2018 Legislative Session: A Few Facts to Help Cities Prepare

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2 Page 2 of Legislative Session: A Few Facts to Help Cities Prepare Find out about new legislators, unfinished business, important dates, and more. The Minnesota Legislature convened at noon today, Feb. 20, to begin the second half of its 90th session. The session will be almost exactly three months long. It is the second year of the biennium. What s different this session? There were two special elections on Feb. 12, that filled one House seat and one Senate seat vacated during the interim due to resignations: House District 23B. This seat (formerly held by Tony Cornish) will now be filled by Jeremy Munson (R-Lake Crystal). Senate District 54. This seat (formerly held by Dan Schoen) will now be filled by Karla Bigham (DFL-Cottage Grove) (Link to: mem_id=1238). These election results do not change the partisan make-up between Democrats and Republicans in the House and Senate. The House remains with a Republican majority of 77 Republicans and 57 Democrats. The Senate remains in Republican control with a smaller margin of 34 Republicans and 33 Democrats. DFL Gov. Dayton is entering the final session of his final term. All House of Representatives members, the governor, and all constitutional offices will be up for election this November. At least 10 current legislators have announced their upcoming retirement at the end of the session. What unfinished business remains for the Legislature to work on? The Legislature is likely to discuss a bill that would restore the Legislature s funding and federal tax conformity early in the session. A bonding bill will also likely be discussed. The governor released his bonding bill proposal as a starting place for discussion (read related article (Link to: ). There have also been recent hearings related to data practices, pensions, taxes, and more. (Read about the work of the Data Practices Legislative Commission (Link to: It is unclear how Sen./Lt. Governor Michelle Fischbach s (Link to: roles will be reconciled, but remains an issue that will likely impact legislative activity.

3 Page 3 of 11 What are some important dates to note during the session? Feb. 28: The state will release its February Budget Forecast (read related article (Link to: ). Early March: Gov. Dayton will unveil a supplemental budget, which is dependent upon the February Budget Forecast. March 21-22: The League will hold its annual Legislative Conference for Cities. Get details and register now! (Link to: March 30-April 8: The Legislature will pause for the Easter/Passover break. This is a great time to advocate and meet with your legislators while they are back in their districts. May 21: This is the last day of the regular legislative session. The Legislature is constitutionally required to adjourn on this date. The Legislature will also set internal deadlines for getting bills through the legislative process. These deadlines are yet to be determined. How can I find my way around the Capitol? The League provides free parking for elected and city staff who are visiting the Capitol. League staff are also available to help cities navigate the capitol complex. Get tips and tools for navigating the Capitol (including a video!) (Link to: Did you catch the League s legislative preview webinar last week? If you missed the Feb. 14 legislative preview, don t worry: there s a recording of the 60-minute briefing available on the League website. Access the recorded webinar now (Link to: This webinar covers the status of the 10 priority issues (Link to: adopted by the League Board for work during the 2018 legislative session. How can I stay updated on what s happening at the Capitol? Don t forget to follow League IGR staff on Twitter (Link to: 23LMCLEG&src=typd) (or see the Twitter feed on the League s home page at (Link to: ).

4 Page 4 of 11 Subscribe to Capitol Updates (Link to: (an e- newsletter that comes out up to once per day during session, as news at the Capitol warrants). League staff will also send out targeted action alert s when advocacy is needed on specific legislation as it moves through specific committees. Don t hesitate to contact League IGR staff (Link to: if you have questions on any legislation. Read the current issue of the Cities Bulletin (Link to:

5 Page 5 of 11 State Budget Forecast Preview: Things Are Looking Up Recent tax collection reports and congressional actions could turn November s forecasted deficit into a surplus, which is likely to be good for cities. (Published Feb 20, 2018) Although the next state budget forecast will not be released until Feb. 28, recent reports suggest that the $188 million general fund deficit announced with last November s budget forecast could be wiped out and then some. In addition, recent actions by Congress that were not considered in last November's forecast could also positively impact the state's budget status. A positive budget forecast will make it more likely that important city programs will be fully funded and possibly even increased by the Legislature during the 2018 session. Recent revenue collections up Minnesota Management and Budget s (MMB) January Revenue and Economic Update (Link to: included revenue collection information for the months of November and December of That report indicated that the state received $219 million more than expected for those two months. Although good news, there was speculation that the increase in revenues could have been a one-time acceleration of tax collections as taxpayers pre-paid taxes in 2017 in response to the limited deduction in state and local taxes and other provisions included in the tax legislation enacted by Congress and President Trump in late December. Last week, MMB released the January Revenue Review (Link to: id=326461), which gives the results of state revenue collections for the month of January. It suggests that the higher collections at the end of 2017 may not have been entirely a one-time event. According to the report, net general fund revenues totaled $2.56 billion in January, which was $349 million, or 15.8 percent more than forecast. Net collections for most categories of taxes were higher that forecast. Net receipts from individual income, corporate, and other taxes for the month exceeded the forecast, while net sales tax receipts were lower than expected. When collections for the past three months are combined, fiscal year-to-date tax receipts are now $12.78 billion, which is $568 million (4.7 percent) higher than was forecast last November. These tax collection reports do not include

6 Page 6 of 11 information on actual state expenditures. Federal factors The November state budget forecast included a footnote that the state s share of the federal Children s Health Insurance Program (CHIP) funding could not be included in the forecast without congressional action to fund the program. As a result, the forecast assumed that the state would bear the financial responsibility to continue the program, which was estimated to total $178 million over the current biennium. The budget agreement enacted by Congress earlier this month included long-term funding for CHIP, which will positively impact the state s budget forecast. The House and Senate Taxes committees will be discussing whether and how the state will conform to changes in the federal tax system, and any final tax conformity legislation will almost certainly impact state tax collections, either positively or negatively. Those discussions will likely consume the attention of the tax committees for much of the 2018 legislative session and, as a result, the February state budget forecast will not anticipate any future conformity changes to Minnesota s tax laws. However, the federal Tax Cuts and Jobs Act (TCJA) includes some features that could automatically increase the state s revenue collections, regardless of whether the Legislature enacts federal income tax conformity legislation. For example, under the TCJA, corporate deferred foreign income that is actually returned (repatriated) to the United States will result in increased tax collections by the state. The state Department of Revenue had initially estimated state revenue gains of $160 million for the current biennium, and this increase will be included in the upcoming February state budget forecast. The full state budget forecast that will be released on Feb. 28 will include updated information on both revenue and expenditures for the balance of the current fiscal year biennium, which began on July 1, 2017, and will end on June 30, The forecast will also include important estimates of the state budget for the following biennium. Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Contact Gary Carlson

7 Page 7 of 11 IGR Director (651) or (800) gcarlson@lmc.org (Link to: mailto:gcarlson@lmc.org)

8 Page 8 of 11 LMC Board Adopts Federal Relations Work Plan The Board also heard from a National League of Cities representative about federal legislative issues of importance to Minnesota cities. (Published Feb 20, 2018) The League of Minnesota Cities (LMC) Board of Directors reviewed and adopted the LMC 2018 federal relations work plan on Feb. 15. As part of the plan, the League will continue to strengthen relationships with Minnesota members of Congress and staff and, in collaboration with the National League of Cities (NLC), provide resources related to federal legislative activity to LMC members. Visit from NLC rep The Board also heard from NLC Federal Advocacy Program Director Mike Wallace (Link to: who was visiting Minnesota last week for a series of meetings on the League s federal relations and advocacy work (Link to: Wallace briefed the LMC Board on President Trump s recently released infrastructure plan and NLC s work to make sure city interests are represented throughout the development of the legislation (read related article (Link to: ). In January, NLC launched Rebuild with Us, a national campaign dedicated to strengthening the federal-local partnership with investments in transportation, water, workforce, and broadband infrastructure. Learn more about the Rebuild with Us campaign (Link to: Wallace preps Minnesota for D.C. visit During his visit, Wallace spoke directly to League members during a Feb. 14 LMC legislative session preview webinar about the upcoming NLC Congressional City Conference in Washington, D.C. (Link to: (Access the recorded webinar. (Link to: ) League staff and several Minnesota officials will attend the conference to meet with Minnesota members of Congress and emphasize the importance of infrastructure investment and other issues important to Minnesota cities. Wallace also met with Minnesota members of

Page 9 of 11 NLC Advocacy Committees (Link to: http://www.nlc.org/advocacy/committees) to talk about the upcoming conference and NLC advocacy efforts at the nation s Capitol.

9 Page 9 of 11 NLC Advocacy Committees (Link to: to talk about the upcoming conference and NLC advocacy efforts at the nation s Capitol. In addition, he took time during his visit to Minnesota to see our newly renovated state Capitol building (as shown in photo: Wallace, left; LMC IGR Counsel Irene Kao, center; and Hastings Mayor Paul Hicks). For more information about LMC s federal relations work, contact Ann Lindstrom, LMC intergovernmental relations representative, at alindstrom@lmc.org (Link to: mailto:alindstrom@lmc.org ) or (651) Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Contact Ann Lindstrom IGR Representative (651) or (800) alindstrom@lmc.org (Link to: mailto:alindstrom@lmc.org )

Page 10 of 11 Local Road Improvement Program Grants Distributed About half of the $25 million provided was distributed to large and small cities statewide.

10 Page 10 of 11 Local Road Improvement Program Grants Distributed About half of the $25 million provided was distributed to large and small cities statewide. (Published Feb 20, 2018) The Minnesota Department of Transportation (MnDOT) has selected 36 local road projects to receive grants from the Local Road Improvement Program (Link to: (LRIP). See the list of selected projects (Link to: In 2017, with the support of the League of Minnesota Cities, the Legislature appropriated bond funds for the LRIP, established in Minnesota Statutes, section (Link to: to assist local agencies in constructing or reconstructing their local roads. Approximately $25.3 million was appropriated for a statewide solicitation for LRIP projects to be constructed in 2018, 2019, or Grant solicitations began Aug. 1, 2017, and the grant application period closed Dec. 1, About half of the $25 million provided was distributed to large and small cities statewide. MnDOT selected projects using criteria recommended by the LRIP Advisory Committee, made up of local government stakeholders. The LRIP Advisory Committee set the funding targets as follows: 30 percent state aid cities 35 percent counties 30 percent small cities and townships 5 percent discretionary MnDOT also followed the committee s recommendation that funds be dispersed evenly so that the amount spent in each MnDOT district is comparable. In addition, projects selected through this program must meet the eligibility requirements of the Routes of Regional Significance Account, the Rural Road Safety Account, or the Trunk Highway Corridor Account as defined in statute. According to MnDOT s State Aid Office (Link to: which administers the program with guidance from the advisory committee, the total amount of funds requested by grant applicants reached over $125 million. Given the demonstrable demand for funding, the League will be working with MnDOT and other stakeholders to advocate for more funding for the LRIP in future bonding

11 Page 11 of 11 bills. Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Contact Anne Finn Assistant IGR Director (651) or (800) (Link to: For More Information Contact Patti Loken State Aid Programs Engineer (651) (Link to:

12 LMC Awards Programs Page 1 of 2 LMC Awards Programs Nominate Your City or Official for a 2018 League Award! The League each year honors the special achievements of cities and city leaders. Entries are now being accepted for the City of Excellence Awards, C.C. Ludwig Award, James F. Miller Leadership Award, and Sustainable City Awards. The entry deadline for all awards is April 30. New! Awards will be presented and cities will be celebrated at an extended awards show and dinner on June 21 at the 2018 LMC Annual Conference in St. Cloud. Download the entry forms: City of Excellence Awards (pdf) (Link to: C.C. Ludwig Award & James F. Miller Leadership Award (pdf) (Link to: Sustainable City Awards (pdf) (Link to: inline=true) About City of Excellence Awards The City of Excellence Awards recognize cities for programs that have helped their cities progress in some way. Awards are given in three different population categories and in one special topical category, which is different each year. The 2018 Topical Category is "Promoting Leadership and Career Opportunities in City Government." Read more about the City of Excellence Awards (Link to: About the C.C. Ludwig Award and James F. Miller Leadership Award The C.C. Ludwig Award recognizes elected officials who have made significant contributions to Minnesota city government. Similarly, the James F. Miller Leadership Award honors appointed city officials who have gone above and beyond the call of duty for their city and all Minnesota cities. Learn more about the C.C. Ludwig Award & James F. Miller Leadership Award (Link to: About Sustainable City Awards Cities currently participating in the Minnesota GreenStep Cities program are eligible for the League of Minnesota Cities/GreenStep Cities Sustainable City Award. Get details about the Sustainable City Awards (Link to: Your LMC Resource Let us know if you have questions or suggestions about our LMC Awards Programs. Contact Don Reeder Assistant Director of Communications for Public Affairs (651) or (800) dreeder@lmc.org (Link to: mailto:dreeder@lmc.org)

13 LMC Awards Programs Page 2 of 2 New LMC Blog - The Pipeline (Link to:

14 LMC Staff News Page 1 of 1 LMC Staff News New employees Ahmed Shiiraar joined the League on Jan. 29 as an intern for administration and human resources. He is working on a master s degree in urban planning and local government management at Minnesota State University, Mankato, and is a research assistant in the Urban and Regional Studies Department. Shiiraar s has work experience as an environmental services intern for the City of Mankato. He also has studio project experience updating the comprehensive plan for the City of Worthington s parks system. ******************** Ever Mansfield joined the League on Feb. 12 as an intern in the Intergovernmental Relations Department. Ever is a student at Augsburg University majoring in sociology and urban studies. He is also currently working for the law firm of Foley & Mansfield as a document specialist. Read the current issue of the Cities Bulletin (Link to: Your LMC Resource Contact Donyelle Mikacevich HR Manager (651) or (800) dmikacevich@lmc.org (Link to: mailto:dmikacevich@lmc.org)

Apply Now to Be a Host Site for the 2018-2019 Minnesota GreenCorps Program Year https://www.lmc.org/page/1/greencorps2018.jsp?

15 Apply Now to Be a Host Site for the Minnesota GreenCorps Program Year Page 1 of 1 Apply Now to Be a Host Site for the Minnesota GreenCorps Program Year The Minnesota Pollution Control Agency (MPCA) is now accepting applications from organizations, including cities, that are interested in hosting a Minnesota GreenCorps member, who will help the host complete environmental projects. Minnesota GreenCorps is an environmentally focused AmeriCorps program coordinated by the MPCA, which places AmeriCorps members with organizations around the state to spend a year of service addressing critical environmental issues, while gaining experience and learning valuable job skills. Eligible organizations include public entities (local, regional, state, tribal), school districts, not-for-profit institutions of higher education, and 501 (3) nonprofit organizations. Organizations may apply for Minnesota GreenCorps members who will serve on projects in the areas of: 1. Air pollutant reduction 2. Waste reduction, recycling, and organics management 3. Green infrastructure improvements 4. Community readiness and outreach The MPCA plans to place up to 42 full-time members with host sites throughout Minnesota for the program year. Members serve approximately 40 hours a week for 11 months from September 2018 through August The application deadline is 5 p.m. on March 23. Learn more and apply (Link to: Read the current issue of the Cities Bulletin (Link to: Meet our city vendors! (Link to:

2018 Legislative Preview. League of Minnesota Cities Intergovernmental Relations (IGR) Team WEBINAR: Wednesday, February 14th, :00 2:00

2018 Legislative Preview. League of Minnesota Cities Intergovernmental Relations (IGR) Team WEBINAR: Wednesday, February 14th, :00 2:00 2018 Legislative Preview League of Minnesota Cities Intergovernmental Relations (IGR) Team WEBINAR: Wednesday, February 14th, 2018 1:00 2:00 Business Leadership Council Business Partners Abdo, Eick & Meyers