Greetings from the Capitol-
House Passes Health Insurance Exchange Bill
Shortly after midnight on Friday, March 15, the House passed a bill that brings a Minnesota Health Insurance Exchange one step closer to reality. The bill was passed by the Democrat Majority but did have bi-partisan opposition.
As an opponent of the proposed health insurance exchange, I still have serious concerns with the bill regarding consumer privacy, choice and costs. Consumer and patient data could be accessed by the federal government and there is no guarantee patients will be able to still see their preferred doctor at their convenience. The system is also anticipated to cost millions of dollars to operate annually. The bill now goes to the Senate and if passed there, will go to Gov. Dayton for his signature.
Dayton Budget Revision Eliminates Sales Tax Expansion, Expands Other Taxes
Governor Dayton officially abandoned a number of tax increases he was proposing this week after it became clear he had a lack of public and legislative support.
What's in Dayton's Tax Plan:
• Increases spending $2.7 billion - that's more than a 7 percent increase in spending
• Raises $1.83 billion in taxes
• Applies $1.1 billion tax increase on small businesses
• Adds $30 million tax on snowbirds
• Increases metro specific sales tax from .25 cents to .50 cents
What Dayton removed from his Tax and Spend Plan:
• Keeps the school funding shift in place
• Removed business to business sales tax and extension of sales tax
• Removed $500 property tax rebate
We have a projected budget gap of $627 million in 2014-15, yet Dayton proposes raising taxes by approximately three times that much to pay for more government spending. It is good the governor backed off some of his burdensome taxes, but we are not in the clear because Democrat majorities in the Legislature will author bills to shape the new state budget. Unfortunately, they have proposals to tax everything from gas to alcohol and snacks.
Efforts to Facilitate Unionization of Childcare Providers
Here’s an update on the ongoing effort to unionize in-home childcare providers. You may recall, approximately a year and half ago, Gov. Mark Dayton issued an executive order which attempted to sidestep union organizing laws in Minnesota. This order put in place special rules for in-home childcare provider unionization. The order was later found by the courts to be unlawful. However, this legislative session HF950 was introduced by Rep. Michael Nelson (DFL) to change the law and enact many of the same objectives that were put forward in Gov. Dayton's executive order.
Keep in mind that if childcare providers choose to unionize, they are allowed to do so under current state law, so I question the need for this proposed law change in Minnesota. Under the proposed law change, childcare providers who receive state funds to provide care for our low income families and children would be required to pay union dues or "fair share" fees. This would mean a reduction in fees collected by the daycare providers for their services. It is estimated that this would affect some 9,000 providers across Minnesota.
Again, I will be working to defend the rights of small business owners who provide daycare to children in Minnesota.
Thank you for the opportunity to serve you in the Minnesota House.
Sincerely,
Tim