Dear Neighbor,
This morning the governor signed into law the $21.7 million tax conformity bill the House passed last week. The bill brings state tax code into compliance with federal provisions, allowing citizens to benefit from relief this tax season.
In other news, the House is making progress on legislation to provide relief for people suffering from sky-high health insurance premium costs.
Passage of the 2017 Health Care Emergency Aid and Access bill was delayed last week when the House minority blocked efforts to expedite the process. Since then, the bill has been traveling through the requisite committee channels and should soon arrive on the House floor for a vote.
Numerous Minnesotans, including self-employed workers, are really caught in a bind by soaring insurance costs. In many cases, this is forcing people to take drastic action with their personal finances just to try to stay afloat.
The package we are proposing would provide $300 million for immediate premium relief. That is a lot of money, but this issue rises to the level that it is necessary. These crushing premium increases are not the fault of consumers, rather they are the product of a failing system.
In addition to the relief funds, we are looking at reform measures to help us avoid repeating this unfortunate scenario. Some interesting innovations are going on in the private sector with self-insured trusts, where employee bases are forming co-ops to improve their results by contracting with third-party administrators. It is a wonky subject, but that is an example of reform that could prove beneficial for the long haul.
Uncertainty at the federal level remains a factor to consider on this subject.
The House also is working to find resolution on the Real ID issue. As a refresher, new federal standards are being implemented regarding ID requirements for a number of purposes, including boarding commercial, domestic flights. Minnesota’s current ID does not comply with those elevated standards and – barring an extension – we have until January of 2018 to find resolution.
The House proposal is very similar to the one we passed with strong, bipartisan support last year, only to have it stall in a conference committee. The package again is a two-tier system, with an opt-out choice provided for citizens who want to abstain from Real ID participation. There also are measures to protect people from extra costs that may be incurred if implementation conflicts with their regularly scheduled renewal date.
On a final note, I again am working on a bill to better manage the state’s debt-service payments. The state’s payments on debt have risen significantly in recent years and my proposal aims to put us on a more responsible, sustainable course. The bill is coming together conceptually and now I am working out the details with nonpartisan staff so it can be drafted in official form. Look for more details once that happens.
Until next time, have a good weekend and, as always, your correspondence is welcome.
Sincerely,
Bob