowing even when conditions are favorable, so too should the state of Minnesota. Every dollar borrowed has to be paid back with interest. In fact, debt service payments have nearly doubled over the past decade, which is why I believe it's important to consider reinstituting a ceiling for capital investment borrowing.
To put a reasonable limit on bonding, I am coauthoring a bipartisan bill that would cap state payments on borrowing at a fixed percentage of the state's General Fund revenue.
This bill would help protect our state's credit rating, promote fiscal responsibility and help slow the growth of expensive, taxpayer funded debt service payments in the future. We can meet Minnesota's infrastructure project needs without overspending or borrowing more than we can afford.
IRRRB Reform
In Minnesota, there exists a unique state agency that not many have heard of. The Iron Range Resources and Rehabilitation Board (nicknamed “I-Triple R-B”) was created in 1941 by then-Governor Harold Stassen to help Iron Range communities diversify their economies for the day when iron ore and taconite resources were depleted, and mining was no longer the economic engine of this region.
Instead of paying property taxes, these mining companies pay a fee for every ton of taconite and iron ore mined in the so-called Taconite Assistance Area. These funds are then appropriated by the IRRRB Board to cities, counties, school districts and counties in the Taconite Assistance Area. Since 1941, hundreds of millions of dollars in payments have been made.
However, because this board has been composed of legislators from only within this Iron Range area, it has not only provided these legislators with their own pool of money to dole out to their favorite projects, but has also recently come under much needed scrutiny by the nonpartisan Office of the Legislative Auditor (OLA). The OLA warned that without changes, the current set up of legislators sitting on the IRRRB making executive branch spending decisions would make them vulnerable to a constitutional challenge.
In response to these constitutional concerns, on Thursday, the House passed legislation to eliminate the current Iron Range Resources and Rehabilitation Board (IRRRB) and replace with a nine-member legislative citizen commission. The new commission would be made of three Senate members, three House members and three citizen members from the Taconite Assistance Area. It would also maintain the Office of the Commissioner of the IRRRB, but their independence from the legislature would be significantly curtailed.
To increase transparency and financial oversight, spending would be submitted to the legislature for inclusion in biennial and supplemental budgets. It also increases transparency and oversight of grants and loans administered by the agency by using objective benchmarks to measure the effectiveness of these investments, as suggested in the OLA report.
If signed into law, the elimination of the current IRRR Board would take effect on July of next year. This is a long overdue reform that passed with bipartisan support and should be signed into law by the governor.
Peppin's MinnTriv
Thank you to everyone who participated in last week's Peppin's MinnTriv quiz!
"Boat" was the answer to our MinnTriv question: Minnesota has one_____ per every six people—more than any other state. It's the perfect trivia question just in time for fishing opener this weekend!
Congratulations to Martin Rosacker from Maple Grove who had the first correct response!
Here is this week's three-part question: What amusement park ride was invented in Minnesota in 1926? Who was the inventor and where was he from?
Reply to this email with your answer, and I'll share the winner of the Peppin MinnTriv question in my legislative update next week.
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As always, if you have any questions or concerns on an issue relating to state government, my office is available to help. My direct line is 651-296-7806. My email address is rep.joyce.peppin@house.mn and my mailing address is Room 459 State Office Building, 100 Dr. Martin Luther King Boulevard, St. Paul, MN 55155.
Have a wonderful weekend,
Joyce
**Encourage your neighbors and friends to sign up for my email updates at www.house.mn/34A