Dear Friends,
I hope this email finds you doing well and enjoying the fall weather. I wanted to give you an update on what's been going on the past several weeks in the news and at the legislature.
Special Session
Last month, the legislature held a one-day special session that lasted just a few hours to pass disaster relief aid for the communities impacted by severe weather back in June. While Champlin and Coon Rapids did not receive aid, there were other communities here in Hennepin County that received aid to offset cleanup costs, infrastructure upgrades, and other disaster-related costs.
I was disappointed that no agreement was reached to get rid of some of the business-to-business taxes that Republicans and Democrats alike have expressed interest in repealing. I look forward to continuing these discussions next session to ensure that the warehousing tax, the commercial equipment repair tax, and the other business-to-business taxes that mean higher prices for consumers are eliminated.
MNsure Launch
October 1st was the first day of the open-enrollment period for the state's new health insurance exchange, known as MNsure. To date, the state has spent more than $150 million dollars to develop the site, which has experienced numerous issues over the past several weeks leading up to the launch date.
Last month, we learned that a MNsure employee mistakenly sent a file with the social security numbers and other private information of more than 2400 insurance agents to someone who was not authorized to have access to that information. The problem was addressed quickly, and those impacted were contacted by the Government.
This incident raised questions about whether or not Minnesotans can be sure that their private health information is being properly protected. Even as recently as last Friday, MNsure documents described the project as "at risk" for a data breach.
This is hardly comforting news given that MNsure is expected to enroll more than one million Minnesotans. My colleagues on the MNsure oversight committee will continue to hold those at MNsure accountable to ensure that these problems are fixed, and that they will continue to take steps to improve their data security and give proper training to those who will be working to enroll Minnesotans to the program.
Tax Changes
Recently we also learned about some other unintended consequences from the budget passed back in May. The majority neglected to bring Minnesota's tax code into conformity with the federal tax code. The result? Minnesotans across the state paying more in taxes because of exemptions or deductions that are no longer available in Minnesota.
Here are just a few examples:
-Teachers no longer can write off up to $250 for purchasing classroom supplies.
-Families already burdened during a foreclosure will now owe taxes to the state on the sale when the lender sells a foreclosed house for less than is owed on the mortgage.
-Adoption assistance from private employers is now taxed, taking money out of the pockets of families in the process of adopting a child.
-Tuition assistance from private employers, as well as scholarships must be reported as income and taxed by the government.
These are more unfortunate instances of taxes that hurt regular Minnesota families. I voted against the tax bill back in May because it impacted low-and-middle income families just as much as it did the wealthy, which is unacceptable when you're implementing the largest spending increase in state history. I hope to see federal conformity revisited next session so we can get rid of these misguided tax increases.
As always, if you have questions or comments, my door is always open. Please contact my office at 651-296-5513 or by email at rep.mark.uglem@house.mn. Thank you for the continued privilege of serving our community in the legislature.
Take care,
Mark