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About Don Davis

Forum News Service Minnesota Capitol Bureau chief since 2001, covering state government and politics for two dozen newspapers that serve the state.

Process leads to Dayton outdoors funding vetoes

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Gov. Mark Dayton vetoed two provisions of a bill funding outdoors and arts projects, saying a House committee ignored a citizen advisory panel.

The vetoes eliminated $3 million to fight aquatic invasive species that was destined for tribal and local governments and $6.3 million to improve Twin Cities parks.

“This decision is extremely difficult for me,” Dayton wrote to legislative leaders, because he supports the causes but had said he would veto projects the advisory committee did not recommend.

Dayton blamed a House panel led by Rep. Phyllis Kahn, DFL-Minneapolis, for the situation

“I believe it is imperative that the leadership of the House Legacy Committee repair its relations with the Lessard-Sams (Outdoor Heritage) Council and the many sportsmen, sportswomen, outdoor recreation enthusiasts, hunters, anglers and everyone else committed to the enhancement of our state’s priceless outdoor heritage,” Dayton said. “Otherwise, I have serious doubts that a legacy bill can be enacted in future legislative sessions.”

Legacy funds come from a sales tax increase voters approved in 2008.

The veto follows letters from lawmakers of both parties that asked for the Twin Cities parks veto.

“Gov. Mark Dayton has continually pledged to support the recommendations of the Lessard-Sams Outdoor Heritage Council,” Sen. Bill Ingebrigtsen, R-Alexandria, said before the veto. “The language that is in the current bill does not follow those recommendations.  Gov. Dayton knows that the sportsmen of this state rely on this council to provide guidance to their constitutional right secured by the 2008 amendment.”

Ingebrigtsen was one of seven senators to send a letter urging Dayton veto the parks provision. Seventeen rural Republican House members also sent him a letter with the same request.

Dayton said the parks and invasive species protection had other funding from the just-adjourned Legislature.

“In my 13 legislative sessions, I have rarely seen the acrimony and distrust, which this dispute has caused between legislators and concerned citizens,” Dayton said. “The bitterness is not about the merits of the two projects I am vetoing, but rather the way in which they were added and other significant changes were proposed to the House bill.”

Democrats leave session with issues they still want to do

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End of session chatter

By Don Davis and Danielle Killey

There is little doubt the 2013 Minnesota Legislature will be remembered for its historic vote to allow gay marriage and a $2 billion tax increase.

Democrats say the session that ended seconds before its midnight Monday adjournment deadline also will be remembered for “investing” in education, jobs and other key state programs. Republicans claim Democrats overreached when they gained control of the House, Senate and governor’s office for the first time in 22 years by hiking taxes too much, handing unions too much power and spending more than the state should.

But even if Democratic-Farmer-Laborites overreached, they did not accomplish everything they wanted.

Take the minimum wage. Democrats wanted to raise it from the current $6.15 an hour. Senators voted to up it to $7.75, and the House and Gov. Mark Dayton preferred something north of $9.

It became too sticky a subject to finish as the legislative session ended. But House Speaker Paul Thissen, DFL-Minneapolis, and Senate Majority Leader Tom Bakk, DFL-Cook, said it would be atop their to-do list when lawmakers return to St. Paul on Feb. 25.

Bakk said he would encourage legislative minimum wage negotiators to spend time before the next session to talk to businesses about what would work.

The speaker also said the 2014 priority list should include more infrastructure funding, especially for transportation and transit projects.

Dayton said he was disappointed an $800 million public works finance bill failed this year, and indicated he would push a big bill next year to help create thousands of jobs.

Next session also may be a time to make changes to provisions lawmakers passed in the past few days.

For instance, DFL leaders have sent strong signals that they will look to provisions in a tax bill that added sales taxes to some business purchases.

“We need to find out what some of the unintended consequences may be,” Bakk said.

Tax bill writers delayed implementation of some of the provisions until April, giving them time to rewrite what is needed.

The bill senators passed was supposed to exempt farm equipment repair from the new tax, Bakk said, but it did not. Also, farmers could be charged tax when buying fertilizer stored in facilities they do not own.

Other industries also could face issues with the new warehouse sales tax.

Rep. Tim Kelly, R-Red Wing, said companies need to know about their tax future, and firms such as Red Wing Shoes must make decisions and not wait until April to see if the tax changes.

Rural Republican lawmakers have lots of concerns with the sales tax being added to farm purchases and said they are not sure just what might be taxed.

House Majority Leader Erin Murphy, DFL-St. Paul, said she hopes a bill designed to prevent school bullying will come back and pass next year.

The 2013 session, which began Jan. 8, wrapped up with almost no time to spare even though Democrats control state government for the first time in 22 years.

Among the final bills lawmakers passed is one to allow some day care providers and personal care attendants to join unions. The House vote ended in shouting, in the most dramatic episode in the House this year.

On Tuesday, Democrats patted themselves on the back for a job well done in 2013. They praised their work on increasing education funding, reforming taxes, lowering property taxes and raising what the top 2 percent of Minnesota earners pay the state.

However, in briefing reporters, the governor and legislative leaders never mentioned two of the most contentious issues that brought thousands of people to the state Capitol: the unionization vote and legalizing same-sex marriage.

Right after the Legislature adjourned, Bakk highlighted funding all-day kindergarten and some tax reforms such as eliminating sales tax counties and cities pay as top achievements of the session.

He said the Democratic budget plan makes important investments and provides stability.

“It’s going to leave Minnesota a better place,” Bakk said.

He also said funding state Capitol renovation work was a priority for him.

“I wasn’t going home without the Capitol renovations,” Bakk said.

Republicans were not happy with the session.

“This budget’s going to be tough on everybody,” said Sen. Gary Dahms, R-Redwood Falls.

He said lawmakers did not need to pass such a large tax increase to fill a $627 million budget deficit.

House Minority Leader Kurt Daudt, R-Crown, said Democrats went too far: “If I would use one word to describe the session, it would be ‘overreach.’ ”

Thissen said that if Republicans want to call DFL action overreach, he can accept it.

“I think Minnesotans actually want government officials that want to set an ambitious agenda,” Thissen said. “If that is overreaching, being ambitious, that is what it is.”

Legislative notebook: Voters to decide if council should set lawmaker pay

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Nornes

By Don Davis

Minnesota voters will decide in 2016 whether decisions about how much legislators are paid should be handed to an independent group.

The House and Senate passed the proposed constitutional amendment in the closing days of the 2013 session. Gov. Mark Dayton has no say in the issue; it goes directly to voters.

“There is a glaring conflict of interest,” Sen. Kent Eken, DFL-Twin Valley, said about the current system in which lawmakers set their own pay.

Under the constitutional amendment he and Rep. Jason Metsa, DFL-Virginia, propose, the Legislature still would decide issues such as housing allowances and per diem, a payment for each day legislators work.

Four states have established councils to take salary decisions away from lawmakers.

Most Minnesota lawmakers are paid $31,500 annually, a figure set in 1999. Legislative leaders make slightly more.

In a state government financing bill this year, senators approved a $42,000 paycheck in two years, but that provision dropped out when negotiators merged the House and Senate versions of the overall bill.

Raising pay is such a political liability that it seldom makes much progress when someone suggests it.

Seeking gas answers

Rep. Bud Nornes wants to know why Minnesotans are paying the highest gasoline prices in the country “this side of Hawaii.”

On Tuesday, the Fergus Falls Republican sent Minnesota Attorney General Lori Swanson a letter asking that she investigate the situation.

“Everybody is upset about it,” he said.

Minnesota prices are well into the mid-$4 range, in some cases $1 a gallon more than a few weeks ago.

The situation is blamed on Illinois refineries shutting down for routine maintenance, and prices are expected to fall in early summer when refineries resume normal operation.

Nornes said he wonders why refineries are not required to stagger their maintenance outages.

Since surveys show that other spending declines when gas prices rise, he said the issue affects Minnesotans’ pocketbooks.

Voting trial program

Voters in five communities likely will be part of a trial project for electronic poll books.

A bill awaiting Gov. Mark Dayton’s signature establishes a pilot project in Dilworth, Minnetonka, Moorhead, St. Anthony and St. Paul to test the poll books.

Secretary of State Mark Ritchie is to exchange the current paper books, used to check off voters at elections, for computerized versions. Supporters of the change say it would reduce election fraud.

The project could begin as soon as elections this year. A task force is to check on its progress and report back to the Legislature next year.

The provision is in a bill that also would allow residents to vote absentee without an excuse and a measure requiring the Corrections Department to give the secretary of state’s office a list of people who have lost their right to vote.

More Kirkbride time

A building on the former Fergus Falls Regional Treatment Center campus gained a couple of years in a last-minute deal to pass a public works financing bill.

The Kirkbride building has not been used by the state as a mental health facility for years, but since the city took it over it had not sold. Now, however, it appears a sale is in the works, Rep. Bud Nornes said, and the newly passed legislation can help the city close the deal.

An earlier public works bill approved spending $400,000 to either improve the facility or demolish it if no buyers were found. The permission to use the money is expiring, and late Monday the Legislature approved the provision to keep the money available to Fergus Falls until the end of 2016.

Capitol, floods, veterans, disaster bills end 2013 legislative session

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Thissen gavels out session

By Don Davis

The Minnesota Legislature ended a historic 2013 session seconds before midnight Monday after voting to renovate the state Capitol building, help communities fight floods, give veterans a new facility and provide disaster assistance.

It was an end to a session that approved gay marriage, increased taxes $2 billion and boosted spending for education and other priorities of Democrats who control the House, Senate and governor’s office.

“We had a tough session,” Senate Minority Leader David Hann, R-Eden Prairie, said, but there were many bills that passed with bipartisan support.

“We can have strong disagreements and still keep the conversation civil,” Senate Majority Leader Tom Bakk, DFL-Cook, said.

“Tomorrow everybody’s going to try to put their political spin on it,” Bakk added. “But I’m very proud.”

House Speaker Paul Thissen, DFL-Minneapolis, said that while Republicans accuse Democrats of overreaching this year, his party did what it could to catch up after 10 years of budget cuts.

House Majority Leader Erin Murphy, DFL-St. Paul, said Democrats and Republicans worked together to end the session. Minority Leader Kurt Daudt, R-Crown, said Republicans brought the two parties together to wrap things up.

After working leisurely much of Monday, the pace kicked into high gear after 9 p.m.

The key to the session-ending deal is a $177 million public works bill, funded by the state selling bonds. Once House and Senate leaders from both parties agreed to the bonding bill, a day-long logjam broke, allowing other bills to pass quickly with little debate.

The House passed the public works bill 121-10 and the Senate 57-6. Last week, the House defeated an $800 million proposal with opponents saying it was too big.

The largest portion of the bonding bill is fixing the state Capitol, a $132 million expenditure. More money will be needed in future years to complete the project.

“Our Capitol is the symbol of Minnesota, let it stand solid and strong to serve generations of Minnesotans long into the future…” Rep. Dean Urdahl, R-Grove City, said. “This building has no lobbyist, it has us, and we must not let it down.”

The 108-year-old building’s walls are crumbling and state officials say mechanical systems need to be replaced.

Also in the bill is $20 million for flood prevention projects, $19 million for a Minneapolis Veterans’ Home building and $8 million for various sewage projects. Some previously approved bonds no longer needed are canceled.

Once the bonding bill passed, the door opened for spending $1.75 million to help southwestern Minnesota recover from an April ice storm.

Federal funds will pay three-fourths of the public property damage repair.

The bill overwhelmingly passed the House and Senate.

Sen. Bill Weber, R-Luverne, told senators there is $6 million in public property damage, but more than $20 million in damage overall.

The bonding bill also looks to prevent future disasters. It spends $20 million for flood prevention work in Ada, Afton, Alvarado, Argyle, Austin, Borup, Breckenridge, Browntown, Climax, Crookston, Delano, Granite Falls, Inver Grove Heights, Maynard, Melrose, Minneota, Minnesota River area, Montevideo, Moorhead, Newport Nielsville, Oakport Township, Oslo, Roseau, Rushford, St. Vincent and Shelley. The bill says Moorhead should get priority for funds needs.

While the Capitol is the headline project in the bonding bill, a $22.7 million parking ramp nearby also is funded.

As time ran out on the session, a 10-hour debate, spread over the last three days, about allowing some child care providers and personal care attendants to join unions ended with conflict.

Thissen announced that the bill won on a 68-66 vote, prompting loud applause and cheers from union supporters in the House gallery. Such demonstrations violate House rules.

Thissen began to gavel down the demonstration, sternly yelling: “Stop, stop.”

Several Republicans began to protest the demonstration and Rep. Pat Garofalo, R-Farmington, jumped up and shouted into his microphone: “Just let them applaud, they own the place.”

Republicans often said during the unionization debate that Democrats were pushing the bill to reward their union supporters.

In its final days, the Legislature passed bills to:

– Raise taxes $2 billion.

– Fund the state $38 billion, two-year budget.

– Allow same-sex couples to marry.

– Fund arts and outdoors programs from a sales tax increase voters approved in 2008.

– Ask Minnesotans to vote to constitutionally establish a council to set legislators’ pay because, as Sen. Kent Eken, DFL-Twin Valley, said, it is a conflict of interest for lawmakers to raise their own pay.

New income taxes will be placed on the top 2 percent of Minnesota earners, cigarette taxes increased and sales taxes charged on some business purchases.

Lawmakers wrapped up most of Democrats’ priorities as they neared their deadline. But they also left undone other priorities such as a school anti-bullying bill, a minimum wage increase and gun control.

Reporter Danielle Killey contributed to this story.

Legislative notebook: Farmers want clarification

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Franson

By Don Davis and Danielle Killey

Farmers are not sure how much more they will be taxed after the Democratic-controlled Legislature adopted a $2 billion tax increase.

It appears that farmers will pay sales tax on fertilizer stored in facilities they do not own and on equipment repair, but not parts. Rural legislators said they remain uncertain what else could be taxed.

Rep. Rod Hamilton, R-Mountain Lake, arose during late Sunday debate on the legislative tax bill to question the impact on agriculture.

House Tax Chairwoman Ann Lenczewski, DFL-Bloomington, said she is not a farmer and could not answer all of Hamilton’s questions.

“Our intent is to take another look at this,” Lenczewski said.

The tax provisions do not begin until April, giving lawmakers a chance to change the law after they return to session Feb. 25.

“I think we understand some of the complications here,” Lenczewski said after hearing from Hamilton and other rural Republicans.

Legislators began debate soon after the tax bill was released. Once Hamilton saw the potential agriculture impact, he began contacting farm groups, which expressed their concern.

Democrats, however, said there is enough good in the tax bill for farmers that the added tax should not hurt them.

“I do know what they are going to benefit from in this bill,” Rep. Paul Marquart, DFL-Dilworth, said, including lower property taxes.

Marquart said the bill boosts county and township assistance, which should lower property taxes.

Rep. Joe Radinovich, DFL-Crosby, said farmers are concerned about their overall community and new taxes are helping programs such as in education.

Rep. Erik Simonson, DFL-Duluth, said his community warehouses taconite, wind turbines and other goods that would be taxed under the bill. Even so, he said, he supports the new tax.

Red Wing Shoes could face problems with the new tax, said Rep. Tim Kelly, R-Red Wing. The company needs a new warehouse, he said, and it could be built in Missouri.

“If they put that warehouse in Missouri, where do they expand their business?” Kelly asked. “Where do they make more shoes?”

Unions win right

Union supporters celebrated Monday after the House voted 68-66 to allow some child care providers and personal care attendants to join unions.

Five Democrats joined Republicans in voting against the measure: Reps. Tim Faust of Hinckley, Jay McNamar of Elbow Lake, Tina Liebling of Rochester, Kim Norton of Rochester and Gene Pelowski of Winona.

Pro-union child care providers and care attendants were happy, saying they will do better because unions will be able to get more state funds for them, as well as better rules.

“My work helps the state save countless dollars that would be spent on a long-term care institution if I wasn’t there to work with my grandson and keep him living independently,” Vicki Dewald of Detroit Lakes said. “By forming a union we can improve conditions for workers, which will keep good PCAs and improve the quality of care clients receive.”

The bill, expected to be signed into law, will give providers a more stable state funding source, Rep. Carly Melin said, after years of budget cuts.

“We are not forming a union here today, we are authorizing people the right to vote,” the Hibbing Democrat said.

Union opponents say the bill is unconstitutional and expect to challenge it in court, probably within days.

Rep. Mary Franson, R-Alexandria, told about her years as a child care provider, a business she started in part so she could care for her children.

“I ask you to search your hearts today,” she told her colleagues before the vote.

“This bill places unions and government between child care providers and their clients,” said Rep. Steve Drazkowski, R-Mazeppa.

Legacy spending OK’d

The House approved a bill 77-57 and the Senate 43-21 to fund outdoors and cultural programs.

The so-called legacy bill spends about $496 million on parks and trails, arts and other programs with the money raised from a sales tax voters approved in 2008.

The bill faced some resistance earlier in the session as lawmakers debated rural and urban program funding, and some rural lawmakers continued to complain Monday that parks in their areas were shorted.

The parks funding is split to 40 percent for the Twin Cities area, 40 percent for state parks and 20 percent for greater Minnesota parks.

The bill also creates a greater Minnesota commission to make parks and trails recommendations.

It includes funding for projects such as the Cannon River headwaters, the Lakewalk Trail in Duluth, the Mesabi Trail and parks in Bemidji and Moorhead.

Rep. Mary Franson, R-Alexandria, and other members said sports groups and organizations are opposed to the bill.

“I don’t understand why,” said bill author Rep. Phyllis Kahn, DFL-Minneapolis. “It does exactly everything they asked us to do.”

She said the bill follows recommendations from the Lessard-Sams Outdoor Heritage Council and shows a “strong commitment” to arts and cultural programs.

“We provide the resources needed to enrich our communities and keep our land, water, and air clean and healthy throughout Minnesota,” she said.

 Tax levies limited

One of the little-noticed provisions of a tax bill legislators approved near the end of their session limits city and county property tax levies.

One of the last additions to the bill placed a one-year levy limit on cities bigger than 2,500 population and counties 5,000 or larger.

The League of Minnesota Cities reports that the cap “essentially limits revenue growth to 3 percent for taxes levied this fall for collection in 2014.”

Legislators look back at 2013 session

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Reps. Fabian, Dill, McNamara

By Danielle Killey

Minnesota Democrats had enough members to pass nearly anything they wanted, but this legislative session remained about as contentious as any other.

It was not necessarily a surprise to many Democrats, who say their party contains a variety of opinions and members from across the state. They can disagree as much with each other as Republicans.

The Democrats proved that even with one party in charge, putting together a state budget is not easy.

Minnesota lawmakers bumped up against their constitutionally set adjournment deadline to pass a $38 billion, two-year state budget and faced troubles and triumphs along the way.

One of the closest-watched issues was taxes.

Many plans were tossed around before lawmakers landed on a $2 billion increase coming from adding a fourth tier income tax bracket up 2 percentage points from the current top rate, increasing cigarette taxes and expanding some sales taxes to services such as warehousing.

Democrats said the bill was the way to pay for top priorities such as education funding.

But Republicans say it will do more harm than good.

“I think the people of the state of Minnesota will find out this is not just a tax on the rich, it’s a tax on everybody,” said Sen. Bill Ingebrigtsen, R-Alexandria.

The process was not smooth, and at one point a tax bill failed in the Senate before being revived and narrowly passing when a handful of Democrats switched to voting yes.

Same-sex marriage emerged early as a top issue for constituents after Minnesota voters defeated a constitutional amendment defining marriage as between one man and one woman.

It was unclear whether Democrats would have the votes to pass it, as many rural members opposed the measure. But in the last weeks of the session, the House and Senate approved the bill and Gov. Mark Dayton drew a crowd of thousands to watch him sign it into law.

Lawmakers also passed a plan to set up the state’s health insurance exchange program, now named MNsure, early in the session.

Democrats said this would be the “education session” and made investment in public schools, colleges and universities a priority. They gathered some Republican support for those plans, which included funds to freeze tuition in the University of Minnesota and Minnesota State Colleges and Universities systems.

Democrats controlled the House, Senate and governor’s office for the first time in two decades, a prospect both exciting and daunting to those lawmakers.

“We’ve certainly taken advantage of it,” Rep. Jay McNamar, DFL-Elbow Lake, said of Democratic control.

Republicans accused the party of overreach throughout the session, and some Democrats agreed.

“We did not learn the lesson of Republicans two years ago,” said Rep. Roger Erickson, DFL-Baudette. “A lot of people went for as much as they could get.”

It did not always work.

Democrats originally tried to make major changes to gun control policy, but that effort was curbed by Republicans and many rural Democrats.

Others said people will argue that Democrats did not use their control to its fullest.

“Some people will think we haven’t gone far enough,” said Rep. Mary Sawatzky, DFL-Willmar.

Even before the session began, concerns surfaced about rural representation; with three of the four top legislative leaders coming from the Twin Cities.

Democrats said they consciously picked many committee chairmen from rural areas to help balance control, but it did not allay worries from greater Minnesota members, especially Republicans.

“I raised my concerns on Day 1,” said Rep. Rod Hamilton, R-Mountain Lake, and it remained an issue.

“There’s just been a tension” between the parties, he said.

Republicans said they do not feel they were included in key discussions, such as on the budget.

“I just didn’t see them reaching out to us,” Rep. Dan Fabian, R-Roseau, said of Democrats. “I’m disappointed with the lack of willingness to work together to solve problems.”

Sen. Torrey Westrom, R-Elbow Lake, said while Republicans did not have much control over decisions, they could raise concerns.

“I think we pointed out a lot of counterarguments that wouldn’t otherwise have been heard,” he said.

Sawatzky said Democrats did not accomplish as much as they might have wanted to in this session, but they are laying the groundwork for years to come.

“We’re setting up a comprehensive plan for the future,” she said. “It’s going to take some time to do what we need to do.”

Rep. Tom Huntley, DFL-Duluth, said he is happy with how the session went.

“To be honest, it’s been phenomenal,” Huntley said.

Huntley was frustrated when targets originally revealed he would have to cut $150 million from the Health and Human Services budget, which he helps organize. But the final product, approved by lawmakers last week, trimmed only $50 million and gave more money to nursing homes and other long-term care facilities.

“I wish we could have got a little more for long-term care,” he said. The sector got a 1 percent hike, while nursing homes saw a 5 percent increase.

Huntley said he was glad to help pass the higher education funding bill.

“Tuitions are out of control,” he said.

There were other parts of the session that disappointed Huntley.

“I don’t think we’re doing enough in transportation,” he said.

But overall he was happy.

“Ultimately it was very businesslike and we got the work done,” Huntley said. “I’m pleased with it.”

McNamar said the work has been difficult.

“This is the hardest job I’ve ever had,” he said.

McNamar was happy with the session overall, though he said it was tougher than he anticipated.

“I was not expecting it to be this intense, this hard,” McNamar said.

A particularly difficult vote was on same-sex marriage, he said. He ultimately voted for the proposal Dayton signed this month.

The emotional toll was significant, he said.

“It seems like every bill I’m pulled on both sides,” McNamar said.

McNamar said top priorities were met, including stabilizing Local Government Aid, lowering property taxes and funding education.

“I’ve accomplished everything I wanted to get done,” he said.

Sen. Kent Eken, DFL-Twin Valley, said Democrats in charge of the Legislature looked to the last 10 years when they raised taxes and increased spending on programs such as education.

“What I believe is happening is just catching up,” Eken said, noting that many areas of the state budget have been cut in the past decade.

While the $2 billion in tax increases get headlines, Eken said that people in his northwestern Minnesota area will remember “the tax relief, not the tax increases.” Democrats say their tax bill will provide $400 million in property tax relief.

Eken said Minnesotans have other good news: “You are not going to see enormous fee increases.”

Taxes likely are headed up in suburbs, Eken said, but not in much of Minnesota.

“In our areas, you are going to see some significant property tax relief,” he said.

Increased Local Government Aid to cities will cut taxes there, Eken added.

Some taxes may not fall, Eken said, but property taxes at least could slow to stop their increases.

Sawatzky said she enjoys her role in the work at the Capitol.

“It’s nice to bring back a message and be a voice for people at home,” she said.

“You realize everybody’s not going to get what they want,” Sawatzky said. “And that’s good.”

Sawatzky said some concerns that social issues such as same-sex marriage were taken up before finishing the budget were not entirely accurate.

“It all takes time and life goes on in between,” she said, noting conference committees were hashing out budget differences while the other bills were before lawmakers.

Sawatzky said she has enjoyed seeing the action firsthand and getting a chance to make a difference.

“In order to change something you can’t just sit at home and hope it will change,” she said.

Sawatzky said people will have different views of whether Democrats tried to do too much with their control this year.

Erickson said he was happy to have his priorities — education funding and stabilizing the budget — fulfilled.

“I think we’ll have a very nice body of work to take back to our districts,” Erickson said.

He said was disappointed in the lack of attention to aquatic invasive species solutions and funding.

“There are not enough people realizing this is a dangerous situation in Minnesota,” Erickson said.

Erickson said a key issue split more along geographic rather than party lines was the gun control debate.

“The outstate people weren’t going to have anything to do with it, and it went away,” Erickson said.

“I have an awful lot of things I agree with with outstate Republicans,” Erickson said. “Oftentimes we do cross party lines” on rural issues.

Fabian said social issues got “wrapped around the axle and mucked things up.”

Fabian said he is concerned the Democratic plans will make Minnesota less competitive and border cities might lose businesses and residents.

Fabian said negotiations with the Senate and governor’s office made many budget bills worse rather than better.

“We went down to the 11th hour trying to put the budget together with one-party control this whole time,” Fabian said.

Rep. Andrea Kieffer, R-Woodbury, said she was working to try to stop bad bills.

“There’s no balance of power now in our government,” Kieffer said. “There’s no stops.”

Kieffer said the economy has been recovering.

“My biggest fear is that some of the stuff we’re doing now is going to hurt that recovery,” she said.

Sen. Greg Clausen, DFL-Apple Valley, said lawmakers aimed to set a good budget for Minnesota.

“We might not always agree, but I think we knew we need to make important investments in the future of our state,” Clausen said.

“I appreciate the opportunity the voters have given me,” Clausen said. “I am mindful every day of that responsibility and try to make good decisions.”

Hamilton said he was frustrated that nursing homes and other areas of the budget will not get the increase in funding they asked for even though the state will raise billions in new money.

“Where are the priorities?” he said.

“There’s a different attitude up here,” Hamilton said. He said the rural-urban split has been more defined this session than in the past.

Hamilton did vote for some pieces of the budget, such as higher education and transportation funding.

Westrom said the budget did not turn out well for rural Minnesota or the state as a whole.

Westrom said the cigarette tax increase alone will be a significant incentive for consumers to travel across the state border.

“I didn’t think they’d want to overreach this far,” Westrom said of Democrats.

Ingebrigtsen said border cities especially will suffer under the Democrats’ plan because businesses and shoppers likely will head across state lines.

“It’s been a real big overreach,” Ingebrigtsen said of Democrats’ work this session.

“Elections have consequences,” he said.

Ingebrigtsen said he thinks Republicans will take back the House in the next election after the way this session played out.

Reporter Don Davis contributed to this story.

Bill mixes paint, bees and farmers … and includes an island, too

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Rep. Ben Lien

By Don Davis

Paint will cost more and be recycled. Bees will be protected. Financially troubled farmers will be able to access state aid.

And an island to provide more wildlife habitat could be built in the Mississippi River.

Those are a few of the impacts from a diverse environment, natural resources and agriculture funding bill headed for Gov. Mark Dayton’s expected approval.

The overall bill spends $312 million on programs such as in the Agriculture Department, Pollution Control Agency and Department of Natural Resources. Funding for the two years beginning July 1 is $25 million more than in the current budget.

The House voted for the bill 71-60 and the Senate 42-23, sending it to Dayton for his expected signature.

A House-Senate conference committee removed the most controversial aspect of the bill, new fees on people who use large quantities of water, such as farmers who irrigate land.

The House version of the bill tacked on new fees, but the committee accepted the Senate provision that takes money from the state General Fund.

“This bill is a winner for communities in rural Minnesota,” said Rep. Jeanne Poppe, DFL-Austin. “It gives us the tools to address shrinking water supplies without raising water fees, which is a big deal for farmers, ranchers, livestock producers and agri-businesses that depend on reliable supplies of water. This bill recognizes the need to solve that problem before it’s too late.”

Mining fees were rejected that House bill author Jean Wagenius, DFL-Minneapolis, said were needed “so the mining industry was paying its fair share for some of the costs it is imposing on the state. The Senate declined to increase fees whatsoever.”

One of Wagenius’ concerns this year has been a water shortage in parts of Minnesota, including Worthington, parts of Otter Tail County and White Bear Lake.

The bill gives the DNR more authority and $6.6 million more money to monitor groundwater and surface water to the state can address water shortages.

“It is something hard for me to imagine … where we are having shortages of water,” Wagenius said.

Rep. Mary Franson, R-Alexandria, did not agree with the water monitoring. She said it bothers her to see money spent on water monitoring when the Democratic-written budget does not give enough money to nursing homes.

And, Franson added, “we’ve still got that $300,000 restroom in there.” She referred to a northern Minnesota restroom in an area Rep. David Dill, DFL-Crane Lake, said is miles away from any public restroom.

The bill tacks a 75-cent-a-can fee on paint to establish a program to recycle unused paint.

“We are moving to a system of the person who creates the mess pays for it rather than asking for a subsidy from the neighbor,” Wagenius said.

That fee concerned Rep. Dan Fabian, R-Roseau. He said his constituents could buy paint in North Dakota, which does not charge a recycling fee.

“I cannot imagine how this is going to be good for our border hardware stores and paint stores,” Fabian said.

However, he added, he was glad that proposal to require carpet recycling was dropped.

Some Republicans complained that the bill adds too much to government.

“What we have here is government run amuck…” Rep. Steve Drazkowski, R-Mazeppa, said. “We are giving them even more unchecked authority in a number of areas.”

The bill also establishes protections for bees that have been dying off.

“We are an agriculture state and agriculture depends on pollinators,” Wagenius said.

The bill includes a provision that would allow Minneapolis authorities to “recreate” an island in the Mississippi River.

Drazkowski asked Wagenius: “Can you tell me where did the island go?”

Wagenius responded: “No.”

Drazkowski guessed that “the river took the island out.”

“We could end up building an island in the stream and having it washed away,” Drazkowski said.

Wagenius said the island is needed to add wildlife habitat.

Among other provisions in the bill financing environment, natural resources and agriculture programs are:

– The Minnesota Agriculture Department will spend $3 million on a farm-to-school program to provide local produce for schools.

– Agriculture business development will get a $10.5 million boost and renewable fuels $2.5 million more.

– Spending $8.7 million for the University of Minnesota to develop its aquatic invasive species research center to fight invasive species such as Asian carp, but fish barriers were not funded because the federal government has not approved them.

– More fuels will be defined as biofuels beyond just ethanol and biodiesel.

– The state will provide guidance to local governments dealing with silica sand mines and production facilities and local silica sand mining moratorium provisions may be expanded for a year.

– Perfluorochemical (PFC) monitoring is funded for the eastern Twin Cities, where 3M waste has been an issue.

– The farmer-lender mediation act that helps farmers in financial trouble was extended through 2016.

Loud demonstrations join budget debate in Minnesota Capitol

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Falk, with Sen. Benson and daughter

By Don Davis

Heather Falk fanned herself Saturday in the hot, muggy Minnesota Capitol building as legislators gradually worked toward finishing the state budget and adjourning for the year.

The Cloquet child care provider joined a few hundred others who exercised their lungs and freedom of speech in the Capitol, awaiting a hot House debate about whether child care providers and personal care attendants should join unions.

The relatively small crowd, compared to 2,800 who turned out for Monday’s Senate gay marriage debate, made enough noise to be heard even in remote areas of the Capitol.

While demonstrators on both sides of the issue chanted, legislators plowed through bills that help make up the state’s $38 billion budget for the next two years.

The Senate on Saturday passed a bill funding state health programs for the elderly and disabled, approved a measure changing some transportation policies and took up a variety of smaller bills.

The House began the weekend passing several routine bills, preparing to take up a natural resources and agriculture spending measure, setting the stage for a public education finance bill and looking forward to the union proposal late Saturday or early today.

With Minnesota legislators facing a Monday night constitutional deadline to adjourn, they planned to work through Saturday night, return at midday today and put in a full Monday.

The $16 billion education funding bill, the biggest single spending area of state government, is a keystone for Democrats who control the House and Senate.

But if education is a key political issue this weekend, noise bouncing off the Capitol’s marble walls came from child care workers.

“I still think my voice should be heard,” Falk said, sweat dripping off her face, even though all in the Capitol knew the Democratic-controlled House most likely would follow the Senate and approve allowing child care workers and personal care attendants to join unions.

Falk is a longtime opponent to the unionization effort and predicted that once it becomes law, she and her colleagues will challenge the issue in court.

Another child care provider, Lynn Barten of Alexandria, was thrilled that representatives appeared poised to approve the unionization proposal.

“It’s kind of a historic day,” she said, standing a few feet from Falk.

Associations that represent child care workers have not been effective at the Legislature, Barten said. Unions are better capable of lobbying lawmakers for more money and better regulations, she said.

She said she understands why some would oppose the idea: “Anything new is scary.”

Also standing just outside the House chamber was child care worker Terrie Boyd of Detroit Lakes, holding a sign asking “what part of unconstitutional didn’t you understand?”

Union opponents say it is not constitutional to let business owners such as child care providers join unions. That is a provision only for employees, she said.

“This is my business,” Boyd added. “I am not an employee.”

Boyd and Falk said most child care workers in their areas oppose unionization.

Democrats back two unions that want to sign up child care workers and personal care attendants. Unions say they can do a better job of negotiating state subsidies and rules that govern the services.

Also on Saturday, a transportation bill passed, but without a provision the House and Senate earlier approved to raise some speed limits from 55 mph to 60.

Sen. Torrey Westrom, R-Elbow Lake, long has worked to raise speed limits and was upset that a House-Senate conference committee dropped the higher speed limit.

Senate Transportation Chairman Scott Dibble, DFL-Minneapolis, said state transportation officials oppose the higher speed limit because it “would decrease safety.”

Also in the transportation bill is a provision that makes it legal for a bicycle to have a horn or bell, which is not allowed now.

House and Senate members on Saturday approved coming back for the 2014 legislative session Feb. 25.

Barten

Boyd

Nursing homes get financial bump as lawmakers OK health care bill

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Sens. Lourey, Dibble

By Danielle Killey

Nursing homes and other care facilities will get more state money than they have seen in years.

Sen. Tony Lourey, DFL-Kerrick, said the budget plan lawmakers approved last week includes “the largest state investment in the nursing home industry in well over a decade.”

But others say it is not enough for the organizations.

“This is going to let them limp along for a while, but this is not what we should be doing,” Sen. Julie Rosen, R-Fairmont, argued.

The Senate approved the health and human services budget 39-28 Saturday, after the House voted 73-61 late Friday. Like most budget bills, the votes largely were along party lines, with Democrats in charge of the Legislature backing their budget decisions.

The more than $11 billion is a significant portion of the state’s two-year, $38 billion budget, second only to public education spending.

The bill includes a 5 percent rate increase for nursing homes in the next two years, half what they wanted.

Long-term care and other providers will see a 1 percent rate increase effective April 2014.

“This is the first time in four years that we actually have an increase in wages for nursing home workers and long-term care workers,” said Rep. Tom Huntley, DFL-Duluth.

Lourey said it was time to start increasing funding after “devastating cuts” in past budgets.

“Health and human services takes the lion’s share of the budget balancing around this place year in and year out,” Lourey said, referring to cuts in the budget during tough fiscal times.

Providers said while the increase will help avert immediate crises at nursing homes and long-term care facilities, more work is needed in the future.

They had asked for a 5 percent increase each year in the next two years. They said without funding increases, many facilities are losing employees to higher-paying jobs and many nursing homes risk closing due to fiscal problems.

Rep. Paul Torkelson, R-Hanska, called the 1 percent hike for care workers for the disabled “embarrassing.”

Huntley said it is one part of the bill he did not like.

“I have always been committed to treating them exactly the same as I treat nursing home people, and I was unable to do that,” he said. “I’m disappointed with that myself.”

Republicans said not funding that fully was a case of misplaced priorities. They also argued some other changes will cost nursing homes money, so they will not fare as well as it seems.

“We have a questionable priority system here,” Rosen said. “We are raising taxes by $2 billion and we cannot fully fund the long-term care industry.”

The health and human services budget originally was to be $150 million less than the current budget, but the conference committee improved that to $50 million, “which made things a lot less painful,” Huntley said.

“That really helped mitigate a lot of problems with the bill,” Lourey said.

Gov. Mark Dayton proposed a $127 million increase in HHS funding.

The bill includes some savings from combining cuts and reforms such as savings from the federal Affordable Care Act and bumping up the date HMOs and hospitals pay their existing state surcharges.

HMOs also can no longer bill the state for salaries higher than $200,000, advertising, penalties, fines or charitable contributions.

Gone from the bill was a proposed hospital surcharge, which Huntley said he was happy to have erased.

The bill also includes expanded programs for mental illness care, including in schools.

“We still have work to do to help our hospitals and nursing homes in the future, but I’m happy to vote for this step in the right direction,” said Rep. Jay McNamar, DFL-Elbow Lake.

The governor is expected to sign the bill.

“This bill finds government efficiencies that will allow for some cost-of-living raises for nursing home workers in our communities,” said Rep. John Persell, DFL-Bemidji.

Rep. Roger Erickson, DFL-Baudette, said the raise is needed.

“This budget will provide a well-deserved raise for those workers who do such crucial work in nursing homes across Minnesota,” Erickson said. “They have been waiting for a raise for far too long, and I’m happy to vote in favor of it.”

Rep. Andrew Falk, DFL-Murdock, said nursing homes need the increased funding.

“We know that our nursing home workers need more support from the state,” Falk said. “This bill gives them a pay increase that is well-deserved, and it helps make responsible reforms to one of the biggest areas of our budget.”

Rep. Mary Sawatzky, DFL-Willmar, said workers deserve the increased funding.

“After a decade of cuts and four years of wage freezes for nursing home providers, this increased funding is desperately needed,” she said. “Our seniors and nursing homes are a vital part of our communities, and they deserve our support.”

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Here are some highlights of the Minnesota Legislature’s health and human services bill:

– Total spending in the next two years, $11.3 billion

– Cut from the current budget, $50 million

– Nursing home funding increase, 5 percent; long-term care increase, 1 percent

– Statewide health improvement program funding, $35 million

– Additional funds for school mental health services, $7.4 million

Budget pieces slowly begin moving toward governor’s office

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Rep. Paul Marquart

By Don Davis

Minnesota legislators have taken baby steps in passing a $38 billion, two-year budget that must be finished by midnight Monday.

The biggest step so far was set to come late Friday or early Saturday as the House edged toward approving money for state-subsidized health programs, the second-largest part of the state budget.

“I think we have time to get the budget bills done,” House Majority Leader Erin Murphy, DFL-St. Paul, said even as Republicans complained that the Legislature was debating nonbudget bills.

“I’m concerned that with the amount of time left in the legislative session, we may not have enough time for public input and debate on these important bills,” said Sen. Bill Ingebrigtsen, R-Alexandria.

Budget bills headed for Gov. Mark Dayton’s approval fund public safety, judiciary, higher education and economic development programs.

Much of the budget still was being negotiated among the Democratic-controlled House and Senate and Democratic governor’s office, including measures to fund natural resources, agriculture, public schools, various state agencies and transportation.

Some of the budget became clearer Friday. Murphy said she doubted gasoline taxes would rise, as some proposed. She also said legislative pay likely will not be increased.

A bill raising $2 billion in taxes remained in negotiators’ hands late Friday, but Dayton and legislative leaders gave them instructions to raise income taxes on the highest-paid Minnesotans, add a sales tax to some business services and raise cigarette taxes.

The House began a debate late Friday to fund state health programs for the elderly and disabled.

Supporters of nursing homes and other long-term care organizations said the health and human services bill averts a crisis.

The bill increases nursing home funding 5 percent in the first year of the next budget cycle and 1.5 percent in the second year.

Still, long-term care supporters say the work is not over to find sustainable funding for years to come.

“Every year that we put off discussions and decisions on sustainable long-term care funding will only make the problem more difficult to solve,” President Gayle Kvenvold of Aging Services of Minnesota said. “The state’s current funding approach is already strained.”

Earlier Friday, the House defeated a plan to spend $800 million on public works projects across the state. The vote was 76-56, but bills funded by the state selling bonds need 81 votes.

House Minority Leader Kurt Daudt, R-Crown, said the bonding bill and a proposed constitutional amendment that filled Friday afternoon are “distractions” from setting the state’s budget. The constitutional amendment would remove the decision about legislators’ pay from the Legislature.

The House plans to take a break from the budget for a time Saturday, perhaps a long time.

Nearly 100 amendments have been filed for a bill to allow child care providers and personal care attendants to join unions. There were fewer amendments than that when senators debated the bill, a debate that stretched 17 hours before it passed 35-32.

Murphy said she will use “all of the tools in the toolbox” to shorten debate if Republicans venture into filibuster territory instead of what she considers legitimate debate.

Rep. Jason Metsa, DFL-Virginia, sponsored the legislative pay amendment.

“This isn’t a bill about giving legislators a pay raise,” he said. “It is about being transparent.”

Daudt said there was no need to take up the bill this year because Metsa’s plan calls for voters to consider the measure in 2016, leaving three more legislative sessions where it could be debated.

Daudt and other Republicans raised their voices during the pay debate.

“Uff-da. I think the caps lock was on there,” Murphy said.

Legislative notebook: Legislature approves freezing college tuitions

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Rep. Carly Melin

By Danielle Killey and Don Davis

A bill funding Minnesota State Colleges and Universities and the University of Minnesota systems freezes tuitions.

Senators passed the bill 44-22 and the House 76-56 Friday.

Democrats said their bill restores funding that was cut under Republicans.

“This bill will finally reverse that trend, which has been making college education more expensive and less affordable at a time when it is more important,” Sen. Kent Eken, DFL-Twin Valley, said.

The bill gives the university $42.6 million and MnSCU $95 million to freeze tuition for the next two years.

Republicans were divided over the Democrat-written bill.

Sen. Torrey Westrom, R-Elbow Lake, complained that the bill includes what used to be known as the DREAM Act, a provision to allow undocumented immigrants access to state-run colleges and universities like other Minnesotans.

Westrom said it “dilutes money Minnesota students will get.”

Even if those students do get financial breaks, they probably would have a hard time finding jobs after graduation, he added. “Without employment, that becomes a nearly impossible task.”

Other Republicans praised the bill.

“This is a good bill for the students, all students in Minnesota,” Rep. Bud Nornes, R-Fergus Falls, said.

MnSCU Chancellor Steven Rosenstone said the bill “will help increase access to higher education for all Minnesotans and ensure that our colleges and universities remain affordable and within reach of students from all backgrounds.”

Public safety OK’d

The House and Senate approved a bill to fund courts, crime victim programs and law enforcement 121-12 and 64-1, respectively.

The bill also expands information in the background check system for gun purchases. It does not broaden background checks or ban any weapons or ammunition.

“We have been successful in threading the political needle on the reducing gun violence issue by finding the funding and the language to fill in the gaps in the background check database, particularly to include the mental health and civil commitment data,” Senate Judiciary Committee Chairman Ron Latz, DFL-St. Louis Park, said.

The bill allocates about $5.6 million for upgrading the criminal history system, $2.7 million for the state’s crime statistic reporting system and $1 million to integrate non-electronic data into the Bureau of Criminal Apprehension’s system.

“This will greatly improve our background check system across the state by putting the missing data into the background check system,” House Judiciary Finance and Policy Committee Chairwoman Debra Hilstrom, DFL-Brooklyn Center, said.

The bill includes $3 million for crime victim shelters, services and programs.

It also sets aside $860,000 over the next two years to create a School Safety Center to assess threats to Minnesota schools and provide training and assistance for school safety.

Judges also will see salary increases of 3 percent each year in the next two years.

Senate approves jobs

The Senate approved a jobs and economic development bill 40-27, sending it to Gov. Mark Dayton’s desk for a signature.

The bill would fund job creation, training and economic development programs. It also sets energy standards, including requiring 1.5 percent of investor-owned utilities’ power to come from solar energy by 2020.

“This bill may be the most significant job creation bill in many years, making economic development across the state a top priority,” sponsor Sen. David Tomassoni, DFL-Chisholm, said. “The energy provisions in this bill allow our communities to get in on the solar boom happening across America. More importantly, we make sure that the solar development happening in Minnesota, directly benefits Minnesotans.”

The bill offers incentives for Minnesota-made solar products.

The House approved the bill earlier.

“It’s not a piecemeal approach,” Rep. Tom Anzelc, DFL-Balsam Township, said. “It’s an all-of-the-above strategy that pulls out all the stops when it comes to job creation.”

Warehousing tax, solar linked

The Minnesota Trucking Association says a plan to extend the state sales tax to warehousing services could impact state solar power efforts.

MTA President John Hausladen said the tax expansion “will drive customers to position their inventories in Wisconsin, Iowa and the Dakotas. Minnesota warehouse space will shrink, along with current and future solar generation capacity.”

A recently passed plan would require solar electricity generation to reach 1.5 percent by 2020, but the sales tax expansion could hurt that, the organization argues.

Foreclosure protections OK’d

A bill that would offer help to Minnesotans facing foreclosure passed the Senate 61-1.

The bill is aimed at protecting homeowners through measures including requiring all information on foreclosures be readily available, banning “dual tracking,” where banks or loan servicers foreclose without answering whether the loan can be modified and covering lawyer and court costs for homeowners to bring the foreclosure to court if loan offices fail to comply with the law.

Cigarette tax praised

Health organizations praised a proposed $1.60-per-pack cigarette tax hike.

“This significant bump in the price of tobacco products will inspire many adults to quit and help keep our kids from smoking,” Matt Schafer of the American Cancer Society said.

The Raise it for Health coalition said the increase could save more than 25,700 Minnesotans from premature smoking-related deaths.

The increase would set the state’s total cigarette tax at $2.83 per pack.

Update: Bonding bill up in air

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Hausman

By Danielle Killey

The future of a public works borrowing bill to fund state Capitol work, roads and bridges and other projects is in question after it failed in the Minnesota House.

Representatives voted 76-56 Friday on a bill to sell bonds to fund public works projects, five votes short of the 81 needed to pass.

“This is nothing short of tragic,” bill author Rep. Alice Hausman, DFL-St. Paul, said after the vote. But even with only three days left in the session the bill could resurface.

The $800 million bonding bill would fund projects such as state Capitol renovations, repairs at colleges and state parks and local bridge and road projects. The $109 million Capitol provision is the largest single item in the bill.

Republicans said they did not want to vote on the bill before the state budget is set.

“We need to get our priorities straight,” House Minority Leader Rep. Kurt Daudt, R-Crown, said.

“Why we would at this time borrow another $800 million to spend more money, before doing our budget work, is perplexing,” Rep. Matt Dean, R-Dellwood, said.

Various budget bills have begun to be heard by the House and Senate, but most major pieces remain to be debated.

Southwestern Minnesota Republicans said they were upset because aid to their area affected by storms last month was in the bonding bill and would have been more likely to pass on its own.

“I truly hope the Democrats aren’t going to play politics with an act of God,” Rep. Joe Schomacker, R-Luverne, said before the vote.

Rep. Rod Hamilton, R-Mountain Lake, also worried the disaster relief could be in danger as part of the bonding bill.

“Democrats are holding this funding hostage because we did not support $800 million in additional state borrowing,” Hamilton said. “We have always helped our disaster victims during their time of crisis, and I can only hope the Democrats will do the right thing and bring this bill forward in the next few days.”

Hausman argued that all the projects in the bill are important.

“Why is one community and its need more noble than anyone else’s?” she asked.

Hausman told reporters after the vote that the bonding bill is finished for the year. However, Gov. Mark Dayton and leaders of the Democratic-controlled House and Senate could bring the bill up for debate again.

Republicans have said they could accept a bonding bill that includes Capitol work and any disaster funding, but not other projects.

Hausman said she thinks a Capitol-only funding bill will not come up this year, though without it repairs will be delayed, she said.

“In today’s highly partisan political atmosphere, the bonding bill is one example where legislators can work together for their communities and the good of the state,” Hausman said. “A great disservice was done today by those who wanted to make a political point.”

She said the bill would have made a difference in communities throughout Minnesota.

“I couldn’t have asked the people of Minnesota for more help,” Hausman said, relaying letters, calls and emails from people throughout the state asking for projects to be included. “We’re all in this together.”

Hausman said the bill was an agreement among the Senate, House and governor’s office.

Hausman said at least eight Republicans promised votes, though she would not say who. Dean said no GOP members promised to vote for the bill. Three Republicans did join Democrats in the vote.