With Deadlines Approaching Legislators Work Late
With committee deadlines looming, members of the Minnesota Legislature worked hard this week to process a large variety of legislative proposals and many committees met well into the evening. Legislators discussed public health insurance reforms, various road and bridge construction financing options, and the impact current riparian buffer requirements on water quality and farming operations amongst a variety of other proposals.
Minnesota’s Projected Budget Surplus Grows to $1.65 Billion
On Tuesday, Commissioner Myron Frans and the Office of Minnesota Management and Budget released the February budget forecast showing the state with a projected budget surplus of $1.65 billion for the next two-year biennium. This is an increase from the projected surplus of $1.4 billion calculated last November. The February forecast provides guidelines with which the Legislature will craft the state’s FY 17-18 budget.
The increase in the state’s projected surplus comes as a result of faster growth in tax revenues. Specifically, state income tax projections are up 1.1 percent or approximately $274 million while corporate tax projections are up 2.6 percent or $69 million. Some of that increased revenue is offset by an increase in expected spending. Specifically, increased enrollment in public schools and the cost of health care are expected to cost the state an additional $156 million over November’s estimates.
DFL Governor Mark Dayton and Republican leaders in the Legislature both praised the forecast as good news while promoting very different visions for how to allocate state resources in the coming biennium. Senate Majority Leader Paul Gazelka (R-Nisswa) and Speaker of the House Kurt Daudt (R-Crown) both called for significant tax cuts while Gov. Dayton has proposed increased spending in early childhood education human services as well as a more modest tax reform proposal. Legislators will work hard in coming weeks to pass a biennial budget before their constitutionally established deadline to adjourn on May 22, 2017.
House of Representatives Passes Uniform Labor Standards Act
Late Thursday evening the Minnesota House of Representatives passed the Uniform Labor Standards Act, authored by Rep. Pat Garofalo (R-Farmington) which would preclude local governments from passing ordinances relating to wages, paid or unpaid leave, work schedules, or other employment benefits. HF 600 also retroactively rescinds any ordinances passed since January 1, 2016. This includes high-profile ordinances passed by both Minneapolis and St. Paul.
Throughout the committee and floor debate process, proponents of the Uniform Labor Standards Act have cited a “patchwork of regulations” and argued that municipal wage and benefit ordinances are unworkable for many businesses. Meanwhile, opponents have argued that paid leave or other employment benefits have been fought for at the local level and the state should not step in and undo that work. The bill now goes to the Senate where it is chief authored by Sen. Jeremy Miller (R-Winona).
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