Greetings from the Capitol-
Most Popular Constituent Contact Issue This Week – Budget Update
I’ve received many comments and questions from constituents this week about the budget proposals for the upcoming biennium. Both Governor Dayton and the House DFL have offered plans for new taxes and higher spending to be approved this session, but the House plan goes one step further and establishes a “fifth tier” income bracket on wealthy individuals to pay back money shifted (borrowed) from schools. This is on top of the income tax hike the governor is seeking and it would give Minnesota one of the nation’s top rates. While DFL leaders say the top tax rate will be “temporary” until the shift is paid off, the rate would make Minnesota number one or two in the nation (depending on how you look at the numbers) which will leave consumers paying more, cost us jobs and make Minnesota less competitive in the global market.
This comes at a time numerous states are looking at eliminating income tax systems. House Democrats say they expect their budget bills to pass through the House floor by the end of April. Our economy is heading in the right direction and revenue is rising by about 3 percent. We can balance our budget without raising taxes by staying within those limits of available revenue. Democrats want Minnesota to be No. 1 in taxes. Republicans want our state to be No. 1 in jobs.
Union Push Continues Despite Objections
I’ve previously mentioned the bill to unionize owners of in-home day care businesses which is still moving ahead in the House despite strong objections from legislators and providers themselves. Child care providers – including those who accept state Child Care Assistance Program funding – are small-business owners. Unions, however, are for employees. There is concern that imposing union dues will cause providers to stop accepting CCAP, leading to a shortage of providers for low-income families.
A recent survey shows more than 86 percent of the providers themselves oppose forming a union. This is clearly a union-led effort to skim the revenue stream of yet another industry. Advocates of unionization suggest that $300 per year is minimal for union dues. An estimated 11,000 providers participating would mean $3.3 million for unions. Day care decisions should be between parents and their provider without union interference. I hope this legislation is defeated soon.
Panel at Humphrey Institute
Thanks to the University of Minnesota’s Humphrey Institute and the Freedom Foundation of Minnesota for co-sponsoring a panel discussion on the February economic forecast and its implications earlier this month. I was happy to speak with students and guests as a member of the legislative panel.
Meetings with Groups and Constituents
Here are some of the folks I’ve met with recently in St. Paul:
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Dakota-Scott Workforce Investment Board
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MN Department of Transportation: Sheila Kauppi, South Area Manager and Scott McBride, Metro District Engineer
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Tanya Weinmeyer (Lakeville) visited for MOFAS Day at the Capitol
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Diane Dokken (Lakeville) visited in conjunction with the MN Brain Injury Alliance
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Jordan Larson, High School Page Program Participant from Lakeville
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Shannon Thompson (Lakeville), MAPE Member, to discuss issues regarding state employees
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Construction workers visited for Building Trades Day at the Capitol
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Lakeville constituents visited for MN Trucking Association Day at the Capitol
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Members of the Lakeville Chamber of Commerce
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Emilie Breit (Lakeville) visited with Partners in Policymaking to discuss the impact of proposed budget cuts on individuals with disabilities
Sincerely,
Mary Liz Holberg
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Please feel free to contact me with any thoughts or concerns you may have. I can be reached at 651-296-6926 or by e-mail at rep.maryliz.holberg@house.mn