Greetings!
In this week’s newsletter, I will give you an update on the Bullying Bill, the Pension Bill and minimum wage.
Bullying Bill Takes Away Local Control from Schools and Parents
On Wednesday, Governor Dayton signed the Bullying Bill into law. While no one supports bullying and wants to protect students, I believe the unintended consequences and high costs of this bill will have a negative impact on schools across the state.
Already required by state law, every school district in Minnesota has a policy to prevent bullying. St. Cloud Apollo High School was named a 2013 State-Wide Positive Behavior Interventions & Supports (PBIS) Sustained Exemplar School in recognition of their anti bullying policy.
Local control of bullying policies allows teachers and school administrators to cater rules and enforcement to the needs of their district. With this law, schools like Apollo that are already doing a great job will now have their hands tied with red tape and mandates that will take time and money out of the classroom.
In addition to the $1 million price tag for School Climate Center implementation, the enforcement of this bill could cost schools another $20-$25 million per year.
What is most concerning, however, is that if your child is being bullied or accused of bullying, the school district is not required to notify parents. Children can report bullying anonymously, and if a child is accused, it can go on his or her permanent record. Without an advocate for the child or parental notification, this law does not safeguard the rights of parents or students.
The Omnibus Pension Bill
I serve on the Pension Commission, and have offered several reform proposals to make our public pensions more fiscally sustainable. The Pension Omnibus Bill, passed on Thursday in the House, does not go far enough in addressing the state’s unfunded pension liability. State leaders need to be forward thinking in how to deal with unfunded pensions and make real, sustainable changes to our system that will benefit both employees and Minnesota taxpayers.
Here are some of the highlights in the bill:
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Raises contribution rates for employees and employers in the Minnesota State Retirement System (MSRS) and Public Employee Retirement Association (PERA) plans beginning July 1, 2014
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Full consolidation of the Duluth Teachers Pension Fund into the Teachers Retirement Association at a cost to taxpayers of $16 million per year until 2042
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St. Paul Teachers Fund given $7 million per year until 2042
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Minimum income requirements set for PERA employees before included in pension plans
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Early retirement incentives extended to 2019 for certain Minnesota State Colleges and University (MnSCU) employees
Minimum Wage Bill
Also this week, the House and Senate passed several changes to Minnesota’s minimum wage laws. Employers have shared their concerns with legislators on this drastic increase in minimum wage which comes on the heels of Obamacare’s costly implementation in Minnesota.
Here are some of the provisions for the new law:
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$9.50/hr minimum wage for most employers by August 1, 2016
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$7.75/hr minimum wage for small employers (under $500,000 in revenue) and for teenage workers aged 16 and 17 by August 1, 2016
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Increases come in three stages and will be fully implemented by 2016
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Automatic inflationary trigger starting in 2018 tied to implicit price deflator with a 2.5 percent cap
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Commissioner of Department of Labor and Industry can suspend inflationary increase during economic downturns
The St. Cloud Times this week published an editorial, which you can read here, stating this new minimum wage law is too much, too fast. Many employers will be forced to raise prices, cut hours and lay off employees as a result. Additionally, I believe this law will negatively affect the thousands of young people who work part time in our district to put themselves through college.
I have also heard from non-profits, groups that serve people with disabilities, nursing homes and other local businesses with fixed costs and minimal or no profit margin have shared their concerns about the new law. Many groups including the Long Term Care Imperative testified that this jump in wages will negatively affect senior care providers and the people they care for.
The Minnesota Legislature will be on Passover/Easter recess from Friday, April 11 - April 21.
Thank you for letting me be your voice at the Capitol.
Sincerely,
Tim
This week in history: On April 8, 1905 the USS Minnesota is launched. Part of the Great White Fleet, the battleship was a symbol of American might around the world.
Last September, I was honored to attend the commissioning of the new USS Minnesota submarine with other legislators and state officials. Our state continues to be a part of America’s strong naval tradition.