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Legislative News and Views - Rep. Ben Lien (DFL)

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Legislative Update - March 24, 2017

Friday, March 24, 2017

Greetings from the Floor,

We did not pass any bills off the House floor this week as more time was dedicated to committee work and passing the omnibus finance bills to the Ways and Means Committee.  The Ways and Means Committee is charged with issuing the various budget targets (spending limits each finance committee has), and reconciling all state spending.  The Ways and Means Committee is the last stop for any finance bills before they hit the House floor.  The members of the Ways and Means Committee are the committee chairs and committee leads from the minority party (minority leads are generally the members who would be committee chairs if the majority and minority parties were reversed).

The House budget targets were released this week.  The largest area of spending is in the Tax Committee with a target of $1.3 billion.  Other notable budget targets are:

  • 1.4% increase to the education budget (this would result in a 1.5% formula increase to school districts)

  • $600 million in cuts to the health and human services budget

  • 104% increase in General Fund transportation spending

This now sets the stage for budget negotiations to begin with the Senate and governor.  I’ve yet to see the details of the Tax Bill passed by the Tax Committee today, but I don’t see the necessity of loading up the Tax Bill at the detriment to other areas in the state budget.  We should use the budget surplus we have to grow the state’s healthy economy, and ensure all parts of the state can thrive.  The best ways to do this are through education and economic development.  I discuss higher education in more detail below, and don’t agree with cuts to programs like the Job Creation Fund and Minnesota Investment Fund.  These two programs have generated $3.1 billion in private sector investments from $77 million in state funding, with a close to even split of job creation between Greater Minnesota and the metro.  There is no way to guarantee across the board tax cuts alone will grow the economy or create jobs.  We must be smart and purposeful with the state budget, and target it to grow opportunities and prosperity for all Minnesotans.  

My three committees have largely finished work for the session, outside of any issues that may arise and need immediate attention (an example of this would be an outbreak of avian flu that the Agriculture Finance Committee may have to address).  Committee meetings can also be called during the interim between legislative sessions as issues arise.  The Property Tax and Local Government Division Report includes the following provisions for our district:

  • $3 million for the Border City program

  • the local option sales tax for the Clay County jail and law enforcement center

  • a technical change to a Moorhead Tax Increment Financing (TIF) district

The provision for the Moorhead TIF district relates to an economic development district in town that was certified in July, 2012.  TIF districts allow for economic development activities to take place for a period of five years.  Because of the Great Recession, legislation was passed in 2009 and 2014 to allow certain TIF districts (those certified within certain dates) to extend the duration during which economic development activities can take place from five years to eight years.  The Moorhead TIF district missed the certification date by thirteen days.  The provision in the Property Tax and Local Government Division Report changes the Moorhead TIF district’s certification date to allow for the additional three years of economic development activity. 

The Property Tax and Local Government Division Report also includes a $200,000 valuation exemption on state commercial/industrial property taxes and a 50% credit for school bonding levies on agricultural land.  The division report did not include any increases for Local Government Aid, County Program Aid or Township Aid.  I offered an amendment to fund these programs, and although the amendment was defeated, I did vote for the bill.  There are good provisions in the bill for our district, and I will continue my work for these local government aid programs that benefit all property classes.

The Higher Education Omnibus Bill increases the state’s higher education budget by $150 million, and includes $150,000 for my provision to establish a student debt forgiveness program for people working full-time in Greater Minnesota.  The bill also continues a trend started last session with tuition freezes at state colleges in the first year of the biennium and 1% tuition cuts in the second year (the bill would freeze tuition at state universities in the second year of the biennium).  Essentially, the bill puts state colleges at an advantage over state universities and the University of Minnesota.  This would cause either tuition increases or campus cuts at state universities and the University of Minnesota.  At a time when our state budget and economy are healthy, I don’t see any reason to advance some public institutions of higher education over others; especially when these dollars are crucial to Minnesota’s continued economic growth.  Right now, between 70% and 75% of jobs across the state require some form of post-secondary education.  These dollars are investments into our economy. 

The Agriculture Finance Omnibus bill was designed around base funding for the committee’s budget (the committee was not given any new money or directed to make any cuts).  The bill provides funding for pollinator research, noxious weed and invasive plant assistance to local governments, agricultural education (Minnesota Agriculture Education Leadership Council and Farm Business Management), University of Minnesota avian flu research, the AGRI program (Agricultural Growth Research and Innovation program) and the Agriculture Utilization Research Institute (AURI).  The bill passed out of the committee on a bi-partisan voice vote.

Thank You for the Opportunity to Serve,

Ben