Liebling: Legislative Update January 2007

01/18/2007

Dear Friends,

The first full week of the 2007 Legislative session is complete. In a flurry of activity, the House rolled out its first key bills focusing on education, healthcare and property tax relief. We also took swift action to pass a bill that will help thousands of taxpayers as they start to file their taxes this week.

So far, predictions of a productive session are proving true. The communal spirit of cooperation among my colleagues on both sides of the aisle is heartening, and I'm energized by the renewed commitment of the House to address the core issues that voters have indicated they want us to focus on.

As always, I am here to answer any questions you may have, and to assist in resolving problems related to state government. Please feel free to contact my office with thoughts, concerns and suggestions. I, along with my legislative staff, stand ready to assist you. You can email me directly at mailto:Rep.Tina.Liebling@house.mn or call me at (800) 339-9038 or (651) 296-0573.

I look forward to hearing from you, and I welcome your input.

Warm regards,

Tina Liebling


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Tax Cuts for Students, Teachers, and Combat Military Personnel

The Minnesota House of Representatives got off to a fast start by passing a bill that adopts changes that Congress made to federal tax codes after the adjournment of the 2006 Minnesota legislative session. (Minnesota generally conforms to federal tax law.) There was agreement on this bill between the governor, Senate, and House. We worked quickly to enact the new law before returns are filed for the 2006 tax year so that filers don't have to amend their returns to take advantage of the changes. The bill allows parents and college students deduct up to $4,000 in college tuition, lets K-12 teachers deduct $250 in classroom expenses, and lets members of the military use non-taxed combat pay to make retirement account contributions.

Even with the agreement, the first House session took hours as some members of the minority tried to amend the bill with provisions that would prevent the law from being enacted in time. Sometimes amendments are offered solely for political reasons--to create an issue for the next election—and that motive was apparent as members tried unsuccessfully to tack on additional tax cuts. There will be plenty of opportunity for these members to offer bills for tax cuts and other changes, and to have them considered in the normal committee process.

After an energetic debate the bill passed unanimously in the House and is expected to quickly become law, saving Minnesotans at least $23 Million and some headaches at filing time.

Key Bill Introductions

The House has unveiled the first key bills of the 2007 legislative session. Each of them reflects a focus on the issues that matter most to Minnesotans – quality education, accessible and affordable health care and lower property taxes. Each will have a significant impact on the quality of life for people across the state, they are affordable, and they will save the state money in later years.

I'm particularly pleased with the education bills that are a part of the initial package of bills. Among them are a K-12 Funding Bill that would increase the basic formula by 3% in 2008 and 3% in 2009, a Full-Day Kindergarten Bill that would make voluntary full-day kindergarten available in every school district in the state, and an Early Education Bill that restores funding to 2003 levels. If passed, these bills would help our youngest learners get off to a good start and give our older students better opportunities to thrive in a changing world.

Rounding out the parcel of key bills are a proposal to provide health coverage for all Minnesota children, a call to increase the percentage of retail electric sales generated from eligible renewable sources and a bill to address escalating property taxes.

All of these bills now begin the complex legislative process in which legislators and the public debate their merits and cost. Although we may not be able to accomplish all our goals in one year it is exciting to engage in real debate on issues of real importance to the lives of Minnesotans.

Per Diem Increases are the Wrong Approach

Legislators earn $31,300 [???] per year, a salary that has not been raised in [???] years. Although we have a part-time legislature, many legislators find it nearly impossible to continue in their former businesses or careers. Public service is an honor and privilege, but it can mean financial sacrifice for a family. Low legislative pay hurts Minnesota if it discourages people of modest means from serving as legislators.

In addition to salary, legislators can collect certain payments—known as "per diems"—during the legislative session. Per diems are intended to reimburse legislators for the un-itemized expenses of working at the legislature.

Last week, the Rules Committee in each body voted to increase per diems: the Senate to a maximum of $96 per day, the House to $77. These raises set the ceiling for payments; legislators are free to accept or reject the increase. I will keep my per diems at the same level as last year.

I was disappointed at these raises because I do not think we should supplement salaries by the backdoor. If salaries need to be raised, the issue should be debated in an open and transparent way with input from the public.