Capitol Update #13 April 27, 2012

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1 Capitol Update #13 April 27, 2012 We are now days from adjournment. I must express my disappointment with the lack of serious work that has been done by the legislature this session. We have yet to find a way to support a strong jobs/taxes bill, which is critical as we emerge from this recession. Small businesses look to us for both relief and in a more limited way to provide an environment that results in improved consumer confidence. We have not even debated the bonding bill yet and still plan to adjourn very soon. This is not best practice, yet I will do all I can to deal with the cards I have been dealt. I remain hopeful that my colleagues and I will use the final days to build consensus amongst ourselves and with the Governor to take advantage of this unique opportunity to make a positive impact in our communities and in the great state of Minnesota. Bonding Bill In particular, time is running out to pass a large bonding package that restores the state s infrastructure through targeted, regionally-balanced investments across Minnesota. With interest rates low and the construction industry in need of a boost, now is clearly the time to pass a substantial bonding bill that grows jobs and supports Minnesota s economy in the longterm. Unfortunately, the only bonding packages being considered this year have been far too small, and ignore several key projects like the Southwest Light Rail and the University of Minnesota. As we look at the global marketplace, the University of Minnesota is perhaps the most important asset we have to attract, retain, and train talent and future productive leaders for our state.

2 Vikings Stadium Legislation to build a new Vikings Stadium is moving through the Senate committee process this week. Just over a week ago the bill was stalled in the Local Government Committee; now the bill has a final Senate committee stop before moving to the floor for a full Senate vote. The proposal, which has been approved by the Senate Local Government, Jobs, and Finance Committees (the latter of which I am a member) funds the construction and maintenance of a new Vikings stadium at the current Metrodome site in Minneapolis. The terms of the bill estimate the total cost of a new, fixed-roof stadium and on-site infrastructure at $975 million. Building and Operating Costs (30 Year Period) The Vikings share of the cost covers both building expenses and operating expenses over a 30 year period. The state s share of the cost is proposed to come from expanding charitable gambling to include electronic forms of pulltabs and bingo and would include no money from the state s general fund. The City of Minneapolis s share would come from renewing and redirecting convention center sales and hospitality taxes. The State would redirect these funds after the Convention Center bonds were paid off. I have pledged to both do all I can to facilitate keeping the team while not raising people s taxes to do so. This financing mechanism accomplishes that. The best part of the financing package is the historically low interest rate locking in at approximately 3.17%. So while I wish we had gotten some provisions that went to the other side, the low rates help offset that disappointment.

3 Aquatic Invasive Species Funding This summer, our community will inevitably be facing one of the toughest battles with Aquatic Invasive Species to date. For this reason, my colleagues and I passed legislation this week to increase fees on hunting and fishing licenses. The money raised from the increase in licensing fees will go directly to helping fund Minnesota s Game and Fish Fund, which would have fallen into the red if additional revenues were not found. This fund is used for fish and wildlife management, ecological services, and regulation enforcement. The Department of Natural Resources (DNR) work is becoming increasingly important as they attempt to slow, and eventually stop, the advance of aquatic invasive species. The fee increase will bring an estimated $11 million to the Fund. This was a crucial first step in what will likely be a challenging battle with Aquatic Invasive Species for years to come. The Game and Fish Bill has gone through conference and now awaits floor action. Senator Bonoff with a great group of exchange students from Germany currently attending Wayzata High School.

4 Health and Human Services Omnibus Bill The Health and Human Services Omnibus Bill passed the Senate unanimously on Tuesday. The bill appropriates $18.2 million to some of the programs that sustained the most difficult budget cuts in the 2011 Special Session. New spending in this area is made possible by an expected repayment of funds that result from a profit limit placed last year on Minnesota s nonprofit HMOs. Some of the items in the Health and Human Services Omnibus bill include: A delay in the 20% wage cut for relative PCAs Implementation of the 20% wage cut for relatives who provide personal care assistance services is delayed to July 1, The Commissioner of Human Services is directed to study the feasibility of licensing personal care attendant services and report to the legislature by January 15, Adult Foster Care and Group Home Changes A need determination process will address the overall issue of closures, and the current number of beds to close (128 beds) is extended for a year. Medical Assistance for Employed People with Disability (MA-EPD) Individuals over age 65 are allowed to remain on MA-EPD. 1.67% Continuing Care rate reduction delay the 1.67 percent continuing care rate payment cut is delayed by a year, from July 1, 2012 to July 1, Restoration of 2011 cut to low needs individuals The 2011 cut that was made to congregate living low needs is reduced from ten percent to five percent (pending approval of a federal waiver). Autism Study A new study will look at models of housing with supports that involve coordination of services for children with autism. School Trust Lands Bill School trust land management is an important issue that affects many people and agencies across our state. I supported this bill, and I believe it is important to explain why I voted for it. The Minnesota Constitution states that we have a fiduciary responsibility to maximize the profitability of these school trust lands for education funding while preserving the resources for future generations. HF 2244 would make sure that there is ample oversight to prevent any abuses to these lands by allowing the DNR to still maintain control of the lands. In addition to DNR control, the bill also creates a Legislative Commission and Director to oversee the planning

5 for the harvesting of the resources of these lands. The Director is charged with preserving the trust assets for future beneficiaries by balancing short-term and long-term interests so that longterm benefits are not lost in an effort to maximize short-term gains. I believe that having multiple parties rigorously overseeing these lands ensures that no one will be given the authority to exploit them. Secondly, other states have implemented similar changes in the management of their trust lands that have yielded positive results. For example, Utah has increased its trust lands fund from $18 million to #1.3 billion over the past 16 years by instituting reforms like the ones spelled out in HF I support this broadly bipartisan bill because it is the product of many years of research, discussion, and compromise between several stake holders. Numerous people across the political spectrum believe it is the right time to carefully and prudently move forward with these management reforms in order to increase the revenue we can generate for the good of the students in all of our schools. And, I am an unwavering champion for the preservation of our treasured MN lands. I don t believe these two sentences are in conflict. Sunset Commission This past week Representative Mary Kiffmeyer and I organized pre-conference meetings with any and all stakeholders interested in shaping the outcome of the Sunset Bill. We made a point of inviting all stakeholders who had remaining discrepancies with the bill. The idea was to flush out all issues with the bill so that it could advance as smoothly as possible, for - as I ve explained in previous updates - it is crucial that we come to some conclusion this session. We had long and arduous meetings that went late into the night. Finally, we had come to agreed upon conclusions to bring back to the House and Senate floors. I was pleased with the result. However, when I presented this bill on the Senate floor, it was amended by my colleagues and will now be vetted in a more formal conference committee. On a personal note, it was very disappointing that the GOP members did not respect the work of this bi-partisan commission. Their amendment required the commission to come and review all of the councils for a second time in This seems to indicate a lack of trust in the work of the Commission and adds unnecessary time and expense to this process. Rep. Kiffmeyer and I will attempt to reach some acceptable resolution in conference. June Primary Last week, I told you about the possibility of changing our September primary to June. This did not pass.

6 Hopkins School District Dispute A neighborhood in Edina Parkwood Knolls has put forward a proposal through their legislators to allow them to separate from the Hopkins School District. This proposal was heard in Education Committee. This typically is not something that the legislature handles. Imagine if every neighborhood that was disappointed with their boundaries came before the legislature this would result in chaos. We did reject this on that basis, but urged both districts to work together to find an acceptable resolution. Key Business Reform Initiative Every year there are one or two key business reform initiatives. Last year, I authored and passed the IT Consolidation Act. This change is now being implemented and will hopefully reward us with increased efficiencies and lower costs. This effort also sets that stage for future shared services opportunities. The key business reform of the 2012 legislative session is an initiative I have worked hard on. As we plan for the appropriate reorganization of functions to eliminate redundancy and deliver 24/7 high quality service, we must make fact-based decisions to determine priorities. Therefore, we proposed two studies: 1) Benchmarking Study This study requires an in-depth review of back-office functions in the Department of Administration, including accounting, financial reporting, procurement, fleet services, human resources, and payroll functions. 2) Student Transportation Study This study must consider potential efficiencies that could result in employing a regional approach to student transportation. Consideration must be given to potential synergies between general transit and student transportation functions and must include all geographic areas of the State. You may have read that the City of Minneapolis has recently moved their high school students to the public transit system. We will watch this with interest.

7 Tribute to Jackie Stevenson Jackie Stevenson was, in many ways, a founder of the present day DFL party, and, in particular, stood for the importance of women in elected office. I honor her memory by writing of her today. Please click here to read the beautiful tribute in the Star Tribune (Monday, April 24 th ). Warm Regards,