Friends and Neighbors,
The 2019 Special Session wrapped up early Saturday morning, sending final budget bills to run state government for 2020-2021, which the Governor began signing today.
Minnesota has more than a billion dollar surplus and strong reserves, so the position we had fought for throughout the session largely held and we were able to pass a budget that funded our priorities without increasing taxes by $12 billion, as passed the House initially.
The one tax increase that remained in the special session was the so-called "sick tax" that was supposed to expire at the end of 2019. Minnesotans have been paying this 2% tax on every visit to a doctor, dentist, chiropractor, eye doctor, etc., as well as every medical procedure for years and it was finally supposed to "sunset" at the end of the year, saving Minnesota families hundreds, or thousands, of dollars on healthcare costs. Instead, the final compromise reduced the tax from 2% to 1.8% (with no new sunset) but will still raise the cost of health care by $2 billion on Minnesota families.
I just want to point out that this "sick tax" is very regressive - those who have the most expensive treatment, like cancer, or the most doctor visits, like those with chronic illnesses, end up paying the most. Over the interim, I hope to work on ways to find alternative ways to fund healthcare that don't put the burden on those who need it most
The special session was called by Governor Walz after days of closed-door meetings, and a "tribunal" comprised of the Governor, the Speaker, and the Senate Majority Leader. Some conference committees did not adopt a single provision in a public setting, resulting in entire bills being decided behind closed doors. The largest budget bill, more than 600 pages, was not publicly released until after 4PM—several hours after the special session had begun. This flawed process was covered in depth in my last update.
In exchange for agreeing to end by 7 AM on the day after the start of the special session, House Republicans successfully negotiated several procedural changes that will improve transparency next session, including getting rid of the flawed "division" committee structure the DFL implemented at the beginning of this session and returning to the regular House committee structure.
Some of the bipartisan wins from this past session include:
- First income tax rate cut in 20 years: The tax bill lowered the second-tier rate from 7.05% to 6.8% beginning in 2019, allowing most Minnesotans to keep more of their hard-earned money. This tax rate applies to incomes between $38,771-$154,020. While I voted against the final tax bill because of the "sick tax," this historic rate reduction, which was hard-won by the Senate, along with federal conformity, will mean more money in people's pockets and fewer headaches next tax season.
- No Gas Tax: Republicans stood strong and blocked all of the Democrat-backed transportation tax increases, including the Governor's 70 percent increase to the gas tax.
- $543 million increase in education funding: School districts got a 2% increase on the general education funding formula for both years of the biennium which results in a total increase of 4.4% on the formula over the two years.
- $90.7 million for Special Education: The $90 million is intended to cover the anticipated increase in the special education cross-subsidy, thus creating a "freeze". It would not cover the entire unreimbursed costs, but hold steady the current cross-subsidy.
- No Safe Schools Money: This was a popular grant program that gave schools grants to improve security in the 2018-2019 budget. This program was not funded this time but will have “contingent” appropriation of $30 million if the closing balance at the end of this fiscal year is between $33-$63 million—it will be prorated per pupil based on the closing amount.
- No Nursing Home Cuts: Republicans fought Democrat-backed efforts to cut $68 million from nursing homes. These cuts would have devastated budgets for nursing facilities and harmed care for aging Minnesotans.
- Restoring a 7% cut in Disability Waiver Rate System: this ensures we will be able to attract and retain much-needed home and community-based service providers who serve the mentally and physically disabled in our communities.
- Extending Reinsurance for the Individual Market: The final budget agreement extended reinsurance for two years, continuing a program that has proven to lower health care costs for families and become a national model that other states, red and blue alike, are following. Republicans also stopped harmful proposals like "ONEcare" that would have hurt rural hospitals thanks to their lower reimbursement rate.
- Cracking Down on Fraud: The final HHS bill included provisions to crack down on fraud in the Child Care Assistance Program (CCAP). These include stricter reporting requirements, stronger oversight, and a case-tracking system at the Bureau of Criminal Apprehension to help track fraud cases. While there's still more work to do, these provisions are a good first-step toward restoring integrity in CCAP and our other public programs.
What I Learned
Being a first-term Legislator, I learned so much - it was like attending graduate school in many disciplines every day! It is an incredible privilege and responsibility to represent our communities and I am very thankful for this opportunity. As I look back on this first session, I learned at least three main lessons - I'm sure there are many more!
1) Whether or not we agree on specific policies, my colleagues and I are all working hard to best represent the views and values of our districts and for the good of Minnesota;
2) Despite the public disagreements, there are many moments of bipartisan collegiality and I was personally encouraged by more senior members from both parties, for which I am grateful!
3) We have an AMAZING district!!! I have lived in the Northwest suburbs for 20+ years but this office has given me the opportunity to meet so many people and work with so many schools, businesses, non-profits, and government agencies I otherwise wouldn't know about first-hand. We have incredible leaders, students, families, teachers, entrepreneurs, seniors, veterans, athletes, artists and community volunteers. I am so honored to represent 34A!
Photos from the Week
Rep. Robbins attended the I-94 West Chamber of Commerce First Responders Luncheon on Wednesday, which honored first responders from three cities in her district — Maple Grove, Dayton, and Rogers.
Please Contact Me
Many of you have already been in touch to discuss your thoughts on the issues that matter most to you. Thank you for sharing your ideas! Please continue to contact me to discuss any legislation put before the House or any other matters to which I can be of assistance. You can set up a time to visit me at the Capitol by calling me at 651-296-7806 or by email at rep.kristin.robbins@house.mn. My office is located on the second floor of the State Office Building in room 225.
I hope you all have a great summer!
Kristin
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