STATE OF MINNESOTA FIRST MEETING
HOUSE OF REPRESENTATIVES EIGHTY-FIFTH SESSION
PROPERTY TAX RELIEF AND LOCAL SALES TAX DIVISION/
K-12 EDUCATION FINANCE DIVISION JOINT MEETING
MINUTES
Representative Paul Marquart, Chair of the Property Tax Relief and Local Sales Division, called the meeting to order at 6:21 P.M. on Tuesday, March 13, 2007, in the Basement Hearing Room of the State Office Building.
Representative Marquart, Chair of the Property Tax Relief and Local Sales Division, and Representative Greiling, Chair of the K-12 Education Finance Division, gave an introduction to the purpose of this meeting.
Committee Legislative Assistant Paul Cumings noted the roll.
Members who sit on both committees who were present:
MARQUART, Paul (Chair of the Property Tax Relief and Local Sales Tax Division)
BROWN, Robin (Vice-Chair Property Tax Relief and Local Sales Tax Division)
DEMMER, Randy
DITTRICH, Denise
Members of the Property Tax Relief and Local Sales Tax Division present:
ANDERSON, Sarah
ERHARDT, Ron
LANNING, Morrie
LENCZEWSKI, Ann
LOEFFLER, Diane
MULLERY, Joe
PAYMAR, Michael
Members of the K-12 Education Finance Division present:
GREILING, Mindy (Chair of the K-12 Education Finance Division)
MORROW, Terry (Vice-Chair of the K-12 Education Finance Division)
HEIDGERKEN, Bud
ANZELC, Tom
BENSON, John
BROWN, Robin
DAVNIE, Jim
DEMMER, Randy
DETTMER, Bob
DITTRICH, Denise
DOMINGUEZ, Augustine "Willie"
ERICKSON, Sondra
FAUST, Tim
GAROFALO, Pat
HILSTROM, Debra
MARQUART, Paul
MCFARLANE, Carol
MORGAN, Will
OLSON, Mark
SWAILS, Marsha
MURPHY, Mary (Ex-officio)
Members excused:
MARIANI, Carlos
Representatives Dittrich and Brown gave an information overview of school equalization.
A quorum was present at 6:25 A.M.
HF208 (Rukavina) School districts authorized to levy for health care costs.
Representative Lenczewski moved that HF208 be heard and laid over for possible inclusion in the Omnibus K-12 Finance Bill.
Representative Rukavina testified on behalf of the bill.
Representative Marquart, Chair of the Property Tax Relief and Local Sales Tax Division, laid over HF208 for possible inclusion in the Omnibus K-12 Finance Bill.
HF681 (Sviggum) Agricultural property excluded from tax base for school bonded debt levies, agricultural land valuation based on production value, and money appropriated.
Representative Olson moved that HF681 be heard and laid over for possible inclusion in the Property Tax Relief and Local Sales Tax Division Report.
Representative Sviggum testified on behalf of the bill.
Representative Marquart, Chair of the Property Tax Relief and Local Sales Tax Division, laid over HF681 for possible inclusion in the Property Tax Relief and Local Sales Tax Division Report.
HF101 (Demmer) Agricultural land excluded from the tax base for school bonded debt levies.
Representative Demmer moved that HF101 be heard and laid over for possible inclusion in the Omnibus K-12 Finance Bill.
Representative Demmer testified on behalf of the bill. Christie Wetzel, United South Central Board Chair, spoke in favor of HF101.
Representative Demmer moved the author's amendment labeled
101A1.
THE AMENDMENT WAS ADOPTED.
Kevin Paap, President of the Minnesota Farm Bureau Federation testified in favor of the bill. John Hagen, Assistant Director of the Property Division for the Department of Revenue, raised concerns about the bill.
Representative Marquart, Chair of the Property Tax Relief and Local Sales Tax Division, laid over HF101 as amended for possible inclusion in the Omnibus K-12 Finance Bill.
Chair Marquart, allowed for people from the audience to speak on the debt service bills before the committee. Brad Lundell, Executive Director for Equality in Education, spoke about the need for equalization. Sam Walseth, Director for Legislative Action for the Minnesota Rural Education Association, spoke about the need for equalization. Tom Dean, Legal Counsel for the Minnesota School Boards Association, spoke about the need for equalization. Scott Croonquist spoke about the need for equalization.
HF1692 (Davnie) Taxpayer notice modified on renewal of school district operating referendum.
Representative Davnie moved that HF1692 be heard and laid over for possible inclusion in the Omnibus K-12 Finance Bill.
Representative Davnie testified on behalf of the bill.
Representative Marquart, Chair of the Property Tax Relief and Local Sales Tax Division, laid over HF1692 for possible inclusion in the Omnibus K-12 Finance Bill.
HF836 (Kalin) Debt service equalization aid program state aid increased, and money appropriated.
HF837 (Lanning) Debt service equalization aid increased, and equalizing factors indexed. HF839 (Welti) Debt service equalization aid program state aid increased, and money appropriated.
Representative Lenczewski moved that HF836 be heard and laid over for possible inclusion in the Omnibus K-12 Finance Bill. Representative Garofalo moved that HF837 be heard and laid over for possible inclusion in the Omnibus K-12 Finance Bill. Representative Morgan moved that HF839 be heard and laid over for possible inclusion in the Omnibus K-12 Finance Bill.
Representative Kalin testified on behalf of HF836. Representative Lanning testified on behalf of HF837. Representative Welti testified on behalf of HF839. Dr. Larry Nybladh, Superintendent of Schools for the Moorhead School District spoke in favor of HF837. Don Hainlen, Superintendent of Chatfield School District spoke in favor of HF839. Dean Peterson, Treasurer for the Upsala School Board, testified in favor of HF839. Dr. Roger Worner, Superintendent of Schools for Centennial School District, testified in favor of HF839.
Representative Marquart, Chair of the Property Tax Relief and Local Sales Tax Division, laid over House Files 836, 837, 839 for possible inclusion in the Omnibus K-12 Finance Bill.
HF1083 (Anzelc) Maximum effort capital loan school districts tax base modified to calculate debt service levies.
Representative Anzelc moved that HF1083 be heard and laid over for possible inclusion in the Omnibus K-12 Finance Bill.
Representative Anzelc testified on behalf of HF1083. Fred Nolan, Superintendent of Schools for Foley School District, testified in favor of the bill.
Representative Marquart, Chair of the Property Tax Relief and Local Sales Tax Division, laid over HF1083 for possible inclusion in the Omnibus K-12 Finance Bill.
HF466 (Dittrich) Property tax relief provided; and equity, transition, and referendum equalization levies increased and indexed.
HF467 (Dittrich) Property tax relief provided; and debt service equalization revenue, health and safety, deferred maintenance, and operating capital levies increased and indexed.
HF1868 (Abeler) Debt service and referendum equalization aid programs equalizing factors indexed.
HF680 (Hilstrom) School finance equalizing factors indexed at 150 percent of the state average tax base per pupil.
HF927 (Hortman) Equity, transition, and referendum revenue programs equalizing factor increased.
HF1518 (Brown) Local government aid programs and appropriations modified, and school finance equalizing factors indexed.
Representative Heidgerken moved that House Files 681, 467 and 1518 be heard and laid over for possible inclusion in the Property Tax Relief and Local Sales Tax Division Report and that House Files 1868, 680, 927 be heard and laid over for possible inclusion in the Omnibus K-12 Finance Bill.
Representative Dittrich testified on behalf of HF466 and HF467. Representative Abeler testified on behalf or HF1868. Representative Hilstrom testified in favor of HF680 and HF927. Representative Brown testified on behalf of HF1518.
Representative Brown moved to amend HF1518 as follows:
Page 1, line 18, delete '…' and insert '90'
Page 1, line 24, delete '…' and insert '116'
Page 2, line 20, delete '…' and insert '400'
Page 2, line 31, delete '…' and insert '135'
Page 3, line 3, delete '…' and insert '100'
THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.
Joel Sutter, Senior Vice President of Ehlers and Associates, spoke in favor of House Files 466 and 467. Roger Johnson, Member of the Parent-Legislative Team for the Anoka Hennepin School District, testified in favor of House File 927. Steve Peterson, Policy Analyst for the Coalition of Greater Minnesota Cities, spoke in favor of HF 1518.
Representative Marquart, Chair of the Property Tax Relief and Local Sales Tax Division, laid over House Files 681, 467 and 1518,as amended, for possible inclusion in the Property Tax Relief and Local Sales Tax Division Report and House Files 1868, 680, 927 for possible inclusion in the Omnibus K-12 Finance Bill.
HF800 (Demmer) School districts and counties mutually authorized to mutually agree to extend the time allowed before the date of the proposed property tax levy certification.
Representative Demmer moved that HF800 be heard and laid over for possible inclusion in the Property Tax Relief and Local Sales Tax Division Report.
Representative Demmer moved to amend HF800 as follows:
Page 2, line 27, reinstate '5' and insert ', unless the school district and the home county auditor have mutually agreed to delay the certification of the proposed school levy, in which case the home county auditor shall certify the proposed levy and the proposed local tax rate to the other county auditor by October'
THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.
Representative Demmer testified on behalf of the bill. Fred Nolan, Superintendent of Schools for Foley School Districts, testified in favor of the bill. Joe Mathews, from the Association of Minnesota Counties, testified that his association has not taken a specific position on this bill. John Kaul representing Rochester Public Schools testified in favor of the bill. Grace Schwab, Director of Government Relations for the Minnesota School Boards Association, testified in favor of the bill.
Representative Marquart, Chair of the Property Tax Relief and Local Sales Tax Division, laid over HF800 as amended for possible inclusion in the Property Tax Relief and Local Sales Tax Division Report.
The meeting was adjourned at 9:05 P.M.
Representative Paul Marquart, Chair
_______________________________________
Representative Mindy Greiling, Chair
Paul Cumings, Committee Legislative Assistant