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Legislative News and Views - Rep. Dan Schoen (DFL)

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Rep. Dan Schoen - E-Update - April 12

Monday, April 15, 2013

Friends,

A lot of us were surprised recently when the news broke that Sanford Health of South Dakota was engaged in takeover talks with Fairview Health Service. In response, the University of Minnesota proposed a takeover of Fairview. In the end, we could have been facing a situation in which the University of Minnesota Hospitals, one of our stellar health care facilities, could be run by an out-of-state entity.

 

I had serious concerns about the prospect of Fairview and the University of Minnesota hospital being controlled by a board based in Sioux Falls, South Dakota. Minnesota has a national reputation in terms of the quality of health care, and Fairview and the U of M Medical Center are two of the biggest reasons. I was concerned that the discussed acquisition may have negatively affected consumers in Minnesota’s health care market.

 

It is a concern shared by many lawmakers on the House Commerce Committee, including the chairman, Rep. Joe Atkins. That’s why we introduced two pieces of legislation this week preventing control or ownership of the University of Minnesota Hospitals from being conveyed to a foreign entity — any non-Minnesota-based entity. The first bill would prevent this permanently, while the second would prevent it through December 31, 2014.

 

We needed time to explore the potential adverse impact on the University of Minnesota Medical Center, physician training and consumers in the state’s health marketplace.

 

Sanford pulled the plug on talks on Thursday, saying it was worried that its reputation could be harmed.

 

My objection was never about Sanford and the reputation of the company or its employees. I just happen to believe that the University of Minnesota Hospitals are too important to our state’s education system, our economy and our health care market to be controlled by a out-of-state entity.

 

When it comes to organizations or institutions that are synonymous with our state fabric, we need to think long and hard before we ship controlling interest out of state.

 

Education budget detailed

 

A world-class education system is the gateway to a world-class economy. That is why the House DFL budget education budget invests in our future and sets the goal of building the world’s best workforce.

 

To meet this ambitious goal, our proposal will reverse a decade of disinvestment in education and make historic investments in efforts and strategies with a proven record of closing the achievement gap, raising graduation rates, and improving student’s career and college readiness.

 

We make a commitment to fully funding all-day, every day kindergarten and invest $50 million in early learning childhood scholarships. All-day K and early childhood education are proven tools to improve test scores, close the achievement gap, and prepare students for future academic success.

 

The House DFL Education Budget also increases the basic funding formula for K-12 schools by four percent over the biennium, an increase of over $315 million, or $209 per pupil. The school shift payback will be included in the House Taxes bill.

 

The House DFL Education Budget also contains a new strategy to close the revenue equity gap and reduce property taxes. The bill enhances the equity formula guaranteeing all districts at least $300 per student of equity and referendum revenue, and raises and indexes operating referendum levy equalization factors to reduce property taxes.

 

 

As part of building the world’s best workforce, the House DFL Education bill would implement several necessary reforms. Schools will be required to develop strategic plans for student achievement and update the public on their status each year. The state will utilize the Minnesota Department of Education’s Regional Centers of Excellence to provide assistance and work with schools to reach their goals.

 

A new student assessment system will be implemented ensuring students stay on the path to being career and college ready. Innovation grants that promote new ways to increase student achievement will be available to schools.

 

I will continue to be a strong advocate for our children and will work to ensure every student gets every opportunity to get a world-class education and succeed in a global economy.

 

Boost for higher ed too

 

The House Higher Education Omnibus bill was also released this week. It would freeze tuition at both the University of Minnesota (U of M) and the Minnesota State Colleges and University system (MnSCU) and provide a nearly $150 million increases in higher education funding between the two systems.

 

Last year, the legislature made record cuts to higher education in the state budget. Tuition has nearly doubled at state colleges and universities of the past decade.

 

Over $120 million of the $150 million increase in funding will go toward tuition relief, which will benefit students across the state. There will also be $18 million allocated to the MnDrive research program at the University of Minnesota, and almost $11 million allocated to the Office of Higher Education to increase grants for access, choice, and debt reduction.

Education and the economy are inextricably linked. Minnesota will be paid 10-fold in the future for these investments today.

 

HHS budget

 

Another budget bill rolled out this week was the Health and Human Services bill. This budget actually was trimmed by $150 million, but much of that savings was through reforms of the system and eliminating unnecessary programs.

 

The budget still protects the most vulnerable Minnesotans, funds cost-preventive mental health initiatives, and includes a funding increase for workers in nursing homes and long-term care providers. It will continue the implementation of the Affordable Care Act.

 

The House HHS bill achieves cost savings in several ways. It finds $66 million through managed care payment reforms. It makes about $93 million in targeted reductions to existing programs and reforms of services in areas like dental and prescription drugs.

 

The bill recognizes savings from decisions we made in other areas of the budget. For instance, by fully funding all-day kindergarten, we will reduce the number of children on welfare requiring child care.

 

The architects of the bill made the decision that some areas of the budget needed a boost. For 10 years, nursing homes and long-term care workers have had bore the brunt of cuts to the HHS budget. But we are going to give them a long, overdue 2 percent, cost-of-living increase.

 

Our bill will also fund cost-preventive mental health initiatives for adults and children, such as fully funding the Governor’s request for expanding school-based mental health services and mental health crisis response services.

 

Stay in touch

 

I encourage constituents to contact me with any questions, comments, concerns, or ideas on any legislative topic. I can be reached by phone at 651-296-4342 or by email at rep.dan.schoen@house.mn. Constituents can also visit my legislative page and sign up for email updates.

 

Dan