Governor Releases Budget Proposal; Deal Reached on Health Insurance
With the State of the State address on Monday evening, Governor Mark Dayton’s budget set to be released Tuesday morning, and ongoing negotiations over a health insurance relief package throughout the week, most people expected a busy week at the Minnesota Capitol. However, no one could have expected the week to contain quite as many surprises as it delivered.
Governor Collapses During State of the State Address, Reveals Health Issues
On Monday evening Gov. Dayton addressed a joint session of the Minnesota Legislature and provided an outline of his vision for his final two years in office. However, approximately 45 minutes into his annual State of the State address Dayton fainted and collapsed. In a shocking moment that left the House chamber in silence, a number of legislators, including multiple doctors and emergency medical technicians, rushed to assist Gov. Dayton. After a few minutes, he was able to stand and leave the chamber under his own power.
Prior to the incident, Dayton had called for increased investments in K-12 education, child care assistance, and college tuition relief as well as initiatives seeking to reduce the achievement gap and economic disparities in communities of color. He was also about to announce his plan to remove the income cap from MinnesotaCare, the state’s health insurance program for low-income families, and establish it as a public health insurance option when he collapsed.
The morning after the incident, Gov. Dayton addressed the media as part of the presentation of his budget proposal. During the press conference Dayton revealed that he was diagnosed with prostate cancer a week ago and will be returning to the Mayo Clinic for an assessment of his future treatment options. Legislators from both parties reacted to his announcement with concern and well wishes.
Dayton Releases $45.8 Billion Biennial Budget Proposal
In his final biennial budget proposal, and with the state facing a projected $1.4 billion budget surplus, Gov. Dayton called for an additional $1.2 billion increase in state spending. The proposal would expand MinnesotaCare, increase K-12 and higher education spending, and raise the state’s gas tax as part of a comprehensive transportation infrastructure package. The proposal also includes expansions of the working family and child care tax credits and attempts to close what the Dayton administration referred to as corporate tax loopholes.
The proposal was met with skepticism from Republican legislative leaders who have long opposed any increase in the gas tax or an increased role for government in the health insurance market. Republican leaders continued their calls for tax relief and stressed the importance of restricting the growth of state spending.
“Compromise” Health Insurance Relief Package Sent to Governor
On Thursday members of the Minnesota Senate and House of Representatives voted overwhelmingly in favor of a “compromise” health insurance relief package. The final bill – which passed the Senate 47-19 and the House 108-19 – included a 25 percent premium reduction for the approximately 125,000 Minnesotans who purchase their health insurance on the individual market that was agreed to by Governor Dayton and Republican legislators as well as a number of the Republican reform initiatives debated in recent weeks.
Specifically, the bill appropriates approximately $327 million from the state’s budget reserves to fund $312 million in premium relief. It also includes an additional $15 million to cover transition care for those being treated for acute conditions, life-threatening mental or physical illnesses, or pregnancy beyond the first trimester with providers that are no longer covered by their new health plans. The bill also allows farmers and agribusinesses to establish cooperative health plans, modifies the way hospitals and clinics contest network adequacy decisions, and protects individuals from surprise bills when part of their care is provided by an out-of-network provider.
While supported by the vast majority of legislators, the “compromise” was not without controversy. Many DFL legislators objected to a provision that would allow for-profit HMOs to enter the individual market currently restricted to non-profit insurance companies.
Leadership Announces Committee Deadlines
On Thursday afternoon Senate Majority Leader Paul Gazelka (R-Nisswa) and Speaker of the House Kurt Daudt (R-Crown) issued a joint memorandum establishing legislative committee deadlines for the 2017 legislative session. Those deadlines regulate when proposals have to have passed through various policy and finance committees. The 2017 committee deadlines are as follows:
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March 10 – Committees must act favorably on bills in the house of origin.
- March 17 – Committees must act favorably on bills, or companion bills, that met the first deadline in the other house.
- March 31 – Committees must act favorably on major appropriation and finance bills.
The Legislature is constitutionally required to adjourn by May 22, 2017.
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