BLOG: Roll-Out of Jobs/Tax bill, School Shift Payback, Voter ID

This week was the second committee deadline for the legislature, in which we had to act on bills that had already met the first deadline on March 16. With a focus on private sector job creation, we continue to put in long hours to get all our work done as we juggle bill hearings, conference committees, omnibus bills and long floor sessions.

Jobs
This week Senate Republicans rolled out an omnibus jobs/tax relief package in the Tax Committee. Senate File 1972 provides tax relief of over $102 million in Fiscal Year 2013 for families and job creators. Two-thirds of the $102 million relief is for individual income taxpayers and the total tax relief over the next three years is $393 million. Tax relief for businesses and job creators makes more capital available for investment, equipment, expansion and additional employees.

This is the type of legislation, a true jobs bill, which will help to grow the private sector economy. It makes long term, sustainable changes to improve the jobs climate, not just short term fixes. The provisions in SF 1972 send a signal to entrepreneurs, investors and job creators that Minnesota is open for business. The jobs package passed out of the Tax Committee Thursday and will now head to the Senate Floor.

Education
On Tuesday the Senate Education Committee approved a bill to pay back 2011 borrowing from school aid payments—the remaining approximately $415 million that was part of the shift in the timing of payments to school districts in last year’s budget compromise. House File 2083, a bill of which I am a co-author, would return the shift to the amount when Republicans took legislative majority, and will leave well over one-half billion dollars in the state's budget reserve and cash-flow accounts. The state has not had that much cash on hand since 2008.

To end last year’s state shutdown, the Legislature agreed with Governor Dayton to borrow $700 million against the state school budget, adding to an existing $2 billion school aid shift. Since then Minnesota’s budget has grown out of a $5 billion budget deficit to positive balance of $323 million, on top of an $876 million positive forecast last November which was moved automatically into budget and cash flow accounts. If Governor Dayton agrees to make school budgets a priority, undoing last year’s shift will help districts manage their cash flow and replenish their reserves. The school shift will then return to 70-30, the same as when Republicans took majority in the House and Senate in 2011.

Anti-Shutdown
On Thursday the full Senate passed bills that would allow state parks, the state lottery and private businesses regulated by the State Racing Commission to remain open in the event of another state government shutdown. SF1843 would assure that parks remain open with funds from existing revenue until expenses become greater than income. SF1975 will prevent a repeat of the shutdown the created significant financial harm to the private businesses of Canterbury Park and Running Aces Harness Park and the related horse-racing industry. Revenue generated by their operations is dedicated to regulatory oversight and not subject to the broader General Fund debate. With the shutdown, regulators could not work and therefore, veterinarians, stewards, card dealers, nonprofits and related agriculture and convenience stores were impacted. Similarly the Minnesota Lottery, which is not dependent on a budget agreement, would be allowed continued operations. The Lottery lost an estimated $9.9 million in the 20-day shutdown.

Election Integrity
The Voter Photo Identification bill went through its final committee stages this week and is scheduled for a floor vote today. The bill, if passed, would give Minnesotans the chance to weigh in on whether or not a photo ID should be required to vote. We are committed to bringing our election process into the 21st century, preventing voter fraud and improving confidence in our system. By the time you are reading this, a floor vote may have already occurred. To find out about the status of this bill, visit: http://bit.ly/GGwIfG