Tag Archives: Mark Dayton
WhoWatchesTheWatchmen

Watching the Watchmen: the bipartisan failure on privacy

The revelations about the NSA spying program have set off a firestorm of partisan finger-pointing (such as this from late last week).  The reality, though, isn’t terribly complex.  Both parties are responsible for selling your privacy down the river with these sorts of programs.  There have been five key votes since 2001 that have been responsible for these programs.

The pattern shows that it doesn’t matter who’s in charge of the Presidency or Congress.  Washington D.C. will vote to take away your privacy, while fighting to make more and more of their actions secret.  The solution to this issue can’t be solved by switching which party is in charge — but rather by a sustained effort to keep pressure on both parties to do the right thing.  We must remain vigilant.

Below is a chart that shows the bipartisan failure on this issue, including votes by Minnesota’s Congressional delegation.  Click on the chart to see a larger version.

bipartisanfailure

Data sourced from THOMAS.gov

pappas

Senate passes care workers unionization bill; House vote expected Saturday

The Minnesota State Senate voted 35-32 today to pass S.F. 778, which would enable independent day care operators and personal care attendants who serve customers that receive state subsidies to organize unions.  All Republicans in the chamber, including Sen. Julianne Ortman of Chanhassen, voted against the bill as did four DFL Senators (Terri Bonoff of Minnetonka, Melisa Franzen of Edina,  Greg Clausen of Apple Valley, and Bev Scalze of Little Canada).  The bill now moves to the House; which is expected to take up the bill on Saturday.  It appears that there are sufficient votes in the House to pass the bill, which Governor Mark Dayton has indicted he would sign.

Republicans in the Senate subjected the bill to 17 hours of debate, reflecting the highly controversial nature of the bill.  Unionization of such persons would be a different model than the traditional form of labor union, where employees organize and collectively bargain with their employers.  If the union were to be approved in this case, independent day care operators and personal care attendants — who generally function as small businesses of their own or independent contractors — would have a union to work on their behalf in St. Paul, bargaining with state agencies on work rules and regulations and lobbying legislators on reimbursement rates.  Care workers who provide services to clients that receive state subsidies but who vote against the union would be subject to “fair share” dues to cover a portion of the costs of the union’s representation as they would benefit from whatever changes the union negotiates.

Republicans have objected to the redefinition of the traditional union relationship introduced by this bill.  Additionally, they point out that in some cases AFSCME Council 5 — which is seeking to represent the day care workers — would end up negotiating with other AFSCME employees over work rules.

These are indeed valid concerns — and that’s coming from someone who generally finds themselves in labor’s camp on these sorts of issues.  The much-derided federal Employee Free Choice Act had a number of good reforms in it, for instance — such as equalizing the standards for certifying and decertifying unions and improving enforcement of certification elections.

But S.F. 778 feels like a step too far.

That’s not to say, though, that independent day care operators and personal care attendants don’t have valid concerns.  Day care subsidies were cut by 2% in the last budget cycle, passing increased bills to strapped working class families and forcing hard decisions on providers of day care services.  Personal care attendants, meanwhile, are besieged by low pay, long hours, and physically demanding work.  They deserve better from state government than what they have received in recent years.

DFL majorities in the Legislature should focus on passing those reforms into law this session as opposed to passing a bill that looks like political payback.  There’s no reason that we can’t increase reimbursement rates and address a number of the work rule issues that would be of great benefit to these vital workers.  And if Republicans come back in the future and want to undo those changes, it shouldn’t be politically difficult to hammer them for it.

[Picture is S.F. 778 author Sandy Pappas.]

senatemarriage

Senate passes marriage equality; Ortman votes no

The Minnesota State Senate today passed the marriage equality bill by a vote of 37-30, following four hours of debate.  State Senator Julianne Ortman (R-Chanhassen) voted no on the issue.  Only one Republican, Senator Brandon Petersen, voted in favor of the bill, while three DFL Senators voted no (Dan Sparks, Leroy Stumpf, and Lyle Koenen).

senatemarriage

Governor Mark Dayton has indicated he will sign the bill, and a signing ceremony is planned for 5 p.m. Tuesday afternoon on the South Side Capitol Steps.  Minnesota will be the 12th state to institute marriage equality.

Rumors were swirling before the vote that Ortman, who had been consistently opposed to marriage equality in recent sessions, may be reconsidering her position.  At times during the debate, she was spotted conferring with Senator Scott Dibble, the bill’s author.  Hanging over Ortman’s vote was the notion that she might be a candidate for higher office in 2014.  Recent speculation has indicated that she may be looking at the race for U.S. Senate against Al Franken.

 

The Republican base is strongly opposed to marriage equality.  Polling from January shows 79% disapproval among Republicans, which likely makes the path to endorsement difficult for a marriage equality supporter.

Rep. Joe Hoppe

Session endgame heats up with marriage equality vote Thursday

The Minnesota House of Representatives will vote on H.F. 1054 — the marriage equality bill — on Thursday.  The movement of this bill to the floor is a signal from leadership in the DFL majority that they have the necessary 68 votes to pass the bill, as Speaker of the House Paul Thissen has indicated he would not bring the bill up for vote unless there was sufficient votes to pass it.

In recent weeks, there has been substantial movement among rural DFL legislators towards the bill, including Hinckley’s Tim Faust and Crosby’s Joe Radinovich just within the last few days.  With passage seemingly assured at this point, the interesting thing to watch will be if any suburban Republicans vote yes on the bill as well.  21 House Republicans — including Chaska’s Joe Hoppe and Chanhassen’s Cindy Pugh — represent districts that opposed last November’s marriage amendment.  As of now, none of them have publicly indicated their support for marriage equality.

Senate Majority Leader Tom Bakk says he has sufficient votes in his caucus to pass the bill in that chamber as well, but does not intend to bring the bill to the floor until after the House vote.  Governor Mark Dayton has indicated he will sign the bill if it passes both chambers.

Ten states currently have marriage equality, and Delaware’s legislature is also voting on the issue this week (with passage expected).

Meanwhile, negotiations designed to produce a compromise budget between the House, Senate, and Governor are ongoing.  As noted previously, untangling the three tax plans is likely to biggest source the most difficult challenge faced by the negotiators.  With less than two weeks left in the session, the pace is likely to be rather hectic to get through all the necessary business by then.

certainty

Which tax provisions will survive?

Yesterday, after an inexplicable and embarrassing false start, the Minnesota State Senate passed its version of the omnibus tax bill.  The bill now moves to conference committee where it will be reconciled against the House’s version of the bill as well as Governor Mark Dayton’s budget proposal.  This may prove to be more work than expected, given that all three parties in the negotiations are DFL-controlled.

On a net basis (tax increases less new aids and credits), all three proposals raise between $1.5 and $1.7 billion dollars, but they get there in notably different ways:

1415summary

Let’s dig into the details.  Here are some of the key provisions in each plan:

1415details

Some elements should come together pretty quickly:  increasing LGA, increases to tobacco taxes, and reduction/removal of corporate exemptions for foreign source royalties and operating companies.

Other pieces are going to be more difficult.  House DFLers have committed themselves to paying off the remaining K-12 funding shift this session.  The temporary 4% surcharge on income is designed to get them to that point, raising $1.2 billion on its own.  However, both Dayton and Senate Democrats have listed the surcharge as not acceptable, and neither of them make any moves towards paying off the shift in their proposals.

Meanwhile, the Senate has stayed committed to advancing sales tax reform — proposing an expansion in goods and services subject to taxation while lowering the rate to 6% — while Dayton (in his updated budget) and House DFLers have stayed away from such proposals.

House DFLers have also advanced an increase in alcohol taxes that has run into substantial controversy.  Neither Dayton nor the Senate have embraced such a proposal.

So how do we get to a final bill?  Well, as it turns out, much of the Governor’s proposal ends up serving as a middle ground between the legislative proposals.  Dayton’s income tax rate increase on the wealthy touches a smaller group of taxpayers than the Senate version, which may be acceptable to the House.  But in order to get the House on board, Dayton and the Senate are going to have to make a significant move towards paying back the school shift.  How to do that?  By adopting the Senate’s cigarette tax revenue plan or the House’s plan which includes alcohol tax increases.  The House is likely also going to have to scale back (or eliminate) their property tax reforms.  Taking those steps should be able to ensure that at least half of the remaining shift is paid off.

With less than three weeks remaining in the legislative session, DFLers haven’t given themselves much time to hash through these issues, given the fragile nature of the coalitions they have had to put together to get these bills through the respective chambers.  It will be interesting to watch and see how the negotiations unfold.

carvergop

To the Woodshed We Go

 

Sometimes, it’s not just the weather that makes you cranky.  Sometimes, it’s the politicians that drive you nuts.  Let’s take some folks out to the woodshed for some well-deserved constructive criticism.

Legislative Republicans:  For Digging the Hole Even Deeper

A few days ago, we talked about how Legislative Republicans were engaging in some rather remarkable rhetoric about the state budget — and that their promises were unlikely to add up unless they introduced substantial cuts to all areas of the budget outside of K-12 education and health and human services.  Well, yesterday, it got worse.  House DFLers introduced their K-12 education bill, and Republicans (Rep. Kelby Woodard again) added to their audacious promises.  Already faced with the prospect of coming up with nearly $1.5 billion in cuts, Woodard signed the GOP up for a 2% increase in the basic formula ($300 million) and fixing the special education funding gap (another $475 million on top of the DFL proposal).  Doing all of what Woodard and the GOP claim can be done with “existing resources” would now take over $2 billion in cuts to other areas of the budget, or nearly a 20% across-the-board cut.  Again, remember these numbers the next time a Republican legislator bloviates about how everything can be done with “existing resources” without offering any details of how they would make it happen.

Governor Mark Dayton and House DFLers:  For Bonding Bills That Need Some Changes

This week, Governor Mark Dayton and the House DFL caucus released their proposals for odd-year bonding packages.  Such requests are somewhat uncommon, as bonding is usually done in even years only, although additional bonding has become a frequent point of negotiation during budget stalemates in recent years.  While I agree with DFL logic that we should take advantage of low interest rates to invest in infrastructure, an odd-year bonding package should imply that we’re doing some special things here.  Too much of both proposals is taken up with the same old local projects (many of which have been already rejected in previous cycles), which can easily wait for inclusion in the usual even-year bonding package.  The House bill has some stronger elements to it — particularly its increased emphasis on transportation and higher education projects.

It’s also inconceivable to me that you can have two $800 million bonding bills, none of which make any commitment to the Mayo Clinic “Destination Medical Center” proposal.  As a state, we have an opportunity to support nearly $6 billion in private investment in the state with a maximum of $585 million in infrastructure improvements.  We should be jumping at this opportunity to help create thousands of long-term, good-paying jobs in Southern Minnesota by including a substantial investment towards this project (between $75 and $150 million as called for in the stand-alone legislation).

I’d like to see a more focused bonding bill that focuses on transportation, higher education, State Capitol renovation, and the Mayo project — less expensive and more appropriate for an odd-year bonding package.

While we’re at it, let’s also deliver a kick-in-the-pants to the Democratic majorities in the Legislature for the leisurely pace of their budget bills so far.  Last session, the Republican majorities had already passed through the first version of all the budget proposals by this point (to be fair, they then languished for a long time in conference committee before coming back for final approval).  It’s time to shift the budget process into a higher gear, folks.

Minnesota Vikings Stadium Supporters:  For Not Facing Reality

Here’s another issue where on the merits, Governor Mark Dayton and other Minnesota Vikings stadium supporters are right.  In the whole scheme of things, the shortfall in e-pulltab revenues is a problem, but not a crisis.  And stadium opponents are indeed grandstanding (here’s looking at you, Sen. Sean Nienow).  But, guess what?  This problem was foreseeable at the start — maybe not to this extent — but it was hardly a secret that there were serious concerns over the revenue projections.  If you want to shut Nienow and the like up, the answer is simple:  fix the bill and put in place a better backup plan.  Trying to wait this thing out in the hopes the revenue situation will improve is only going to make this issue grow and grow and grow.

It would also help matters if the Legislative Commission on Minnesota Sports Facilities, which will have oversight of the Minnesota Sports Facilities Authority budget was more balanced from an ideological perspective.  Of the 12 members, 10 voted for the stadium bill, one voted against (Rep. Jim Davnie) and one is a freshman (Sen. Karin Housley).  Having some legislators with a more skeptical eye would be useful to the process.

Carver County GOP:  For Wallowing in Sleaze and Extremism

Our good friends over at the Carver County GOP have taken to the Twitter.  So far, they’ve managed to find links to just about every cheap and baseless conspiracy theory out there.  Here are a few examples:

https://twitter.com/CarverCountyGOP/status/322030260839399427

https://twitter.com/CarverCountyGOP/status/321955142683480064

https://twitter.com/CarverCountyGOP/status/321824613673889792

One would have thought that official Republican party bodies would have given up birtherism and bogus voter fraud nonsense by now, but I guess not.  But if tinfoil hats are your thing, you should follow them.

woodard

GOP’s phony baloney budget math

Two weeks ago, DFL leaders in the House and Senate released their budget targets, and we should be seeing the specific budget bills in each area shortly (in fact, they are overdue at this point).  Like Governor Mark Dayton’s budget proposal, the legislative budgets each total around $38 billion.

The House budget prioritizes paying back the school shift (accomplished with a blink-on income tax surcharge on top of the new fourth bracket for high-income earners) and property tax relief (an additional $250 million in local government aid).

The Senate budget, like the Governor’s, leaves the school shift untouched — which would keep the current law of any surpluses going to pay down the shift — and prioritizes property tax relief and economic development.

Both legislative budgets contained a surprise, though, as they each sliced $150 million from the forecast spending in health and human services.  Coming after a $1.2 billion cut in the last budget cycle and Dayton’s proposal to raise HHS spending by $128 million, it was a shock to many — including Republicans who have criticized those cuts.

There’s only one part of government where people could die and that’s in our area where the people with disabilities and health care and rural hospitals. I was just really surprised. Nobody saw that coming. — Rep. Jim Abeler (R-Anoka)

While politically convenient to attack DFL cuts to HHS, it makes the budget math for Republicans that much harder.  Republicans have rhetorically committed themselves towards paying back the school shift this session.

We should pay the entire shift back right now. – Rep. Kelby Woodard (R-Belle Plaine)

Before any changes to current law, the state finds itself with a $627 million deficit.  The remaining school shift is $850 million.  That’s a total of $1.477 billion that has to be found — without raising taxes.  Yet, Republicans have boxed themselves in by essentially taking K-12 and HHS off the table.  Those two areas of the budget represent $26.5 billion of the $36.7 billion in forecast spending for the next biennium.

Which means that those remaining areas of the budget would face the equivalent of a 12.5% across the board cut in order to balance the budget.  That includes higher education, public safety, transportation, economic development, and veterans programs.  Some of these programs have already taken severe cuts in previous budget cycles.

Does that sound sustainable or realistic?  Of course not.

But since Republicans are refusing to put forward their own budget proposal, they are attempting to fly free on their phony baloney budget assertions that we can hold taxes steady and cut our way to prosperity.  And they’re trying to avoid having to answer for the cuts that would be required to make their budget math add up.

So the next time your local Republican legislator tries to pass off that spin, ask them for the details of how they make the math work.  Just don’t hold your breath waiting for an answer.

[Picture is of Rep. Kelby Woodard]

official_dayton

Dayton rolls out revised budget plan

Governor Mark Dayton rolled out his revised budget plan today, reflecting adjustments required after the February forecast trimmed the projected 2014-2015 budget deficit from $1.1 billion to $627 million.

Here are the key changes in the proposal compared to Dayton’s original budget:

  • All sales tax reform is removed from the budget:  no business sales tax expansion, no expansion of consumer sales taxes to services, and no reduction in the sales tax rate.
  • The $500 property tax refund has been removed, although Dayton does invest an additional $18 million in increasing the pool for the renter’s property tax refund.
  • The cut in the corporate income tax rate has been removed, but changes to eliminate tax breaks for foreign operating companies and foreign royalty payments remain in the budget, raising about $370 million.
  • The proposed school shift payback in 2016-2017 has been removed from the budget.  Dayton would continue with current law, paying back the remaining shift as surpluses come in.

Dayton’s spending plan remains essentially unchanged from his original proposal.

Legislative reaction fell as expected along party lines.  Democrats, many of whom were wary of Dayton’s business sales tax proposals, were more positive about this budget.

“For too long we have seen our budget deficits resolved by deep cuts to the middle class and one-time fixes,” said House Speaker Paul Thissen. “That approach has only given us more deficits, higher property taxes, and larger classroom sizes. It is high time we reject the status quo and build a budget that positions our state to thrive in the future.” (via kare11.com)

One point of contention among DFLers is likely to be Dayton’s failure to address the school shift.  Expect a DFL legislative budget that includes a partial shift payback.

Republicans, meanwhile, continue to call for the budget deficit to be closed by reducing spending.

“I think it’s time for the people of Minnesota to weigh in on all of the taxes and just ask the question, do you need high taxes to grow the economy? We don’t believe so,” said Senate Minority Leader David Hann, R- Eden Prairie. (via MPR)

GOP legislators have yet to introduce a budget proposal of their own, continuing a regrettable trend of legislative minorities choosing to complain from the sidelines instead of producing something that can be matched up side-by-side.

dollar

After the Forecast: Adjusting the Brick City Budget

Yesterday’s release of the state’s February Economic Forecast provided a dose of good news regarding our budget scenario, trimming $463 million off of the projected deficit for 2014-15.  While Governor Mark Dayton has indicated he will release his updated budget proposal the week of March 11, I’ve made changes to my original “Plan C“, and I’ve detailed them below.

Recall that what I was trying to accomplish with my proposal were the following things:

  • Minimize middle-class impacts as it relates to sales tax changes
  • Make a meaningful payment towards the remaining K-12 school funding shifts
  • Minimize negative impacts that come with expansion of sales taxes to B2B services

Having a $627 budget deficit instead of $1.1 billion makes it significantly easier to close the budget gap while accomplishing the three goals from above.

Let’s talk about the adjustments I make on the revenue side first.  My total revenue increase has been cut by over 40%, made up of the following components that have changed:

  • Business sales taxes are eliminated in this proposal
  • The new fourth bracket for high income individual income taxpayers is pared back by 25%
  • Sales tax rates are lowered to 6.25%, and consumer services are added to the sales tax base.
  • Income tax cuts for the lowest two brackets are implemented, meaning all married couples filing jointly will get a tax cut on their first $135,000 of income.

Combined, the last two bullet points are revenue-neutral and designed to minimize impact of the sales tax base expansion on lower and middle-income taxpayers.

Similarly, I pare back spending increases by a similar percentage.  While I tend to agree with politicians who point out the need for investment in critical areas of our budget like education, transportation, and health care, it’s not politically or financially prudent to propose tax and spending increases of the scope found in Governor Dayton’s budget given the smaller deficit we now face.  There needs to be balance, and a recognition that moving too fast to increase taxes and spending in a still-fragile recovery may not produce the anticipated results.

  • K-12 education sees an increase in spending of $380 million over the current forecast, made up of a $200 million partial repayment of the remaining funding shift, $50 million to fund optional all-day kindergarten, $44 million to expand early childhood programs, and $84 million in increased special education.
  • $80 million in increased higher education funding directed towards expanding grant programs to make college tuition more affordable
  • Dayton’s metro area transit sales tax plan is kept in place, which shifts some transportation funding out of the general fund budget

Here’s how it all breaks down:

brickcitybudgetfebupdate

What are your thoughts?  Let me know in the comments.

Follow

Get every new post delivered to your Inbox.

Join 399 other followers

%d bloggers like this: