Friends,
The House Democrat majority committee chairs completed their budget bills to fund various areas of state government last week. These budget bills are now set to be debated and voted on the floor by the entire House by the end of April. While l hope we can change and improve these bills before they go to the governor, I have serious concerns with their proposals, and the ability to change or amend in a significant manner what has been passed out of the committees. To fund the large growth in spending, the Democrat majority has proposed huge tax increases. Last Monday, when they unveiled their tax bill, it included over $4 billion in tax increases over the next four years.
This represents a large portion of the over $12 billion in new “revenue sources” they are proposing for the next four years. This massive tax hike is highlighted by a 20-cent per gallon gas tax increase, 7 cents of that increase is used to replace sales tax currently used for roads and bridges but is being moved into the general fund – a classic example of budget gimmicks and shifts. It also relies on over a billion dollars a biennium in taxes on nearly all healthcare services, known as the Sick Tax.
As they are considering these enormous tax increases, it’s important to remember that Minnesota still has a $1 billion budget surplus, meaning taxpayers have already paid in more than they should. So, in a time of such a large surplus, $12 billion in new taxes should be out of the question, especially because it will lead to more structural spending in years to come which means those increases are permanent and increasing.
The Senate Republican majority has rolled out a budget that invests in priorities without raising taxes by $12 billion. I believe this is a better approach and I’m hopeful the house majority will work with them to avoid subjecting Minnesotans to such a large tax burden.
Hands-Free Cell Phone Legislation to Become Law
On August 1, it will be illegal to have a cell phone in your hand while driving. Last week the Minnesota House approved compromise hands-free legislation crafted by a joint House/Senate conference committee and Governor Walz signed it into law. I did vote in favor of the conference committee report (bill worked out between the senate and house). However, I had voted nay on the original House bill because it included $250,000.00 for a study unrelated to hands-free driving. This is an example of one of those things “packed onto” a bill that was set to pass, rather than having a separate debate on the study which should have been done as a stand-alone bill.
The legislation allows voice-activated cell phone use only, along with one-touch or headsets, but the phone can’t be held in your hand. Statistics show hands-free laws keep more of drivers’ focus on the road while decreasing fatalities. Most people in Minnesota think it’s time to strengthen our distracted driving laws and I agree.
Second Childcare Fraud Report
Last Wednesday, the nonpartisan legislative auditor released another report looking into fraud, waste, and abuse in the state’s Childcare Assistance Program (CCAP). Last week’s report focused primarily on evaluating internal controls within the program. The report detailed numerous issues at the Department of Human Services (DHS) and the county level that has resulted in inadequate program integrity. The major finding of the report is that program integrity controls at DHS “are insufficient to effectively prevent, detect, and investigate fraud in Minnesota’s Childcare Assistance Program.”
The report also included findings such as:
- "DHS and county agencies did not sufficiently leverage independent, external data sources to verify recipient eligibility for CCAP."
- "DHS had weak processes to validate that CCAP provider billings aligned with actual child care provided."
- The payment system for CCAP, "lacked key controls to identify errors and to inhibit, track, and recover improper payments."
As a small business owner in a regulated industry, I continue to be appalled when I read these auditor reports and see how tens of millions of our tax dollars are not administered with the right process and controls. I hope the legislature will have the discipline and patience to deal with these deficiencies. There is an overwhelming need to continue working on this issue, as well as others to ensure we restore integrity to our public programs. These programs are designed to help the truly needy and when the programs are abused, or funds misused, it is the truly needy who suffer because the resources of the programs are not all available to them. We can and must do better.
Please Stay in Touch
We are now just a few weeks from session end, so please continue to stay in touch to share your thoughts and ideas on issues important to you. You can schedule a time to meet with me in my office anytime by calling (651) 296-7065 or share your thoughts via email by emailing me at rep.bob.vogel@house.mn.
Have a great week and a happy Easter & Passover,
Bob