Greetings!
We wrapped up another very busy and active week at the Capitol late last Friday. The biggest news of the week is the passage of a tax bill to repeal three business-to-business taxes from 2013 and reinstate a number of the federal conformity tax deductions for thousands of Minnesotans.
Other highlights from last week include the movement of my bill for veteran de-escalation training, committee deadlines, an attempt to pass the 5% Campaign Bill and an attempt to change school employee health insurance.
Tax Repeals and Conformity with Federal Tax Law
The House and Senate passed a bipartisan tax bill on Friday, March 21st, repealing three harmful business-to-business taxes and approving a number of middle class deductions for Minnesotans filing their 2013 tax returns.
The tax bill, which was signed into law by Governor Dayton, will offer taxpayers additional refunds through federal conformity with a number of important provisions including deductions for qualified tuition, employer paid adoption assistance and student loan interest.
However, it’s still important to note that two key deductions will not be offered to Minnesota taxpayers when filing their 2013 returns this year. The increased Standard Deduction for married joint filers and the increased Eligible Expense Limit for Dependent Care Credits will not be available to taxpayers this year.
The final bill sent to the governor includes $443 million in tax reductions. I am glad that the legislature is fixing some of their mistakes from last year and returning taxpayer money to the people.
These tax changes will have an effect on many taxpayers, and it is important to note what to do if you have already filed your return this year. If you have already filed and are eligible for more deductions, the MN Department of Revenue will do one of three things:
1. Fix the return and send a letter explaining what was fixed.
2. Request more information from the taxpayer so that they can fix the return.
3. Notify taxpayers that they can't fix their return. If this happens, the taxpayer will need to file an amended return.
HF 2489, Veteran De-Escalation Bill, Moves Forward in Committee
As you may know from previous updates, I authored a bill to provide funding to teach law enforcement officers crisis de-escalation techniques to use on Minnesota veterans suffering from Post Traumatic Stress Disorder (PTSD).
Teaching police proven methods to de-escalate situations for veterans experiencing PTSD is so crucial for not only the well being of veterans, but the safety of law enforcement as well. Resolving a dangerous situation without further violence or even arrest can be achieved with proper training. De-escalation training is supported by a number of interested parties, including veterans' groups and the law enforcement community.
The bill went to the Public Safety Committee, where it received a warm bipartisan reception and was laid over for possible inclusion in the Public Safety Omnibus Bill.
Committee Deadlines
Nearly 3300 bills have been introduced in the Minnesota House since January 2013, and last Friday was the first committee deadline in the House and Senate.
Committees have been working long hours to hear these bills, which in order to advance by the first deadline, must be heard in at least one committee in either legislative body. As you could imagine, these bills are a mix of good and not so good.
There are two more committee deadlines this week and next.
The 5% Campaign
Those who care for our state’s most vulnerable residents have fallen short in funding for the last several years. I believe most people would want to make certain proper funding is available to support the needs of these Minnesotans by ensuring proper staffing levels and qualified service providers.
"The 5% Campaign," as it known, will give a five percent funding increase to this area in the state budget. This strongly bipartisan bill was being held up in committee for the past few weeks.
Last week, Minnesota House Republicans made the motion to recall the 5% Bill from committee and make it available for a full House vote. This motion was strongly supported and the bill was called back to the House, so it could be voted on.
However, when House Republicans moved to have the bill heard and voted on in the House, the vote was held up by the majority leadership. Unfortunately, the bill is still awaiting House action. There is a strong urgency to get this done for Minnesota’s most vulnerable and the people who care for them.
PEIP
HF 2180, which was heard a little over a week ago in the Government Operations Committee, would force public educators to join the Public Employee Insurance Program (PEIP). This bill is extremely concerning to me because it increases government mandates and takes away local control from school districts.
Under this bill, school districts are required to renew health insurance bids every two years from at least three plans—one of them being PEIP. PEIP will be able to offer the lowest bid every time because the state is guaranteeing a bailout should their reserves be insufficient over time.
House File 2180 takes away independence from our local school districts and forces them into a plan that supplemented by the state. School districts have the right to negotiate health insurance on behalf of their staff and should not be forced into additional mandates by Minnesota’s government at the cost of taxpayers. This bill puts school districts in a straight jacket and does not allow for flexibility to choose plans that fits their individual needs.
Additionally, with all the talk about how wonderful MNsure is, it’s a surprise that no one is talking about making the exchange an available alternative for educators. The state spent $150 million to build this exchange, and if legislators believe they set up a fair and functional system, they should be encouraging school districts to look to the exchange for additional health insurance options instead of pushing them into PEIP.
As always, it is an honor to represent you in St. Paul.
Sincerely,
Tim
Fun Factoid: On March 21, 2010, the U.S. House of Representatives passed the Patient Protection and Affordable Care Act also known as Obamacare.