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Legislative Update: March 23, 2018

Posted By Administration, Monday, March 26, 2018
The Governor’s Supplemental Budget Request for the Department of Employment and Economic Development was presented in the House Job Growth and Energy Affordability Finance Committee on Wednesday, March 21.  Commissioner Shawntera Hardy presented the Governor’s priorities for her Department. The presentation was very much the same as that which had been presented to the Senate Jobs Committee one week earlier. The focus was on to the Border-to-Border Broadband request, the Angel Tax Credit and an earmark of $2 million from the Minnesota Investment Fund to preserve jobs at the Verso Paper Mill in Duluth.

One development this week which is of concern is action by Chairman Pat Garofalo to remove the word “unserved” from the legislation authorizing the use of funds from the border-to-border broadband program.  “Unserved” communities were given priority treatment in the competitive process over “underserved” communities. Representative Garofalo argues that satellite service capacity renders virtually every community capable of receiving service and therefor no one is truly “unserved.”

Where there has been some considerable pushback on the Chairman’s analysis – including from rural members of his own caucus.  Nonetheless, the Chairman’s perspective is carrying the day on the House side. This issue will ultimately be resolved in the context of a compromise with the Senate over these budget items -- that’s assuming that we end up with a Supplemental Budget Bill which would be a vehicle for addressing these issues in 2018.

This week marks the first Committee Deadline at the Legislature. Policy Bills were to have cleared either the House or Senate Policy Committee by midnight, Thursday night, in order to keep moving through the process.  The second Committee deadline – the date by which bills have to have cleared Policy Committees and been referred to either a Finance Committee, Capital Investment Committee or the Tax Committee is scheduled for midnight March 29.  

The Legislature will recess on Friday, March 30 and they will be on Easter Break until Monday, April 9. The Supplemental Budget Bill will likely start taking shaping the week of April 9.

Last week, we reported that Senator Jeremy Miller had introduced Senate File 3579 which seeks an appropriation of $5 million for the Redevelopment Grant and Demolition Grant Programs. This week, Representative Tim Mahoney introduced H.F. 3968 which is the companion to Senator Miller’s Bill. Representative Miller is joined by Representative Mahoney is joined by Representative Greg Davids (R-Preston) who signed on as a co-author of Representative Mahoney’s bill.

While it is unlikely additional funds will be found this Session for the Redevelopment Grant Program, having this bill introduced fosters discussion about the importance of this program and will help build the case for restoring funding in the next budget cycle.  

We will provide a report again at the end of next week when the Policy Committee Deadlines are behind us.  
 
If you  have any questions, please give us a call at (651) 221-1044 or send an email to kwalli@fryberger.com, srichie@fryberger.com or dtomassoni@fryberger.com.

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Legislative Update: March 20, 2018

Posted By Administration, Tuesday, March 20, 2018

Governor's Supplemental Budget - DEED

On Monday, March 19, 2018, the Senate Jobs and Economic Growth Committee heard testimony regarding the Governor’s  Supplemental Budget Request for the Department of Employment and Economic Development (DEED).  Most specifically applicable to EDAM was testimony by Commissioner Shawntera Hardy on the border to border broadband request of $30 million.  This program funds the expansion of broadband service to areas of Minnesota that are underserved.  This program provides grants for up to 50% of the project development costs.  This funding level is expected to expand broadband access to over 11,000 households, businesses, and community institutions.  Three percent of this appropriation is reserved for program administration and broadband mapping.     

Commissioner Hardy also testified on the Angel Tax Credit.  The Governor’s Tax Bill recommends one-time funding in the amount of $10,000,000 in fiscal year 2019 for the Angel Tax Credit Program.  The program provides a 25% credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology, or a new proprietary product, process, or service in specified fields.  

The Department also proposes Minnesota Investment Fund language which would  appropriate $2 million for the expansion of the VERSO paper mill in Duluth.  

Economic Development Day at the Capitol

EDAM joined MAPCED, SBDC and Metro Cities in sponsoring an Economic Development Day at the Capitol on February 28.  The participants had the opportunity to hear from Senator Jeremy Miller (R-Winona), Chair of the Senate Jobs and Economic Growth Finance and Policy Committee.  Senator Miller has been a strong advocate for economic development funding.  He comes from a strong family business background and understands the importance of business development and job creation.  One of the topics that we discussed with Senator Miller was the need for funding for DEED’s Redevelopment Account.  Subsequent to our Day at the Capitol event, Senator Miller introduced Senate File 3579 which calls for an appropriation of $5 million in Fiscal Year 2019 for the Redevelopment Grant and Demolition Loan Program.  

Senator Miller may not have a spending target which will accommodate this funding level in the 2018 Session, but it provides a framework for discussing the restoration of funds for this important program.

Participants in the Day at the Capitol event also heard from Representative Jeff Howe (R-Rockville).   Representative Howe serves on the House Job Growth and Energy Affordability Finance Committee.  He was the author of the 2017 House File which was the vehicle for funding the Minnesota Investment Fund and the Job Creation Fund.  We also had the opportunity to talk with Representative Howe regarding the importance of restoring funding for the Redevelopment Program.

DEED Deputy Commissioner Kevin McKinnon addressed the group as well.  He spoke about the timing of the Supplemental Appropriations Bill in light of the fact that the State Revenue Forecast was being released the day of the event.  

In addition to the discussions regarding the Minnesota Investment Fund, Job Creation Fund and Redevelopment Account, participants were able to share their support for the Border to Border Broadband Program and the Angel Tax Credit.  

The Day at the Capitol provided an opportunity to elevate the profile of these important economic development programs with many key legislators. We will be following-up with key legislators as the Session progresses.

If you have any questions, please call (651) 221-1044 or send an email to kwalli@fryberger.com, srichie@fryberger.com or dtomassoni@fryberger.com.

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House & Senate Committee Deadlines Announced

Posted By Administration, Sunday, March 11, 2018
The House and Senate leadership recently announced the Committee Deadlines for the 2018 Legislative Session. This is a short Session and the deadlines are going to be fast upon us. The first Committee Deadline is set for Thursday, March 22 at midnight. This is the date by which bills need to have been moved out of either the House or Senate Committee of origin and on to either an Appropriations Committee or the Tax Committee.  

We will keep you informed as the pace of schedule quickens.  Read the official notice from Speaker Daudt and Senate Majority Leader Gazelka.

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Hearing Announcement: Job Growth & Energy Affordability Policy and Finance

Posted By Administration, Tuesday, February 27, 2018

HEARING ANNOUNCEMENT
Job Growth and Energy Affordability Policy and Finance

Wednesday, February 28, 3:00 PM

EDAM members -
We wanted to make you aware of the hearing taking place this Wednesday, and the agenda item related to the Minnesota Investment Fund (MIF). Read the background on the MIF audit.

We are asking members to attend the hearing to show their support for MIF funding, which is one of EDAM's top 2018 legislative priorities.

If you plan to attend, or have questions, please contact:
Government Relations Committee Chair Chris Eng or Vice Chair Judy Johnson.

 



Committee Meeting Notice
To: HOUSE INFORMATION, 175 STATE OFFICE BUILDING
Mike Cook (296-1341)
From: Adam Seidel, (296-1544)

Committee: Job Growth and Energy Affordability Policy and Finance

Date/Time/Location:
Wednesday, February 28, 2018
3:00 PM to 4:00 PM
10 State Office Building

Committee Chair: Rep. Pat Garofalo

Agenda:
Review of Results of 2017 Session:

Jobs Expansion Report, Digikey, Thief River Falls
Rick Trontvet, Vice President of Administration

Summit Academy OIC Training Results
Louis J. King, CEO

Release from the Office of the Legislative Auditor: an audit on the Minnesota Investment Fund
David Kirchner, Office of the Legislative Auditor Program Evaluation Division

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Legislative Update: February 20, 2018

Posted By Administration, Tuesday, February 20, 2018
Updated: Monday, February 26, 2018

After a long and often times contentious off-season, the 2018 Legislative Session officially begins today. The major issue to be addressed is a Capital Investment Bill – to provide state funds for public infrastructure projects all across Minnesota.

The question of whether funding will be available to expand economic development programs remains to be seen.  Prospects for a Supplemental Appropriations Bill depend on the Revenue Forecast which will be published at the end of February.  If the Forecast shows state revenues to be lagging, there is little prospect for any kind of a Supplemental Appropriations Bill.  Even if the revenues are coming in at a rate which provides a small or even moderate surplus, there will likely be significant competition from K-12 Finance and Health and Human Services for these extra state dollars. 

The other key focus of the 2018 Session will be a state Tax Conformity Bill – to adjust state taxes to avoid severe impacts on Minnesota taxpayers as a result of the interplay of our State Code and the recently enacted Federal Tax Reform measures.   The Tax Conformity Bill will also need to rely on state surplus funds to mitigate adverse tax consequences for Minnesota taxpayers.  

As soon as the February Forecast is published, we will provide our analysis and report on prospects for additional resources to be directed to the economic development programs that are so important to business growth and job creation across the state.

If you have any question or comments, please give us a call at (651) 221-1044 or send an e-mail to kwalli@fryberger.com, srichie@fryberger.com or dtomassoni@fryberger.com

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2018 Legislative Session Preview

Posted By Administration, Tuesday, December 19, 2017


Judging from the action packed off-season, the 2018 Legislative Session will have no shortage of storylines. With legislative lawsuits, accusations of sexual harassment, a wide-open gubernatorial race and both US Senate seats on the ballot, not to mention the actual policy issues at play in 2018, it promises to be a very busy close to the 90th Legislature. This preview aims to make sense of what has happened since the Legislature adjourned in May and what it will mean for 2018.

Legislative Funding Saga

Governor Dayton and legislative leaders spent the off season locked in a protracted legal battle stemming from the Governor’s line-item veto of roughly $130 million in funding for the House and Senate. The Governor vetoed the funding with the goal of forcing legislative leaders to call a special session to renegotiate provisions in the tax bill. Legislators opted instead to take Governor Dayton to court over what they claimed to be an unconstitutional abolishment of a co-equal branch of government. Legislators won the initial court decision, with the Governor’s veto ruled null and void and full legislative funding restored. But Governor Dayton appealed the ruling to the Minnesota Supreme Court, which chose not reverse the lower court ruling, but deemed the veto constitutional and ordered mediation between the two sides.

Mediation lasted a day and a half and was ultimately successful only in upsetting the parties further. Governor Dayton left claiming he had been lied to by the Legislature with respect to how long they could operate without additional funding. Legislative leaders were frustrated that they were renegotiating things that had already been negotiated during Session. The case then went back to the Minnesota Supreme Court, who upheld the constitutionality of the veto.

The Legislature acted quickly after the ruling to transfer $26 million in reserves from the Legislative Coordinating Commission to maintain operations ahead of the 2018 Legislative Session.  Considering the rhetoric and divisive nature of the legal matter, the funding issue is likely to roll over into the 2018 Legislative Session and keep tension between Democrats and Republicans extremely high.  

Sexual Harassment Policies

Sparked in part by the national conversation taking place around sexual harassment in the workplace, the Minnesota Legislature has had several high profile incidents of sexual harassment come to light in recent weeks. DFL Senator Dan Schoen and Republican Representative Tony Cornish were both accused of inappropriate sexual behavior. Both initially attempted to fight the allegations, but eventually agreed to resign their positions in the Legislature.

A request for a state task force to address “the culture of our legislative bodies and campaigns” has been called for by lawmakers who have experienced sexual harassment. The issue of sexual harassment is undoubtedly larger than just the two lawmakers accused of inappropriate behavior to date. Expect it to be a dominate story line all Session. With both a Democrat and a Republican accused of inappropriate behavior so far, this issue offers a chance for the parties to work together without partisanship derailing the effort to address a serious issue. A bipartisan effort to update sexual harassment policies at the State Capitol has been launched and will likely be a central issue in 2018.

State politics have also been impacted by the resignation of Senator Al Franken for sexual misconduct predating his time in the US Senate. Lieutenant Governor Tina Smith has been selected to serve out the final year of Senator Franken’s term, which has created additional drama at the state level. According to the Minnesota Constitution, State Senator and current Senate President Michelle Fischbach will replace Tina Smith as Lieutenant Governor and serve with DFL Governor Mark Dayton. Senator Fischbach and Senate Republicans are confident she can serve in both roles simultaneously, while Governor Dayton and DFL leaders are claiming she must resign her Senate Seat. It remains to be seen if this is an issue that can be worked out by party leaders or if we will be seeing yet another high profile court case in advance of the 2018 Legislative Session.

Bonding Bill  

The second year of the biennium is traditionally the year in which a bonding bill is assembled. In order to be eligible for this form of state funding, a project must be publically owned, be of state or regional significance, and be a capital project. To fund these projects, the state sells general obligation bonds on the bond market and pays the debt service on these bonds over time.  Normally the House and Senate Capital Investment Committees go on extensive tours of the state to see projects vying for state funding. They are able to tour facilities and ask questions of stakeholders to better understand the projects applying for state support.  However, as a result of the ongoing funding issue discussed above, the Senate Capital Investment Committee cancelled their bonding tour in an effort to save resources. The House Capital Investment Committee went ahead with their tour as scheduled.

There will be no shortage of requests for capital projects from across the state. It will be up to the Capital Investment Committees in each body to sort through the requests and assemble a bill that can get a 60 percent majority to pass, a process that will be highly anticipated and scrutinized by stakeholders across the state.

Supplemental Budget

While Minnesota’s two-year budget was set during the 2017 Legislative Session, there is an outside chance there will be a supplemental budget bill in 2018. A supplemental budget bill’s chances will be closely tied to the State’s economic forecast, which will be updated in February. The November economic forecast projected a deficit totaling $188 million, although the majority of this can be attributed to the lack of Children’s Health Insurance Program (CHIP) funding from the Federal government. In the event that a CHIP funding solution is worked out in Congress, the February forecast may be rosier than the November report was. We will be closely following these developments and will adjust our expectations and approach accordingly. 

Gubernatorial and US Senate Races

Politics usually plays a starring role at the Legislature, but with the 2018 gubernatorial race already fully underway, that will be especially true of the 2018 Legislative Session. Neither the Democrats nor the Republicans have a clear front-runner for their party nomination yet, and as such we are likely to see candidates jockeying for position during Session. Currently there are several sitting Legislators from both the House and Senate who have officially entered the Governor’s race.  With Senator Franken’s seat now thrown into play in 2018, along with Senator Klobuchar’s seat, there will be no shortage of statewide races, meaning both parties will have plenty of current office holders angling for a promotion. How this may impact the 20108 Legislative Session remains to be seen, but you can certain it will!

Please reach out with any questions to Sam Richie or Kevin Walli at Fryberger, Buchanan, Smith & Frederick, P.A., who can be reached at (651) 221-1044.

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Legislative Update: June 8, 2017

Posted By Administration, Thursday, June 8, 2017

Post-Session 2017

Legislators worked right up until the deadline for adjournment of the 2017 session, and then they just kept working.

Unable to reach an agreement which allowed them to finish work by Midnight on Monday, May 22 (which is the constitutionally-mandated deadline for adjournment), legislative leaders negotiated with the governor and got an extra 36 hours or so to complete their work. They needed even more than that, finally adjourning for good in the early morning hours of Friday, May 26.

Jobs & Economic Development

On the jobs and economic development front, the news was generally favorable. Included in the bill which Governor Mark Dayton eventually signed into law were the following provisions:

  • The Minnesota Investment Fund receives $25 million for the biennium.
  • The Job Creation Fund receives $17 million for the biennium.
  • The Border to Border Broadband Grant Program receives $20 million for the biennium.
  • The Broadband Development Office receives $500,000 for the biennium and an additional $200,000 for the biennium.

Unfortunately, there was no funding included for the Redevelopment Grant Program. The funding for MIF, JCF and Broadband are part of an overall appropriation of $194.3 million for DEED. Of that amount, $81.7 million went to business and community development programs, $8.7 million went for general support services, $4.5 million went to the Minnesota Trade Office, $53.7 million went for vocational rehabilitation, $12.85 million went to services for the blind, and the aforementioned total of $20.5 million went for broadband. Also included in the Jobs bill was $1.35 million per year for JTIP, a Minnesota Job Skills Partnership program.

The full spreadsheet is available here: http://www.house.leg.state.mn.us/comm/docs/aabb4a6d-3433-41f2-b3f9-152e2c880d75.pdf

DEED Administrative Changes

The DEED bill contains a number of equity provisions initially funded in the 2016 supplemental budget. It also includes base funding for the Job Skills Partnership as well as other workforce development funds for incumbent and new workers/Minnesotans new to the workforce.

There are a few administrative changes to MIF and JCF worth noting. MIF language includes the one-time flexible use of local revolving loan funds with a 20% penalty. JCF language includes some lower requirements to qualify as a JCF business in Greater Minnesota, and for businesses that are owned by minorities, veterans, women, or persons with a disability.

Another policy provision allows the DEED commissioner to transfer up to $2 million a year between MIF and JCF to meet business demand. And now a local government entity may receive more than one award in a fiscal year.

The Transportation Economic Development (TED) program was funded with $3.5 million in the bonding bill as well (details below).

Bonding Bill

The Special Session produced a $990 million capital investment bill that is heavy on infrastructure and of which nearly one-fourth is focused on transportation.

Among the projects of note funded in the bill are:

  • $115.93 million in local road improvement fund grants
  • $71.12 million for rail grade separation crossings on crude oil rail transport corridors in Coon Rapids, Moorhead and Red Wing
  • $56.25 million for the local road improvement program
  • $55 million in water infrastructure ($40 million for wastewater and $15 million for drinking water)
  • $12.1 million for the Orange Line bus rapid transit line between Burnsville and downtown Minneapolis
  • $11.55 million for four flood hazard mitigation projects
  • $10 million for Reinvest in Minnesota (RIM)
  • $12 million for the Business Development Public Infrastructure grant program
  • $1.2 million for the Innovative Business Development Public Infrastructure grant program

TIF Items of Note

Included in the Special Session Tax Bill is language providing cities with a local tool to help address housing needs in areas of Greater Minnesota where wages, housing and market forces make it economically prohibitive to build much-needed workforce housing. The bill modifies the definition of economic TIF districts to authorize workforce housing projects and approve an economic development TIF district for workforce housing if a city has the following findings:

  • the city is located outside the seven-county, Twin Cities metropolitan area (defined by reference to the Metropolitan Council’s jurisdictional area);
  • the average vacancy rate for rental housing in the city or any other city within 15 miles is 3 percent or less for at least the last two years;
  • a business in the city or within 15 miles of the city that employs 20 or more full-time equivalent employees has provided a written statement that the lack of available rental housing has made it difficult to hire employees; and
  • the city intends to use increments to develop workforce housing.

Higher income limits will also be allowed under the Minnesota Housing Finance Agency challenge program used for housing TIF districts if the project receives an MHFA grant from the program.

Also included is language which modifies the definition of increment under the five-year rule (imposing time limits on spending increments) and the pooling rule (imposing percentage limits on increments that may be spent outside of the TIF district) to exclude increments that are repaid by developers. The effective date affects new certifications.

Also included is language creating a workforce housing tax credit intended to encourage development of workforce housing by modifying interfund loan provisions. The changes make it easier for cities and development authorities to make and document interfund loans. The changes include:

  • Modifies interfund loan provisions to make it easier for cities and development authorities to make and document interfund loans. The changes include:
  • Allowing loans to be made up to 60 days after the money has already been transferred or spent.
  • Authorizing the passage of the interfund loan resolution before the TIF plan is approved.
  • Authorizes rewriting loan terms after the loan has been made if it is done before the TIF district is decertified.
  • Requires an annual report of the amount of interfund loans made and any amendments of loan terms made in prior years.

Transportation Bill

The Special Session produced a $5.9 billion, two-year transportation funding bill that relies heavily on the state general fund and bonding, focusing primarily on funding construction for roads and bridges. Existing tax revenue from the sale of auto parts and rental vehicles that now goes into the general fund will be directed to fund roads and bridges. The bill provides a general fund increase of $300 million in new transportation funding for 2018-2019 and a $448 million increase in 2020-2021.

Providing $640 million for general road construction and $300 million for the Corridors of Commerce program, the bill authorizes $940 million in trunk highway bonds over the next four years. The bill provides $115.93 million in local road improvement fund grants.

The bill also authorizes $10 million to be transferred to the Minnesota Housing Finance Agency to the housing development fund for public housing rehabilitation, $17 million for state matching funds for USEPA capitalization grants and $55 million for the Water Infrastructure Fund.

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Legislative Update: May 23, 2017

Posted By Administration, Tuesday, May 23, 2017

Legislature Begins Special Session

Members of the state legislature worked late into the night repeatedly in the countdown to Monday night’s constitutionally-mandated deadline for adjournment of the session. And once again, they ran out of time, forcing overtime at the State Capitol.

As is required by state law, the House and Senate both adjourned before midnight on Monday, and will not return to a regular session until February 20, 2018. But at one minute past midnight, a special legislative session called by Governor Mark Dayton began and will run until the early hours of Wednesday morning, by which time they expect a compromised two-year state budget to be in place.

This will end the threat of a government shutdown and provide some new spending via a bonding bill, which is expected to pass sometime late Tuesday.

On the economic development front, the Jobs Conference Committee finally wrapped up work on a new bill at 2:00 a.m. Monday, with the conferees sending their compromised piece of legislation on to the House and Senate floors. It passed both bodies on Monday, and is headed to the governor for his signature or a veto.

The numbers for EDAM interests got slightly better from the version that was passed earlier in May and vetoed by the governor. View the full spreadsheet.

The House and Senate have no funding included for the Redevelopment Grant Program. Some key positive funding numbers in the bill include:

  • On Line 71 the Minnesota Investment Fund receives $25 million for the biennium ($1 million more than the initial spreadsheet).
  • On Line 74 the Job Creation Fund receives $16 million for the biennium ($1 million more than the initial spreadsheet).
  • On Line 159 the Border to Border Broadband Grant Program receives $20 million for the biennium. ($5 million more than the initial spreadsheet)
  • On Line 160 the Broadband Development Office receives $500,000 for the biennium. (no change)
  • On Line 227 the Broadband Development Office receives $200,000 for the biennium. (no change)

We will continue to update when the governor takes action on the bill.

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Legislative Update: May 15, 2017

Posted By Administration, Monday, May 15, 2017

Good News/Bad News As Conference Committee Wraps Up

The Joint House/Senate Jobs Conference Committee concluded its work last Tuesday morning, passing a bill that will be sent to the floor of both legislative bodies for a final vote. It’s expected to pass both the House and Senate (which are led by Republican majorities) and will be sent to Governor Dayton for his signature or veto.

That’s the good news. The bad news is that last Monday, negotiations between legislative leaders and the governor broke down, and the conference committee passed this bill (and several others) without an agreement with the governor’s office, so they are likely to be vetoed. As of Friday, when he headed to St. Cloud for the 70th annual Governor’s Fishing Opener, Gov. Dayton had already begun vetoing some of the bills sent his way without an overall agreement.

The jobs bill itself featured numbers slightly better than what was under consideration by the conference committee last week.

View the full spreadsheet.

The House and Senate have no funding included for the Redevelopment Grant Program. Some key positive funding numbers in the bill include:

  • On Line 71 the Minnesota Investment Fund receives $25 million for the biennium ($1 million more than the initial spreadsheet).
  • On Line 74 the Job Creation Fund receives $16 million for the biennium ($1 million more than the initial spreadsheet).
  • On Line 156 the Border to Border Broadband Grant Program receives $15 million for the biennium. (no change)
  • On Line 157 the Broadband Development Office receives $500,000 for the biennium. (no change)
  • On Line 223 the Broadband Development Office receives $200,000 for the biennium. (no change)

We will continue to update if/when the jobs bill gets to the governor’s desk.

Countdown To Adjournment Is On

The constitutional deadline for adjournment of the legislative session is at Midnight of Monday, May 22, which means the legislative leaders and Gov. Mark Dayton have entered into the make-or-break phase of their budget negotiations. Republican leaders in the House and the Senate agreed to a joint budget proposal last week and have been working with Gov. Dayton to construct a two-year state budget that would take effect on July 1, 2017. If no budget is put in place by that date there will be a government shutdown.

Speaker of the House Kurt Daudt (R-Crown), Senate Majority Leader Paul Gazelka (R-Nisswa) and Gov. Dayton have made public statements recently expressing the willingness to compromise on their respective positions, but much public venting has taken place over the lack of an agreed-upon process for negotiations and all sides are expressing frustration over the perceived lack of movement from the others. The House and Senate moved forward this week by passing their negotiated omnibus bills related to certain areas of the state budget. As of this week the House and Senate have passed their omnibus Agriculture, Education, Environment and Natural Resources, and State Government bills and sent them to the governor, who has pledged a veto for all bills in which his position was not adequately accounted.

More Cars on the Road to 2018

The legislative session is attracting a lot of the focus of capitol reporters and others, but there are still a number of public figures with their eyes set on 2018. With Gov. Dayton already declaring he will not seek re-election, both parties are keen to win the seat next year. Former gubernatorial candidate Jeff Johnson, a Hennepin County commissioner, has announced he will seek the Republican endorsement for governor in 2018. He joins State Representative Matt Dean (R-Dellwood) as the only other notable Republican to announce their campaign for governor. There will surely be more announcements following the adjournment of session, when other local officials will run for congressional seats or other offices.

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Legislative Update: May 8, 2017

Posted By Administration, Monday, May 8, 2017

14 Days Remain

With just two weeks remaining before the constitutional adjournment deadline of the legislative session on Monday, May 22, the final stretch is upon us. Last week conference committees released almost all of their negotiated reports, representing the Republican-controlled legislature’s final proposed budget before beginning negotiations with Governor Mark Dayton.

In January, Gov. Dayton offered a complete proposal for the state budget (it was revised in March following the February budget forecast showing an increase in the budget surplus) which totaled $46.1 billion over two years with an additional $295 million in tax cuts, while the joint House and Senate budget comes to a total of $44.8 billion over two years with a $1.15 billion in tax cuts. In addition to negotiating the state budget and tax cut package, the legislature and governor have to agree to terms of a bonding bill (more on this below), Real ID implementation and the pre-emption bill that would create state-wide labor standards, among many other things.

Jobs Conference Committee Numbers Set, Negotiations on Tap

The biggest news of the week came Monday, when members of the joint House/Senate Conference Committee on Jobs met at the Minnesota Senate Building to release their spreadsheet. The numbers for EDAM initiatives are generally good. They are lower than many had hoped, but they are generally funding amounts that will allow some good work going forward. Most key numbers reflect a true compromise between the less favorable House position and the more favorable Senate position.

The full spreadsheet is available at http://www.house.leg.state.mn.us/comm/docs/6941984c-7360-4433-a38d-8addaf66aec3.pdf

Unfortunately there is no funding included for the Redevelopment Grant Program. But some key positive funding numbers in the bill include:

  • The Minnesota Investment Fund receives $24 million for the biennium.
  • The Job Creation Fund receives $15 million for the biennium.
  • The Border to Border Broadband Grant Program receives $15 million for the biennium.
  • The Broadband Development Office receives $500,000 for the biennium.

As a reminder, EDAM members are strongly encouraged to reach out to their elected officials in these last few weeks to support funding for these important initiatives.

Internet Privacy Provisions

Near the end of 2016, then-President Barack Obama established rules for the Federal Communications Commission that would prohibit internet service providers (ISPs) from selling customer data without receiving consent. Early in 2017 there was a law passed at the federal level overriding the rules that were supposed to take effect later this year. In response to concerns from Minnesotans, there was a provision added to both the House and Senate Jobs omnibus bill that would limit what ISPs can do with their customers’ data without receiving their consent.

This week in conference committee negotiations the provision limiting ISPs’ ability to sell data was removed from the Jobs omnibus bill. Sen. David Osmek (R-Mound), chair of the Senate Energy and Utilities Finance Policy committee, said that while the provision has been removed, that doesn’t necessarily mean that the language won’t be reattached to the bill as session continues, saying it is a “work in progress” and that “every Minnesotan’s privacy rights are the same today as they were on January 1.” Rep. Paul Thissen (DFL-Minneapolis), who offered the provision in the House, said that he is confident the work will continue on internet privacy and he believes the work will get done to include the bill in the Jobs omnibus bill.

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