Budget, transportation plans come to forefront

Dear Neighbor,

A plan to fund transportation over the next decade and the unveiling of the House majority's budget proposal for the state's next two-year cycle made headlines this week in St. Paul.

Here is a look at those and more:

HOUSE AND SENATE BUDGETS ANNOUNCED THIS WEEK

The House budget plan funds important priorities, puts extra money in the budget reserve, and restrains spending growth to what average Minnesotans are experiencing. As Chair of the House Ways and Means Committee, I have played a central role in crafting the House budget proposal.

Highlights of the House budget include the following:

1. Total spending of $39.95 billion, a 4 percent increase from the current budget (or 1.7% not including the payoff of money borrowed from schools)
2. The House's overall dollar amount of $39.95 billion is less than plans put forward by Gov. Mark Dayton ($43 billion) and the Democrat-controlled Senate ($42.7 billion);
3. An additional $100 million being put in the budget reserve;
4. Overall tax relief of $2 billion for Minnesotans;
5. Unallocated money of $314 million, which will be available for further spending if needed, the budget reserve, or other uses as the session develops.

Included in the $39.95 billion of spending are the following highlights:

1. An increase of over $1 billion in E-12 education funding compared to the current budget;
2. An increase of $443 million in health and human services funding, which will include additional funding for nursing homes. Also included will be a major initiative to deal with eligibility problems in Medical Assistance, which has been highlighted by the nonpartisan Legislative Auditor and is costing the state hundreds of millions of dollars per year. A recent Legislative Auditor report stated they had found 17% of the people sampled on state publicly funded health plans were either ineligible for benefits or were in the wrong plan;
3. An increase of $108 million for public safety, the courts, criminal apprehension, and related efforts;
4. An increase of over $100 million for higher education, which will allow a tuition freeze at MNSCU if the Higher Education Committee decides on having a freeze.

The Senate just issued its plan this morning. I was pleased to see both legislative bodies agree we should bolster our state's reserves, something the governor's plan does not accomplish.

It also is good to see the Senate, like the House, did not put forward plans for a bonding bill. Also, the Senate plan does provide $460 million in tax relief, but that is just a fraction of the $2 billion in relief the House plan includes.

I have been meeting with the governor for breakfast alternating weeks this session to discuss our ideas with the budget and more. One side topic he was interested in talking about this week was Huskies hockey as SCSU prepares to play in Round 1 of the NCAA tournament. I guess this makes sense since Dayton is a former Yale goalie. In any case, the conversations have been constructive and I look forward to continuing them as we get into the thick of budget work.

With the broad outlines of all three budget plans now public, the House and Senate will in the next month finalize the details within each budget area (e.g. education, taxes, etc.) and then the negotiations can begin.

LONG-TERM TRANSPORTATION PLAN

As for the transportation announcement, we came forward with a comprehensive 10-year proposal called the Road and Bridge Act of 2015 (H.F. 4). The Republican plan invests $7 billion more over the next decade without raising taxes.

This would pay for an estimated 15,500 lane miles and 330 bridges, illustrating positive results we can gain without adding to the tax burden if we focus on priorities.

One key component in the plan places general sales tax revenue already being paid on auto parts into a new Transportation Stability Fund. Estimates show this generate approximately $2.5 billion over the next 10 years.

In addition to the dedicated funds provided by the Transportation Stability Fund, the Road and Bridge Act of 2015 uses $1.3 billion in Trunk Highway bonds, $1.2 billion from realigning Minnesota Department of Transportation resources, $1.05 billion in General Obligation bonds, and $228 million in General Funds.

The bottom line is Minnesotans have made it clear they want better roads and bridges and also oppose gas-tax increases such as the one the governor proposes. The transportation plan we are offering allows us to make good on both accounts. We can increase our commitment toward roads and bridges by prioritizing currently available revenue without turning to yet another round of tax increases.

OTHER BILLS ADVANCING

As for legislation I have authored, here is an update on three items that are making progress in the House and received hearings this week:

H.F. 228 is a bill which would no longer count students' scholarship awards against them when filing for renters' tax credits.

H.F. 540 provides additional funding to the Big Brothers/Big Sisters organization. I am a former Big Brother and am pleased to be authoring this legislation to support a group that does such valuable work in our communities.

H.F. 1898 provides funding to organizations that work with refugees to help them integrate in central Minnesota. We have a significant refugee population in our part of the state and increasing integration efforts would carry a wide range of benefits.

Sincerely,

Jim