Atkins: 2013 Legislative Wrap-Up

In the days since the legislative session finished up a week ago, I have read several wrap-ups about what happened. Unfortunately, most of them seem to "spin" the outcome one way or another. Thus, below is my best effort at an objective summary of what happened, with as little "spin" as possible.

BUDGET. Most of the various tax proposals tossed out for discussion during the legislative session got dumped in the end. Legislators rejected new taxes on clothing, gas, alcohol, sports memorabilia, and 27 other goods and activities. However, an additional 2% tax on those earning over $250,000/year and a $1.60/pack cigarette tax were approved, with most of that new funding going to four areas: (1) paying off the state's $627 million deficit, (2) education-related expenditures, like all-day kindergarten and early education as well as a two-year tuition freeze at all Minnesota public colleges, (3) job creation efforts, and (4) putting the state in a position to pay off the $2 billion loan that was taken from our schools to balance the last two-year budget. Though many legislators, including me, voted against borrowing from our schools to balance that last state budget, we nonetheless feel responsible for it and want to pay it off during this two-year budget cycle. There are also some cuts in state spending in this new state budget, mainly in the health and human services area. Finally, there is a $346 million tax cut, aimed at small businesses, to help spur job growth. The tax cut comes from a reduction in the unemployment insurance tax, and it can only be targeted to the businesses who pay into it, not spent on anything else. There are no shifts, borrowing or accounting gimmicks in the now-approved budget.

CAPITOL RESTORATION AND DISASTER AID. Funding was approved to fix the crumbling State Capitol and assist with repairs in communities devastated by flooding.

COLLEGE TUITION FREEZE. Two-year tuition freezes at the U of M and all state and community colleges were approved.

GUNS. While efforts to ban certain guns and types of ammo never got off the ground, a system of improved gun checks was approved.

HEALTH INSURANCE MARKETPLACE. A competitive, online marketplace where consumers and small businesses can shop for health insurance was approved. It should be operating by January 1, 2014.

LEGACY FUNDING. $496 million was approved for outdoors projects, parks and trails, clean water and the arts. This funding comes from a voter-approved sales tax and was recommended by the Lessard-Sams Citizens Council. An effort to add $9.3 million for other non-recommended projects was rejected by Gov. Dayton, who line-item vetoed the additional projects.

MAYO EXPANSION. A package of state and local funding was approved to help pay for infrastructure like roads and sewers associated with a massive Mayo Clinic expansion in Rochester.

MINIMUM WAGE INCREASE. Didn't happen. Expect more discussion next year.

ROADS & BRIDGES. While an effort to increase revenues for transportation through a higher gas tax stalled out, legislation to spend an existing $1.7 billion on fixing roads and bridges did pass.

SAME-SEX MARRIAGE. An amendment designed to protect religious institutions from being forced to perform same-sex marriages, offered by Rep. David Fitzsimmons (R-Albertville) and Sen. Branden Peterson (R-Andover), secured bipartisan support for a new law that recognizes "civil marriages" in Minnesota.

SCHOOLS. Minnesota schools were the primary beneficiary of additional funding in the state budget. $234 million more will go to the school funding formula, on top of targeted money to make all-day kindergarten available to every child, reform the special ed formula, accelerate repayment to our schools of the $2 billion loan taken by the previous legislature, and do testing reform to improve how we measure student performance and help districts improve college and career readiness.

SENIOR SCAM PREVENTION. With support from law enforcement and AARP, a new law to help prevent wire fraud scams that target senior citizens will go into effect on August 1.

VETERANS. Minnesota's veterans will benefit from a double-digit increase in support for veterans affairs programs, including an expansion of Minnesota's GI bill to the spouse or child of soldiers killed in the line of duty.

COMMENTS/QUESTIONS? The summary above is not exhaustive. It merely represents the topics about which I was contacted most frequently by the most people. If you have questions or concerns about any other legislative topic, please give me a call at (651) 296-4192 or email me at Rep.Joe.Atkins@house.mn.