Greetings
Greetings Senate District 32 constituents. As the first legislative deadline rapidly approaches, my colleagues and I are busy engaging in various activities to address a wide range of issues facing our State today. In this newsletter, I’ll be discussing recent legislation I’ve presented before committees, bills we’ve passed off the Senate floor, and recent developments with Minnesota’s economic outlook. Thank you all for continuing to read my newsletter and engage in the legislative process.
Broadband Expansion
On Wednesday, February 24, the Senate Agriculture and Rural Development Committee heard three bills that provide funds for the rural broadband grant program and appropriation for the programs. The Border-to-Border Broadband Fund targets the development of permanent broadband infrastructure in unserved and underserved areas. Minnesota contains large segments of the state that fall into the unserved and underserved categories, which shows that this infrastructure is a critical need. This package of bills will provide accessible broadband to rural Minnesotans and ensure that their needs are being met. Internet access is not a luxury but a necessary utility in today’s world, and we must bring it to everyone in the state.
I was proud to co-author S.F. 1186 (Broadband grant program appropriation), which will provide 25 million dollars in 2022 and 2023 to bring service to unserved areas in Minnesota. In today’s world, families and businesses are becoming increasingly reliant on devices requiring access to a quality broadband connection. Furthermore, in recent years, we’ve seen the role that broadband service plays in our health, our education, and as an economic driver for the region. With funding provided by this legislation, we’re connecting more underserved areas from across the state and moving Minnesota one step closer to providing reliable access for all.”
Budget Forecast
The Office of Minnesota Management and Budget released its annual February economic forecast on Friday, February 26. The report, which details the State’s budget picture, projected a surplus of $1.6 billion for the 2022-23 budget cycle, an increase of $2.9 billion from the deficit projected in November. It is important to remember that the Minnesota Management and Budget (MMB) office prepares the Budget and Economic Forecast as required by Minnesota law twice each year. The November forecast is used to set the starting point for the budget and is the basis for the Governor’s recommendations. The February forecast incorporates additional data and is used by the legislature and the Governor to set the enacted budget or to ensure that enacted budgets remain on track and in balance. Forecast information is also used by bond rating agencies and other financial analysts to review the state’s financial health and, by the media who present information on the state’s financial condition to the public
In my opinion, although it is excellent news that the forecast situation has improved from where we thought it would be just months ago, we have to remain focused. Minnesota’s economic outlook is still bleak as a result of the pandemic and Walz’s shutdown. Unemployment continues to remain high, and our small businesses — especially in the hospitality industry —are standing on the brink. When crafting our two-year budget, we must show restraint and place an emphasis on them. That means no new taxes, controlling government spending, and focusing on initiatives that will get Minnesota open and people back to their daily lives.”
Senate Republicans have recently announced their 2021 session priorities placing an emphasis on safely reopening Minnesota’s schools and businesses while helping the economy recover. The caucus will also continue to focus on keeping life affordable for Minnesotans by balancing the budget without raising taxes. That means no new gas tax, no income tax, or sales tax increases. Senate Republicans will also ask that government to tighten its belt as well. Republicans will also support families by increasing choices for their kids’ education and working on expanding homeownership in their communities.
S.F. 1
On Thursday, February 25, the Minnesota Senate successfully passed S.F 1, which will allow businesses to be open without state-imposed limitations, as long as business owners maintain a COVID safety preparedness plan. This will allow Minnesota businesses to open their doors at their own pace while providing safety for employees and customers. S.F. 1 will enable businesses to open with their own precautions in place. Instead of limitations set for the entire state by the Governor, this bill will give power back to the people the power to decide what measures they need in their business. It would also prohibit a Governor from closing businesses by Executive Order under Chapter 12.21 or 12.31 unless there is a majority vote in both legislative chambers. It would also require a 14-day notice before executive order closures can take effect, giving businesses ample time to prepare for shutdowns.
Minnesota’s economy has suffered dramatically since the beginning of the pandemic and resulting lockdowns. In fact, the Minneapolis Federal Reserve reports that Employment is down 8% from the previous year and that Labor force participation down from pre-pandemic levels. Unemployment also remains above pre-pandemic levels at 4.4% in December 20 vs. 3.3% on December 19. The pandemic has been particularly severe for small businesses and Minnesota’s hospitality industry. The National Federation of Independent Businesses reported that 1 in 5 small business owners are at risk of closing due to economic conditions. Additionally, nearly 100 restaurants closed in the Twin Cities metro in 2020. More than half of restaurants report they face insolvency in the next few months if things don’t improve.
Over the last year, Governor Walz has operated our state unrelentingly, making our businesses, families, neighbors jump through hoops to prove that they are responsible and can keep people healthy. The reality, though, is that folks have always cared about their neighbors, and our businesses have always cared about protecting their customers and employees. Walz’s uncompromising approach has held our state back, and his response has failed to address our communities’ unique needs. S.F. 1 restores the balance between the government and the public by entrusting Minnesotans to do what they’ve been doing all along, while also allowing us to get our economy safely up and running.
S.F. 1765
On Monday, March 1 the Senate passed S.F. 1765, bipartisan legislation to extend Minnesota’s successful reinsurance program for another year, ensuring that insurance rates in the individual market will remain stable. The original $542 million for operations was offset by federal funding, and federal dollars will continue through 2022 with this extension. In 2016 insurance premiums for the individual market increased by double digits, as high as 49%, due to the Affordable Care Act’s changes. Furthermore, many counties only had one insurance company to choose from. Minnesota continues to enjoy some of the lowest rates in the country, every county has at least two providers, and a new provider has started offering plans in the state. Governor Walz, in his proposed budget, did not include reauthorizing the state’s successful reinsurance program. The state risks destabilizing the individual health insurance market, drastic increases in premium costs, and could lose approximately $90 million in federal money if the program expires.
Reinsurance has worked, plain and simple. Over the past four years, the program has stabilized the market and resulted in a fantastic turnaround on costs. As a result of this reform, individual health insurance rates have held or dropped year over year. The concept we put in place is even being implemented in several other states across the nation. While we still must strive for better long-term health care solutions, the stability provided by this program has resulted in enormous savings for countless Minnesota families and saved them from the difficult choice of cutting basic living expenses or affording their care.
SF 415
On Monday, March 1, I presented SF 415 (Charitable bail organizations regulation) to the Senate Judiciary and Public Safety Committee. S.F. 415 is aimed at regulating charitable bail organizations which have a track record of bailing out violent offenders (regardless of the severity of charges) who then renter society and commit more crime. This issue first came to my attention via a fox nine news story regarding the M.N. Freedom Fund and their role in bailing out violent criminals connected to the 2020 Minneapolis and St. Paul riots.
I am pleased to report that this bill was passed out of the Judiciary with a positive recommendation. Accounting for Law and Order has been a top priority since first getting elected to the State Senate in 2016, and carrying S.F 415 through the legislative process is giving me a chance to pursue this goal further.
Highway 8 Construction project
On Thursday, March 4, I presented SF 1193 (Chisago county marked U.S. highway #8 reconstruction appropriation) before the Senate Transportation committee. This legislation would appropriate 50,000,000 dollars in fiscal year 2021 from the general fund to the commissioner of transportation for a grant to Chisago County to acquire property, predesign, design, construct, and engineer the reconstruction of marked U.S. Highway 8 from Karmel Avenue in Chisago City to Interstate 35.
Everyone from Chisago County appreciates how vital the Highway 8 reconstruction project is to our communities. Furthermore, I’m honored to have a chance to provide critical funding to ensure the construction phase of this project is completed as soon as possible. S.F. 1193 passed out of the Transportation Committee and was rereferred to the Capital Investment Committee. I’m optimistic of the chances that this bill is passed out of the Senate chamber during the 2021-2022 legislative biennium.
SF 1019
On Tuesday, March 2, I presented SF 1019 (Provisions governing the Office of Legislative Auditor activities modification and appropriation) before the Senate State Government and Elections Committee. This bill makes several technical fixes to the Office of the Legislative Auditor (OLA) that will allow the OLA to operate more efficiently and effectively while conducting yearly audits of State Government Entities. I’ve been on the OLA Legislative advisory council since 2017. I have a deep respect for the work Auditor Jim Nobles does on a nonpartisan basis to hold government agencies accountable and ensure your tax dollars are being used in a fiduciary responsible manner. SF 1019 passed out of committee with bipartisan support, and I look forward to seeing these changes codified into law.
Conclusion
Thank you for giving me a moment of your time and staying up to date on current events in St. Paul. In the coming weeks, I look forward to supporting or shared values and working hard to find tenable solutions for the most pressing issues facing us today.