Session Mid Point
Dear Mighty Citizens,
The 2010 legislative session is half over. We have been wrestling with the challenges of a weakened economy and larger state deficit. The first six weeks have been a whirlwind as we have worked to improve the lives of Minnesotans and make Minnesota better.
This session we have already:
• Helped put tens of thousands of Minnesotans back to work
• Fixed 1/3 of Minnesota’s $1 billion budget shortfall
• Restored health care for 85,000 poor, sick Minnesotans
• Aided small businesses competing in a global economy
• Made Minnesota’s excellent election system even stronger
In particular, I want to mention our work on health care. After almost a year of intense work and collaboration, we successfully passed a bill to restore General Assistance Medical Care for Minnesotans in need. The solution is far from perfect, but it ensures that poor and sick Minnesotan can receive health care when they get sick. Maintaining this basic, moral objective was central to our work and I continue working to strengthen the compromise this session, taking advantage of the opportunities in the federal health package.
As we work to close our budget deficit, we will be closely monitoring the federal health care reform legislation and how it interacts with state law. By passing a law to conform to federal health care reform we can capture critical federal dollars to reduce the ranks of the uninsured and improve the quality and affordability of care we deliver in Minnesota.
Although we continue to face serious challenges, good news is on the horizon. Minnesota’s economy is getting stronger. In January, employers added 17,200 new jobs in our state - the highest one-month job gain since 2005. We’re working hard to keep that momentum going.
Working hard, we will move Minnesota closer to long-term economic recovery. Thank you for the opportunity to serve. If you would like to learn more about our legislative efforts, please visit my blog. I encourage you to share your point of view with me.
Warmly,
Erin
Jobs Bill Part I: Capital Investment (HF 2700)
The Minnesota House has passed a jobs-targeted bonding bill capable of putting nearly 20,000 Minnesotans back to work. The bill makes strategic investments in high-priority, shovel-ready infrastructure improvements.
Jobs Bill Part II: Tax Reform (HF 2695)
Continuing our focus on the economy and job creation, we passed common sense tax reforms that will create thousands of new jobs in bioscience, manufacturing, construction, and the emerging clean energy economy.
General Assistance Medical Care (HF 2680)
Working together, we passed a solution that restores basic health care for 85,000 of Minnesota’s poorest, sickest people, and prevents 20,000 working adults from losing MinnesotaCare coverage.
Bipartisan Small Business Agenda
The bipartisan Small Business Caucus is taking action to make Minnesota a better place to do business. Eight bills backed by the Caucus would free up needed capital, cut red tape, and better-connect small businesses with existing state resources. Many of these reforms come directly from the ideas of Minnesota small business owners who responded to our small business survey.
Strategic Budget Cuts (HF 1671)
The Minnesota House resolved 1/3 of the state’s $1 billion budget shortfall. Many of these cuts are difficult, but we have cut less than half of the Governor’s proposed local government cuts which will preserve jobs and limit property tax increases. Going forward, we need a balanced strategy to budget for the things Minnesotans value: quality education, health care and a 21st Century transportation system.
Common Sense Election Reforms (HF 3108)
Acting on lessons learned during the 2008 U.S. Senate election recount, lawmakers passed bipartisan election reforms to make our voting system the most reliable and efficient in the nation - while helping Minnesotans cast their ballots more easily.
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Capital Bonding
My colleague Rep Paul Gardner shared the following blog about Capital Bonding and, with thanks to him, I would like to share it with you.
Every two years the Legislature and Governor work on this bill to provide funding for publicly owned buildings, property, and land. In particular, state agencies have buildings or property that are in need of repair, renovation, or replacement. Our state colleges and universities tend to have a large request because they have a lot of buildings. To be "bondable" the project has to be publicly owned, be of state or regional significance, and be a capital project--meaning it has to be "bricks and mortar" and not for ongoing operation costs. The state raises money for these projects by selling general obligation bonds on the bond market. The state then pays the debt service to pay off the bonds over time.
Many people have written me assuming that when the Legislature passes a bonding bill that the amount of the bill is actually added dollar-for-dollar to the budget. For example, the Senate just passed a $1 billion bill and someone said that they added $1 billion to the deficit. That's not the case. In our current budget, we will now just pay the debt service on the $1 billion, which is in the tens of millions or so.
The state agency Minnesota Management and Budget (MMB) starts the process by asking public entities to submit requests. Usually the requests are something like five times greater than funding available, so MMB winnows them down and eventually the Governor's office submits a proposal to the Legislature with projects he wants. This year the Governor submitted $685 million worth of projects and those projects were mostly for state agencies and higher education institutions. The House and Senate are likely to approve a bill in the $1 billion range. According to staff, this difference of $315 million would increase our debt service for FY2010 by zero and by just $2.5 million in FY2011.
The bonding bill is often touted as a jobs bill. It is true that the private sector creates most jobs, but in bad economic times when the private sector is not hiring, government can spur job growth by spending on public projects that are generally needed anyway. (This is a basic tenet of Keynesian economics.) Right now, construction costs have declined considerably so many of us believe that if we have a larger bonding bill this year it does two things: we get more projects done for less money and we can spur additional job growth albeit temporarily. A general rule of thumb is that for every $100,000 in bonding projects, you get one job. (Someone gets paid for doing the work, but there are also costs to fuel, supplies, construction materials, etc.)
So if we pass a $1 billion bonding bill instead of the Governor's proposed $685 million (a difference of $315 million), we could see the creation of 3,150 additional jobs for just an additional $2.5 million during the next fiscal year. At least in the short term, that's $793 per job when we need to put people to work. WOW.
How do we figure out what an acceptable debt level is? Well, there is no law that limits our debt level, but several decades ago, Governor Perpich used three percent of the general fund budget as a guideline and the state has pretty much stuck to that level.
Moody's (an agency that sets bond ratings) said this about our debt management: "Minnesota's debt levels have historically been a neutral-to-positive part of the state's credit profile. The state's debt issuance is highly centralized and controlled, with the bulk of bonds issued carrying the full faith and credit pledge of the state. Minnesota's metrics have tended to place the state about average or slightly better among the states for debt issuance. Moody's 2009 State Debt Medians Report shows that Minnesota ranks 25th in debt per capita and 32nd in debt as a percent of personal income, largely a result of the state's increasing personal income levels."
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Caucuses and Session!
Dear Mighty Citizens,
On Tuesday, February 2nd I encourage you to take part in precinct caucuses.
Precinct caucuses bring neighborhoods together and offer all of us the chance to weigh in on the issues important to our community, state and country. Not only are caucuses the first step in choosing our elected officials, they also begin the process of forming party platforms and setting priorities.
To find where your precinct caucus is located you can visit the Minnesota Secretary of State website: www.sos.state.mn.us . The website displays the times and locations of the Democratic, Republican, Independence, Constitution, and Green Party caucuses.
Two days after caucuses, the 2010 legislative session begins. As you have done throughout the interim, please continue to stay active and to contact me with your ideas and input. Your active role in our political process helps me effectively represent our communities at the State Capitol.
Thank you for the opportunity to serve. It remains a great honor and privilege.
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Fixing GAMC: We Can Do This.
At the end of this past legislative session, Governor Pawlenty vetoed funding for General Assistance Medical Care (GAMC), which provides health care to 70,000 (about 35,000 in any given month) of the poorest and sickest Minnesotans each year. Recipients on GAMC earn less than $7,500 per year and about 80% of those served have serious mental health issues. GAMC funding is set to expire on March 1, 2010.
Since session adjourned, we have been working on a solution that will preserve basic health care for the most vulnerable Minnesotans. In July, Health Policy committee members visited nine safety net hospitals all over the state to hear about the need to continue providing basic health care benefits to this medically needy population. Since August, we have held meetings with hospitals, health plans, providers, unions, counties, representatives of the faith community, safety net organizations, grass roots organizations, mental health advocates, and many others to discuss policy and financing alternatives for GAMC.
After a lot of listening, we are moving forward with our proposal to temporarily restore GAMC for 16 months in order to build a bridge to national health care reform. Temporary GAMC will offer access to basic care for those currently enrolled, protect vital health care jobs, and restore the solvency of the Health Care Access Fund through 2012. Funded entirely without new taxes, the solution relies largely on cost saving reforms, maximizing existing state and federal health care funding streams, and reduced provider reimbursement rates to pay for a pared down GAMC.
You can view our proposal online: http://www.house.leg.state.mn.us/comm/committee.asp?comm=86118.
This plan is not perfect, and there are issues we need to continue working on, but inaction is not an option. In the coming weeks before session, we will continue to work collaboratively with health care stakeholders as well as with the Governor and Republicans on a bipartisan solution that is in the best interest of all Minnesotans.
This morning, Lori Sturdavent writes about the session ahead and its challenges. Read it here http://www.startribune.com/opinion/commentary/79092092.html?elr=KArksc8P:Pc:UthPacyPE7iUiD3aPc:_Yyc:aULPQL7PQLanchO7DiUr
Next step in this process will come on Monday, December 14th when we hold a public hearing to discuss various GAMC proposals. As always, I look forward to your input and perspective.
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General Assistance Medical Care (GAMC)
Casey Selix of MinnPost wrote this story which digs into the complexity of GAMC and efforts to rebuild health coverage for 35,000 sick and poor Minnesotans.
Read it here:
http://www.minnpost.com/stories/2009/10/15/12504/pawlenty_sliced_minnesotas_medical_care_for_the_poor_and_now_times_running_out
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Early Childhoood Opportunity
Legislative Leadership Institute on Child Development Research and Policy
Dear Mighty Citizens,
I wanted to share with you some information about a legislative conference I will be attending later this month. From Monday, November 9 through Wednesday, November 11 I will be attending the Legislative Leadership Institute on Child Development Research and Policy, sponsored by the Council of State Governments Midwestern Office and The Minnesota Community Foundation.
The Institute is designed to build knowledge and understanding of the science of brain development, and how the experiences of children ages birth to three affect development, health and social outcomes across the life span.
It’s an honor to be nominated by my colleagues to attend the Institute and I am eager to learn more from these nationally known researchers about how early experiences build the brain’s architecture and develop a weak or strong foundation for life.
Here is a list of the primary presenters: Richard Chase, Ph.D., Senior Research Scientist, Wilder Foundation. Dr. Chase will unveil the findings from the Minnesota Community Foundation-commissioned report on the demographics and key indicators of infant and toddler well being in Minnesota; Meggan Gunnar, Ph.D., University of Minnesota Distinguished McKnight Professor in Child Development, international expert on the effect of stress on brain development, and member of the National Scientific Council of the Developing Child, Harvard University; Robert Anda, MD, MS, senior researcher, Center for Disease Control, and Co-Principal Investigator of the Adverse Childhood Experiences Study (ACE). The ACE is one of the largest scientific research studies of its kind, analyzing the relationships between multiple categories of childhood trauma and health and behavioral outcomes later in life; and J. Ronald Lally, Ed.D., Co-Director of the Center for Child and Family Studies at WestEd, an educational research and development laboratory.o. Dr. Lally directed the Syracuse University Family Development Research Program, a longitudinal study of the impact of early intervention on low income children and families.
I look forward to reporting back to you about the conference and ways we can improve early childhood in Minnesota.
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