Special Session Wrap Up

The final session update includes the details on the budget bills that the Governor vetoed as well as the

bonding and legacy bills which did not get through the regular proceedings. As you know, Governor

Dayton vetoed three omnibus budget bills. Once a compromise was reached between the legislative

leaders and Governor Dayton, the Governor called the Special Session for Friday, June 12. The legislature

passed five bills plus a revisors bill that day, all of which the Governor signed.

The Legacy Appropriations bill was not passed during the regular Session as we unfortunately ran out of

time. This bill appropriates the sales tax revenue collected in four different Legacy funds under the

Minnesota Constitution. The Special Session bill allocated $97.2 million for Outdoor Heritage Fund, $115.8

million for the Clean Water Fund, $43.6 million for Parks and Trails Fund, and $60.8 million for the Arts

and Cultural Heritage Fund in the 2016 fiscal year. Detail is provided below.

The Senate passed a small Omnibus Capitol Investment or

Bonding Bill on the last day of Regular Session in May, but

there was not one passed in the House. I am pleased the

bonding bill passed during Special Session included $4.7

million in funding for the Vicksburg Lane bridge project in

Plymouth to alleviate the problem with the rail grade

crossing. Bonding bill details are also included below.

Now that all the bills have been signed by the Governor, we

will return for Session March 8, 2016 and updates will

resume at that time! Have a safe, healthy and joyous

summer.

Omnibus Education Finance bill

The biggest change in the renegotiated Omnibus Education Finance bill was an increase in funding on the per pupil

formula to 2% for both the 2016 and 2017 fiscal years. This increase provides an additional $236 per student over

the next two years. The original bill appropriated $30.75 million for early education scholarships; this was increased

by $17.5 million in the special session. There was also an additional $10 million allocated to Head Start to eliminate

the current waiting list for their programs.

This compromise reflects the commitment of the Governor and the legislature to fully fund schools and to make sure

our youngest learners have access to high quality pre-school education. The omission of universal pre-k in the final

deal was something I was pleased about and I strongly support the additional resources for the scholarships. All

children deserve equal opportunity to attend the pre-school of their parents choice.

Senator Bonoff speaking on the temporary Senate Floor during

Special Session

Changes to Education Finance Bill/Special Session Agreement:

Under the special session agreement, schools will now receive a 2% formula increase in both FY 16 and 17. This change will provide districts with an additional $117/per student in FY16 and $119/student in FY17.

o The formula allowance will rise to $5,948/student in FY16 and $6,067 in FY17. o Total formula increase for FY16-17: $350.47 million

The agreement provides additional $17.5 million in funding for early learning scholarships above the $30.75 million additional funded in the conference committee bill; total increase $48.25 million.

$10 million increase for Compensatory Pilot grants. The funding will provide aid for the following school districts: Anoka-Hennepin; Brooklyn Center; Osseo; Robbinsdale; Rochester; South Washington and Albert Lea.

$10 million in funding was a priority for Governor Dayton and will help eliminate the Head Start waiting list for low-income children in Minnesota.

$4 million for Minneapolis Northside Achievement Zone/St. Paul Promise Neighborhood: o This bill provides additional funding for the Promise Neighborhood program. The Saint

Paul Promise Neighborhood (SPPN) is a community-wide initiative to provide the academic and social supports children need to succeed in school and in life. Saint Pauls Promise Neighborhood is a 250-square block area in the heart of St. Pauls historic Frogtown and Summit-University neighborhoods.

o The Northside Achievement Zone Promise Neighborhood is a collaboration of organizations and schools partnering with families in a geographic Zone of North Minneapolis to prepare children to graduate from high school ready for college.

$4.5 million increase above the base for English Language Lerner program. This provision extends from six to seven the number of years schools can receive aid for instruction of English Language Learner students.

$1 million in funding for Education Partnership Grants for programs in Northfield, Red Wing and St. Cloud.

Indian Education Formula Aid o Incorporates the new formula aid as suggested by Governor and passed in the Senate. o The agreement does not require that schools receive Title VII (federal funds) to receive

state aid. o $9.5 million FY16-17. $2.3 million over the vetoed bill.

$5 million in additional funding for Bureau of Indian Affairs schools

Owatonna Referendum language provision o Legislative changes made in 2013 resulted in the Owatonna School Districts actual

referendum question stating a different amount than the district intended. o The bill adjusts the Owatonna districts per pupil referendum amount to what the district

had expected and communicated to voters when the dollar amount was placed on the ballot.

Omnibus Jobs, Energy, Housing, and Commerce bill

I was pleased to see the renegotiated Omnibus Jobs, Energy, Housing, and Commerce bill still included funding

for MNVest, the equity crowdfunding platform. I authored the legislation in the Senate to authorize equity

crowdfunding in Minnesota.

Major changes in the Special Session Omnibus Jobs, Energy, Housing, and Commerce bill:

$2 million increase for individual placement services for persons with disabilities and mental illness.

$100,000 decrease from the St. Cloud Area Salvation Army appropriation.

$2 million elimination of the Emerging Workforce Coalition proposal.

$500,000 increase for extended employment for rate adjustments.

$180,000 increase for Big Brothers Big Sisters programs.

$2.5 million increase for the Bridges Program run by the Minnesota Housing Finance Agency.

$10 million is transferred from the Workers Compensation Account for IT upgrades to the Workers Compensation IT System.

$76,000 operating adjustment for the Bureau of Mediation Services.

$324,000 compensation adjustment for the Workers Comp. Court of Appeals.

$287,000 increase for the Department of Commerces Operating Budget.

$854,000 increase for Energy-Intensive, Trade-Exposed Activities (EITE).

$91,000 to create the Task Force on No-Fault Auto Insurance.

$1.284 million increase for health insurance rate review staffing costs.

$558,000 increase for health care civil and criminal enforcement staffing.

The major changes in the Special Session Omnibus Agriculture and Environment bill:

Provides direction for the repayment of about $63.2 million from the General Fund to the Closed

Landfill Investment Fund (CLIF) and $8.1 million from the General Fund to the Metropolitan

Landfill Contingency Action Trust (MLCAT) based on a forecasted General Fund balance.

Requires the commissioners of the Pollution Control Agency and the Department of Natural

Resources to provide proposers with a 14-day notice when ordering the preparation of

discretionary environmental review for a proposed action. The original bill included a 21-day

notice.

A section is eliminated that prohibits the MPCA commissioner from implementing or enforcing

certain policies or guidelines that have not been adopted under the Chapter 14 rulemaking

process.

Omnibus Agriculture and Environment bill

This bill was the most controversial budget bill of the special session. I did not vote for it originally when it passed

during Regular Session in May. However, the changes identified below, along with my commitment to keep

Government running meant I chose to vote yes for this bill. I am responsible to the people of Minnesota, state

agencies and employees to pass a budget to avoid a partial government shutdown and to provide funding to help

farmers affected by the avian flu crisis.

The most problematic parts of the bill were the provisions that got rid of the citizens advisory board and

exempted non-ferrous mining from our waste water standards. It should be noted that currently other forms of

mining are not subject to that standard so this provision made non-ferrous similar. The proposed copper mining is

in this category. We do not have enough facts yet to determine if this new policy is appropriate. However, given

there is no current activity taking place, we can revisit this next year. I pledge to do that. I value clean water and

environmental protections very highly and you can count on me to be vigilant.

Requires the MPCA commissioner to provide notice and take public comment and documentation

when external peer review is conducted for proposed water quality standard changes. This is

changed from the original bill, which required an independent review. Requires annual website

posting regarding ongoing work on water quality standards and opportunities for public input.

Enforcement is delayed and penalties are waived for regulated parties that self-report violations

of environmental regulations. MPCA is to delay enforcement for 60 days for voluntary self-

reporting of violations.

$200,000 is allocated to the Red River Basin Commission to develop a water quality strategic plan

for the Red River of the North. The original bill included a delay in enforcement of updated

nutrient rules until 2025, and this was removed.

An additional $4.1 million in General Fund money is spent for three MPCA remediation items :

o Paynesville water treatment plant up to $2.5 million

o City of Mt. Iron/cleanup of an abandoned wastewater treatment pond - $868,000

o Land contaminated by a release from a dry cleaning facility - $743,000

EQB funding An additional $500,000 in one-time new General Fund spending will finance EQB

web-based mapping.

Bonding Bill (Special Session H.F. 2) Project included in this years bonding bill:

$26.529 million to the University of Minnesota to build a poultry lab and replace a vet isolation center.

$31.943 million to Minnesota State Colleges & Universities to fund a geothermal power line, a health and science center, manufacturing/auto tech lab, and transportation/emerging tech lab.

$23.549 million to the Department of Natural Resources for flood hazard mitigation.

$11.026 million to the Pollution Control Agency for superfund drinking water program and capital assistance in Clay, McLeod, Dodge, Polk, Hubbard and Beltrami counties.

$1 million to the Board of Water and Soil Resources for flood mitigation in the Minnesota River Basin II.

$50,000 to the Department of Agriculture for a potato inspection facility.

$32.924 million to the Department of Administration for Capitol restoration and security.

$2 million to the Amateur Sports Commission for HVAC-R-22 Conversion Grants.

$172.480 million in transportation projects for rail grade improvements and local bridge and road improvements, including $4.7 million for the Vicksburg Lane project.

$1.5 million to the Metropolitan Council for inflow and infiltration grants.

$650,000 to the Department of Veterans for the Minneapolis Veterans Home Bridge.

$1.2 million to the Department of Corrections for the Northeast Regional Corrections Center.

$3.3 million to the Department of Employment and Economic Development for Greater Minnesota business development, Sauk Centers Eagles Nest Vets Home, and transportation economic development.

$29 million for the Public Facilities Authority for the Wastewater Infrastructure Fund and the Lewis and Clark Regional Water System.

$10 million for the Minnesota Housing Finance Agency.

$500,000 for the Minnesota Historical Society for the Fort Snelling Pre-Design. Disaster Relief Funding in this years bonding bill:

$5.155 million to the Department of Natural Resources for flood mitigation and DNR facility and natural resource damage.

$15.3 million to the Board of Water and Soil Resources for erosion, sediment, and water quality projects, and RIM Conservation Easements.

$800,000 to the Department of Transportation for local roads.

$100,000 to the Historical Society for historical structure repair.

$4.1 million to the Department of Employment and Economic Development for Steele County Public Works Building and the Southern Minnesota Childrens Museum.

Legacy Bill (Special Session S.F. 1)

Outdoor heritage appropriation ($97,198,000 in FY 2016 and $607,000 in FY 2017):

$40,948,000 for prairie projects

$12,634,000 for forest projects

$20,390,000 for wetland projects

$22,368,000 for habitat projects

$858,000 in fiscal year 2016 and $607,000 in fiscal year 2017 for administration

Clean Water Fund ($116,263,000 in fiscal year 2016, and $112,039,000 in fiscal year 2017)

$8,584,000 in fiscal year 2016 and $5,082,000 in fiscal year 2017 to the Department of Agriculture

$9,250,000 each year to the Public Facilities Authority for grants and community wastewater treatment

$27,350,000 in fiscal year 2016 and $27,348,000 in fiscal year 2017 to the Pollution Control Agency

$9,000,000 in fiscal years 2016 and 2017 to the Department of Natural Resources

$56,841,000 in fiscal year 2016 and $56,322,000 in fiscal year 2017 to the Board of Water and Soil

Resources

$4,013,000 in fiscal year 2016 and $3,812,00 in fiscal year 2017 to the Department of Health

$1,225,000 each year to the Metropolitan Council

Parks and Trails Fund ($43,628,000 fund in fiscal year 2016, and $45,722,000 in fiscal year 2017)

$26,391,000 in fiscal year 2016 and $27,655,000 in fiscal year 2017 to the DNR for the following parks

and trails

o $17,237,000 in 2016 and $18,067,000 in 2017 for state parks and trails

o $8,782,000 in 2016 and $8,782,000 in 2017 for grants for regional parks and trails in greater

Minnesota under the parks and trails legacy grant program

o $536,000 in 2016 and $555,000 in 2017 for coordination between the DNR, Greater Minnesota

Regional Parks and Trails Commission, and the Metropolitan Council and other activities and for

a grant to the University of Minnesota Center for Changing Landscapes

$17,237,000 in fiscal year 2016 and $18,067,000 in fiscal year 2017 to the Metropolitan Council for

metropolitan regional parks and trails

Arts and Cultural Heritage Fund ($61,542,000 in fiscal year 2016 and $63,262,000 in fiscal year 2017)

$26,819,000 in fiscal year 2016 and $31,312,000 in fiscal year 2017 to the Minnesota State Arts Board

$13,985,000 in fiscal year 2016 and $15,015,000 in fiscal year 2017 to the Minnesota Historical Society

$1,750,000 each year for the Minnesota Zoological Gardens

$600,000 in fiscal year 2016 and $800,000 in fiscal year 2017 for The Perpich Center for Arts Education

$1,325,000 each year for the Indian Affairs Council