Legislative Update - December 7, 2010 2010-12-07 Recently the state budget forecast was announced, showing a projected $6.2 billion deficit over the next two years. The spending spree of the last two decades has come back to bite state government, and it means we have many tough decisions ahead. It is time to turn-around unsustainable spending, and in its place redesign a government that lives within its means. This deficit is driven by several factors. Primarily, the previous legislature set aside the work of reform and instead relied on a $2 billion bailout from Washington. This deficit is also driven by one-time spending reductions that myself and Republican colleagues wanted made permanent, but were allowed to expire. Now we must undertake the hard-but-necessary work of making government more responsible, accountable and sustainable. The good news out of the budget forecast is a projected 5 percent revenue increase at existing tax levels. By focusing on priorities and innovating to reduce the cost of government, we can continue to provide the services our citizens expect and the value you deserve. At this time of slow but fragile economic recovery, the last thing the government can do is go back to the taxpayers for more. It is time we give you something—results. Our new majority is committed to putting a stop to unsustainable government spending and promoting job growth in the private sector. While the challenges are many, it is also an opportunity to change the way government does business. The legislative session begins next January 4, but in the meantime please do not hesitate to contact me with your questions, concerns and comments. It is a privilege to serve you and our community. Sincerely, Tim Legislative Update: New Laws - July 22, 2010 2010-07-22 Dear Neighbor, Summer is in full swing, and I hope you are enjoying all of the great events and activities this season has to offer. And although government is probably not the first thing you’re thinking of these days, as your representative I wanted to take a moment to update you on new laws passed during the 2010 session and taking effect August 1. As always, please contact me with your questions or concerns on any state legislative issue. It is a privilege to serve you and our community, and bring the voice and values of Blaine to St. Paul. Sincerely, Tim --- SAFETY Kelsey Smith Act Three years ago, Kansas teenager Kelsey Smith was abducted and murdered. Officials and her family were unable to find Kesley for three days, until finally her parents compelled the family’s cell phone provider to release her phone’s location. Federal law allows — but does not require — that the companies provide that information. In hopes of preventing more tragic stories like Kelsey’s, The Kelsey Smith Act requires cell phone service providers to disclose customers’ call location in emergency situations, as well as in cases where an individual is missing and at risk of death or serious physical harm. The law also addresses issues of privacy by requiring that the law enforcement agency seeking the data submit a written request, and that service providers establish protocols to respond to requests in emergency situations. Ignition Interlock Alcohol-related accidents make up one-third of all traffic deaths in Minnesota each year. Preventing these tragedies is always a priority in our community, and a new law aims to boost that effort by requiring ignition interlock devices in the vehicles of certain DWI offenders. As Governor Pawlenty said, this legislation shows Minnesota is serious about preventing drunk-driving accidents and improving the safety of our state’s roadways. New Tobacco Products Under fears that new tobacco products could lure young adults and children, a new law expands the definition of tobacco products to include nicotine strips and “Tic-Tac” style nicotine orbs, and regulates these products as cigarettes and cigars. The law also applies to electronic cigarettes and candy- or fruit-flavored “little cigars.” The law makes it a petty misdemeanor for those under the age of 18 to possess, purchase or attempt to purchase these non-tobacco nicotine products. COMMERCE AND CONSUMERS Protecting Hometown Businesses and Consumers In these challenging economic times, home-grown Minnesota businesses don’t deserve to be undercut by out-of-state scammers. It is now illegal for out-of-state companies to misrepresent their location in phone directories, print ads and on the Internet. The law addresses a scam in which out-of-state companies place ads pretending to be Minnesota-based companies, overcharging Minnesota customers then transferring the orders to actual Minnesota companies and keeping the difference as profit. Practitioners have targeted the floral and locksmith industries in particular. This new law aims to protect consumers, small businesses and local economies from such deceptive business practices. Ensuring consumer choice Consumers will now have more choice when it comes to phone, cable and internet service providers. Effective August 1, it becomes easier for telephone companies to offer “triple-play” services — voice, video and Internet — by letting local governments grant cable franchises to companies that already provide phone services within a given area. ENERGY Biodiesel mandate exemption extended Minnesota law requires diesel fuel contain a certain percentage of biodiesel. After many reports from drivers of blends “gelling up” in extremely low temperatures, a new law allows the Department of Commerce to lift the mandate on the state’s biodiesel content requirement between October and March. This flexibility will help ensure that diesel blends stand up to the demands of colder temperatures during winter months, and help prevent problems previously experienced by Minnesota drivers. TECHNOLOGY Broadband for everyone High-speed internet is becoming an increasingly important part of commerce, economic activity and education. As a national leader in technology efforts, Minnesota intends to provide every resident the ability to access high-speed broadband Internet service by 2015. A new law established high-speed goals for the state including: High-speed broadband Internet for every home and business by 2015 • Top five nationally for broadband speed • Top five nationally for broadband access • Top 15 globally for broadband deployment The law stems from the work of the Minnesota Ultra High-Speed Broadband Task Force, which spent two years researching a strategy for expanding broadband Internet service throughout the state. VETERANS Our veterans and armed service members protect our freedom and way of life, putting this country and all of us ahead of themselves. To recognize their courage and sacrifice, the legislature established May 28 as Veterans of Foreign Wars Day in Minnesota. The date coincides with the founding of the VFW on May 28, 1899. It provides all of us one more way to say thank you and recognize our veterans.
Memorial Day Message from Rep. Tim Sanders 2010-06-01 With the legislative session behind us and Memorial Day around the corner, it can mean only one thing: summer is here. On this holiday weekend, I hope you get a chance to enjoy time with friends and family. I also hope we all reflect on the great sacrifices our veterans and armed services members make to preserve our freedom and way of life. If you are traveling this weekend, stay safe and enjoy the destination. And if you’ll be around the Blaine area, I encourage you to check out community events including the Memorial Day Soccer Tournament at the National Sports Center. There are also Memorial Day services on Saturday, May 29 at 10am at Morningside Memorial Gardens in Coon Rapids and at 11:30 a.m. at Bunker Hills Park in Coon Rapids. The public is invited to a picnic with the Anoka County Veterans Council at Bunker Hills Park after the ceremonies. Throughout the summer, feel free to contact me with questions and concerns on any legislative issue. The session may be over, but my work as your representative continues. Thank you for that privilege, and have a great Memorial Day. Sincerely, Tim
2010 Budget Balancing Compromise 2010-05-17 Below is a link to a summary of the budget compromise reached on Monday, May 17, 2010. I willl post more later in the week. I look forward to discussing this piece of legislation, and many others, with each of you this summer.
News Release: Rep. Tim Sanders: Balance the Budget First, then Develop a Com 2010-05-05 Read my news release regarding today's (5/5/10) vote on the Vikings stadium proposal here. Legislative Update, April 28, 2010 2010-05-03 Dear Neighbor, Only three weeks remain in the 2010 legislative session and the legislature has yet to begin addressing the remaining deficit. More alarming is that the majority has yet to make little progress controlling excessive government spending. Current budget proposals rely on one-time fixes and federal money. Even if we leave the 2010 session with a balanced budget, a more severe deficit will be waiting. We need to do the hard work of reforming the way Minnesota government does business. Structural reform is critical to solving the current deficit and to preventing future shortfalls. My House Republican colleagues and I have offered several positive reforms to bring cost-savings and long-term structural efficiencies. These include: zero-based budgeting, reducing the size and cost of the state government workforce and the Sunset Commission to review and retire unnecessary spending. These and other reform proposals have previously been blocked or ignored by the majority. It is time they were given a full and fair hearing. Our future financial stability depends on it. Minnesota’s future also depends on a strong free market and quality job growth. The legislature must continue to pass the pro-growth initiatives promoting opportunity and expansion by Minnesota job creators. The Jobs bill was a great first step. We cannot, however, stop there. Tax and regulatory reform, alongside structural reform for a balanced budget, will strengthen the economic foundation of this state. With an open door to economic opportunity, the hardworking people of Minnesota will put us back on track for recovery and growth. Now is not the time to settle on federal money and one-time fixes. It is time to uphold our responsibility to the citizens of Minnesota, by delivering the solutions for a balanced budget and free market opportunity they deserve. Sincerely, Tim
Legislative Update, April 22, 2010 2010-04-26 With the legislature in a holding pattern and the summer driving season around the corner, I wanted to provide an update on road projects in and around our area. MnDot has three projects planned for major highways including Hwy 10 and 35W, all of which are funded through the American Recovery and Reinvestment Act. I encourage everyone to be patient and stay safe as these projects are underway. Here are the details: Hwy 10 from Blaine to Shoreview Description: Resurface three miles of Hwy 10 from I-35W to Hwy 65 in Blaine, Mounds View and Shoreview Construction Dates: TBA Traffic Impacts: Lane closures I-35W Arden Hills to Blaine Description: Resurface 4.25 miles of I-35W from I-694 to Lake Dr. in Arden Hills, New Brighton, Mounds View, Shoreview and Blaine Construction Dates: April 19 - Sept. 30, 2010 Traffic Impacts: Increased congestion I-35W Arden Hills to Blaine Description: Add new southbound lane between Hwy 10 and County Road 23 (Lake Drive) Construction Dates: April - Sept 2010 Traffic Impacts: Lane closure There are several other planned road construction and public works projects in Blaine this summer, and you can stay up to date and receive email updates through the City of Blaine’s website: http://www.ci.blaine.mn.us/_InsideCityHall/_PublicServices/_Engineering/_EngineeringProjects/EngineeringProjects_Home.cfm With one month to go in the 2010 legislative session, I welcome your continued questions and feedback. The legislature may be in neutral for the moment, but there are still important issues to address. As we again take up the issues of the budget and promoting free enterprise, I look forward to hearing from you and bringing the voice of Blaine to St. Paul.
Legislative Update, April 16, 2010 2010-04-16 Dear Neighbor, Earlier this year, I wrote about the Freedom Foundation’s report that people are “voting with their feet” and moving to places with more favorable tax climates. This week, the Tax Foundation issued its Tax Freedom day analysis. Tax Freedom day is the date when Minnesotans have made enough money to pay all taxes, on the federal, state and local level, owed for the year. Minnesota citizens worked 103 days – 8th longest among states – to pay off our taxes in 2010. This is the highest of all our neighboring states. South and North Dakota citizens worked 88 and 93 days respectively. Even Wisconsin (102 days) and Iowa (98 days) reached their Tax Freedom day sooner than Minnesota. Yet again, we see the need to make Minnesota more competitive and improve our state’s business climate. Minnesota’s sub-par tax and business climate, as you and I know, is an impediment to economic growth and expansion. This is compounded by the fact that our neighbors in the Dakotas are among the friendliest tax climates. At my small business forum and town hall listening sessions, Minnesota’s tax burden was a central issue of concern to job providers and residents alike. Lasting economic recovery and renewed opportunity will come from Minnesota’s hardworking families and free enterprise job creators. The angel investor credit and expanded research credit were great first steps, but the Legislature cannot stop there. We must continue to pass the pro-growth reforms Minnesota families and job creators need. As the legislative session heads into the final weeks, I encourage your continued feedback and involvement. Your voice makes a difference. Together we develop solutions to improve Minnesota’s business climate and open the door to economic opportunity. 2010-04-12 Two weeks ago I, and some of my fellow House GOP colleagues, signed and delivered a letter to Governor Pawlenty regarding his cuts to community based services. Legislative Update, April 1, 2010 2010-04-05 This past week the House of Representatives took up the final version of its first budget bill. Unfortunately, this bill continued the majority’s run of misdirected priorities and failed leadership. The bill covers only a portion of the current $994 million deficit. It lacks any reform to address the nearly $6 billion shortfall for 2012-13. Zero-based budgeting, the one positive reform the Democrats accepted on the House floor last week, was removed from the bill by conference committee. My biggest question on the bill is “where are the priorities?” This bill wastes an opportunity to restructure state government. Instead, it reduces the Governor’s funding requests for veterans’ programs 90 percent this year and 100 percent in 2012-13. Funding to shelters for battered and abused women like Blaine’s Alexandria House is also cut. Without long-term solutions for cost-savings and structural reform, the state will continue to face budget deficits, and will fall short of delivering the results you deserve. I know that we can do better. It is time to reform the way government does business and restore the commitment to real priorities. I will continue to work for solutions that promote fiscal responsibility, free enterprise and quality job growth. On a more positive note, the legislature also passed a pro-growth bill this week. This bill includes an angel investor credit and an expansion of the research credit for Minnesota businesses. This is a step in the right direction to increase opportunity and development. I hope the legislature will continue to act on the needs of our families and job creators in the coming weeks. Legislative Update, March 25, 2010 2010-03-25 Neighbors, Earlier this week the House took its first step in balancing the state’s budget deficit. Facing a $5.8 billion structural deficit through 2012-13, this was the first opportunity we had to make real reforms to how the government does business. There is a lot of room to positively affect the role of government while still reducing its size. On Monday the House passed its first “budget balancing” bill. Unfortunately, the majority pushed this through without any type of framework for balancing the entire $994 million deficit. Nonetheless, my House Republican colleagues and I attempted to make this bill better by amending on real reforms. These would have improved Minnesota’s short and long-term fiscal stability. Initially, it appeared the majority would be open to our ideas. Our first proposed amendment was a common-sense measure adopting “zero-based” budgeting. This would require each agency to start from zero, justify every penny of their budget each biennium, and validate every increase – potentially saving taxpayers millions of dollars each budget cycle. Hopefully the House and Senate conference committee will keep this reform in the final version of the bill. Unfortunately the majority’s willingness to consider ideas on a bipartisan basis did not continue. The majority voted down or refused to vote on the rest of our amendments, including ones which would reduce the size of the state government workforce and institute a Sunset Commission. Plans to restructure government were called inapplicable to a bill which dealt directly with state government. While the bill does contain some cost cutting measures, it lacks real reforms to alleviate future shortfalls. First, there is too much dependence on federal money. The bill is also overly reliant on one-time cuts which do nothing to address the $5.8 billion structural deficit. Finally, the majority used taxpayer money to sue to reverse Governor Pawlenty’s unallotments, yet they fail to account for the additional $2.7 billion shortfall the lawsuit would create if successful. Minnesotans deserve better leadership. Our reforms showed a commitment to innovative ideas to reduce the cost of government while promoting efficiency and results. There is much more work to be done on the budget. I will continue to work for the common sense solutions to bring responsibility back to government and prosperity back to Minnesota.
2010 Legislative Survey Results 2010-03-18 The results from my 2010 Legislative Survey are below: What is the most important issue facing Minnesota? Budget Deficits 38% Tax Levels 33% Health Care Cost & Access 19% Education Funding 11% Other 6% Transportation & Infrastructure Quality 3% Do you support the state limiting spending to revenue levels from the prior biennium to prevent future budget deficits? Strongly support 61% Somewhat support 26% Somewhat oppose 7% Strongly oppose 6% Would you support raising taxes to balance the budget? Strongly support 9% Somewhat support 13% Somewhat oppose 16% Strongly oppose 61% What is the best thing the state government can do to improve the economy? Borrow money to fund construction projects 4% Reduce business taxes to encourage entrepreneurs to create new jobs 44% Raise taxes in order to better fund/or expand state government programs 10% Reduce income taxes so individuals and families can keep more of their money to help afford rising costs for basic needs 49% Do you support allowing Minnesota residents to purchase approved health insurance products across state lines? Strongly support 69% Somewhat support 20% Somewhat oppose 3% Stongly oppose 4% Do you support building a new Vikings stadium? Yes - with public money 11% Yes - without public money 35% Yes - with Racino money 31% No - unless the Vikings will move 2% No - regardless of funding mechanism 24% Do youy support repealing the ban on nuclear power plant construction? Strongly support 55% Somewhat support 23% Somewhat oppose 10% Strongly oppose 10% Note: All totals do not add up to 100%. This is due to not all responses having answers to each question.
2010-03-09 Last May, GAMC was included in the Governor’s unallotments. The total saved from eliminating the program was around $500 million. GAMC enrollees were to be enrolled in MinnesotaCare beginning in April 2010 unless suitable reforms were made to GAMC. The DFL majority presented, and passed, a GAMC “reform bill” (SF 2168) on February 18. The Governor vetoed it the same day. That bill did reduce costs for this biennium, but it contained no reforms to control its escalating cost for future budget cycles. Essentially, it re-established GAMC in its prior form, while reducing provider reimbursement rates by 50%. On March 1 the DFL-led
majority in the House attempted to override the Governor’s veto. The veto
override was presented as being one of two options. The other option, according
to the majority, was no health care for the less fortunate in Minnesota. According to them there was not going to be a
compromise. Fortunately, for all Minnesotans, a compromise was reached this past Friday. *One additional note: Without any reform the cost of GAMC next biennium (2012-13) would have been over $900 million. Facts about GAMC Compromise Agreement 2010-03-09 GAMC Facts The following is a summary of the agreement reached on GAMC. This explains the various funding mechanisms and care techniques being utilized under the new GAMC. Coordinated Care Organizations (CCOs) Accountable Care Organizations (ACOs) and Medical Homes are terms for a care model we are moving toward for this patient population. Despite technical differences, people use these terms interchangeably. Basically it is a way to connect unconnected providers to make sure people are getting care that gets them back on their feet instead of racking up revenue. The agreement reached stops auto enrollment for two additional months. In that time period, 17 hospitals set up coordinated care systems. In agreeing to this, hospitals assume the cost of caring for GAMC patients for an intensive coordinated care delivery model for six months. They will have the incentive to find the most appropriate program (VA, MA, MNCare etc) the patient qualifies for and get them there quickly. Hospitals will have a disincentive to admit patients, and an incentive to keep them on their medications and get them healthy and stable. There is a pool of money for the patients as well as the medicines. For all other hospitals, there is a $20M pool set up for these to bill into for the remainder of the year. Reimbursement will be based on GAMC eligible claims. It is the intent that these hospitals will become CCOs or form agreements with others within existing systems in the next year. Extending the 2nd tier pool would require legislative action in the next biennium. The expenditure for the CCOs is capped at $110M/year in the next biennium. DHS is getting us more data on costs and comparisons to other proposals. The agreement is a solution aimed at capping spending, directing dollars to the areas of most need, transitioning patients to the most appropriate healthcare program and finally to get these folks healthy and productive again. Below is the text of the Actual Agreement signed by Senators Berglin and Senjem, Representatives Huntley and Dean and Department of Human Services Commissioner Cal Ludeman. 1. We agree to stop auto-enrollment 2. Agree to 2-month bridge via GAMC at a one-time HCAF cost of $28 million. 3. Propose $71 million for CCOs. This covers a 130month period in FY 2010-11. The appropriation for this program is capped and on-going. The FY 2012-13 amoutn budgeted for this program is $131 million. 4. Agree to 10% increase going to 3 CCO hospitals; Hennepin County Medical Center (HCMC), Regions and University of Minnesota-Fairview. 5. We agree to the concept of a drug pool. Propose $45 million for drug pool. This covers a 13-month period in FY 2010-11. The appropriation for this program is capped and on-going. The FY 2012-13 amount budgeted for this program is $83 million. 6. Agree to CCO match to state for drug pool of 20%. 7. Agree to Temporary UCP at a on-time HCAF cost of $20 million. 8. No reductions to CCSA grants or DHS administration to finance cost of proposal. Subsequent fiscal analysis by staff to determine available savings from DSH, recoveries, drug rebates. 9. No extraneous language in the bill that doesn’t relate directly to this proposal. 10. Total
FY 2010-11 cost for this Proposal: Bridge via GAMC = $28M Health Care Access Fund (HCAF) CCOs = $71M General Fund (GF) Drug Pool = $45M GF Temporary UCP = $20M HCAF $164
million in FY 2010-11 Bridge via GAMC = $0 Health Care Access Fund (HCAF) CCOs = $131M General Fund (GF) Drug Pool = $83M GF Temporary UCP = $0 HCAF $214
million in FY 2010-11 Legislative Update, March 3, 2010 2010-03-05 This week we learned that Minnesota government faces a deficit of $994 million. The situation looks worse for the next budget cycle with a projected deficit of $5.8 billion. The first month of session has focused on government borrowing in a bonding bill full of misguided priorities. My hope is the majority will finally let us get down to the business of the budget and long-term structural reform. Minnesota government must focus on needs rather than wants. This deficit shows the need to renew the commitment to sensible government and focus the state’s efforts on core priorities. Balancing the budget will help relieve the uncertainty causing job creators and small businesses to hold back on expansion and growth. We need to achieve a balanced budget by reforming and streamlining government. This will help Minnesota’s job providers and families by freeing them from the burden of unnecessary bureaucracy. While addressing Minnesota’s budget problems, we must also recognize the needs of job providers. Today, Minnesota ranks in the bottom five of the Small Business Survival index and is far below average for business climate. Our home-grown corporations are building in locations around the world instead of expanding in Minnesota. We owe it to Minnesotans to reverse this trend. Successes from Medtronic to the start-up on Main Street are proof of our state’s tremendous workforce. We want to give birth to leading job providers and facilitate their growth. A first step is for more legislators to simply listen to small business owners and job creators. The House Small Business Caucus survey showed that a majority of small businesses see tax reform as the number one thing the legislature can do to help them succeed in Minnesota. Attendees at my small business forum last fall conveyed the same message. A combination of tax and regulatory relief, research credits and incentives for investing in small business will empower Minnesota job creators to achieve renewed opportunity and prosperity. While the state’s budget situation is certainly negative, the challenge facing the legislature is also an opportunity to achieve positive results. With common sense reforms to balance the budget and by opening the door to economic opportunity, I know that the hardworking people of Blaine and all of Minnesota will achieve growth and prosperity. Legislative Update, February 25, 2010 2010-02-25 The past week witnessed a flurry of activity in the Legislature, especially on the government borrowing bill. This past Monday the legislature approved $1 billion in new borrowing. This was done before any attempt was made to balance our $1.2 billion budget deficit. Not only was this bill too expensive, but it was also misguided. The bill provided $2 million for the Minneapolis Sculpture Garden, yet nothing for local roads. It borrowed millions for civic centers, yet left out funds to house serious sex offenders. At a time when we should be focusing on needs, the debt bill was full of wants. Minnesotans deserve better. The Governor promised a veto of the bill. Before he could veto it however, the majority party opted to rework the bill instead. This gives the legislature and the Governor the chance to work on an agreeable solution. Any bonding bill must focus on infrastructure and asset preservation. These were the projects the Governor’s bonding recommendations focused on. Unnecessary projects are exactly as they sound, and should not be funded using the state’s credit card when there is a budget deficit. Most importantly, a bonding bill cannot be viewed as the solution for Minnesota’s ailing economy. The reality is that instead of borrowing, we must focus on balancing the budget and jumpstarting the private market. Renewed fiscal responsibility will relieve the uncertainty causing many businesses and investors to hold back on expansion. Pro-growth policies including investment incentives, research credits and tax relief will promote free enterprise and help job providers. These are the reforms we need for long-term, quality job growth and economic opportunity. The rest of this legislative session must be about priorities. Quality job growth, a balanced budget and a reformed safety net can all be a part of this session’s accomplishments. The issues facing the Legislature may present a challenge, but they give us the opportunity and the responsibility to deliver the results Minnesotans want and deserve.
2010-02-17 This is the e-mail update I sent out on February, 16... Last night the House passed its version of the borrowing bill. Coming in at over $1 billion, the borrowing bill contains a number of projects that qualify more as “wants” than “needs.” Over the next 20 years this borrowing will cost the state an average of $25 million per year in interest alone, making the actual cost of the bill closer $1.5 billion. Simply put, this bill places too much debt on the backs of future Minnesotans. The borrowing bill also puts our state’s credit rating at further risk. By borrowing $1.5 billion now, we are significantly straining our future liquidity. Taking on this much new debt could drive up the interest rate on issued bonds, and result in the state spending millions more in debt service each year. We already have a projected budget deficit of $4 billion for the next biennium. Borrowing another $1 billion is not in our state’s best interest. We need a bill that focuses on infrastructure and asset preservation. The current bill contains no money local roads, yet has $164 million earmarked for pet transportation projects. The borrowing bill’s supporters claim it will create jobs. In reality, the borrowing bill only shifts investment from private to public projects. Instead of investors looking at projects and determining which are worthy of investing in, the government makes that choice for them. Every dollar invested in a government project is a dollar not invested in the free market and private economy. It is that free market and our hardworking Minnesota job providers who will bring economic recovery and opportunity, not government. I am hopeful we can reduce the bill’s scope and turn it into a true “bonding” bill—one that focuses on necessary asset preservation and infrastructure improvement. I am also committed to empowering Minnesota’s free market job providers and entrepreneurs with tools including tax relief, investment incentives and research credits. With the right priorities and by acting on the needs of Minnesotans—not the wants of politicians in St. Paul—we can achieve recovery, opportunity and growth.
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