Dear Neighbor,
Much of our work in the House continues to happen in the committee process. I am also busy in my position as Ways and Means Committee chairman in working on the state budget that we will introduce around a month from now.
In big news for our area, yesterday the House approved a bill facilitating the construction of a natural gas-fired power plant to replace two coal-fired units scheduled for shutdown at Xcel Energy’s complex in Becker.
This plan represents the best plan for consumers – the “least-cost alternative” – as confirmed by an analysis presented by the Department of Commerce. It would also provide reliable base load power to Minnesota that cannot be guaranteed through more variable sources like wind and solar, and will provide a lot of good jobs in our area.
While I don't have concerns about building the plant, I did have concerns about how the bill was in some ways doing an end-run around part of the traditional Public Utilities Commission approval process.
However, earlier in the day of the vote, the governor released a statement supporting building the plant and confirming that he will sign the bill when it gets to his desk. Since the governor has appointed the commissioners on the Public Utilities Commission, I feel more comfortable with this issue, and am pleased that this bill will become law and the plant will be built.
I also see it as one more example of how the Republican Legislature is constructively working with the governor this session.
Two bills I have authored advanced through committee hearings this week.
One bill would lessen disparities in child care reimbursements for multi-county cities. It cleared its first House committee hurdle Wednesday.
The gist of the bill is that it addresses a lack of county-to-county uniformity for state reimbursements paid to child care providers for services rendered to low-income families. These reimbursement disparities have become problematic in cities such as St. Cloud, which is located in Stearns, Benton, and Sherburne counties. The hourly reimbursement rate in Benton County is 35 percent to 62 percent below the Stearns County rate, putting some child care facilities at a disadvantage and potentially creating barriers for some families seeking child care.
I don’t think we should be penalizing one side of town over the other when they are all effectively in the same market, sometimes just hundreds of feet apart. My bill (H.F. 139) would allow licensed day care centers that are located in a city which is in more than one county to have their subsidized day care reimbursed at the rate offered by the highest county.
Another bill of mine (H.F. 387) which continues its way through a committee process increases the state’s education tax credit and deduction. I wrote about this bill in an email a couple of weeks ago and, if you missed it, you can see more details here.
The House also approved the bill pertaining to farm loans I mentioned in an email last week. The bill appropriates $35 million to the Rural Finance Authority for loans to eligible farmers. These bonds are 100-percent user-financed, meaning the state will be paid back.
This is a popular program that has proven to be successful over the years, so I am pleased we were able to approve this bill early in the 2017 session.
Have a good weekend and, as always, your input on these and other issues is welcome.
Sincerely,
Rep. Jim Knoblach