Dayton Delivers Final State of the State Address
On Wednesday evening, Gov. Mark Dayton delivered his eighth and final State of the State address. In a speech that lasted approximately 30 minutes – and included multiple self-deprecating jokes referring to the incident last session when he collapsed during the address – Dayton presented a largely conciliatory message to Republican-led Legislature. After months of legal disputes over the Legislature’s operating budget and the state’s order of succession, Dayton stressed the need for bipartisan cooperation. He particularly emphasized cooperation as it pertained to any efforts to conform to the state’s tax code with recent changes in the federal tax law.
Dayton defended his record on taxes and argued that the investments Minnesota has made as a result of those tax revenues are responsible for the state’s strong economy. He also called for additional investments in clean water infrastructure, public education funding, and health insurance coverage as well as significant capital investment in a “bonding bill” to reinvest in aging state facilities. Finally, on a more controversial issue, Gov. Dayton encouraged legislators to listen to “the schoolchildren of Minnesota who are “begging” for increased gun control laws and promised to sign bi-partisan legislation extending background check requirements and requiring the reporting of lost or stolen firearms which was recently introduced.
Supplemental Budget Proposal Released
Following on the heels of the State of the State, this morning Gov. Dayton released his 2018 supplemental budget and tax conformity proposals. With a $329 million projected budget surplus, Dayton proposed approximately $47 million in additional education funding with a focus on school safety. The proposal also contains $13 million for opioid abuse prevention, $27 million toward pension reform, and $30 million to reduce projected tuition increases at the University of Minnesota and Minnesota State campuses. Finally, the proposal would leave approximately $123 million in reserve.
In addition to supplemental spending, Dayton also proposed changes to the state’s tax code in response to the federal tax reform legislation passed last fall. The proposal includes a number of tax cuts aimed at low- and middle-income families and raises revenue to pay for those proposals, in part, by repealing the tobacco, corporate, and estate tax relief of in the 2017 Omnibus Tax Bill.
Legislative Committee Activity Increases
With less than two weeks until the first committee deadline, the level of activity at the Minnesota Legislature increased significantly this week. Many policy committees face full agendas as they work toward the March 22 deadline; the day by which a piece of legislation must be passed out of all policy committees in at least one chamber of the legislature. Many committees met late into the evening to process a broad variety of public policy proposals ahead of next week’s deadline.
Health and Human Services Committees Seek to Address Issues of Elder Abuse
Last week, the Office of the Legislative Auditor (OLA) released a scathing report that detailed the failures of the Minnesota Department of Health’s Office of Health Facility Complaints (OHFC). The OHFC is charged with investigating reports of neglect and abuse in MDH-licensed facilities, including nursing homes. The OLA report was commissioned after a high-profile story was published showing that the OHFC had failed to investigate thousands of mistreatment allegations. The resulting scandal eventually led to the resignation of then-MDH Commissioner Dr. Edward Ehlinger in mid-December.
The OLA report stated that the average completion time of a report was 140 days (more than double the time allowed under state guidelines) and that it often took more than a month for investigators to interview the vulnerable adult in question. Responding to the OLA report, new MDH Commissioner Jan Malcom called the report “incredibly helpful” and noted the agency’s support for the vast majority of the OLA’s recommendations. Three committees (the House Health and Human Services Reform Committee, the House Subcommittee on Aging and Long-Term Care and the Senate Committee on Aging and Long-Term Care Policy) held hearings last week to address the issue. Additional action is expected in the weeks to come. Gov. Dayton’s supplemental budget proposal would appropriate $12 million to address problems investigating allegations of vulnerable adult and elder abuse. it also outlines the implementation of a licensing fee for assisted living facilities that comparable to licensing fees paid by nursing homes.
Struggles With MNLARS Lead State to Re-Examine IT Infrastructure
The Minnesota Legislature has also focused significant attention on the state’s methods for procuring and upgrading its information technology systems in recent months. The re-examination is occurring as a result of the Minnesota Department of Public Safety’s struggle to roll out the new drivers’ license and license plate system known as MNLARS. Since its release last July, the MNLARS system has caused considerable problems for registrars, auto dealers and vehicle owners. The Department of Public Safety and MN.IT (the state agency overseeing IT infrastructure) are seeking approximately $43 million to repair the system, with approximately $10 million needed immediately. However, additional funds are unlikely to be appropriated without conditions as the project, at nearly $90 million, is well over budget. Earlier this week, MN.IT’s Chief Business Technology Officer Paul Meekin, who was responsible for overseeing the MNLARS implementation, was fired.
Some legislators have proposed that MN.IT be dismantled and that certain functions be reassigned to the Department of Administration. Legislators have also called for an expansion in the state’s ability to contract with private third-party vendors for IT products. Gov. Dayton’s 2018 supplemental budget proposal would fund changes to the MNLARS system by reviving a $2 fee on some vehicle registration and drivers’ license applications.
House of Representatives Focuses on Distracted Driving
The House Public Safety and Security Policy and Finance Committee has taken up and passed multiple pieces of legislation in recent weeks attempting to prevent injuries and deaths stemming from distracted driving. Specifically, the committee has passed:
- H.F. 1180
(Uglem) would ban the use of a handheld cellphone when an individual is
operating a motor vehicle. Violators would be subject to the same $50
fine that already exists for texting while driving; with subsequent
violations leading to fines of as much as $225.
- H.F. 2932 (Franke) would expand the definition
of “criminal vehicular operation resulting in great bodily harm,”
“criminal vehicular homicide,” and other similar crimes to include
situations when an individual causes death or injury while using a cell
phone or other electronic device.
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Additional pieces of legislation have been introduced and could yet be heard this session; including H.F. 2679 (Uglem) which would increase the for texting while operating a motor vehicle from $50 to $250 and increase the fine for subsequent violations from $225 to $500.
Legislative Calendar and Committee Deadlines
The 2018 Minnesota Legislative calendar, complete with announced committee deadlines and holiday recesses, is below:
March 22
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First committee deadline (The first deadline is for committees to act favorably on bills in the house of origin.) |
| March 29 |
Second committee deadline (The second deadline is for committees to act favorably on bills, or companions of bills, that met the first deadline in the other house.) |
March 30-April 8
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Legislative recess for Easter/Passover holidays |
| April 20 |
Final committee deadline (The third deadline is for committees to act favorably on major appropriation and finance bills.) |
| May 21 |
Constitutional deadline to adjourn sine die |
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