Federal Bankruptcy? Downey Has Contingency Plan

Two years ago, he recalls Democrats brought "ridicule" to his plan. Last year, his idea fizzled in the midst of heated budget negotiations.

Undaunted, one week into the 2012 Legislative session, Rep. Keith Downey (R-Edina) is determined to push through language in the state budget that includes plans in case the federal government goes bankrupt. 

"Any large organization should do contingency planning based on the loss of major suppliers or vendors," he said. "If the federal government would ever have some kind of financial situation where they couldn't make good on our payments, I think we'd do well as an agency to start planning for what that would look like."

Downey's HF545, which came before the State Government Finance Committee late last week, would require the state budget document to include federal insolvency contingency plans. Downey said the bill breezed through the hearing with very little fanfare, and now heads to the Ways and Means Committee for further discussion.

"I think it's really good timing," he said. "People are thinking about the fiscal situation emerging at the federal level and this is something we need to be mindful of."

Downey and his Republican colleagues have been busy writing a substantial amount of legislation for the remainder of the session, which he said they will start rolling out in the next few weeks.

Here’s a rundown of other bills authored or co-authored by your legislators this past week:

Sen. Geoff Michel (R-Edina): 

• Authored a bill appropriating $12 million for an expansion and renovation at the Minnesota Children's Museum. SF1593, introduced Jan. 30.

• Co-authored a bill appropriating $10.3 million appropriating money for a regional 911 emergency communications center. SF1623, introduced Jan. 30.

• Co-authored a bill reducing business property taxes. SF1624, introduced Jan. 30.

• Co-authored a bill modifying child care assistance payment of funds requirements to prohibit union dues or fair share fees deduction from distributed funds. SF1630, introduced Jan. 30.

• Co-authored a bill imposing a two-year moratorium on state agency rulemaking. SF1631, introduced Jan. 30.

Rep. Keith Downey (R-Edina):

• Co-authored a bill requiring teacher candidates to pass a basic skills exam. HF1770, introduced Jan. 24.

• Co-authored a bill requiring a state government reorganization study. HF1813, introduced Jan. 24.

• Co-authored a bill changing the small business set-aside program for veteran-owned small businesses, authorizing county set-aside programs for veteran-owned small businesses and changing reporting requirements. HF1821, introduced Jan. 24.

• Authored a bill modifying the small business investment credit and providing a credit for start-up and emerging Minnesota businesses. HF1823, introduced Jan. 24.

• Co-authored a bill providing for legislative review of certain rules, providing for sunset and legislative approval of existing rules. HF1831, introduced Jan. 24.

• Authored a bill increasing the maximum award amount in the state employee gainsharing program. HF1850, introduced Jan. 24.

• Co-authored a bill allowing school districts to base unrequested leave of absence and certain discharge and demotion decisions on teacher evaluation outcomes. HF1870, introduced Jan. 24.

• Co-authored a bill exempting the first $100,000 in value of each commercial-industrial property from the state general levy, phasing out the state general levy on commercial-industrial property over 20 years, freezing the state general levy on seasonal recreational property, increasing maximum homeowner property tax refunds and providing for a temporary increase in the special property tax refund. HF1914, introduced Jan. 24.

• Authored a bill requiring counties and certain cities to report additional budgetary information. HF1954, introduced Jan. 26.

• Co-authored a bill providing that certain contract terms do not continue in effect after the expiration of a collective bargaining agreement. HF1974, introduced Jan. 26.

• Authored a bill ensuring a person may pursue a lawful occupation free from unnecessary regulations, stating a right to engage in an occupation to create a greater number of jobs and specifying conditions for government regulation of occupations to protect against misuse of occupational regulations to reduce competition and increase prices to consumers. HF2002, introduced Jan. 30.

• Authored a bill exempting nonbusiness purchases made over the Internet from sales tax. HF2031, introduced Jan. 30.

• Authored a bill proposing the Equal Pay and Benefits Act and providing a method for determining public employee compensation. HF2033, introduced Jan. 30.

Rep. Pat Mazorol (R-Bloomington):

• Co-authored a bill ensuring a person may pursue a lawful occupation free from unnecessary regulations, stating a right to engage in an occupation to create a greater number of jobs and specifying conditions for government regulation of occupations to protect against misuse of occupational regulations to reduce competition and increase prices to consumers. HF2002, introduced Jan. 30.