Dear Neighbors,
The Minnesota legislature adjourned on May 16, ahead of schedule and brought to a close an incredibly productive 2013-2014 legislative biennium. Given the significance of what was achieved, I thought you might appreciate a recap of some of the accomplishments.
When the 2013-2014 biennium began on January 8, 2013, Minnesota faced a $627 million deficit, we owed our schools over $800 million, and property taxes were on the rise. The 2013 Legislature began to address these issues by supporting working families and middle-class Minnesotans through:
· Paying back the money borrowed from our schools.
· Making historic investments in education, from early childhood through college, including a tuition freeze at our public postsecondary institutions, free all-day kindergarten for every child for the first time in state history, and an early childhood scholarship program that will give thousands more youngsters access to high-quality early learning opportunities.
· Reducing the property tax burden for middle-class Minnesotans via direct relief to homeowners and renters resulting in the first statewide property tax decrease in more than a decade.
· Creating more jobs through investments in initiatives like the Minnesota Investment Fund, which helps to bring new businesses to our state and helps existing businesses expand.
· Providing a major tax cut for Minnesota’s employers.
· Closing corporate tax loopholes.
· Enacting a fair and balanced budget that doesn't rely on shifts or selling assets and balances the budget into the next biennium.
Since then, Minnesota’s economy has grown, the unemployment rate dropped, and the deficit turned into a surplus. This year the Legislature built upon the successes of the 2013 session, and continued to move Minnesota forward in significant ways.
EDUCATION
I have been honored to serve our community while we move forward to improve the lives of middle class families and our students at all levels. This year I was appointed by the Speaker to the conference committee that finished work on the Omnibus Education Policy bill, which included several important provisions ranging from enhancing English Language Learner classroom instruction, improving teacher evaluations, increasing access to adult basic education, and Career Pathways legislation that I chief-authored. The Career Pathways legislation will provide guidance on how we can continue to integrate the secondary and post-secondary systems both to ease transitions between systems and to support every student on their own path to career/college readiness.
We’ve made a big impact on improving the quality of education in Minnesota during the last two years. One provision I wanted to see the legislature pass this year was increased telecommunications funds for equipment and information service for our K-12 schools. I’m hopeful legislators will be able to provide assistance in the future to districts who don’t have adequate resources to support needed technology for twenty-first century learners.
Looking on with my colleagues as Governor Dayton signs the 2013 Omnibus Education bill into law.
MINIMUM WAGE INCREASE
In 2014 the legislature passed a phased-in minimum wage increase—boosting the wages of over 300,000 Minnesotans to $9.50 by the year 2016. Beginning in August of this year, businesses with gross sales over $500,000 will be required to increase minimum wage for employees to $8.00/hour, and again increase to $9.00/hour in August of 2015. In August of 2016, the final portion of the phase-in will lift minimum wage employees to $9.50/hour. For businesses smaller than $500,000 in gross sales annually, the phase-in will occur similarly by requiring $6.50/hour in 2014, $7.25/hour in 2015, and $7.75/hour by August 2016.
There are some exceptions to these new rules. Training employees, teenagers, and some seasonal employees will only be required to receive the lower $7.75 minimum wage by 2016, even if they are employed by larger businesses. The minimum wage will also be tied to inflation starting in 2018 to ensure the value of the minimum wage does not dramatically lose its value over time.
Over 357,000 workers will see a raise when the bill is fully implemented. Of those workers, 45 percent have some college education and 57 percent, or 200,000 are women.
The law will have significant impact on Minnesota families. Of the workers expected to receive a raise, 62,850 are parents. And 14,200 of those are the sole wage earner in their household.
As our economy recovers, a significant portion of new jobs offer part time hours, poor working conditions, and low wages. Those low wages force families to rely onto public assistance while highly profitable corporations reap the benefits. Raising the minimum wage will improve our economy and make sure it better reflects our values to see all Minnesotans succeed.
Details of the bill include:
· $9.50 minimum wage for businesses with gross sales over $500,000 in 2016. $8.00 in August 2014, $9.00 in August 2015.
· $7.75 minimum wage for businesses under $500,000 in gross sales in 2016. $6.50 in August 2014, $7.25 in August 2015.
· The $7.75 minimum wage rate would also apply for large businesses in the following circumstances: 90 day training wage for 18 and 19 year olds, all 16 and 17 year olds and employees working under a J1 visa.
· Beginning in 2018, all wages would increase each year on January 1st by inflation measured by the implicit price deflator capped at 2.5%.
The indexed increase could be suspended for one year by the Commissioner of DOLI if leading economic indicators indicate the possibility of a substantial downturn in the economy. The suspension could only be implemented after a public hearing and public comment period. In better economic times, the suspended inflationary increase or a lesser amount could be added back into the minimum wage rate in a subsequent year.
BUDGET
Nowhere is Minnesota’s positive direction more evident than when looking at the state’s “bottom line.” After a decade of deficits and shifts, Minnesota now has a stable budget into the future. Last year we balanced our deficit honestly and this year we had a $1.2 billion surplus. We utilized our surplus responsibly, providing middle-class tax cuts, making key investments in bread-and-butter priorities like education, and strengthening our budget reserve to keep our budget structurally balanced into the future.
MIDDLE CLASS TAX CUTS
In 2014 the Legislature provided approximately $200 million in middle class income tax relief by conforming Minnesota’s income tax code to key federal provisions. Conformity reduces taxpayer confusion, makes filing the state income tax simpler, and provides tax benefits that Minnesotans expect. For example, the marriage penalty was fixed, and the dependent care credit and working family credits were improved. Families paying higher education tuition or who have student loans will also benefit.
The Legislature also continued efforts begun last year to keep property taxes in check. The Legislature enacted a major property tax relief plan, which will provide $45 million in additional direct property tax relief to 980,000 homeowners, renters, and farmers:
All told, more than 2 million Minnesotans will benefit from tax cuts passed by the 2014 Legislature.
This year I worked with community members to authorize special motorcycle license plates for our combat-wounded military veterans.
CAPITAL INVESTMENT
In an ongoing effort to create good paying jobs and support our state’s improving economic health, the Legislature enacted a bipartisan capital investment package containing $1.1 billion in strategic investments spread through every corner of the state. These measures will provide thousands of private sector jobs and fund crucial investments in college campuses, roads, bridges, wastewater treatment plants, flood prevention and mitigation, parks & trails, housing, and other important infrastructure. Some of the bonding projects in our region include:
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$14.5 million for additions to the Civic Center in Mankato
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$30 million for statewide Higher Education Asset Preservation and Replacement
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$25.8 million for the Clinical Sciences Building at MSU-Mankato
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$400,000 for Minnesota River Trail acquisition and development
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$63 million for St. Peter Regional Treatment Center, including $56.3 million to design, construct, furnish and equip new residential, program and activity facilities to allow for better services for the civilly committed clients at that facility and greater safety for clients and staff.
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$100 million in statewide investments to improve affordable housing for our growing Greater Minnesota workforce
This Summer and Fall…
As many of you already know, I am not seeking re-election as your state representative, but I want you to know that I am continuing to work on the behalf of our community until a newly elected legislator takes the oath of office in January of 2015. Please contact my office with any questions or concerns at 651-296-3248 or rep.kathy.brynaert@house.mn
It has been my privilege to serve as your voice in St Paul. We have worked together for Minnesota’s future and have improved state government and how it serves our students, families and businesses. It is my hope that in upcoming sessions legislators will continue to build upon the significant achievements we have made during this biennium. I look forward to spending this summer and fall visiting with you and other members of our community about how we keep our state moving forward.
I was honored to act as Speaker Pro-Tempore during one of my last days at work on the Minnesota House floor.
Finally, with the heavy rainfalls, local flooding, and severe weather our region has been receiving in the last several days, it's important to tune in to local radio and TV to stay updated on emergency weather alerts and it's always a good idea have a few emergency contacts easily accessible.
Governor Dayton has declared a State of Emergency for Blue Earth, Nicollet, and 33 other counties in Minnesota. You can read more about his emergency executive order here: http://mn.gov/governor/newsroom/pressreleasedetail.jsp?id=102-133086
As always, use extra caution during severe weather and avoid roads with standing water, stay away from fast moving water, and respect road barricades put in place by law enforcement for our own safety. The structural integrity of roads, even roads you are very familiar with, can become very dangerous when topped by moving flood waters.
For Mankato residents, the City of Mankato has provided helpful information for emergencies, insurance claims, and storm repairs on the city website: http://www.mankato-mn.gov/news/24057.aspx
For travel tips and road closures due to flooding see MnDOT’s website: http://www.dot.state.mn.us/flood/
For regional weather updates and alerts, I’m also providing a link to the National Weather Service updates page: http://tinyurl.com/loydk5u
Thank you for the privilege of serving you in the Minnesota Legislature. Please always feel free to contact me whenever I can be of assistance.
Sincerely,
Kathy Brynaert
State Representative