Tag Archives: mark dayton

Final $2 billion tax deal merges 3 plans

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Bakk, Thissen

By Don Davis

The Minnesota House, Senate and governor’s office agreed to a tax plan Thursday night, four months after the Legislature started and four days before lawmakers must wrap up work for the year.

The tax plan is a merger of what the Democratic-controlled House and Senate and Democratic Gov. Mark Dayton wanted. It is a refinement of a tax and budget deal announced Sunday.

The tax increase would bring in $2 billion in new revenue to help support a $38 billion, two-year budget.

While legislative tax negotiators still need to fill in details, here is what Dayton, Senate Majority Leader Tom Bakk, DFL-Cook, and House Speaker Paul Thissen, DFL-Minneapolis, announced Thursday night:

– The top 2 percent of Minnesota earners will pay 9.85 percent of their income in taxes, up 2 percentage points from the current top rate. The tax affects couples with at least $250,000 in taxable income and individuals earning $150,000.

– Sales taxes will not rise on consumer goods such as clothing, but some businesses will pay sales taxes on services and goods provided by other businesses. Included will be electronic equipment and repair and warehousing.

– Cigarette taxes will rise $1.60 a pack to $2.52 a pick, the same as Wisconsin charges and higher than any other Minnesota neighbor.

– Minnesotans should see about $400 million in property tax relief due to higher city aid payments and dropping a requirement that cities and counties pay sales tax. Also, property tax refunds would be enriched.

– Some corporate tax loopholes will be closed.

“There are a lot of details for the tax committee to work out,” Thissen said.

Bakk said the rest of the state budget should fall in place quickly now that the tax deal is in place.

“This is the lynchpin of the session,” Bakk said.

Dayton said the latest agreement fulfills promises Democrats have made to improve education funding and make other changes without using financial gimmicks.

Democrats said they are imposing no new taxes on middle-class Minnesotans. However, Republicans disagreed.

“Every Minnesotan will pay more,” said House Minority Leader Kurt Daudt, R-Crown.

Senate Minority Leader David Hann, R-Eden Prairie, said the business sales tax Democrats propose will filter down and be paid by average Minnesotans.

The DFL leaders dropped a House plan to place a surcharge on the richest of the rich to repay money the state has borrowed from schools.

Dayton and legislative leaders said they will pass a $400 million Mayo Clinic request, even though Senate Tax Chairman Rod Skoe, DFL-Clearbrook, and House Tax Chairwoman Ann Lenczewski, DFL-Bloomington, said they do not place a priority on the project. Mayo seeks state aid to prepare Rochester for a $3 billion Mayo expansion.

Lenczewski said “we have paid far too much time” on the Mayo plan this year. “I’m at my limit.”

She said that as the session’s end approaches, members should not rush through a plan.

“I’m willing to wait until next year,” Lenczewski said.

Skoe said he had his staff working on “more important issues” than the Mayo plan.

Dayton and legislative leaders said tuition at state-run colleges and universities will be frozen.

Democrats have enough votes to pass all of the provisions without Republican help.

Education is the largest single portion of the two-year budget that begins July 1. Negotiators continued to write that bill Thursday night, but the second-largest bill, funding state health programs, appeared close to wrapping up.

The first of nine budget bills — dealing with public safety and jobs — began showing up in the House and Senate Thursday after conference committees negotiated differences and rewrote bills passed earlier.

On the House floor today will be an $800 million public works bill to be funded by the state selling bonds. Other budget bills also are expected in both chambers.

With the state constitution setting Monday as the last day lawmakers can meet this year, unless the governor calls a special session, plans are in place to meet Saturday and Sunday.

On Saturday, the House is expected to take hours debating a bill allowing child care providers and personal care attendants to join unions. The Senate took a modern-day record 17 hours to debate the measure earlier this week.

Update: Smokers, corporations to provide stadium funding backup

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Frans

By Danielle Killey and Don Davis

Smokers will provide the backstop to Viking stadium construction funding, the governor and legislative leaders announced Thursday night.

If that is not enough, eliminating corporate tax loopholes will be a second backup to electronic pulltabs and bingo, which have failed to generate as much state revenue as expected.

Confirming a proposal Revenue Commissioner Myron Frans unveiled earlier in the day on behalf of the governor, the Democratic leaders said they agree on the plan. Gov. Mark Dayton, House Speaker Paul Thissen, DFL-Minneapolis, and Senate Majority Leader Tom Bakk, DFL-Cook, told reporters Thursday night that the proposal will be part of a tax bill expected to pass before Monday’s legislative adjournment deadline.

A cigarette tax increase and closing what some see as a corporate tax loophole would be backup sources if other revenue sources continue to fall short, though supporters say they hope money from electronic pulltabs and bingo will be enough to fund stadium construction.

Frans said the tax increases already were being discussed, but the money now would be earmarked to fund the Vikings stadium if needed.

About $24.5 million estimated to come from a cigarette tax increase would go to plug a possible deficit in stadium funding for the next two years.

The plan would raise the cigarette tax from $1.23 per pack to $2.52. That is the same as Wisconsin’s rate, the highest of Minnesota’s neighbors.

Republicans, who were not involved in drawing up the backup stadium finance plan, complained that the Dayton proposal would take money away from schools and other state needs.

Sen. Dave Thompson, R-Lakeville, said Dayton promised not to use general tax dollars to fund stadium construction. The funds from the cigarette tax and closing tax loopholes would go to the state’s General Fund, where Thompson said schools and other state programs get money.

“Why are we talking about the stadium now?” said Senate Minority Leader David Hann, R-Eden Prairie, with the end of this year’s session coming Monday.

When asked about the GOP allegations, an angry Dayton said the taxes are earmarked for a stadium and do not take money away from other needs.

“They want to screw up the project,” Dayton said of Republicans.

The stadium, replacing the downtown Minneapolis Metrodome, already is producing jobs, the governor said. Had the new stadium not been approved, a $400 million project with two office towers and other development would have gone to Des Moines, Iowa, Dayton said.

He called Republican opposition “political grandstanding.”

The law enacted last year to approve a nearly $1 billion stadium pinned the state’s $348 million contribution on electronic pulltab and bingo tax revenues.

“We’ve been disappointed with the rollout and how long it’s taken,” Frans said, but “we hope the original source will continue to grow.”

Closing the corporate tax loopholes would bring in about $26 million in the first year and $20 million annually after that, Frans said. Businesses now can avoid some state taxes by attributing sales to affiliates in other states, he said.

“It may never be used,” Frans emphasized of the new taxes. “The primary source still is charitable gambling.”

Smokers would help fund Vikings stadium construction

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Stadium drawing

By Don Davis

Minnesota legislative tax negotiators tentatively approved a plan today to use cigarette tax increase funds and close corporate tax loopholes to provide backup Vikings stadium construction funds.

Gov. Mark Dayton, who opposed cigarette tax increases when he campaigned for office, offered the plan to 10 legislative tax negotiators this morning.

Revenue Commissioner Myron Frans said Dayton does not support taxing sports memorabilia and stadium seats as part of the solution.

Also this morning, a key tax negotiator said she would be comfortable waiting until next year to decide how to help Rochester prepare for a $3 billion Mayo Clinic expansion.

The stadium funding question arose when the prime source of state revenue to repay construction loans fell far short of predictions. The law enacted last year to approve a downtown Minneapolis stadium depended on electronic pull tab and bingo tax revenues.

Dayton’s plan, to be further discussed by tax negotiators as the 2013 legislative session winds down by Monday, calls for increasing cigarette taxes to $2.52 per pack, up from the current $1.23.

The new tax would be the same as Wisconsin, which has the highest rate of any state around Minnesota.

A one-time stock fee on cigarettes to get to the new tax amount would go to fill in stadium funding deficits.

Other than the cigarette tax funds, the Dayton plan would close what some consider tax loopholes on corporations to bring in more revenue in future years if needed.

Pulltab and bingo tax receipts still would be the primary funding system, with the cigarette tax being used to back that up.

Also today, hopes dimmed for Mayo Clinic to get aid it has sought in preparing for a major Rochester expansion.

House Tax Chairwoman Ann Lenczewski, DFL-Bloomington, said that “we have paid far too much time” on the Mayo plan this year. “I’m willing to wait until next year.”

Senate Tax Chairman Rod Skoe, DFL-Clearbrook, said he has his staff working on “more important issues” than the Mayo plan.

Mayo wants millions of dollars to help Rochester improve infrastructure as the world-famous clinic would attract more patients.

Minnesota gays’ joy overflows

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6,000 gather for gay marriage bill signing

By Don Davis

Minnesota’s gay community never has known such joy.

That joy showed Tuesday night as American and rainbow flags flew in front of the state Capitol when Minnesota became the 12th state to embrace same-sex marriage. Minnesota gays and their supporters could not contain their enthusiasm during a 45-minute ceremony featuring Gov. Mark Dayton signing the historic legislation.

An estimated 6,000 people crowded in front of the Capitol in temperatures topping 90 degrees to cheer not only Dayton, but to greet as heroes dozens of lawmakers who voted for gay marriage.

“What a difference a year and an election makes in Minnesota,” Dayton declared. “Last year, there were concerns that marriage equality would be banned forever. Now, my signature will make it legal in two and one-half months.”

It was just last November that Minnesota voters decided not to put a gay marriage ban in the state Constitution. Voters also turned out the Republican legislative majority that put the anti-gay marriage provision on the ballot.

Using a handful of pens to sign the bill the House passed last week and the Senate on Monday, Dayton took the last step to erase an existing state law that prohibits same-sex couples from marrying.

About 5,000 Minnesota gay couples are making plans to marry and then enjoy many rights for the first time now that a same-sex marriage bill is law.

“Love is the law,” Dayton declared, then sent the throngs to downtown St. Paul and an all-night party.

House bill sponsor Karen Clark, DFL-Minneapolis, told the crowd that many who voted for the bill in the House and Senate may have hurt their political chances because they live in districts that oppose gay marriage.

“We’ve got your back,” the crowd chanted.

Clark was accompanied by her longtime partner, Jacquelyn Zita, and Senate bill sponsor Scott Dibble, DFL-Minneapolis, was joined by Richard Leyva, whom he married in California.

“Our dream came true four-and-a-half years ago in California and now it is going to come true in Minnesota,” a jubilant Dibble said.

As Dayton signed the bill, Zita and Leyva rested their heads on their lawmaker-partners.

Like everyone who took a turn at the microphone, Dibble thanked those who helped defeat last year’s proposed constitutional amendment and worked toward passing the gay marriage bill.

“I have seen you grow with every step and every setback,” he said.

However, he added, “there is more to do.” He urged gay marriage supporters to go from “the northlands” to “the southwest prairies” to talk about the advantages of gay marriage.

“Bring the state together,” he pleaded.

Polls show Minnesota divided over the issue, but the trend appears to be in favor of same-sex marriage.

A UCLA Williams Institute study shows that about half of Minnesota’s 10,000 gay couples likely will wed within three years.

Same-sex couples can get married starting Aug. 1.

Among rights that gay couples will have for the first time is the ability to make decisions for ill spouses who are not able to decide for themselves. In some cases, a gay cannot visit a hospitalized spouse, which will change under the new law.

There also are some business-related decisions that up to now only people in man-woman marriages could make.

Project 515 has found 515 state laws that the group says discriminate against gay couples. The new law changes the law so same-sex and opposite-sex couples are treated the same.

Federal laws continue to treat gay couples differently, such as those dealing with Social Security benefits.

A gay couple legally married in another state or country will be recognized as being married in Minnesota.

The law’s path has been controversial. For years, legislators on both sides of the issue introduced bills to support their views.

In 1997, legislators approved a bill to write the gay marriage ban into state law.

Two years ago, the Republican-controlled Legislature approved a proposed constitutional amendment to insert the gay marriage ban into the state Constitution. That effort failed, but it inspired gay marriage supporters to campaign for the bill that passed the Senate Monday and the House last week.

When Democrats this year took over both chambers of the Legislature and Dayton remained governor, the gay marriage issue’s chances greatly increased.

Just a few legislators broke from their parties’ general stances when they voted on the marriage bill.

Dibble

Clark

Update: Dems release budget and tax guidelines with details to come

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Bakk

By Don Davis

Minnesota political leaders have spent months preparing state budget plans, and eight days before the Legislature must adjourn for the year they announced they have reached agreement on some tax and spend guidelines.

Included in the budget framework is that the state would not raise sales taxes on consumer goods, such as clothing, but probably would add taxes businesses pay on sales to other businesses. They plan to raise income taxes on the top 2 percent of Minnesota earners and put a surcharge on taxes paid by the richest of the rich.

Cigarette taxes would go up under the plan, and negotiators could raise taxes on alcoholic drinks, too.

“It is a budget that is going to work for Minnesota and put Minnesotans to work,” Gov. Mark Dayton said Sunday when he announced the agreement with Democratic legislative leaders on their $38 billion, two-year budget plan that aims to raise taxes $2 billion.

Dayton, Senate Majority Leader Tom Bakk, DFL-Cook, and House Speaker Paul Thissen, DFL-Minneapolis, briefed reporters on the budget deal Sunday afternoon. The Legislature must adjourn by May 20, and the trio of leaders said House-Senate conference committees will negotiate details, such as how much the various taxes would increase.

“On the tax side, the tax committee is going to work out all the details,” Bakk said.

Bakk said the budget outline will make sure two Minnesota priorities are met: more money for education and property tax relief.

When Democrat Dayton released his budget plan in January, he called for higher sales taxes at the consumer and business levels. The idea produced protests from many segments, so he dropped them from a revised plan and pledged to oppose Senate efforts to revive the concept.

Dayton said there is nothing in the tax plan, other than a cigarette tax hike, “that will affect middle income taxpayers.”

However, after reporters pressed him, he admitted that “any tax on business, economists will say, could filter down.”

Eventually, he added about the middle class paying more: “I can’t say they won’t.”

Some of the guidelines Dayton, Bakk and Thissen said they are passing to conference committees include:

– Education at all levels would receive more than $1 million more than under the current two-year budget.

– The sales tax would not rise on consumer goods, including clothing, but businesses could pay sales tax on goods sold to other businesses.

– Income taxes would go up on people in the top 2 percent of Minnesota earners, couples with $250,000 or more annual taxable income and individuals making $150,000 or more.

– An income tax surcharge would be added for Minnesota’s richest of the rich, with proceeds going to help repay money the state has borrowed from school districts. The level of the surcharge would not be decided until the current budget ends June 30.

– Cigarette taxes would rise and taxes on alcoholic drinks also could go up.

– Some business tax breaks would disappear.

– All-day kindergarten would be funded across the state.

– The state would spend $400 million in property tax relief, such as by increasing aid sent to local governments.

Thissen said legislative pay could be raised under the budget, but the leaders did not make that decision. There also was no decision on whether to raise the gasoline tax, as the Senate voted last week.

Also awaiting a decision is how to back up lagging Vikings stadium construction funding.

The three leaders said the tax conference committee will decide the stadium issue, but Dayton said that “we have a couple ideas.”

Taxes on electronic pulltabs are far short of expectations, and there has been a demand from legislators and others to find a more reliable source of funds.

“We are going to get a stable source that is more than sufficient,” Dayton promised, without giving a hint about how that might look.

An $800 million public works funding bill, to be financed by the state selling bonds, was included in the budget framework.

House Minority Leader Kurt Daudt, R-Crown, said Republicans are not interested in that large of a bonding bill. Many Republicans have said they support renovation work on the Capitol building, but little else this year.

Daudt and Senate Minority Leader David Hann, R-Eden Prairie, said that when all Democratic-Farmer-Labor taxes are added up they could approach $3 billion in the next two-year budget cycle.

If Democrats vote together, Republicans do not have the votes to stop any spending or tax bill other than bonding.

Hann, Daudt

Budget outline released, with details to come

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Thissen and other leaders

By Don Davis

 

Minnesota Democratic leaders plan to raise Minnesotans’ taxes $2 billion in the next two years, with much of the money going for education.

 

The governor and legislative leaders announced this afternoon, eight days before lawmakers must adjourn for the year, that they have an outline for how to spend $38 billion in the next two years and how to raise money they need.

 

“It’s too early to call a victory lap,” House Speaker Paul Thissen, DFL-Minneapolis, said, because most of the details are being left to House-Senate budget and tax conference committees that are to negotiate final details.

 

With Democrats controlling the House, Senate and governor’s office, three people are in charge of making most decisions about what will be presented to 201 lawmakers. Republicans have not been involved in budget talks.

 

Thissen, Gov. Mark Dayton and Senate Majority Leader Tom Bakk of Cook said they agreed on spending targets and will give conference committees a few other guidelines, such as:

 

– The sales tax would not rise on consumer goods, including clothing, but businesses could pay sales tax on goods sold to other businesses.

 

– Income taxes would go up on people in the top 2 percent of Minnesota earners, couples with $250,000 or more taxable income.

 

– An income tax surcharge would be added for Minnesota’s richest of the rich, with proceeds going to help repay money the state has borrowed from school districts.

 

– Cigarette taxes would rise.

 

– Some business tax breaks would disappear.

 

– All-day kindergarten would be funded.

 

– The state would spend $400 million in property tax relief, such as by increasing aid sent to local governments.

 

The size of tax increases and other details of the budget remain undecided.

 

Bakk said the budget outline will make sure two Minnesota priorities are met: more money for education and property tax relief.

 

The three Democrats said middle income Minnesotans would not pay more taxes other than for cigarettes. But when reporters pushed him on the subject, Dayton said that some of the business taxes could trickle down to consumers in higher prices.

 

Thissen said legislative pay could be raised under the budget, but the leaders did not make that decision. There also was no decision on whether to raise the gasoline tax, as the Senate voted last week.

 

An $800 million public works funding bill, to be financed by the state selling bonds, was included in the budget framework.

 

House Minority Leader Kurt Daudt, R-Crown, said Republicans are not interested in that large of a bonding bill. Many Republicans have said they support work on the Capitol building, but little else this year.

 

Daudt and Senate Minority Leader David Hann, R-Eden Prairie, said that when all Democratic-Farmer-Labor taxes are added up they could approach $3 billion in the next two-year budget cycle.

 

If Democrats vote together, Republicans do not have the votes to stop any spending or tax bill other than for bonding.

 

State budget talks continue, but no deal

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Bakk, Sieben, aides head to budget talks

By Don Davis

Minnesota’s top Democratic politicians met Saturday, trying to figure out how to raise and spend $38 billion over the next two years, but apparently fell short of a deal.

Gov. Mark Dayton flew back to St. Paul Saturday, cutting his time at the governor’s fishing opener short to resume negotiations.

Dayton and top legislative leaders sat down in the governor’s reception room shortly after 2 p.m. By 3 p.m., Dayton aide Bob Hume told the few reporters staking out the Capitol talks that it probably would be safe for them to go home, an indication that a long afternoon — and maybe night — of talks was ahead.

Headed into the meeting, Senate Majority Leader Tom Bakk, DFL-Cook, said the leaders were “very close.” He said he was ready to work on Sunday if needed.

Joining Bakk in the all-Democratic-Farmer-Laborite meeting were Assistant Senate Majority Leader Katie of Cottage Grove, House Speaker Paul Thissen of Minneapolis and House Majority Leader Erin Murphy of St. Paul. Key financial aides also were in the room.

Republicans have not been invited to negotiations.

The Capitol was unusually quiet for the next-to-last weekend before the Legislature must adjourn.

A couple of conference committees met to work out differences between House and Senate budget bills, but negotiators on individual budget bills can make little progress until Dayton and legislative leaders tell them how much they have to spend in each budget area.

Budget talks this year took on a new atmosphere since for the first time in 22 years the House, Senate and governor’s office all are controlled by one party. The Democrats in charge have said little about what is happening during the closed-door negotiations.

The three sides went into talks with much agreement about how to spend $38 billion in the next two-year budget. However, they differed on how to raise taxes to support that spending.

The House and Dayton suggest about $2 billion more in taxes, while the Senate is looking at closer to $2.6 billion.

All three would raise taxes on the best earners, but details vary.

Republicans generally say Minnesota government does not need more money.

“Once again, hardworking taxpayers are put on the hook to pay for Democrats’ big spending plans,” Senate Minority Leader David Hann, R-Eden Prairie, said after Democrats Friday passed a nickel-a-gallon gasoline tax increase over the next four years. “We don’t need any more money. What we need is effective and efficient use of the tax dollars we already collect.”

Dayton announced in January his preference to increase the number of goods and services covered by the state sales tax, but after hearing loud protests from the public and businesses he removed that provision.

When Dayton revised his budget proposal, he did not have enough money to fund his proposed property tax relief package.

Senate Democrats picked up on the sales tax plan when they released their proposal. But Dayton said he would oppose it.

House Democrats proposed putting an income tax surcharge on the wealthiest Minnesotans for two years, with proceeds going to repay schools for money the state borrowed from them.

Legislative notebook: Senate passes smaller minimum wage

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By Don Davis

The Minnesota Senate voted 39-28 Wednesday to approve a minimum wage far lower than the House and governor favor.

Senators approved raising the hourly minimum wage to $7.75 an hour in two years for large employers, up from the current $6.15. Small businesses could continue to pay $5.25 an hour.

The House has approved a $9.50 wage, in line with Dayton’s wishes.

House and Senate bills would automatically raise the minimum wage based on inflation after 2015.

A House-Senate conference committee will have to merge the varying plans.

“This strong workforce has delivered a high quality of life for Minnesotans, but, unfortunately, Minnesota has fallen behind,” bill sponsor Sen. Chris Eaton, DFL-Brooklyn Park, said. “It is time to stand up for these working families.”

She said she would like a higher wage, but was afraid it would not pass the Senate.

Eaton’s bill does not include a House-passed provision to require farmers to pay their employees overtime who work more than 40 hours a week. Under her bill, farm employees would continue to be paid overtime for working more than 48 hours.

Also missing from the Eaton bill is a House provision that would double the current requirement that new parents get six weeks of unpaid leave.

Republicans said that raising the minimum wage will hurt businesses, especially in rural Minnesota.

Sen. Gary Dahms, R-Redwood Falls, said he fears that a higher minimum wage would cause restaurants and other businesses that pay low wages to lay off staff.

“The (profit) margins are very slim” in many businesses that pay near the minimum wage, Dahms added.

Elections changes OK’d

Minnesotans would not need to give a reason for casting an absentee ballot under a bill the House approved 74-60 Wednesday.

Besides the no-excuse absentee voting, the bill is designed to reduce unlawful felon voting, would launch an electronic poll book pilot project and expand mail balloting.

“This bill takes common sense steps to protect the integrity of Minnesota’s election system while making it easier for more people to participate in the democratic process,” bill sponsor Rep. Steve Simon, DFL-Hopkins, said. “Our state has a proud history of leading the nation in voter turnout. We need to make sure that tradition continues into the future.”

Secretary of State Mark Ritchie said the bill would save Minnesota elections administrators money.

Stadium backup planned

Gov. Mark Dayton said he expects the Legislature to approve a back-up plan for funding the state portion of a nearly $1 billion Vikings football stadium.

The governor refused to reveal details of what he has discussed with legislative leaders, but said that taxing sports memorabilia is not an option now. Also, he said, asking the Vikings to pay more for their stadium is not in a plan.

Solar emphasized

The House passed a measure 70-63 late Tuesday requiring some Minnesota electricity to come from solar power.

The bill would require 4 percent of state electricity to come from solar by 2025 and increase the percentage of renewable energy in the state to be 40 percent by 2030 for investor-owned utilities. Renewable energy now is required to be 25 percent by 2025.

Budget goal

Legislative leaders and Democratic Gov. Mark Dayton say they hope to reach an agreement by week’s end about how much to spend and tax in the two-year, $38 billion budget they are considering.

“There are a number of unresolved issues,” Dayton said, and budget and tax differences among him and the House and senate are shrinking.

A key issue is paving over differences among Dayton and Democratic legislative leaders’ tax plans, but the governor said: “I like the direction we are moving in.” The key players will not talk much about it.

The governor did say that he does not expect the Legislature to pass a House-proposed income tax surcharge to repay schools for money the state borrowed from them.

Dayton plans to meet with Republican officials this morning after several meeting with Democrats who control the House and Senate in recent days.

The Legislature must adjourn by May 20 and pass a two-year budget by then.

Economy part of gay marriage debate before historic House vote

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Awaiting 2011 House vote

By Don Davis

Most debate about Tuesday’s historic Minnesota House vote to allow same-sex marriage centers on religious and moral issues, but money also slips into the discussion.

A UCLA Williams Institute analysis claims that allowing gay couples to marry would provide a $42 million economic boost in the first three years, with $27 million in the first year alone.

The report indicates that nearly half of the 10,000 Minnesota gay couples would marry in the first three years after allowed.

Minnesota would be the 12th state to allow gay marriage, after Delaware approved it this week. Each state has reported an economic gain after approving gay marriage.

In New York City alone, a $259 million influx was felt in the first year of same-sex marriage, Mayor Michael Bloomberg said.

“Marriage equality has made our city more open, inclusive and free, and it has also helped to create jobs and support our economy,” Bloomberg said in a statement.

While the state’s economy could feel a boost, state officials estimate that gay spouses would cost the state $1.3 million in health insurance benefits that would be allowed if the law passes.

Pocketbook arguments play a back-burner role to issues of the heart in the Minnesota gay marriage debate, where both sides use religious and morale arguments to make their case.

The House takes up the issue Tuesday, and if it passes, the Senate expects a Monday vote.

“This is one of those society-changing breakthrough moments,” said Democratic Gov. Mark Dayton, a strong gay marriage supporter.

He encouraged reluctant Democrats, especially those from rural Minnesota, to do “what is best for all of Minnesota. … That’s a vote that takes a lot of courage.”

State officials are bracing for a packed Capitol, with talk of up to 5,000 people on both sides of the issue expected to show up.

Two years ago, when lawmakers approved putting a question to voters about whether to ban gay marriage, the Capitol was full. Officials dealt with some skirmishes, but much of the time pro- and anti-gay marriage activists stood side by side peacefully.

Law enforcement agencies will be out in force to prevent incidents.

While gay marriage draws thousands to the Capitol, another 1,200 school students are expected to be there on traditional spring field trips.

Debate should begin at midday, with relatively few amendments expected to be offered.

Rep. Tim Kelly, R-Red Wing, one of a few Republicans to oppose the successful 2011 effort to put a gay marriage ban on last November’s ballot, plans to offer an amendment to replace “marriage” in state law with “civil unions.” Both sides oppose it, but Kelley sees it as a compromise.

Bill sponsor Rep. Karen Clark, DFL-Minneapolis, and Rep. David Fitzsimmons, R-Albertville, propose amendments to call marriage “civil marriage,” an idea that appears to have support in both parties.

Amendments also are proposed that would protect Minnesotans who do not want to participate in same-sex marriage activities.

A concern was brought to the Minnesota Capitol this week by a New York farm couple who host wedding receptions. They are fighting a legal claim after refusing to allow a lesbian couple to hold a reception on the farm.

Potential fiscal gains are not main parts of the debate.

Sen. Sean Nienow, R-Cambridge, argued against the marriage plan in the Senate Finance Committee and in an interview said he still would fight it even if there were an economic benefit.

“I can see you would see a spike, but after that it would be only a very small number,” Nienow said about any economic improvement.

He questioned the UCLA and other studies that show economic gain. If a couple spends $10,000 on a wedding, he said, that well could mean money would be spent on a wedding instead of buying a new vehicle, so the same amount of money could be spent, just in different ways.

“There are all kinds of things we could do to create all kinds of economic activity,” he said, “but is it something we should do?”

In the first year of gay marriage in Iowa, Molly Tafoya of One Iowa, a pro-gay marriage group, said gay couples spent up to $13 million on weddings and related activities. She said it brought government almost $1 million in new revenue.

Tafoya said some gay couples moved to Iowa once they could get married there, also boosting the economy and tax revenues.

The UCLA report predicts Minnesota state and local tax revenues would jump $3 million due to same-sex-marriage related activities in the next three years.

Couples from Wisconsin, North Dakota and South Dakota could be expected to take advantage of the Minnesota marriage law if it passes.

—-

The House gay marriage debate may be watched on public television Minnesota Channel throughout the state or at http://tinyurl.com/MNHouseTV. Accessing the site will download a file to your computer.

 

 

Legislative notebook: Medical marijuana bill introduced … for debate next year

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By  Don Davis and Danielle Killey

People who have serious chronic illnesses such as cancer or multiple sclerosis could legally use marijuana to manage symptoms under a bill proposed in the Minnesota Legislature, a proposal even its supporters say will not see the light of day until next year.

“It’s about quality of life,” Rep. Carly Melin, DFL-Hibbing, said.

Patients would have to have prescriptions from their doctors and would get state identification cards to access small amounts of marijuana from licensed facilities.

Melin said the industry would be tightly regulated.

Supporters say marijuana can ease symptoms such as pain and nausea.

“I saw with my own eyes that for medical purposes, marijuana works,” said Joni Whiting of Jordan, whose daughter Stephanie had skin cancer and used marijuana to cope with symptoms. “Medical marijuana made life bearable for my daughter in her final few months.”

Rep. Tom Hackbarth, R-Cedar, said the bill sponsors want to work with law enforcement agencies, which generally have opposed the proposal in the past, to try to find a solution.

“I think that we should leave making medical decisions up to doctors, not to law enforcement,” Melin said.

The lawmakers who introduced the bill Thursday said they do not expect a vote during this session but are laying the groundwork to take up the issue next year.

“We’re just introducing it now to get the discussion going,” Melin said.

No gun debate

House leaders say they do not plan to bring up a bill requiring more Minnesotans to undergo background checks before buying guns.

The year began with some Democrats pushing for major control initiatives, including banning so-called assault weapons and large-capacity bullet magazines. Such efforts quickly stalled and with strong pro-gun lobbying, it now appears no gun-related bills are likely this year.

Gun-control supporters are not happy.

The Minnesota Gun Violence Prevention Coalition’s executive director said the bill is needed.

“This extremely popular and effective measure is being derailed by a small group of out-of-touch legislators, and there is no excuse for that,” Executive Director Heather Martens said.

Martens disagreed with House Speaker Paul Thissen’s explanation of what happened.

“It is not the case that both sides were unwilling to compromise,” she said. “Even though we wanted an assault weapons ban and limits on high-capacity magazines, as does the majority of voters, we supported a middle-ground universal background check bill that is supported by a supermajority of voters.”

BP-A ban OK’d

A chemical many scientists say can harm children would be banned from some products under a bill senators approved 41-23 Thursday.

Bisphenol-A already is banned from children’s cups and bottles, and the Senate bill would ban it from cans of baby food, formula and the like.

Sen. Katie Sieben, DFL-Cottage Grove, said BP-A is linked to obesity, reproductive and behavior problems.

However, Sen. Julie Rosen, R-Fairmont, said there is no proof BP-A is harmful.

“I just worry that we continue to go down this slippery slope where we make Minnesota an island in banning these products…” Rosen said. “There really is no alternative out there.”

Sieben countered that there are alternatives.

The House overwhelmingly supported the bill.

Nursing study ordered

Senators on Thursday agreed 36-25 with representatives who earlier voted to order a hospital nurse staffing study.

The bill is a shell of how it started earlier this year, which would have established a quota for how many nurses would have to be on duty.

The $252,000 study would look into the relationship between staffing levels and patient outcomes. The report is due back to the Legislature in two years, and could result in future quota bills.

The bill also requires each hospital to issue a staffing report so the public knows how the facility operates.

Rural senators complained that the bill would stretch already small hospital staffs even thinner.

Bill sponsor Sen. Jeff Hayden, DFL-Minneapolis, said that “since Minnesota is a leader in health care, we thought it was critical” to see how nurse staffing affects patients’ welfare.

Dayton signs bills

Gov. Mark Dayton signed several bills into law this week, including:

– Licensed dietitians and nutritionists can write prescriptions to help manage diseases such as diabetes.

– The Family Reunification Act gives a legal pathway for some teens to contact parents whose rights have been terminated.

– Minnesota senior citizens will be able to give others the right to sign checks, but not be an account owner.

Health care marketplace board members ready to work

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Duevel

By Don Davis

Phil Norgaard uttered words seldom heard in the meeting-filled Minnesota Capitol: “I can’t wait to get to some meetings.”

The Fond du Lac American Indian Reservation human services director Tuesday had just been named to the MNSure board, which will govern a new health insurance marketplace, and he wanted to get to work.

Dr. Kathryn Duevel of Willmar also was eager to get started, taking on “a big responsibility” of making sure people with a “diversity of needs” all have access to good health care coverage.

Gov. Mark Dayton named Norgaard, Duevel and four others to the board, established to run the mostly online method of buying health insurance mandated by new federal law popularly known as Obamacare. The six, plus Human Services Commissioner Lucinda Jesson, must have the marketplace running by Oct. 1, with insurance policies set to begin Jan. 1.

Minnesota is setting up its own insurance marketplace, while neighboring states generally are relying on the federal government to establish theirs. It is one of the three states furthest along in setting up a marketplace.

The Democrat-controlled Legislature approved MNsure earlier this year over Republican objections.

Dayton, a Democrat, said he did not ask his appointees, picked from 112 applicants, about their party affiliation. One of the six appointees, a General Mills official, said he was a Republican.

The board’s early duties will be mostly routine work such as establishing bylaws and guidelines, Commissioner Jim Schowalter of Minnesota Management and Budget said.

Duevel said that making sure rural Minnesota has health coverage as good as what can be found in the Twin Cities “would be high on my list.” Most people live in small communities, she said.

the same health insurance is not expected to be offered statewide, but she said that all Minnesotans need access to the same levels of care.

Norgaard said he attended a Wisconsin conference last year, and Wisconsinites indicated they were jealous when they heard about MNSure.

“I could see the faces of Wisconsin tribal leaders get longer and longer,” he said, adding that now they knew how Minnesotans feel after the football season.

Norgaard said most American Indians enrolled in tribes have access to health care through tribes, but in some cases MNSure will provide a better option.

Norgaard has directed Fond du Lac Band of Lake Superior Chippewa human services since 1980.

Duevel, who retired from her obstetrics and gynecology practice last year, spent more than 20 years at Affiliated Community Medical Centers in Willmar.

“Not only does she bring health care and expertise, but she brings compassion,” Jesson said.

The commissioner told of Duevel’s work as volunteer doctor in South America.

Rep. Mary Sawatzky, DFL-Willmar, said Duevel was a good choice.

“It’s great for our area to have this representation on the board and it will ensure that MNsure works for all Minnesotans, rural and metro,” Sawatzky said.

Other MNSure board members are:

– Thompson Aderinkomi, founder of RetraceHealth, who works with health care organization data.

– Pete Benner, a former union official.

– Brian Beutner, a consultant who works with start-up companies.

– Tom Forsythe, General Mills vice president of global communications.

Political notebook: GOP race for Minnesota governor off and running

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By Don Davis

Minnesota’s 2014 governor race is underway.

Democratic Gov. Mark Dayton long has said he plans to seek a second term, and at least a half-dozen Republicans want the chance to knock him off. One GOP wag joked that every Republican legislator was thinking about running.

So far, the main Republican in the race is rich businessman Scott Honour, who announced his candidacy via email and Web video.

“Like you, I love Minnesota,” he said in the email. “But I fear that our state is headed in the wrong direction, and under the wrong leadership. I know that the same people with the same political resumes are not going to solve our problems.”

The 46-year-old Orono resident quickly offered the Wall Street Journal an interview about his candidacy, and a day later offered to talk to several Twin Cities-based media outlets.

Honour leads an international investment firm.

While Honour may be the first serious GOP candidate, he will not be the last. Serious contenders include:

– Former state Rep. Jeff Johnson, now a Hennepin County commissioner, is expected to announce his candidacy Sunday.

– Sen. David Thompson of Lakeville says he will announce if he will run soon after the Legislature adjourns May 20.

– Sen. Julie Rosen of Fairmont probably is the only potential GOP candidate besides Honour who could finance her own campaign.

– Senate Minority Leader David Hann of Eden Prairie ran for governor the last time around.

– Rep. Kurt Zellers of Maple Grove was House speaker for two years made contacts around the state.

– Hennepin County Sheriff Rich Stanek is a former state representative who has met with the president on gun control issues.

Good Dayton chance

An incumbent always has a good chance to win a new term, so most might think that Dayton’s re-election odds must be pretty good.

University of Minnesota political blogger Eric Ostermeier, who delves deep into the political numbers, says political watchers should not assume that.

“Slightly more than one in five Minnesota gubernatorial incumbents in state history lost their re-election bids, or nine out of 42 attempts,” he reported on his Smart Politics blog.

Democratic governors, like Dayton, have won just six of 11 re-election bids, Ostermeier reports. Only two Republican governors have failed to be re-elected when they ran again.

Nursing home fights

One of the strongest legislative debates this year has been over nursing home funding.

Rural legislators, in particular, have fought for more nursing home money, especially for the workers who have not received raises in four years.

Freshman Rep. Jay McNamar, DFL-Elbow Lake, is an example.

“The major concern I had throughout this session with health and human services was the need to get nursing home and long-term care workers a pay increase,” he said. “The work these people do is honorable and it requires a lot of sacrifice.”

The House does better than the Senate when it comes to giving nursing home workers raises. The debate likely will be a prime concern as negotiators merge House, Senate and governor health funding plans.

Goodbye, Capitol

Capitol reporters have been told they will be booted from their hot, stuffy and moldy basement offices this summer if lawmakers approve a $109 million Capitol renovation request in May.

They will be gone at least two years as renovators work their way through the Capitol.

Their temporary location, “swing space” is what state officials call it, will be in the Centennial Building, about a block away from the Capitol but connected via a tunnel.

Everyone will be moved out of the Capitol at some point.

House votes safety

Minnesota state representatives voted Friday to protect children from some toxic chemicals.

They approved on a 113-13 vote a measure to ban companies from intentionally putting formaldehyde in child care products. They backed a second bill 115-11 to keep bisphenol A out of baby and toddler food containers in the state.

Rep. John Persell, DFL-Bemidji, offered the formaldehyde bill because the substance is toxic and can cause cancer.

“A 1-ounce dose will kill a human being,” Persell said.

The bill deals with items such as skin care products.

Rep. Steve Drazkowski, R-Mazeppa, said the Persell bill requires products to have a lower formaldehyde level than occurs in nature and lower than the federal government requires.

Persell, however, said his bill applies only to formaldehyde intentionally put into products.

The bill gives businesses until next year to remove the products from their shelves.

Rep. Joe Atkins, DFL-Inver Grove Heights, said the bisphenol A prohibition would be on top of existing bans on using BPA in baby bottles and sippy cups. This would keep the chemical out of containers of formula and baby food.

Similar bills are awaiting Senate consideration.

Spill calls required

Spills of potentially hazardous chemicals must be reported to both the state and local authorities under a bill that the House passed 125-1 Friday.

Rep. Dan Schoen, DFL-St. Paul Park, said spills already must be reported to a state official, but local 911 centers also should be in the loop so they can better respond.

To respond to concerns that a citizen may not know he needs to call two places, Schoen’s bill also requires the proper state official to let the caller know he also needs to contact local authorities.

Reporter Danielle Killey contributed to this report.