The Last Week

If things go as planned, today will be our final day of the session. I have learned that in the Legislature things seldom go as planned - so I give it a 50% chance of happening today. We have closed our finance and bonding bills and have completed all conference committees. However, the Governor let us know yesterday that he felt some of his top priorities were not included. This message was received late in the process and agreements had already been made in most areas. Therefore, last minute changes were made and those that couldn’t be agreed to were not adopted. We have three branches of government, as you know, and within each come a set of tools. We can pass laws, a majority necessary for most and 60% for bonding bills. Because this super majority is necessary, negotiations are even more fragile and tenuous. The Leaders from both houses had agreed on a global framework to finish the session. It may seem simple to reopen and accommodate, but it is much harder in practice. As a member of the Finance Conference committee we have been meeting into the wee hours of the morning every day all week and the prior week. Yesterday was our final day and the late negotiations caused a very difficult challenge. After much consternation, and adopting several new amendments we closed our bill up late last evening. The Governor can employ his final tool and veto these bills. He could also line item veto any provision that has money associated with it. So as I write this and we watch what happens in the coming days, I would not be surprised if we see some vetoes and read some harsh statements issued between the parties. Next week, after the dust has settled our office will send a complete summary of what is in and what is out.

The Governor did state that he preferred a smaller spending target. Please understand that in a surplus environment of over one billion dollars we have put forward spending of $283m. With some of it being one time, using this occasion to take care of high need initiatives such as potholes, augmenting second harvest, investing in early childhood education, launching the MN model of higher education apprenticeships (PIPELINE), and most importantly enacting an ongoing 5% raise for people who care for those with disabilities, we have strategically adopted principles of fiscal sound management. When you have a surplus, guiding principles should include, saving, and paying off debt, in Government’s case, cutting taxes and prudent spending. We cut taxes, put money into the reserves, put cash into the bonding bill to reduce debt and spent strategically. This approach is in contrast with how I perceived the actions of last session. I did believe we enacted taxes that were imprudent last session and adopted spending targets that were greater than I would have liked. The surplus we are dealing with this session is a direct result of the income tax increase last session. Given my commitment to make MN a beacon among states, a magnet for new enterprise, and a mecca for expansion of existing enterprise, I am hopeful we reconsider and reform our tax code in the coming year. We do not need swings in revenue, we need ongoing strength and stability so that we can fulfill the promise that we all bring to our great State.

Next week, when the final summary is sent, hopefully we will learn that our provisions will have survived the final hurdle of Governor acceptance.

Bonding Bill Summary

Click here to view the Bonding Bill. A strong commitment to higher education and our students is reflected in this bill. We must invest in our infrastructure to maintain the high quality post secondary environment necessary to excel in a 21st century environment. Yet equally, if not more important, is the urgency needed to transform the way we deliver post secondary education. As we have discussed, the current system and associated costs are unsustainable. You can count on my leadership to make this a top priority. I do not have the answers and I welcome your counsel in this endeavor. I am pleased to report that the St. David Center expansion is included in the final bonding bill. St. David’s is a shining example of a how a modern, transformative approach to providing early intervention and educational services to young children can be housed in an old redesigned building, making an extraordinary difference in the lives of our children and their families. Please also note the significant investment in housing. It is unacceptable in our country, in our state, to have people living without their own shelter. I pledge to do all I can to eradicate homelessness.