Happy Friday everyone, I hope you have enjoyed the fantastic weather this past week. With less than 2 weeks left before the deadline for new legislation committees have jumped into full swing. Unfortunately DFL leaders continue to ignore my requests for hearings on any of the bills I have submitted. Power in Minnesota is truly rested in the hands of a few political elites. All of the bills I have proposed are common sense pieces of legislation that are aimed at putting power back in the hands of the people. 

While the DFL may be ignoring my legislation they are sure working hard to push through their own agenda. This past week we heard legislation on everything from child care reform to tax proposals and bonding bills. Yet my bills on shared parenting and PPP loan forgiveness have yet to be scheduled. Even though the DFL majority refused to reach across the aisle to work with me I am happy to work with them so long as the goal is to get the government out of your personal life. 

You can watch my video update below.

Helping those in our Community

Last week I held another Townhall for the people of district 55A. We had another great turnout with tons of questions. If you were not able to have your questions answered please do not hesitate to reach out to my legislative aide (Grayson.mcnew@house.mn). 

This past Monday we had a constituent reachout to our office. He is about to retire after working for the state for 10yrs. When he started back in 2011 he was incorrectly entered into the wrong retirement plan. When the issue was fixed, and he was moved into the correct program, they never credited him for all the time he was paying onto the other retirement fund. 

This constituent reached out to my predecessor for help, but wasn’t able to get the problem fully addressed. Just yesterday we began the processes of remedying this. Strangely this wasn’t as straightforward as I first thought. Instead of just contacting the department we will actually had to draft language specifically referencing this constituent and include it into the legacy finance committees omnibus bill. So out of the thousands of pages he will have a few lines dedicated just to him. 

Overall my office has been able to answer nearly 100% of constituent issues brought to our attention. But I know more than ever people are hurting so if you have an issue again don’t hesitate to reach out.

The Cottage food Industry

This week I heard from a new constituent to Shakopee who produces her own cheese at home. She wrote over her surprise that here in Minnesota we have a cap on the amount of money you can earn as a “cottage” cheese producer; the cap is only $18 thousand. I was astonished by just how low that cap was, and at the fact we are limiting their income potential in the first place. 

Existing law limits “cottage'' food producers to selling only non-potentially hazardous food at only a few places: from their homes, direct-to-consumer, or at farmers’ markets and community events. It also arbitrarily caps cottage food producers’ income at $18,000. With the typical cottage food producer-only keeping about 40% of their gross sales, many are looking at an annual income of only $7,200. This basically grants a monopoly to major manufacturers who can handle the exuberant costs associated with the inspection and licensing process. Minnesota’s law is one of the least progressive cottage food laws in the country. 

I am happy to announce that I am now a cosponsor to HF1430 which removes that cap entirely. Government has no place in what goes on in our own homes, or. With COVID many are working from home and have taken-up hobbies or started new businesses. This legislation is aimed at making sure when you make food in your home you don’t have the Government dictating who you can give it to.

New Budget Forecasts

While I am glad to see that the economic picture in Minnesota is improving these numbers do not show the full story. The $1.6 billion surplus is simply the result of the federal government's irresponsible borrowing practices over the last year. Unsurprisingly, the State income tax revenue will increase, since the federal government gave away trillions of dollars of taxpayer money in the form of stimulus checks, and increased unemployment benefits. Since the state of Minnesota taxes this as income we are seeing only a momentary inflation and not a true surplus. 

The stimulus money was given for people to stay afloat and pay their bills. In reality, Minnesotans chose instead to purchase taxable goods like TVs, boats, and cars over non-taxable goods like groceries, rent/mortgages, and credit cards. This explains why sales tax revenue far exceeded the forecast. 

Hundreds of thousands of Minnesotans received weekly $600 bonus checks above the normal unemployment payments. This frequently paid them more income than they would have received if they were employed. Some would have received nearly $1,200 a week on the program. In Minnesota, the state government taxes that money as income. This additional income tax also exceeded the State's initial forecast.

Additionally, the Governor shut down all non-essential medical care last Spring, preventing hundreds of thousands of visits to dentists, clinics, and hospitals. Most Minnesotans are on Government-funded health insurance, therefore the State of Minnesota saved over a billion dollars by denying people care.

The State budgeting process is complex, but the most important aspect to understand is that the budget forecast still projects a deficit for the next biennium for only one reason: because Republicans and Democrats have agreed to increase Government spending. If we simply kept all Government spending the same for the next budget, we would have a more than three billion dollar surplus to return to taxpayers. Minnesota families and small businesses are hurting. They don't get to automatically increase their spending by 5% this year and neither should the Government. 

The long term economic damage caused by the Governor’s shutdowns will last far into the future. We cannot depend on bailouts from the federal government to maintain a balanced budget and strong economy. Waiting on stimulus money from Washington politicians is not a strategy for economic growth. Governor Walz needs to reopen Minnesota and give people the opportunity to succeed. Our economy, our tax revenues, and the well-being of every Minnesotan will be in a better place if we reopen

Governor Walz PeaceTime Emergency; Nearly 1 Year

Yet again Democrats in the house refused to budge on our pleas to end the Governors peacetime Emergency. We are only 10 days away from living under 1 year of Walz and have the unilateral control to create laws. His constitutional lockdowns are about to reach a breaking point if we cannot provide PPP loan forgiveness to these businesses. The economy is not a switch that you can turn on and off like a switch. It is a complicated and intertwined network that only works if left open and able to operate freely. 

These shutdowns are forcing businesses that face certain bankruptcy with  a choice; stay in Minnesota or move across the border. Many have made the decision to leave and never return while others still hold out hope we can save our home. We need true leadership and not just a dictator telling us what decisions we must make.

Paycheck-Protection-Program; Walz demands even more

Last week you heard as I called out the Chair of Taxes - Rep. Marquart - who said that the state could simply not afford to lose the revenue generated by taxing PPP “grants” This absolutely baffles the mind and to this day he has still not agreed to hear my bill on PPP loan forgiveness. Why? Because I treat this as an absolute, we in no way should be taxing these loans. 

These loans were a safety net for businesses that were struggling because the Governor forced them to close. Many people only took the loans because they were led to believe these were going to be treated more like grants; something you don’t have to pay back. They used them for overhead, payroll, and basic needs to keep their doors open and employees working. Now just as they are starting to crawl out of the abyss Governor Walz tossed them into, Chair Marquart is stomping on their fingers. If we don’t pass this bill we will undoubtedly see more business shut their doors forever. We can’t just put a band-aid on this where some have to pay taxes and others don't.

Heating assistance

There is still assistance available to income-eligible households (both owners and renters) for home heating bills and furnace repairs. The State's Energy Assistance Program can help by providing financial assistance, such as:

•       Pay past due energy bills to avoid disconnection
•       Purchase fuel for delivery in emergencies
•       Repair or replace homeowners' malfunctioning furnaces.

The application period is open until May 31 this year, and you can find more information and links to apply at the Minnesota Department of Commerce website. 

Contact

If you have any questions, please don’t hesitate to contact me or my office. We are still attempting to provide regular contact remotely so if you have other needs, please email my Legislative Assistant, Grayson, at Grayson.mcnew@house.mn.

Watch the Minnesota House on Public TV

Video: Streaming Website. Also you can watch committees and Floor Sessions on YouTube.