State lawmakers have been investigating the State of Minnesota’s $850 million settlement with 3M regarding water contaminated with perflurocarbons (PFC) in the East Metro in order to learn more about the agreement.
Recently the Minnesota House Ways and Means Committee held a hearing on the topic, and after listening to the MPCA’s discussion with the committee, I have a few concerns.
The settlement outlines three priorities: clean drinking water, natural resources protection, and ensuring that any unused funds be placed in a state account where they can be used on other clean water projects across the state.
Issue 1: the agreement designates a fund where 3M settlement money will go and right now that fund doesn’t exist. By session’s end, the Legislature will need to create that fund and then delegate the authority as to how it will be spent, otherwise the MPCA may not have that authorization as required by our Constitution. By contrast, the MPCA seems to think the settlement has been has been written so that legislative involvement is not needed. We recently dropped the bill to create the account.
Issue 2: the MPCA views its “administrative fees” as a justified expense for 3M settlement dollars, and the agency plans on taking a chunk of this funding for its purposes. Considering the Legislature very generously funds the MPCA every biennium, I find this problematic.
Issue 3: the potential of MPCA using this money for anything other than East Metro clean water needs.
Let’s be clear – PFC’s in our groundwater will never go away. They will still be present after we’re all long gone, and because of this our water will never be perfect. The filtering systems our communities need to install will need replacing in 20 to 30 years, and this funding has to be used – and available – for this purpose.
I’m sorry, but I have a problem with some bureaucrats 20 years from now deciding that this settlement money should be used elsewhere in Minnesota.
In the House, we are consulting our legal staff to determine how to ensure this money is used locally without violating the settlement agreement. At the very least, we have to create a 3M settlement account. We also need to determine if the MPCA can charge back administrative fees, and if so, ensure that the amount is very limited. I also think we should require MPCA to report to the Legislature annually on its spending,
I don’t want the MPCA or someone else ever making the call that our water is acceptable so a new way can be found to spend this 3M settlement. This money exists because our water was polluted; that means every nickel of the 3M settlement must be spent to mitigate contaminated water in the affected areas of Demark Township, Cottage Grove, and others communities and I’m working hard to ensure our laws reflect that.
POSITIVE BUDGET AND TAX RELIEF NEWS
Here’s some good economic news. Minnesota's February state budget forecast shows a $329 million surplus, which is much different than the $188 million deficit projection outlined by those same economic analysts in November.
Some die-hard partisans attempted to spin that November projection into a sky-is-falling economic crisis in Minnesota. As I cautioned at the time, that was truly short-sighted. That forecast assumed Congress would not approve a tax relief bill and would not reauthorize funding for the Children’s Health Insurance Program. Weeks later, Congress approved both.
Minnesota’s economists also credited "the stimulus" from tax reform for the positive balance.
Last year hardworking Minnesotans benefited from the largest tax relief proposal approved over the past two decades. This $650 million plan included Social Security tax relief for senior citizens, a first-in-the-nation tax credit for college student loan payments, property tax relief for every small business owner, and improved dependent care tax credits for working families.
The residents I’ve spoken with seem very pleased with the tax relief that has been given to them at the state and federal level over the past year, and our updated budget forecast finds our state’s economy to be in good shape. Hopefully, we’ll have another opportunity to let middle-class Minnesotans keep more of their earnings this year.