Doepke: What the Legislature's First 100 Days Mean to You

Editor's Note: Connie Doepke, of Orono, is a Republican representing District 33B in the Minnesota State Legislature. Lake Minnetonka Patch asked Doepke, as a representative for this region, to contribute occasional opinion pieces.

By State Representative Connie Doepke

The Legislature has just finished its first 100 days.  My colleagues and I are continuing the work of putting Minnesota priorities first, balancing the budget and improving the economy.  Facing a projected $5 billion deficit, it is time to leave the status quo behind, stop Minnesota’s unsustainable spending growth of over 20 percent a year and create a stronger future. 

We have passed a budget that provides tax relief, implements sweeping innovation, reduces costs, and sets our state up for a sustainable future.  Following are highlights of some of the key omnibus bills currently going through the committee process with the Senate.  These bills will also be reviewed with the Executive Branch of our government.

Taxes

The House tax bill would implement a series of tax reductions aimed at putting more money in the pockets of lower and middle-class Minnesotans and helping the people of this state drive us forward to economic recovery.  Specifically, the proposal reduces in three steps from 2012 to 2014 the first tier income tax rate from 5.35% to 4.75% and reduces the second tier rate from 7.05% to 6.75%. 

In order to promote private sector jobs and make Minnesota more attractive to businesses looking to relocate, the bill also includes the following business tax relief designed to improve the state’s economic climate: a)  an upfront capital equipment sales tax exemption to provide businesses more capital for expansion and new jobs; b) modification of the R & D tax credit and dedicates withholdings for science and technology; and c) reduction of the state property tax levy on commercial industrial properties.

Education

The Higher Education Finance Bill focuses on students by fully funding programs that help them pay for college – the state grant program – and making no reductions to the work study program.  It also creates tuition controls to protect students from unreasonable tuition increases and sets performance benchmarks for the U of M and MnSCU.

In the midst of a challenging budget situation, the funding levels for the U of M and MnSCU are rolled back to the late 1990’s levels.  Total reductions are 14.1% or $411.6 million as compared to the Governor’s recommendations which reduce the Higher Education budget by $170.9 million.  By focusing on students, promoting reform and driving accountability, the goal is to maximize the effectiveness of human and financial resources.

The House K-12 education bill proposes many reforms, including: a) ending integration aid; b) sunsetting ineffective compensatory programs; c) providing scholarships for families to send their children to early childhood education programs and enable parents to choose the best place for their children; d) enhanced accountability measures and school grading; e) expanded family choice in education; and f) significant mandate relief.

When it comes to funding, the legislature increases the state’s commitment to K-12 education 3.2% compared to the previous biennium.  The legislature is working first of all, to protect public schools from ineffective programs that tie the hands of local schools, and secondly, to redirect the money to basic funding that allows schools more input over how the dollars are spent to achieve the best result for their students.

 The Environment

The House Environment bill sets priorities for accountable and responsible spending that provides long-term benefits for our environment and economy.  The legislation prioritizes funding to focus on core functions to achieve clean air and water and directs funding for emerging critical issues – including aquatic invasive species and keeping our state parks open.

The Constitutional “Legacy Amendment” and The Fish and Game Omnibus Bills will be heard on the House Floor later in the session.

Health and Human Services

Health and Human Services makes up 28.9% of general fund spending and is driven by rising health care costs, continued expansion of programs and eligibility, and Minnesota’s aging population.

The goals of our health and human services legislation are straightforward: a) protect priorities (seniors, disabled, and safety nets); b) promote reform; and c) put our system on a sustainable path.  The House bill spares nursing homes from across-the-board rate cuts, freezing rates at existing levels.  Although rate equalization is repealed, rates for the elderly are capped for four years at 2% per year.  The bill also promotes paths to increased independence and quality of life for disability waiver recipients by requiring more frequent evaluations and more consistent determination of level of need.

Additionally, the legislation builds reforms into a system that creates incentives for high cost health providers to become more efficient while maintaining quality, and promotes health care homes and community based services with several pilot and demonstration projects.  The bill puts forward several reform efforts to redesign the state’s human service system for improved outcomes, cost-effectiveness and sustainability, including a global Medicaid waiver that would provide budget certainty and regulatory flexibility to innovate and craft a nation-leading system.  Overall, the House HHS bill leaves the status quo behind, leveraging innovation and reform to make our system accountable, responsible, and sustainable.

State Government

The State Government Finance Bill implements sweeping reform initiatives designed to reduce costs, improve service delivery, and drive government into the 21st century.  Initiatives in the bill include:

• 15 x 15 Initiative (15% reduction of state workforce by 2015)

• Sunset Commission

• Zero-based budgeting principles

• Tax analytics and business intelligence tools

•  Pay for performance

Last fall, our citizens demanded smaller government, less spending and better service.  Innovation and reform is how we put Minnesota on track for fiscal sustainability, economic strength, and a better future.

Thank you for the privilege of serving you.  I look forward to working with both the Senate and the Governor to make sure we accomplish our work.  I will continue sending newsletters throughout the session to keep you up to date on our work here in St. Paul.  As the legislative session continues, I encourage your continued feedback and involvement.  It is an honor to represent the people and priorities of District 33B.