Kiscaden: Legislative Update #11

06/30/2005

As you move toward your plans for the July 4th Holiday celebrating our nation’s independence and long history as a democracy, you can also note that democracy is often a messy, frustrating process.  You elected legislators to represent your interests and make decisions on your behalf.  Americans and Minnesotans hold many different views and coming to agreement on what is in our common interest is seldom easy. And this year in Minnesota, it is particularly difficult.  Here is a quick update:

1- BIPARTISAN COMPROMISE:
2- SHUTDOWN OF STATE SERVICES?
3- ENJOY YOUR HOLIDAY WEEKEND!

1- BIPARTISAN COMPROMISE:

Mid-way through June I sent you an update with a commentary entitled, “It is time for everyone to compromise.” Now we are at the last day of our current budget year and facing a partial shut-down of state government and citizens are still waiting for everyone to compromise.

I had assumed that it would take the looming deadline of June 30th to get the Governor, legislative leaders, and legislators to summon the will to compromise.  I fully expected that starting in mid-June we would inch our way toward all those compromises. It has not happened.  In fact, the leaders have not even been able to reach and agreement with the Governor on overall budget targets.

What can be done?

With legislative leaders and the governor at an impasse, I have spent my time this week forging a bipartisan group of more than 20 legislators to demonstrate to our leadership that the Senate and House are ready to agree and can find agreement to bring the special session to a close.

Late yesterday we presented a budget framework that can avoid a partial state government shutdown. We developed a reasonable proposal that invests in education, preserves health care services and limits tax burdens. Our proposal addresses the overall spending targets for the budget bills and leaves the details to be worked out by each working group. The targets can accommodate a 10 percent increase in education funding, full funding for Minnesota Care and for early childhood education, and allow corporate tax compliance for foreign operating companies and statewide business taxes.

The offer does not include an income tax increase on Minnesota’s top income-earners as proposed by the Democrats or expansion of gambling through a Racino as proposed by the governor and Republicans: one of the several sets of compromises included in our proposal.  The proposal does accept the Governor’s property tax increase of $139 million, his recognition tax shift of $95 million, and the Governor’s tobacco tax increase.

The bi-partisan group decided to move forward with the proposal after little progress was made on negotiations again this week. This proposal is not about placing blame or pointing fingers, but about moving forward to the benefit of Minnesota by working in a bipartisan way to forge workable compromises.

Our ad hoc working group is continuing to meet.  Even at this late hour, we know that if a broad framework for the budget can be accepted, we can avoid the looming shut-down of state services.


SOME GOOD NEWS: FUNDING of $15 Million FOR GENOMICS RESEARCH:
Today the Legislature will take up another budget area where agreement has been reached, the Agriculture, Environment, and Economic Development Budget.  This section of the budget does contain $15 million in genomics research funding that will benefit the Mayo-University of Minnesota Biotechnology Partnership.  Together with the funding already approved by the Legislature, $21.4 million in the bonding bill passed earlier this session, we have very good news for our region and state because of the significant economic growth and many new jobs that will directly result from this investment in this new field of research.

2- SHUTDOWN OF STATE SERVICES?
Why is it that Wisconsin that has a budget impasse just as tough to resolve as ours, is not facing a shut-down of state services?  Because a number of states have a law stating the current budget continues until a new budget is approved.  This means they do not face the government shut-downs like Minnesota is facing.  A shutdown of state services does create great inconvenience for citizens and state employees alike.  On the other hand, facing a shut-down does clearly bring to the public’s attention the consequences of legislative impasse.  It is also a way of holding all of us, including the Governor, accountable to the voters.

I have received many messages from citizens who are angry and upset that we have once again reached gridlock. I share your frustration.  And I will not make excuses.  You held us very accountable last year when you went to the polls and sent fourteen members of the House of Representatives out of office.  I thought that your message in the last election was very clear, “quit bickering and get your work done”.

As the legislature has become increasingly partisan, we’ve had more and more difficulty in resolving conflicts*and nothing produces more conflicts than the budget.  If we are not able to at least get a broad framework agreed to today, and pass some sort of continuing budget resolution, Minnesota will have a historic first today: the partial shutdown of state services.  This is not the kind of history I wanted to part of making, and I still am working to make sure that it does not.


3- ENJOY YOUR HOLIDAY WEEKEND!

While I remain hopeful that we will get a general agreement forged today, I expect that legislators will remain in St. Paul, even over the holiday weekend, to finish the budget.

I hope to join you in enjoying fireworks of a more enjoyable kind in the very near future.

Best regards,
Sheila

Senator Sheila Kiscaden
District 30
325 Capitol
St. Paul, MN 55155
651-296-4848