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April
29, 2008 |
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Intergovernmental
Services Weekly Legislative Update Week
of Monday, April 28, 2008 Health
and Human Services Last
Week Supplemental
Budget Bill The
governor and Conference Committee have begun trading offers on the
supplemental bill, which includes many human services provisions.
Key provisions of the initial proposals are: Governor: -
Proposed
partial use of Health Care Access Fund to reduce the deficit [from $250 to
$125 million]. This funds Minnesota Care for families whose employers
offer no or little health insurance); -
Suggested that
the remainder of the reductions would come from General Assistance Medical
Care or Medical Assistance. Legislature:
-
DFLers agreed
to the spending cuts of $164 million proposed by the governor and accepted
by the House and the Senate; -
Proposed an
additional $40 million in unspecified cuts; -
Reiterated
that they would not agree to use of the Health Care Access Fund as a
budget-balancing tool; -
Agreed to
remove all policy language from the bill. The
Committee agreed to modify the Senate part of the conference report to
include more detail on some provisions on use of health plan reserves and
give MDH and DHS more discretion on how to achieve the 1.7% in grant
reductions. There is no health and human services working group, as
spending targets have not been agreed to. Health Care
Reform The
conference committee met last week and focused most of their discussion on
how to achieve the proposed reforms without moving the health care access
fund into a deficit by 2013. A major dilemma is that the Governor
supports using the fund balance from the Health Care Access Fund to help
solve the budget shortfall, while the Legislature would use the funds to
increase access to publicly funded health care programs. The House
proposed a one-year delay in implementing the statewide health improvement
plan, two years of initial funding through the Health Care Access Funds,
and ongoing funding with general funds. Governor
Pawlenty prefers that the Legislature reduce health care spending for
those with insurance before expanding state programs to ensure that all
Minnesotans have access to insurance. County-Based
Purchasing HF 3380 (Liebling, was heard
Tuesday in the House Finance Committee and passed to the House floor after
extensive discussion. The bill was amended on to SF 3181 (Lourey) in the Senate
Finance Committee on Monday and now goes to the Senate
floor. This
week: The
Health Reform Conference Committee meets Tuesday. The
Supplemental Budget Conference Committee continues to
meet. Informational
hearings are scheduled Tuesday on African American child welfare (Thissen
-HHS Policy) and Wednesday on mental health (Walker Mental Health
Subcommittee). United States
House Votes 349-62 to Block Medicaid Cuts On
April 23, the House voted to block the administration’s proposed cuts to
the Medicaid program by an overwhelming bi-partisan majority. H.R. 5613, the Protecting the
Medicaid Safety Net Act of 2008, delays implementation of seven
regulations promulgated by the U.S. Department of Health and Human
Services (HHS) Centers for Medicare and Medicaid Services (CMS) for one
year. The lop-sided vote came despite last minute procedural
objections by House Republican leadership and a veto threat from the White
House. The
action moves to the Senate, where the Majority Leader, Senator Harry Reid
(D-Nev.) has put the bill on a procedural fast-track, bypassing the
Finance Committee which has jurisdiction over
Medicaid. Meanwhile,
prominent Republicans have expressed their objection to the House
approach, including Senator Chuck Grassley (R-Iowa), ranking minority
member on the Finance Committee. They argue that states and counties
have taken advantage of loopholes in Medicaid and that CMS is taking
largely appropriate action. A
letter is circulating among Senators rejecting the moratorium and calling
for negotiations with the administration. If the letter collects
enough signatures to indicate that the House bill would not get a
veto-proof majority in the Senate some observers believe there will be an
effort to extend a short moratorium on the rules affecting public
hospitals and allow the other five rules to go into
effect. Action
Needed If
your House Member voted for H.R. 5613 (Final Roll Call Results
for File 209),
please join
NACo in thanking them for protecting the local health care safety net.
Contact
both your Senators and urge them to block the Medicaid cuts by placing a
moratorium on ALL these harmful CMS regulations. (Contact:
Paul Beddoe 202/942-4234 or pbeddoe@naco.org) For
more information contact: Patricia Coldwell, AMC Policy
Analyst Transportation House passes
2008 Transportation Policy Bill (HF 3800) On
Thursday, April 24, the House debated and then passed the 2008
Transportation Policy Bill by a vote of 82-44. While much of the
debate focused on public safety issues there were many provisions in the
bill of interest to counties that include: ·
Requiring that
a trailer or semitrailer with a gross weight of 3,000 lbs or more must be
equipped with brakes to operate on highways. ·
Removing the
exemption for size, weight and load limits for implements of
husbandry. ·
Prohibiting a
towed implement of Husbandry from operating on a public highway with a
maximum wheel load that exceeds 500 lbs of tire
width. ·
Requiring that
after Dec 31, 2009 a person operating or towing an implement of husbandry
on a bridge must comply with the gross weight
limitations. ·
Requiring that
implements of husbandry comply with all bridge
postings. ·
Insuring
that if operating, towing or transporting an implement of husbandry that
is higher than 13 ft six inches that no damage is done to the highway
structure, may not exceed a speed of more than 30 miles per hour, may not
be towed on an interstate highway, must display hazard warning lights if
towed to the left of center of roadway, must be equipped with lights
according to current statute, must provide a slow moving vehicle emblem,
and must be equipped with brakes according to
statute. ·
Requiring
MNDOT to investigate and recommend opportunities for infrastructure
adaptation to accommodate the implementation of manure application
technologies that lessen impacts on roads and
bridges. ·
Requiring the
issuance of a permit for the 10% overweight allowed during harvest for
sugar beets, carrots, and potatoes. ·
Reducing the
minimum gross vehicle weight for vehicles that have to stop for weighing
from 12,000 pounds to 10,000
pounds. ·
Requiring the
Commissioner of Transportation to appoint a Deputy Commissioner that is a
licensed registered professional engineer if he/she is not a registered
licensed professional engineer. ·
Requiring
MnDOT to prioritize funding for transportation projects in the
metropolitan area that have been awarded federal funding and are
consistent with Metropolitan Council plans. ·
Requiring
MnDOT to develop an implementation plan for providing transit in Greater
Minnesota to meet at least 80 percent of the unmet need by 2015 and at
least 90 percent of the needs by 2025. Requires an annual report on
transit service in Greater Minnesota. ·
Requiring
the Metropolitan Council to maintain a data base on light rail information
including financial data for sources of revenue for operations and capital
as well as ridership. ·
Repealing
the prohibition for studying and planning the Dan Patch Commuter Rail
Line. ·
Designating
Little Crow Transitway as the transitway between Willmar and
Minneapolis. ·
Requiring
the MN Department of Transportation in consultation with the MN Pollution
control agency to report the impact of salt and de-icing on MN
waterways. ·
Requiring
the Minnesota Department of Transportation to ensure the reconstruction of
the Lafayette Bridge includes footing for future implementation of
transit. ·
Transferring
100 % of the excess sum in 2010 and 50% in 2011 and thereafter to the
flexible highway account for metropolitan routes of regional
significance. ·
Allowing
MNDOT to include intersections as eligible to receive funding for the
$40,000,000 appropriated in 2009 for construction ·
Allowing
county regional rail authorities to contribute more than 10% of the
capital costs of for light rail transit if the commitment was made before
Oct. 2, 2008. ·
Requiring the
Commissioner of the Minnesota Department of Transportation to appoint a
deputy commissioner or chief engineer. ·
Establishing
reporting requirements for the Urban Partnership Agreement projects and
requires recommendations for implementing the Rush Line corridor, Red Rock
corridor and I-94 corridor projects. ·
Allowing more
flexibility for the use of trunk highway bonding than was authorized in
the transportation finance bill. ·
Requiring the
Department of Public Safety to ascertain a process that allows deputy
registrars and driver’s license agents to accept credit cards or debit
cards. Governor
Vetoes 2007 Transportation Policy Bill - HF 1351 On
Friday, Governor Pawlenty vetoed the 2007 transportation policy because of
differences over the issue of REAL ID. The governor stated in his
veto message that he supported other provisions in the bill but if
Minnesota driver’s licenses are not compliant with federal REAL ID
requirements after December 31,2009, Minnesotan’s will be prohibited
from using their driver’s licenses as identification for air travel or for
entering federal buildings. He expressed interest in working out
differences so the bill could move forward. Advocates
of other provisions listed below will be working to try and get their
issues amended on to other bills if the Legislature and the governor
cannot reach and agreement. AMC
is supportive of the weight limit provisions and some of the transit
provisions in the bill and have worked hard over the last several years on
these issues. We will be working with other stakeholders to try and
make sure those provisions have a successful outcome.
Provisions
in the bill of interest to counties include: ·
Allowing
political subdivisions to enter properties for purposes of performing
geotechnical investigations. ·
Requiring
acquiring authorities to pay a maximum relocation benefit of $50,000 for
non-residential moves. ·
Allowing
MNDOT to advertise for bids on the Internet and removes the requirement
that they must publish bids in the newspaper or other
periodicals. ·
Allowing
MNDOT to enter into privatization contracts for trunk highway maintenance
after assessing cost effectiveness for projects over
$100,000. ·
Allowing
bridge inspections not to exceed two years for bridges and four years for
culverts. ·
Repealing an
outdated statute that limited weight on nine ton roads to 73,280 lbs and
allows the current federal weight of 80,000 lbs. on nine ton paved
routes. ·
Declaring all
county state aid highways 10-ton unless posted ·
Expanding the
definition of unfinished forest products related to gross weight
limitations and allows up to 99,000 lbs during the time seasonal increase
are authorized. ·
Removing
weight restrictions for tow trucks when towing a damaged vehicle during an
emergency. ·
Authorizing
road authorities to issue annual permits ($300.00) for six axle vehicles
hauling agricultural products up to a gross weight of 90,000 lbs or 99,000
lbs during the time when seasonal increases are
authorized. ·
Authorizing
road authorities to issue annual permits ($500.00) for seven axle vehicles
hauling agricultural products up to a gross weight of 97,000 lbs and
99,000 during the time when seasonal increases are
authorized. ·
Requiring
MNDOT to include for consideration adverse environmental impacts to their
State Transportation Plan ·
Requiring
MNDOT to create the new position of State Rail Safety
Inspector. ·
Requiring
MNDOT to develop, conduct and administer highway construction
training. ·
Requiring
MNDOT to sanction each contractor who does not meet the established
project disadvantaged business enterprise goal and report to the House and
Senate Transportation Committees by February 1st of each
odd-numbered year. ·
Requiring
MNDOT to perform life-cycle cost analysis on each project in the
reconditioning, resurfacing and road repair funding categories beginning
in August of 2011 and report annual to chairs of the House and Senate
Transportation committees and ranking minority
members. ·
Requiring
MNDOT to submit an annual major projects report. ·
Setting a
limit of $1.2 million for research and related activities performed
by the Center for Transportation Studies ·
Requiring the
Metropolitan Council to identify heavily traveled corridors where the
development of a transitway may be feasible and then consult with local
units of government on the preferred alternative transit
mode. ·
Defining who
is the responsible authority for the design and construction of light rail
transit and establishing the criteria. ·
Requiring the
Metropolitan Council to operate all light rail transit facilities and
services located in t he metropolitan area. ·
Modifying
county regional rail authority transit funding limits, to change language
already enacted. ·
Requiring the
Metropolitan Council to factor in operating cost estimates when applying
for federal assistance. ·
Requiring the
Metropolitan Council to carry out a performance evaluation of the
metropolitan area’s transportation system as a whole and update the
evaluation every two years. ·
Allowing the
use of the design-build method for the project development and
construction of light rail transit. ·
Requiring the
Department of Public Safety to submit a proposal on establishing a system
that would allow credit card and debit card payments for vehicle
registration taxes, motor vehicle certificates of title, motor vehicle
sales taxes, driver’s licenses, and MN ID cards. ·
Modifying the
rail transit feasibility study on the I-394 corridor to be
discretionary. ·
Providing
criteria whereby the Commissioner of Public Safety may finance , implement
or comply with the Real ID Act of 2005 ·
Requiring
MNDOT to conduct a study and establish criteria to evaluate the current
and long-term needs of the state’s transportation system and investigate
possible strategies to meet these needs. ·
Providing
language on the intent of the legislature to study the affects that the
increase in size, weight, and load limits has on state or local roads or
bridges and modify statutes as necessary to achieve the goals of promoting
mobility while protecting infrastructure. ·
Requiring
MNDOT to conduct a study on the speed limit on local
roads. ·
Requiring
MNDOT and the Metropolitan council to conduct a study on transportation
services for persons with disabilities. For
more information, contact:
Carol Lovro, AMC Policy Analyst
General
Government and Taxes House reveals
tax bill #3 This
session the House has produced not one, but three tax bills. The
first bill was a relatively non-controversial conformity bill that was
passed in march. The second tax bill really consisted only of
technical changes to the tax code to raise revenues from Foreign Operating
Corporations. The second bill was ultimately rolled into the omnibus
supplemental budget bill HF1812. For all practical purposes the
latest tax bill (HF3149) is the traditional omnibus tax bill for
2008. The
Marquee component of the bill is the Homestead Credit State Refund which
is a redesign of Minnesota’s current direct forms of property tax relief
to homeowners. Under the proposal, state property tax refunds would
be more closely related to your income rather than your home value.
Essentially the program would begin providing tax relief when your
property taxes began to exceed 2% of your household income, as long as
your federally adjusted income is less than $200,000 per year.
Individual taxpayers can visit the House Tax Committee website where they
can enter their own information to determine how much property tax relief
they would receive under the new program. Click
here for information on the property tax relief
program. Another
major component to this bill is the $20 million increase in County Program
Aid (CPA) and $50 million increase in Local Government Aid (LGA) for
cities and townships. Increases were also found in HF1222 the House
Property Tax Division Report, however HF3149 increases LGA by $20 million
more than was recommended by the Property Tax division. This is a
component typically not viewed favorably by Governor Pawlenty and the
funding is the result of increased revenues from Foreign Operating
Corporations that were not fully spent in the supplemental budget bill
HF1812. While AMC is a strong supporter of increased CPA, concerns
remain about the future of funding for CPA given the looming budget
deficit in the coming biennium. The
bill would freeze eligibility for new businesses to enter the JOBZ program
beginning July 1, 2008 but would not eliminate the subsidy for any
businesses who already receive it. The SEED capital investment
credit is included in the provision to mirror a similar law in North
Dakota. A number TIFs are included in the bill as well as increased
levy authority for the Northwestern Minnesota Multi-County Housing and
Redevelopment Authority. The
omnibus tax bill has an uncertain future. Testimony will be received
from the Department of Revenue and the public on April
29th. A lack of clarity over which provisions are veto
material for the Governor, which he supports and which he is neutral on
leaves the House without a specific target to work toward.
Suggestions have already been made in committee to send only the revamped
property tax refund program forward, others have speculated that increases
in the class rate for public utilities would be a deal breaker. No
one is expressing optimism about the current bill’s future, however there
does seem to be a strong will to move something forward that will not be
vetoed. END
GAME The overall future of
the tax bill is in doubt. With just a few weeks left in session, the
House is behind schedule if it wants to finish a tax bill and successfully
move it off the floor to the governor's desk. Nearly every bill with
any amount of controversy this session has taken several hours of floor
time and with just 13 legislative (floor session) days left this session
every minute of floor time will become precious. It is also very
unlikely that the governor will sign the bill in its entirety. One
of the provisions he has already objected to is the increase in CPA and
LGA. His revenue commissioner has also testified in opposition to
the class rate increase on public utilities. Most likely any bill
that is not hammered out in great detail with the cooperation of the
governor will not become law this session. The budget process has
all but ground to a halt. Majority Democrats are waiting for the
governor to highlight what new cuts he proposes to balance the budget as
part of his counter-offer to the House and Senate plans. With
tension running extremely high, it appears that something significant has
to give way if the legislature is to finish on time. While the
majority seems willing to compromise on a number of positions, many DFL
legislators are beginning to express frustrations that the governor simply
won't tell them specifically what he wants. Budgetary unallotment is
probably the legislature and governor's least attractive option
politically and with a House election on the horizon the House members
don't want to be bogged down in special session
either. Other than the omnibus
supplemental appropriation bill, the health care reform issue and second
bonding bill loom as the two largest items remaining on the majority’s
“must do” list. The health care reform legislation has just begun
conference committee deliberations and faces an uncertain future in light
of the governor’s concerns about its fiscal soundness. One solution
appears to be to limit or eliminate the bill’s MinnesotaCare eligibility
growth and focus solely on the reform elements. However, even that
strategy may not appease the bill’s critics. Whether there will be a
second bonding bill to authorize the central corridor and other transit
corridor funding and perhaps a land purchase for a Vermillion State Park
remains unclear. LEVY
LIMITS Minnesota
2020, the statewide public policy “think tank” that presented state and
local economic data at the first Steering Committee meeting, recently
published an article on local government revenues and state aid
cuts. The title of the article is, “Levy
Limits: A Phony Solution to the Problem of Rising Property
Taxes.”
The conclusion reached is that property
taxes are not due to “profligate local governments, but because state
leaders have chosen to solve the state's budget problems on the backs of
local governments and local property taxpayers through large state aid
cuts.” A link to the 2020 article can be found here [levy
limit article]. For
more information contact:
Joe Mathews, AMC Policy
Analyst *ADMINISTRATORS
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you do not wish to receive these emails in the future, please reply to
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of Minnesota Counties 125
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Paul, MN 55103-2108 Phone:
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