Dear neighbors,
First of all, I want to thank the twenty plus citizens who took time out of their busy schedules and joined me for coffee and conversation this past Saturday. It was important to hear from you, and I appreciated your comments on the important issues we discussed. I am very fortunate to have such engaged and informed individuals in my district.
We are over halfway through the 2013 legislative session. I want to provide an update on what has been accomplished so far and what we will be working on before the legislature adjourns.
Earlier this session, the legislature passed tax conformity legislation. This legislation was necessary to conform to federal tax changes and in order to get Minnesota’s tax system in line with federal law. We had to act quickly on this legislation in order to provide early filers proper tax deductions. This bill will save taxpayers an estimated $18.5 million when filing their 2012 taxes.
As I have shared with you, Governor Dayton signed Health Insurance Exchange legislation into law recently. The exchange will be an online marketplace where Minnesotans can compare and purchase health insurance. The exchange is a product of the Federal Affordable Care Act. States were given the choice to create and implement their own exchanges or to use the one-size-fits-all Federal exchange. Minnesota chose to create its own exchange and by doing this we have a unique opportunity to lead the nation in healthcare.
The exchange will serve 1 out of every 5 Minnesotans and save families over $1 billion. 300,000 uninsured Minnesotans are expected to gain insurance coverage by 2016. Enrollment in the Minnesota Health Insurance Exchange begins October 1, 2013 and coverage will start January 1, 2014.
The Medical Assistance law will enable 40,000 low-income, uninsured Minnesotans to obtain health care coverage. As we know, Minnesota is a net exporter of taxes to the federal government. This law will re-direct some of those MN tax dollars back to our state to benefit these Minnesotans in need. The federal government will pay 100 percent of the costs of the program until 2016, phasing down to 90 percent after 2020. Medicaid expansion was a high priority because it will provide healthcare to additional Minnesotans at a very low cost to the state.
In addition to these bills, Governor Dayton has signed numerous bipartisan procedural and non-controversial bills this session.
Between now and the end of session, the legislature will be working on the budget. House budget targets were released last week and now we must put together a responsible budget that closes the $627 million budget deficit. Finance committees will be reviewing budget proposals and deciding which policy bills to fund this session. After a decade of deficits, now is the time to end irresponsible borrowing, spending and gimmicks and to put forth a responsible budget that is balanced into the future.
In addition to the deficit, the legislature must pay back the $854 million that we owe our schools. The House budget has made room for this investment and I have authored a bill to pay a large portion of this money back. Beyond paying back this money to our schools, the House budget invests an additional $700 million in early-childhood through college education. A world-class education system has historically made Minnesota a leader and it’s time to strengthen our schools as we plan for a strong economic future.
A variety of other policy initiatives may come up this session. Hot topics so far have included raising the minimum wage, gun control, and marriage equality legislation. There are multiple minimum wage proposals to raise Minnesota’s minimum wage of $6.15. We are 45th in the nation in minimum wage and have fallen behind Wisconsin, Iowa, and North and South Dakota. Some of the proposals being considered would tie the minimum wage to inflation, a measure intended to match wages with the cost of living. 9 states have indexed their minimum wage to inflation or cost of living. I welcome your input as we consider this issue.
I believe that solving the budget deficit, balancing the state budget, ensuring that we have a world class education system, including retraining citizens to fill the living wage jobs currently available, are the legislature’s top priority. Then the legislature can turn its attention to other issues of importance.
The legislature is currently on mid-session break and will resume legislative business on Tuesday, April 2. The legislature is set to adjourn by Monday, May 20, 2013.
Please keep in touch with your questions, comments and concerns as we work to move Minnesota forward. As always, thank you for allowing me to be your voice in St. Paul.
Best,
Yvonne