CAPITOL UPDATE: END OF SESSION 2019
It was an honor to serve the Senate District 46 community during the 2019 legislative session. This year, the only divided state Legislature in the United States found a way to strike a compromise aimed at moving our state forward. With Governor Tim Walz at the helm of the executive branch for the first time, a newly-elected and Democratic-controlled House, and a slim Republican-controlled Senate, there was much winning and losing for both sides in the final compromise.
We successfully fought off cuts to programs and crucial services that millions of Minnesotans depend on every day. We also succeeded in furthering investments in E-12 education, higher education and public safety, passed a bill that intends to mitigate the opioid crisis, continued the provider tax at a 1.8% level, and agreed to many other important measures that will assist in moving our state in the right direction. However, I am disheartened by the lack of progress in some areas or even the outright blockade of sound bipartisan bills. Included in the group that didn’t pass this year were driver’s licenses for all, a 100% clean energy bill for 2050, and paid and family medical leave. I am disappointed that these measures did not pass. However, in any compromise, there are items that ought to be passed that, unfortunately, end up being left out. There are many more examples of the Senate majority’s refusal to move forward with bipartisan legislation, but it is my hope that all sides will continue to work together to pass many of those bills during the upcoming 2020 legislative session.
Senator Latz spoke to what lacked in the Public Safety Budget Bill during the Special Session.
Insulin
One example of the Senate majority’s refusal to move forward with a bipartisan bill was a measure that would have made life-saving insulin available on a temporary basis for those who cannot afford it. The bill included a fee on insulin makers that would have funded a program in which diabetics could obtain insulin in the case of an emergency. Despite a variation of the bill passed on the Senate floor during the regular session, the bill was left out of the final health and human services omnibus bill during the special session. It is my hope that the Legislature will take another look at passing this bill next session.
No Infrastructure Investment
As part of a broad platform of ideas and beliefs, then-candidate for Governor Walz campaigned on a gas tax increase proposal, which Minnesotans took into account when they overwhelmingly supported him in the 2018 election. In this fee-for-usage proposal, Minnesotans would have fairly poured in millions into our state’s infrastructure system. However, the Senate majority blocked and objected to further funding our state’s crumbling bridges and roads. As they continue to push real solutions down the road, our state’s bridges and roads will require greater attention at higher costs in the future. It is my belief that we must address these issues as soon as possible. Roads and bridges will not wait to deteriorate while the legislature decides how to fix them.
Provider Tax
This year, the 2% provider tax was set to sunset, which would have left a large hole in our state’s health care budget. The Senate majority, from the beginning, was dead set on leaving the sunset without providing any real solution for alternative funding. It was crucial that legislators found a solution and continued funding the many public health programs that millions of Minnesotans depend on every day. While I have for years believed that these programs are best funded out of our state’s general fund, not on the backs of our health care providers who cannot pass on much of the tax to payers, I also understand the urgency of maintaining the funding itself. As of this session, the best way to approach this issue was to maintain the funding. In the end, the Governor and Legislature settled on a new, ongoing level of 1.8% that will help pay for health care programs for 1.2 million Minnesotans.
Elder Care Agreement
After years of hard work put in by advocates, providers, and legislators, a bill to protect our state’s elderly and most vulnerable adults was passed. In this measure, seniors and vulnerable adults will be better equipped to receive the care they need in a safe environment in a nursing home, assisted-living facility, and elsewhere. Although the final compromise was not the ideal consumer-friendly bill, I am encouraged that all sides found a compromise that will most importantly work for our state’s elderly and most vulnerable adult populations.
Included in the legislation is the licensing of assisted living facilities and the strengthening of consumer protections. Unlike before, assisted living facilities are now required to have a license to operate, a much overdue measure considering Minnesota will become the last state in the country to pass a law of this kind. The legislation also includes a licensing framework that authorizes the Department of Health (MDH) to inspect and fine facilities for violations, includes clarification and strengthening of the rights of individuals living in assisted living settings, and sets new requirements and protections for electronic monitoring. The Legislature provided full funding to implement the reforms, including money for licensing and enforcement staff and systems upgrades at MDH and the Department of Human Services, 17 new positions at the Ombudsman for Long-Term Care, and new data analysis.
Public Safety Bill
As the ranking minority lead on the Senate Judiciary and Public Safety Finance and Policy Committee, I take great pride in advancing policy and financially investing in programs that both improve lives and betters the condition of our state’s public safety system. DFLers and Governor Walz worked hard to grow investments in this bill. In the end, all sides settled on a $125 million increase in funding from the overall total from last biennium.
Included in the public safety budget bill is money for additional prison guards to improve safety, an accomplishment that DFLers and the Governor should be proud of after the current Senate majority originally proposed a mere $25 million budget bill that omitted most funding for additional security personnel at the state’s prisons. Minnesota’s correctional officers called on legislators this year to improve the overall safety for inmates and officers and we struck a bipartisan agreement in response to those correctional requests. Additional investments were made in establishing a Department of Corrections ombudsperson – a bill I introduced in January – money for the state’s school safety center, a missing and murdered indigenous women task force, and a task force to study the state’s sexual criminal conduct laws.
Despite the above wins, I am disappointed in the Senate majority’s inability to move forward with a solution to mitigate gun violence in our state. What may be even more distressing was the Senate’s refusal to provide a public hearing for both the extreme risk protection order bill and the criminal background check for private purchases bill. Minnesotans deserve better and I intend to pursue, once again, public hearings and the passage of these two gun violence prevention measures in the 2020 session.
Additionally, I am disappointed that a number of bipartisan bills that passed through the committee process in either the House or Senate, or both, were left out of the final deal. These good government bills include a model policy for eyewitness identification relating to police lineup best practices, reforming Minnesota’s probation system via a cap on probation terms and providing guidance for probation sentences, and a number of other solid measures. The Senate majority also kicked the proverbial can down the road on the legalization of cannabis and voted down a committee amendment to establish a task force that would address, in further detail, the prospect of legalization.
Despite the public safety budget bill’s shortcomings, this is a bill that reflects a divided government compromise. I will continue to work next year to make sure bipartisan policy moves along and does not become stuck at a permanent impasse.
Senator Latz and First Lady Gwen Walz stood backstage during a gun violence prevention rally earlier in the session.
Opioid Agreement
In the final hours of regular session, the Senate and House passed an opioid bill that was signed into law by the Governor. After the Senate passed a similar bill last year, the Republican-controlled House in 2018 refused to move the bill forward. Fortunately, this Legislature found common ground and passed a bill that will raise roughly $21 million a year, funded through fees paid by drug makers and distributors, to fight opioid addiction via new and proven strategies for treatment and prevention. The bill also outlines funding for counties to help with increased costs for child welfare services due to substance abuse.
Using the Budget Reserve
Included in the final budget deal is a compromise that pulls $500 million of the state’s rainy-day fund for general fund purposes. Prying away such money from the fund has cut it by more than half, leaving roughly $491 million on the bottom line for 2022. For any successful financial planner, yet alone a state, having a robust budget reserve is a critical part of adequately preparing for the next economic downturn. This change in reserve budgeting could jeopardize Minnesota’s long-term fiscal health and the state’s AAA bond rating. I hope we can rebuild the budget reserve, despite the economy’s slowing growth.
Education Compromise
After much negotiation, I am proud that the Governor and the Legislature agreed to an additional $543 million in new funding for Minnesota school districts over the next two years. The money included translates to a 2% increase each year in the basic funding formula, restores $49 million in Pre-Kindergarten investments, funds 4,000 young learners across the state, caps the special education cross subsidy to help school budgets, and makes permanent funding increases for Minnesota’s Bureau of Indian Education (BIE) schools.
Although the 2% increase is highly encouraging, the final deal fell short on bringing Minnesota’s ratio of counselors to students in line with national standards and failed to address other needs of thousands of students across Minnesota. I am motivated to continue to advocate for sound policies and further fund our school systems in the upcoming legislative session. Every student, regardless of their race or zip code, ought to be permitted access to the materials they need to compete in today’s economy and be able to grow and develop in a learning environment that is surrounded by talented teachers who are equipped with the right tools to help those students succeed.
Help America Vote Act (HAVA)
After months of wasted time, the Senate majority finally agreed to include the full $6.6 million HAVA funding authorization during the special session. Minnesota was the last state to accept this money. Considering the recent Mueller Report and its findings that concluded a great deal of foreign interference in the 2016 elections occurred, I find it unacceptable that a deal came at the end of this session to fully fund initiatives that protect our election system from such harm. Nonetheless, I am grateful the money is accessible for our election protection leaders to use against those who wish to undermine democracy.
Wage Theft
In recent years, investigations found that some businesses have taken advantage of workers by not treating them fairly or withholding pay. The Department of Labor and Industry estimates roughly 39,000 Minnesotans are impacted by wage theft per year. The resulting financial number of unpaid wages adds up to nearly $11.9 million per year. To combat this problem, legislation was passed this year that would penalize these businesses by creating a definition of wage theft in the criminal code. The new law will also expand enforcement powers of the Minnesota Attorney General to include wage theft. By passing this measure, our state will be equipped with the proper tools to go after dishonest businesses and hold them accountable for withholding pay their employees earned and deserve.
Tax Conformity
The tax deal incorporated an article to bring Minnesota in conformity with many of the federal tax changes passed in 2017. This change will make the tax-filing process easier for all Minnesotans as almost all individual filers are protected from tax increases and many could see tax relief. The tax bill included the following provisions in the tax conformity deal:
- Increases Minnesota’s standard deduction to $24,400 married-joint/$12,200 single (matching the federal amount), which will cut taxes by $134 million for over 1.9 million taxpayers. The average cut is $160 – about a 7% tax cut for the median household income.
- Permanently allows taxpayers to either select the standard deduction or itemize for Minnesota tax purposes, whichever is more beneficial.
- Eliminates Minnesota’s personal exemptions.
- Establishes a new state dependent exemption equal to $4,250 in tax year 2019 – the amount allowed under prior federal law and current Minnesota law.
- Matches the federal government’s $10,000 State and Local Tax (SALT) deduction cap of $10,000.
- Retains the charitable contributions deductions, but increases the threshold from contributions in excess of 50% of AGI to 60%.
- Retains Minnesota’s miscellaneous itemized deductions that the federal government eliminated, including union dues, work-related travel expenses, school supplies purchased for classroom use, etc.
Hands-free Driving
We passed a bipartisan bill to combat drivers using cell phones. State law already bans text messaging, emailing, and using a web browser with a handheld device while operating a motor vehicle. Despite these laws, distracted driving due to cell phone use was a contributing factor in one-in-five crashes in Minnesota between the years of 2013-2017. As legislators looked for years to find a real solution to mitigate the high number of crashes that occur because of drivers using cell phones while operating a vehicle, a solution was found in allowing hands-free only cell phone use for vehicle operators. The new law will go into effect in August and the State Patrol aims to initiate a public education campaign this summer to inform drivers of the law change.
Town Hall Scheduled
Thank you for your continued interest in the state legislature and our work serving Senate District 46. If you have any time-sensitive questions, comments, or concerns please call my office at 651-297-8065.
Regards,
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Ron Latz