The 2013 Legislative Session has adjourned, ending on time with a balanced budget. We entered the session facing a $627 million deficit — our eighth in the last ten years. While on our roller coaster of deficits, we failed to make the investments necessary for a stronger future. This session we worked to balance the budget honestly and invest in priorities Minnesotans broadly share.

I wanted to take this opportunity to talk about the three issues I heard about most from constituents: education, jobs and the economy, and property tax relief.

It was our goal to make 2013 the “Education Session.” We know that a world-class education is essential to building a world-class economy, but our great education system is slipping. We’re 47^th in the nation in class sizes; our achievement gap is among the worst in the nation; our four-year graduation rates have slipped to 29^th and while we used to be in the top 10 in school funding, we’re now 22^nd.

We’re changing course and made investments in our future to put our kids on the path to the world’s best workforce.

In our budget, we’re investing in what we know works: early childhood education scholarships and for the first time ever, fully funding all-day, optional kindergarten for every Minnesota child. After a decade of shifts and disinvestment, we’re investing $234 million in our K-12 schools to help lower class sizes and improve student achievement. And we are accelerating the pay back of the $850 million we still owe our schools from last session.

In economic development, our budget makes $89 million in new investments to spur middle class job creation, calling for more job training, workforce development and small business strategies to strengthen our economy and workforce.

I chief authored a provision to open three more Minnesota Trade Offices in other parts of the world. Opening more trade offices around the world will open up markets for Minnesota businesses and farmers throughout Greater Minnesota, bringing them more revenue, and growing more jobs. Our homegrown businesses make great products that we should be selling around the world.

When Minnesota opened its first trade office in China in 2005, the state saw a 71 percent increase in exports to China in one year. That is currently our only trade office. Data from the Brookings Institute demonstrates how increasing exports leads to job growth, with each $100 million increase in exports leading to approximately 665 new jobs.

Finally, I heard a lot last year and this year about rising property taxes. Our budget reverses that trend, providing $400 million in property tax relief for middle class Minnesotans. Under our program, more than 300,000 homeowners — 75% of filers — will see a refund increase. More than 100,000 additional homeowners will be eligible for a refund. Homeowners will be notified if they are eligible for a refund over $1,000 and the average homeowner will see their refund increase by $212.

Our budget enhances the Renters’ Credit with the average renter will see their refund increase by $179. The bill also increases Local Government Aid by $80 million and Country Program Aid by $40 million. Cities and counties will join townships in receiving a sales tax exemption on most purchases.

We made a lot of progress this session that will move Minnesota forward. I believe that our budget will lead to a stronger middle class and a stronger Minnesota.

I’m looking forward to being back in the district and seeing constituents at events and parades. As always, I encourage folks to contact me if they have any questions about the legislative session. I can be reached by phone at 651-296-6206 or by email at rep.mary.sawatzky@house.mn.

Thank you for the honor of serving you in the Minnesota House of Representatives.

With just a little over two weeks left in the legislative session, we’re into the final sprint. Conference committees have started meeting to work out differences between the House and Senate budget bills, while the House continues to pass other pieces of important legislation.

Local Doctor Kathryn Duevel Appointed to MNsure Board

On Tuesday, Dr. Kathryn Duevel was appointed by Governor Mark Dayton to a seven-member board responsible for managing and operating MNsure – the new health insurance marketplace where Minnesotans can choose quality, affordable health insurance.

The board, which was established by law earlier this legislative session, was chosen through the state’s open appointments process from a pool of 112 candidates. Board members will serve staggered four-year terms. With the exception of the Commissioner of Human Services, all members are limited to two terms of service.

Dr. Duevel is an excellent choice for the MNsure board and I congratulate her on her appointment. It’s great for our area to have this representation on the board and it will ensure that MNsure works for all Minnesotans, rural and metro. It’s very exciting and I know she will do fantastic work.

The appointed board will hold its first meeting in May. The board’s responsibilities are outlined below:

• Establish MNsure budget, employ personnel and delegate responsibilities to the Director and other personnel;
• Establish certification requirements for insurance producers;
• Establish policies and procedures for operation of a navigator program, in-person assister program, call center, and customer service provisions, to be implemented beginning January 1, 2015;
• Ensure customer assistance information is accessible to persons with disabilities, and that information on public health care programs include information about other coverage options for persons with disabilities;
• Establish certification requirements for health carriers and health plans;
• Establish policies and procedures for the selection of health plans to be offered as qualified health plans; and
• Establish advisory committees as needed.

Transportation Policy Bill

On Thursday, the House passed the Omnibus Transportation Policy Bill (HF1416/SF1270) on a bipartisan vote of 77-47. As a member of the Transportation Policy Committee, I worked closely on this bill and it contained a number of important — albeit not flashy or exciting — provisions.

For more information on the bill, you can read this story from nonpartisan “Session Daily” or read the text of the bill here.

Feel free to contact me with any questions, comments, or concerns on any legislative issue. You can reach me at rep.mary.sawatzky@house.mn or 651-296-6206. Thank you for the honor of serving you in the Minnesota House of Representatives.

As we finally wave goodbye to a long winter and get to enjoy some warmer weather, everyone seems to be in a slightly better mood, which is great! I’m happy to let you know that the Minnesota House has passed all of its budget bills. As the Senate finishes passing their omnibus bills, conference committees will begin meeting to work out the differences between the House and Senate versions.

E-12 Education

Earlier this week, the House passed the Omnibus Education Finance and Policy Bill. The bill sets the ambitious goal of closing the achievement gap, reaching the nation’s highest high school graduation rate, 100 percent literacy by third grade, and 100 percent career and college readiness by graduation — all by 2027.

The bill fully funds all-day, every day kindergarten and invests $50 million in early learning childhood scholarships. All-day K and early childhood education are proven tools to improve test scores, close the achievement gap, and prepare students for future academic success. In addition to increased funding for kindergarten and early childhood, the bill also increases the basic funding formula for K-12 schools by four percent over the biennium, an increase of over $315 million, or $209 per pupil.

Under this bill, Willmar Public School District would receive a formula increase of $731,328 or $178 per-pupil (1.8 percent) in fiscal year 2014 and an increase of $2.2 million, or $527 per-pupil in fiscal year 2015 (5.2 percent).

The New London-Spicer School District would receive an increase of $152,444 or $109 per-pupil in fiscal year 2014 (1.2 percent) and an increase of $619,922 or $448 per-pupil in fiscal year 2015 (5.2 percent). The Atwater-Cosmos-Grove City School District would receive an increase of $89,923 or $121 per-pupil in fiscal year 2014 (1.2 percent), and an increase of $373,243 or $451 per-pupil in fiscal year 2015 (4.5 percent).

The Omnibus E-12 Education Finance and Policy Bill also contains a new strategy to close the revenue equity gap and reduce property taxes. The bill enhances the equity formula guaranteeing all districts at least $300 per student of equity and referendum revenue, and raises and indexes operating referendum levy equalization factors to reduce property taxes.

Higher Education

Yesterday, we passed Omnibus Higher Education Finance Bill with strong bipartisan support. The bill includes $150 million in funding that will directly benefit students by freezing tuition at both the University of Minnesota (U of M) and the Minnesota State Colleges and University system (MnSCU).

The House bill also includes new reforms to expand the oversight function of the legislature. By 2018, 70 percent of all jobs in Minnesota will require some form of post-secondary education. We have to make sure that our colleges and universities are accessible and affordable if we want our young people, our economy, and our state to succeed.

Health and Human Services

On Monday, the House approved the Omnibus Health and Human Services bill. The bill reduces the HHS budget by $150 million over two years through targeted cuts, reforms, and re-prioritization while still protecting the poor and vulnerable. Despite the $150 million reduction, the bill provides a 3 percent cost-of-living increase for nursing home providers and a 2 percent cost-of-living increase for long-term care providers.

After a decade of cuts and four years of wage freezes for caregivers, this increased funding is desperately needed and it’s absolutely the right thing to do. Our seniors and nursing homes are a vital part of our communities and they deserve our support.

The House HHS bill achieves cost savings in several ways. It finds $66 million through managed care payment reforms. It makes about $93 million in targeted reductions to existing programs and reforms of services in areas like dental and prescription drugs. The bill also recognizes savings from budget decisions made in other areas of the budget. For instance, by fully funding All-Day Kindergarten, the state will reduce the number of children on welfare requiring child care.

The fastest growing part of our state budget is health and human services. We have to slow the growth of spending in HHS, make some difficult cuts, and find cost savings. This bill does that while reflecting the right priorities: increasing funding for nursing homes and long-term care workers, and protecting Minnesota seniors, poor and vulnerable. I will continue working with my colleagues and advocating for our vulnerable as this bill moves on to conference committee.

Balancing the Budget Honestly, Proving Property Tax Relief, Paying Back Schools

On Wednesday, the House approved a bill providing $270 million in middle-class property tax relief for nearly 1 million Minnesotans through the Homestead Credit Refund, retooled renters’ credit and increased aid to cities and counties.

Property taxes have nearly doubled in the last decade and are a tremendous concern for our families, seniors, farmers, and small businesses. This bill provides direct property tax relief and puts money back in the pockets of hard-working, middle-class Minnesotans, who are the economic engine of this state.

The Homestead Credit Refund provides universal, targeted property tax relief to middle-class homeowners. Under this program, more than 300,000 homeowners (75% of filers) will see a refund increase. More than 100,000 additional homeowners will be eligible for a refund. Homeowners will be notified if they are eligible for a refund, increasing filers by 100,000. The average homeowner will see their refund increase by $212.

The previous Legislature raised property taxes on renters who earn less than $55,000 a year by cutting the Renter’s Credit.  This provision enhances the Renters’ Credit, providing property tax relief to Minnesota renters (including elderly and disabled renters), so that the neediest renters see the greatest benefit. Under the improved Renter’s Credit, 66,000 filers will see a bigger refund, 10,000 additional renters will qualify, and the average renter will see their refund increase by $179.

The bill also increases Local Government Aid by $80 million and Country Program Aid by nearly $30 million. Willmar would see a 15 percent increase in LGA, Kandiyohi a 22 percent increase, Spicer a 49 percent increase, New London a 17 percent increase, and Atwater a 14 percent increase.

Two years ago, the previous legislature chose to borrow a record amount from Minnesota schools. The House Tax Bill pays back the $854 million still owed to Minnesota schools through a temporary, two-year income tax surcharge on only the wealthiest 0.5 percent of Minnesotans — taxable income greater than $500,000 per year for joint filer.

We made a promise to the people of Minnesota that we would pay back the school shift, and this bill keeps that promise. Minnesotans told us loud and clear that they were tired of irresponsible budget gimmicks and paying this back is the right thing to do.

The bill asks the wealthiest 1.1 percent of Minnesotans to pay their fair share by raising the income tax rate to 8.49 percent for individuals with a taxable income greater than $226,000 or $400,000 for joint filers. That 1.1 percent would pay an addition $3,700 per year on average. This increase would only affect 3.3 percent of businesses. This group currently pays a smaller percentage in income taxes than low-and middle-income earners.

The third revenue component in the bill recovers state costs from tobacco and alcohol consumption.  The proposal increases the user-based fees on cigarettes to $2.83 per pack and catches Minnesota up with Iowa, South Dakota and Wisconsin who all have a higher cigarette tax.  The bill increases the user-based fees on alcohol by 7 cents per beer.  The alcohol tax hasn’t been raised since 1986.  Alcohol and cigarette use cost the state billions of dollars annually in related health care, public safety and other costs.

After a decade of deficits, gimmicks, property tax hikes, and fiscal mismanagement, this bill responsibly balances the budget and invests in a brighter future for the state of Minnesota.

Feel free to contact me with any questions, comments, or concerns on any legislative issue. Thank you for the honor of serving you in the Minnesota House of Representatives.

I hope everyone is alright after another heavy snow storm in our area. I’m certainly ready for spring, and I imagine most of you are as well.

The pace at the legislature continues to pick up as we have started passing major budget bills off the House floor.

Omnibus Jobs, Commerce, and Housing Bill

On Monday, the House passed HF 729, the Omnibus Jobs, Commerce, and Housing Finance Bill on a 75-57 vote. The bill contains a $1.5 million increase for the Minnesota Trade Office. I chief authored this provision as my first bill early in the session and fought for its inclusion in the final omnibus bill. The Trade Office works to help Minnesota businesses navigate foreign markets and trade regulations so they can increase their exports and put more Minnesotans to work.

With this additional funding, the Department of Employment and Economic Development (DEED) will open three more trade offices in other parts of the world, provide grants to businesses interested in exporting their products to foreign markets, and develop marketing materials aimed at out-of-state businesses and designed to emphasize the benefits of doing business in Minnesota and with Minnesota companies.

The bill also includes a substantial tax cut for Minnesota employers through a reduction in the rate that employers pay on unemployment insurance. This will save businesses $350 million over the next two years.

In addition to increased funding the for trade offices, the bill contains $20 million for the Minnesota Investment Fund (MIF), $18 million for a job creation fund, $5 million for a FastTRAC program that works to provide local employers with the skilled workers they need to grow, and $2 million in onetime funding for the Minnesota Film and TV Board.

Growing jobs and strengthening our economy is one of our top priorities and this budget bill reflects that. While our economy is improving, too many Minnesotans are struggling to find jobs and make ends meet. This plan can help us close the job skills gap, expand our markets, and attract new businesses to Minnesota.

Omnibus State Government and Veterans Affairs Bill

Today, the House passed the State Government Finance and Veterans Affairs Omnibus Bill, which increases funding for veterans programs and services.

I voted in favor of the legislation and authored an amendment saying that General Fund money appropriated to the Arts Board for the Grants Program in the bill may only be spent on projects located in Minnesota. Grant money cannot be used to travel outside Minnesota unless the cost of travel is less than 5% of the total grant. And none of the funds may be used for travel outside of the United States.

In March, KSTP TV reported that grants from the Arts Board were being spent on artists taking trips to tropical locations. Records show the Minnesota Arts Board gave out 114 grants to artists who traveled to 40 countries. The program spent $5.6 million from 2009-2013 with 15 percent of the trips being overseas.

Those trips were clearly not a responsible use of taxpayer dollars. We have an obligation to ensure that taxpayer dollars are being used wisely and responsibly. My amendment was common-sense and I’m pleased it was adopted with strong bipartisan support.

For veterans, the bill increases funding for the Minnesota Department of Veterans Affairs programs and services by 18 percent. The bill modifies Minnesota’s GI Bill education program by expanding eligibility to all veterans. The legislation also would provide the educational benefit to the spouse or child of soldiers killed in the line of duty. Under this reform, eligibility would be based on the federal program requirements.

The bill creates a grant program to provide assistance to Minnesota veterans who are homeless or in danger of becoming homeless. This includes help with utilities, employment, and legal issues. The bill authorizes towns and cities to give contract preferences to veteran-own small businesses.

Finally, the bill provides funding for a permanent honor guard for veterans’ funerals. Our veterans have given us so much and they deserve our steadfast support. This bill does great things to help our vets and their families.

Feel free to contact me with any questions, comments, or concerns on any legislative issue. Please contact my office at 651-296-6206 or email me at rep.mary.sawatzky@house.mn. Thank you for the honor of serving you in the Minnesota House of Representatives.

The Legislature continues to work on budget bills in the House finances committees. All budget bills have to be through the House Ways and Means Committee by April 19.

Capital Investment Bill

The House unveiled its $800 million Capital Investment bill which includes critical investments for statewide infrastructure improvements in higher education, transportation, housing, economic development, clean water and wastewater systems. Capital Investment, also known as bonding, is responsible long-term borrowing for necessary infrastructure projects. Similar to a mortgage on a house, the borrowing leads to greater gains in the future. Interest rates are also at historically low levels, stretching the value of the bonding dollars.

Using the Associated General Contractors of America formula, it is estimated that 22,800 permanent, temporary and spin-off jobs will be created statewide, giving a shot in the arm to our recovering economy.

The bill includes $1.6 million for Ridgewater College in Willmar for phase two of the campus’ central heating system. The proposal contains $1.5 million for a 5 mile extension of the Glacier Lake State Trail from New London to Sibley State Park.

The bill also contains a $550,000 grant to the Kandiyohi Area Transit Joint Powers Board for an additional bus storage garage in Willmar. The House bonding proposal contains $20 million for local bridges, $35 million for local roads, and another $25 million for wastewater infrastructure throughout the state.

While this is just the first step in the bonding process, this is great news for our area both for economic growth and also for our quality of life and infrastructure. We have to ensure our colleges receive the critical updates they need and expanding our trails will improve our already great outdoor experiences and potentially draw more tourists to our region.

The full bill can be found here: http://www.house.leg.state.mn.us/comm/docs/DE1amendmenttoHF207(omnibusbondingbill).pdf. The bill will be debated and voted on at the committee hearing on Thursday.

House Education Bill

We recently unveiled our plan to put Minnesota’s kids on the path to the world’s best workforce with a House Education Omnibus Finance bill that calls for historic investment in education.

The House DFL Education Budget invests in what works: fully funding all-day, every day kindergarten and investing $50 million in early learning childhood scholarships. All-day K and early childhood education are proven tools to improve test scores, close the achievement gap, and prepare students for future academic success. The House DFL Education Budget also increases the basic funding formula for K-12 schools by four percent over the biennium, an increase of over $315 million, or $209 per pupil. The school shift payback will be included in the House Taxes bill.

Under the House DFL Education Budget, the Willmar Public School District would receive a formula increase of $742,228 or $181 per-pupil (1.8 percent) in fiscal year 2014 and an increase of $2.2 million, or $527 per-pupil in fiscal year 2015 (5.2 percent). The New London-Spicer School District would receive an increase of $140,249, or $100 per-pupil in fiscal year 2014 (1.1 percent) and an increase of $619,922 or $448 per-pupil in fiscal year 2015 (5.2 percent). The Atwater-Cosmos-Grove City School District would receive an increase of $58,808, or $79 per-pupil in fiscal year 2014 (0.8 percent), and an increase of $372,772, or $451 per-pupil in fiscal year 2015 (4.5 percent).

The House DFL Education Budget also contains a new strategy to close the revenue equity gap and reduce property taxes. The bill enhances the equity formula guaranteeing all districts at least $300 per student of equity and referendum revenue, and raises and indexes operating referendum levy equalization factors to reduce property taxes.

As part of building the world’s best workforce, the House DFL Education Budget would implement several necessary reforms. Schools will be required to develop strategic plans for student achievement and update the public on their status each year. The state will utilize the Minnesota Department of Education’s Regional Centers of Excellence to provide assistance and work with schools to reach their goals.

A new student assessment system will be implemented that ensures students stay on the path to being career and college ready, and innovation grants that promote new ways to increase student achievement will be available to schools.

Building a world-class education system and workforce will lead to a world-class economy. Education is absolutely essential to our long-term success. This plan is a great step forward for our education system and as we move through the legislative process I’ll continue working to ensure Minnesota remains a national leader in education.

The House Education bill can viewed here: http://www.house.leg.state.mn.us/comm/docs/H0630Delete-all.pdf.

The House Education funding spreadsheet can be viewed here: http://www.house.leg.state.mn.us/comm/docs/HF0630Delete-allspreadsheet.pdf

The school district runs for the House Education bill can be viewed here:

http://www.house.leg.state.mn.us/comm/docs/HouseProposalApril92013_1.pdf

Starting Line Video

I recently sat down with the non-partisan House Public Information to talk about my bill that would appropriate money to increase public awareness of problem gambling, educate and train individuals and organizations that offer effective treatment services to problem gamblers and their families, and fund research related to problem gambling.

You can watch the video by clicking here.

Coffee and Conversation

On Saturday, April 13, I will be holding another “Coffee and Conversation” event from 9:00-10:30 AM at LuLu Bean’s, in the small downstairs meeting room, (1020 First St. South, Willmar, MN) Feel free to stop by and talk about the issues!

Feel free to contact me with any questions, comments, or concerns on any legislative issue. Please contact my office at 651-296-6206 or email me at rep.mary.sawatzky@house.mn. Thank you for the honor of serving you in the Minnesota House of Representatives.

After a week back in our districts for the Easter/Passover break, legislators are back in St. Paul. Budget targets were released just before the break, so now that we’re back, House finance committees are working on putting together omnibus bills.

Property Tax Relief Package

On Tuesday, we released details on a $250 million property tax relief package for Minnesotans that includes direct property tax relief to homeowners, renters and modernizes the state’s local government aid formula. Property taxes have risen 86 percent in the last decade. The House DFL plan will provide direct property tax relief to middle class Minnesotans by providing $157 million for the Homestead Credit Refund.

Under the Homestead Credit Refund:

• · More than 300,000 homeowners (75 percent of filers) will see a refund increase
• · More than 100,000 additional homeowners will be eligible for a refund
• · The average homeowner will see their refund increase by $212
• · A grand total of 636,000 homeowners will see direct property tax relief

In addition to providing middle class homeowners a refund, the DFL proposal includes $15.5 million for the Renter’s Credit. 66,000 filers will see a bigger refund and a total of 340,000 renters will see property tax relief through the Renters’ Credit.

The DFL is also proposing the most significant Local Government Aid (LGA) reform in over a decade, including $60 million for Local Government Aid and $28 million for County Program Aid. Many Greater Minnesota communities have faced severe LGA cuts in recent years, forcing them to cut back or eliminate vital city services.

Jobs Package

On Wednesday, we unveiled our jobs and economic development legislation with an increase of $46 million in funding over the previous biennium.

The bill contains an addition $1.5 million — $4.6 million total — for the Minnesota Trade Office. I introduced this legislation early in the session. The Trade Office works to help Minnesota businesses navigate foreign markets and trade regulations so they can increase their exports and put more Minnesotans to work.

One of the largest single investments proposed is $20 million to the Minnesota Investment Fund (MIF) which helps companies bring quality jobs to the state delivering funds to Minnesota cities, which can then offer incentives for businesses to come to their area. Another significant investment will be over $18 million for a job creation fund. These dollars would be allocated to the Department of Employment and Economic Development (DEED) which would then use the fund as a tool to help businesses make capital investments and create jobs in Minnesota.

In addition to funding job creation efforts, the bill includes a substantial tax cut for MN employers. Reducing the rate that employers pay on unemployment insurance taxes will save them almost $350 million in the next two years. The average MN employer will save $150 per employee.

While our economy has continued to recover, too many Minnesotans are struggling to find good jobs. We have to do all that we can to ensure that Minnesotans are trained for the jobs of today and of the future, that we attract businesses to Minnesota, and that local businesses can make important investments and find new markets for their goods and services. This proposal can help achieve those goals.

Nursing Homes and Long-Term Care

On Thursday, we announced a commitment from the House DFL leadership that long-term care workers would not see a reduction in funding this biennium, and in fact, they will in all likelihood see an increase within the House Health and Human Services finance bill. While the House budget targets call for a $150 million reduction in total HHS spending in order to keep downward pressure on rising healthcare costs, I have joined with other DFL legislators in strongly advocating for nursing homes and long-term care workers.

After a decade of cuts and four years of wage freezes for caregivers, this increased funding is desperately needed. I’m very pleased that House DFL leadership committed to increasing funding for our nursing homes. It’s absolutely the right thing to do.

The House Health and Human Services committee will continue to work out details as the omnibus budget bill is being constructed. It won’t be easy, but we will continue to work to find reductions and reforms to slow the growth in spending on Health and Human Services. In doing so however, we must do all we can to ensure that any reductions will not hurt our seniors, disabled, poor, and vulnerable. I’m optimistic and hopeful we can get it done.

Legislators United to Volunteer

Recently, I joined a bipartisan group of more than 25 House members and staff and signed up to participate in a new volunteer initiative called “Legislators Uniting to Volunteer” or “LUV 2.” The project was spearheaded by DFLer Rep. John Ward and Republican Rep. Jenifer Loon with the goal of building relationships between legislators, making a positive difference in our communities, and encouraging others to volunteer.

On Wednesday night, the group volunteered at the Dorothy Day Center, a homeless shelter in St. Paul. We helped prepare and serve an evening snack, laid down mats, and did some clean up. The Dorothy Day Center is managed by Catholic Charities of St. Paul and Minneapolis.

This is a great initiative and I look forward to working with my colleagues on volunteering in our communities.

Coffee and Conversation

On Saturday, April 6, I will be holding another “Coffee and Conversation” event from 8:30-10:00 AM at Sunburg Creamery Café (403 Central Ave, Sunburg, MN 56289). Feel free to stop by and talk about the issues!

Throughout the legislative session, feel free to contact me with any questions, comments, or concerns on any legislative issue. Please contact my office at 651-296-6206 or email me at rep.mary.sawatzky@house.mn. Thank you for the honor of serving you in the Minnesota House of Representatives.

On Tuesday, Minnesota House DFLers announced a framework for the state budget, which calls for a structurally balanced budget without gimmicks and includes investments in education, property tax relief, and job creation efforts. The budget targets act as a framework for committee work on the budget going forward.

The proposed budget would close the state’s $627 million deficit in the FY 14-15 budget cycle using new revenue, spending cuts and reforms and provides for structural balance in FY 16-17; fully pay back the $854 million IOU to Minnesota schools for the first time since 2007, utilizing a temporary income tax surcharge on only the very wealthiest Minnesotans; and invest $1 billion in priorities to strengthen Minnesota’s economic future, including $700 million for early childhood education through post-secondary education, $250 million in middle class property tax relief, and another $46 million in job creation.

In the last biennium, the legislature borrowed a record $2.4 billion from Minnesota schools. Under this budget framework, Minnesota schools would be fully paid back this budget cycle through a temporary income tax surcharge on Minnesotans who earn more than $500,000 per year (less than 1% of all Minnesotans). The surcharge would blink-off once Minnesota schools are paid off, which would occur in two years or sooner.

I heard loud and clear from folks over the last year that they wanted an honestly balanced budget that paid back our schools, invested in education, property tax relief and job creation, while also making targeted cuts and finding reforms where possible. Investing in education will help us build the world-class workforce we need to grow our economy and attract businesses to our state over the long-term, while providing property tax relief will put more money into the pockets of hard-working middle-class Minnesota families.

The budget targets also contain a $150 million cut to Health and Human Services, and a $20 million cut to Transportation.

We were elected to make tough choices at the legislature and in addition to making necessary investments, Minnesotans expect us to find cuts and efficiencies as well. In Health and Human Services, we need to find cost savings and efficiencies to slow the growth in health care costs. These should be smart, targeted cuts that won’t hurt seniors or our most vulnerable, or cripple our already-struggling roads and bridges. I look forward to hearing from you on what you think is the best way to move Minnesota forward.

Highway 23 Bill Hearing in House Transportation Finance

Yesterday, my bill to fund the four-lane gaps in Highway 23 received a hearing in the House Transportation Finance Committee.

As you know, Highway 23 is just two 7 mile stretches away from having a full four-lane connection to the Interstate System. One gap is between New London and Paynesville and the other between Paynesville and I-94 just south of St. Cloud. The bill has support from the Willmar Chamber of Commerce and business community.

Our area remains the only regional center without adequate four-lane highway access. We should complete this “Corridor of Commerce.” Doing so would expand economic opportunity and growth for our area.

I’m pleased to have bipartisan support and be working with Rep. Jeff Howe on this bill. The hearing was an informational presentation for members of the committee, who are in the process of ranking transportation projects that are seeking bonding support. I’m hopeful that by working together, across the aisle, we can get this done this session.

Curling Championships in Willmar

We are very fortunate to have the 2013 US Curling Mixed National Championships in Willmar this week. It was great to attend some of the events last weekend and I’m thrilled to have folks from all over the country visiting our great region. Best of luck to all the competitors!

Throughout the legislative session, feel free to contact me with any questions, comments, or concerns on any legislative issue. Please contact my office at 651-296-6206 or email me at rep.mary.sawatzky@house.mn. Thank you for the honor of serving you in the Minnesota House of Representatives.

The legislature is coming up on its first committee deadline. To be considered for passage this session, policy bills must have moved through committees in the House or Senate by Friday. The second deadline on March 22 is for committees to pass legislation that met the deadline in the other body of the legislature.

The final legislative deadline is April 19, where the House Ways and Means Committee and Senate Finance Committee must act favorably on any major appropriation of finance bills.

These deadlines are important to ensuring that legislation receives property scrutiny and that the legislature gets it work done on time, without rushing legislation through the process at the last minute near the end of session.
Coffee and Conversation

On Saturday, March 16, I will be holding a Coffee and Conversation event from 9-10:30 AM at McKale’s Family Restaurant and Catering (10 Ash Street, New London, MN 56273). Feel free to stop by and talk about the issues!

Committee Hearing on Funding for Highway 23

As many of you know, Highway 23 in our region is just two 7 mile stretches away from having a full four-lane connection to our Interstate System. One gap is between New London and Paynesville and the other between Paynesville and I-94 just south of St. Cloud.

Willmar remains the only regional center without what many would consider adequate four-lane highway access. Completing this four-lane corridor — a “Corridor of Commerce” — would expand economic opportunity and growth for our area.

I’m working with Republican Representative Jeff Howe who represents Paynesville on legislation to fund these four-lane corridors and we’ll have a committee hearing on the bill next week.

I’m hopeful that by working together we can get this done this session.

Throughout the legislative session, feel free to contact me with any questions, comments, or concerns on any legislative issue. Please contact my office at 651-296-6206 or email me at rep.mary.sawatzky@house.mn. You can follow me on Twitter for updates as well. Thank you for the honor of serving you in the Minnesota House of Representatives.

Activity at the legislature continues to ramp up as we approach the first committee deadline for policy bills on March 15. Yesterday, I joined a group of DFL legislators to meet with Governor Mark Dayton to discuss the state budget. At the meeting, Governor Dayton listened to our ideas and concerns about his budget. In particular, we shared our concerns with the Governor’s business-to-business tax proposal.

Earlier today at a meeting with business leaders, Governor Dayton announced that he will be dropping business-to-business taxes from his budget.

I thank Governor Dayton for listening to our concerns and working with us on this issue. Throughout the session, I have sought feedback from you and our small businesses, and held town hall meetings. The budget issue I heard the most concern about was business-to-business taxes. The governor was very open to our concerns and our ideas on how to best balance the budget.

As the legislature crafts its budget, I remain committed to one that funds our priorities like education and property tax relief while keeping Minnesota economically competitive and helping our businesses succeed both over the short-term and the long-term. I look forward to working with Governor Dayton and my legislative colleges on both sides of the aisle on a budget that Minnesota an even better place to live, work, and raise a family.

Health Insurance Exchange

On Monday, the Minnesota House passed HF 5, legislation establishing a health insurance exchange, on a vote of 72 to 58. The exchange will be an online marketplace where Minnesotans can compare and purchase health insurance coverage.

The health insurance exchange is projected to serve more than 1.2 million Minnesotans through an online marketplace where individuals, families and small businesses will be able to get quality, affordable health coverage that fits their budget. Done correctly, this is a huge, positive step forward for health care reform in Minnesota.

Enrollment in the Minnesota Health Insurance Exchange begins October 1, 2013, with plan coverage starting January 1, 2014. If Minnesota does not pass legislation establishing an exchange, the federal government will step in and establish it for the state.

Regardless of your feelings on the Affordable Care Act, when it comes to the health insurance exchange, I think we can all agree that we would rather have it be a Minnesota-made exchange, rather than a one-size-fits-all federal model. Minnesota is already known as a health care leader and by taking charge of our own exchange, we can maintain that reputation.

Minnesota families are projected to save over $1 billion by using the exchange to purchase insurance — with the average family saving $500 and a lower-income family saving approximately $1,800. The exchange is expected to help roughly 300,000 uninsured Minnesotans gain coverage by 2016.

Nearly 200,000 small businesses employees are also expected to access coverage through the exchange. Small businesses currently pay on average 18 percent more than large businesses, an average of $11,000 per year for a family coverage. Small employers are projected to save up to 7.5 percent off of premium costs in the exchange and those eligible for tax credits will save even more. Small business owners would be able to choose the plan for their workers, or let their employees choose the plan that’s right for them.

Through increased competition and tax credits, Minnesota families and small businesses can benefit tremendously from the exchange. Helping our families and small businesses save money on health care costs is good for our economy and good for Minnesota.

The bill funds operation of the exchange by charging health insurance companies up to a 3.5 percent surcharge on premiums of the health plans purchased through the exchange. Exchange staff expects to charge less than 3.5 percent especially in the second and third years of operation.

The Senate is passed their version of the Health Insurance Exchange bill yesterday. The two bills will now go to a conference committee.

Coffee and Conversation

On Saturday, March 9, I will be holding a Coffee and Conversation event from 9-10:30 AM at Thompson’s Bakery and Coffee House in Atwater (500 Pleasant Ave W). Feel free to stop by and talk about the issues!

This Saturday I will also be on KWLM from 11AM-1PM. We’ll be broadcasting from the Willmar Civic Center. Be sure to tune in!

Throughout the legislative session, feel free to contact me with any questions, comments, or concerns on any legislative issue. Please contact my office at 651-296-6206 or email me at rep.mary.sawatzky@house.mn.  Thank you for the honor of serving you in the Minnesota House of Representatives.

All the best,

Mary Sawatzky

State Representative

Yesterday, Minnesota Management and Budget announced that the February budget forecast shows a projected budget deficit of $627 million for fiscal years 2014-15.  This is an improvement from the November budget forecast that showed a projected deficit of $1.1 billion. Fiscal year 2012-13 is now projected to have a positive balance of $295 million, $290 million of which is directed to paying back the school shift, leaving a balance of $801 million remaining.

The forecast is good news as our economy continues recovering, but our state is still not on stable financial footing. A decade of budget gimmicks has squeezed the middle class and left us with a decade of budget deficits. Middle-class Minnesotans have watched their property taxes go up 86 percent since 2002, watched college tuition double, and watched our K-12 schools lose funding.

Minnesotans deserve an honest budget balanced without gimmicks that funds our priorities and lays the foundation for a stronger economy, a stronger middle class, and a stronger future. That will be my focus over the coming weeks and I encourage folks to contact me with their ideas on how to make this a reality.
Coffee and Conversation

Tomorrow, March 2, I will be holding a Coffee and Conversation event in the meeting room at Deirdra’s Espresso Café (309 Lakeland Dr. SE #6, Willmar, MN) from 9:00-10:30 AM. Please attend if you can!

HF 4 – Expanding Minnesota Exports and Growing Jobs

On Thursday, legislation I authored that would increase funding to the Minnesota Trade Office received a committee hearing in the House Jobs and Economic Development Finance and Policy Committee. The Trade Office works to help Minnesota businesses navigate foreign markets and trade regulations so they can increase their exports and put more Minnesotans to work.

The bill (HF4) would increase the Trade Office’s yearly funding from $1.78 million to $2.5 million for fiscal year 2014 and 2015. An amendment was adopted in committee to add an additional $500,000 funding for the Minnesota Department of Agriculture work with the Department of Employment and Economic Development to help the agriculture industry increase exports.

This bill would open up markets for Minnesota businesses and farmers throughout Greater Minnesota, bringing them more revenue, and growing more jobs. Increasing our exports and expanding our markets will go a long way to growing our economy and middle-class jobs.

Even when the national economy was feeling the effects of the recession and growth was sluggish, exports from Minnesota companies were booming. From 2009 to 2010, total exports grew from $14.6 billion to $17.2 billion, a 17 percent increase.

Minnesota exports grew to $20.3 billion in 2011, which represents a 7.3 percent increase over 2010. Exports continued to grow in 2012. In each of the first three quarters of 2012, exports were higher than in 2011, including an all-time record of $5.4 billion in the second quarter. Final, total exports for 2012 are projected to exceed $21 billion.

Minnesota is a national leader in agricultural exports.  In 2011, Minnesota was the 6^th largest agricultural exporting state with a record-high of $6.8 billion in total agricultural exports—a 13% increase over 2010. Minnesota’s agricultural exports generated a total of $8.7 billion in total economic activities and supported more than 46,000 jobs in 2011.

When Minnesota opened its first trade office in China in 2005, the state saw a 71 percent increase in exports to China in one year. That is currently our only trade office. Illinois has nine trade offices, Iowa has four offices, and Wisconsin has nine offices.

Data from the Brookings Institute demonstrates how increasing exports leads to job growth, with each $100 million increase in exports leading to approximately 665 new jobs.

This is a proven solution that can boost our economy, help our businesses, and grow jobs. We shouldn’t continue to lag behind our neighboring states and economic competitors.

The bill was positively received in committee and laid over for possible inclusion in an Omnibus Jobs and Economic Development Bill.

Throughout the legislative session, feel free to contact me with any questions, comments, or concerns on any legislative issue. Please contact my office at 651-296-6206 or email me at rep.mary.sawatzky@house.mn. You can follow me on Twitter as well. Thank you for the honor of serving you in the Minnesota House of Representatives.