Update from Rep. Diane Loeffler – 5/8
Top 15 GOP Bad Policy & Budgeting Proposals
Greetings!
This has been one of the most intense legislative sessions of my service. The enlarged Republican majority
was eager to get to hearing bills in long days and nights of review. We heard a lot about under met needs, long
waiting lists, and great ideas for service improvement that could ultimately lead to better outcomes at lesser
costs. But then the Republicans set their budget priorities and most of those good ideas to address real needs
went nowhere.
In one month, we did two months of work and got the major budget bills into conference committee weeks
earlier than usual. I’m hoping that will provide time for a thoughtful, resolving of differences and the on time
finish all deserve. But given the major priority differences and personalities, I’m not too confident of that
outcome. I’m concluding this update with my top 15 examples of bad policies and bad budget priorities.
If you want to get a feel for what our intense days are like, Margo Ashmore of the Northeaster Newspaper
shadowed me one day just as things were picking up and you can read her summary of the experience. (Link
below, Go to Page 8.)
Long lists of extreme policies buried in budget bills
It’s difficult to summarize all the controversial provisions and budget cuts. Governor Dayton’s staff has
identified over 600 non-budget policy provisions put in the budget bills and the Star Tribune has raised
questions on the constitutionality of this (Link below).
On Clean Water Day, I met with local residents and they had a list of 22 concerns just dealing with rollbacks in
water quality. It seems the Republicans think if they put long lists of extreme and controversial items in a must
pass budget bill, they think the Governor will have to agree to many of them. I hope he holds firm in saying
non-budget policies should stand alone in separate bills.
The big picture - We have a small surplus but are doing deficit style cuts to fund big tax breaks for selected
groups
The projected surplus is $1.65 billion dollars (not counting inflation in state expenditures), a relatively small
amount given an overall state 2 year budget of $45 billion. That leaves us with enough to put a significant
increase in education at all levels – our most important obligation, with a chance to address a few critical needs
in other areas. Instead, the Republican majorities in the House and Senate have both prioritized huge, costly
tax cuts for selected groups and cut almost everything else.
Here they are, Diane’s top 15 examples of bad policy and bad budget choices in the joint Republican
proposals. (It was hard enough to narrow the list to 15, I didn’t prioritize them. They are roughly in budget size
order)
1. $1.15 billion in on-going (& growing) tax breaks for targeted groups. The size and growth of this is very
risky given the unstable economy and the need to fund ongoing obligations like education. It’s a recipe for
ongoing deficits and cutbacks.
2. Business property owners get their state property tax levy reduced and then frozen. Homeowners and renters
get no benefit from the billion plus tax break bill. Inadequate funding of cities, counties and schools will lead
to property tax increases.
3. $161 million (& growing) in tax relief for the richest 1100 estates each year (their heirs stand to inherit at
least $2-7 million dollars, some of which has never paid taxes as investments transfer from one rich generation
to the next). This would be enough to add another 1% each year to the school funding formula for students
across the state.
4. 1.5% increase in school (E-12) funding – not even inflation. This is our key responsibility under the MN
Constitution.
5. Dramatically underfunding higher education. U of M granted 20% of their increase request, MNSCU (MN
State) campuses got a little more. Both are almost $200 million less than the Governor’s recommendation. The
result: cutbacks in programs, tuition and student loan increases, less majors, less opportunities.
6. A new “Most Favored Donation” funds a private school voucher program. With thousands of charities doing
good work, all donations in the past have been treated the same. Under the Republican proposal that is no
longer true. Individual and corporate donations to non-public, private school foundations will be eligible for a
special 70% tax credit, much more valuable than the charitable deduction. That makes donating to a private
school (that chooses its students) more valuable than donations to your church, youth groups, your public
school PTA, or the Cancer Society or United Way.
7. The above “most favored donations” will allow private and religious schools to offer “scholarship vouchers”
to students who may need financial help but it has no accountability. It does not require them to accept all
applicants, serve special education students or English Language Learners, offer enough money so poor kids
can attend, or even report their test results so parents can evaluate performance.
8. The deepest cuts ($500 million less than current spending levels) go to the most needy – the health and
human services budget supports people with disabilities, frail seniors, and helps the poorest of the poor. That
means the years long waiting lists will get longer. The direct support staff who assist those with disabilities
will continue to leave their $10-12 hour jobs as retail pays more. That will leave employed people dependent
on wheelchairs and help stuck in bed, frantic parents giving up jobs to care for kids with disabilities, and will
force seniors into nursing homes when a little home care could keep them safe at home at lesser cost.
9. Deep cuts in all environmental agencies and lots of policy that will mire them in process and prevent
effective pollution prevention.
10. Unwillingness to raise the user fee gas tax even five cents has led to an ongoing diversion of $372 million
from the general fund. This takes money ongoing from schools, higher ed, services to seniors and the disabled,
and the environment. It will make all future budgets more difficult.
11. Dramatic cuts in metro transit – now estimated at about 10% of service even with fare increases.
Dramatically less bus routes, higher fares, less frequency. This will be devastating to the 20-25% in some
NE/SE Minneapolis neighborhoods that are transit dependent – they don’t own one car in the household.
12. Investments in job training, job creation, affordable housing and addressing inequities by race and
disability in a variety of areas are all cut back. Proven programs that transform communities, grow the
economy and help people achieve self-sufficiency are all cut to give tax breaks to the wealthiest.
13. Two years without a bonding bill and the proposal in the House of $600 million is so inadequate it won’t
cover critical building repairs. Repairs to roofs and bridges have grown in cost. So has the need for updated
laboratories and other campus needs. Interest rates are rising – it’s time to step up.
14. Despite the lip service, we’re not making forward progress on early childhood education. There’s not any
increase in Basic Sliding Fee Child Care (5,000 families on the waiting list – a wait of 2 years in Hennepin
County). They eliminate the school based pre-K for four year old pilots and transfer the funds to a school
readiness allocation. They also freeze the Pathway 2 program for younger kids. They do increase funding for a
pre-k scholarship program but the dollar limit on it makes it unable to meet the needs of low income families.
15. Putting our clean democracy at peril and increasing the dependency on outside special interest money in
elections. Minnesota has transparent and clean elections in part due to the Campaign Finance Board
regulations on state candidates and their campaign finances. Republicans refused to confirm the bipartisan
nominees so the Board cannot conduct its business. The program by which individual taxpayers can check off
$5 of their taxes for partial public finance of campaigns is proposed to end. To earn several thousand dollars of
public funding (from taxpayer choices), candidates must agree to strict spending limits, keeping donations
from PACS, lobbyists and other special interests to a small portion of the spending limit, raise funds in small
amounts from voters, provide regular public reporting of donations and expenditures, and other accountability
measures. This will all vanish in a new “voluntary” system with no teeth.
**
Governor Dayton is the key player to force changes in the above
Governor Dayton’s budget prioritized investing in the programs that make Minnesota and Minnesotans
successful – strong support for education at all levels, protecting our water and environment, not over
committing on risky fiscal proposals while the economy is still unpredictable, and $300 million in tax breaks
primarily for working families, not the wealthy or special interests. He needs to know the people are with him
and his values. You can leave a brief message at 651-201-3400 or fill out the contact form (link below).
I’ll end on some good news – the Star Tribune Minnesota Poll came out last week and showed the public
agrees with the Governor’s priorities and policy positions (even most Republicans agree with him on some key
issues). You can see the scientific poll results by clicking here.
Thanks to all who have written, called and emailed. Your thoughts and ideas have really helped. I’ll keep
doing all I can to help forge a balanced budget that better reflects your priorities.
https://mn.gov/governor/contact-us/form/
http://www.startribune.com/pile-on-legislation-is-aplent…/…/
http://www.mynortheaster.com/…/news-arch…/170308Northeaster/
http://www.startribune.com/minnesota-poll-results-dayton…/…/