Minnesota faced a number of serious challenges as the state legislature began our work on February 4th. Now, less than two months later, we have tackled them faster than in previous legislative years—with bipartisan cooperation on every bill described below.
The February Jobs bill is a great example of working quickly to help create over 10,000 much-needed jobs. Fixing and building local bridges, roads, rail lines (including the Minnesota Prairie Line) and other public facilities were the steps that national and state experts encouraged.
By starting our work in 2009 and meeting in January—before the session began—we successfully passed the Jobs bill that the Governor signed. And we kept the cost within Minnesota’s “prudent and conservative” borrowing limits (to quote a National Association of State Budget Officers leader).
Last week, we restored health care for ‘the poorest and sickest Minnesotans,’ as the DHS Commissioner described General Assistance Medical Care (GAMC) recipients. I preferred the first GAMC plan we passed—it provided better support for rural hospitals—but the Governor vetoed it. After significant negotiations, the legislature and Governor agreed to a smaller plan that retains important pieces of this safety net.
Yesterday, we cut $312 million from the state budget. These difficult cuts must be made: fiscal responsibility and the Minnesota Constitution both require that the state budget be balanced. While I might have altered the package of cuts if I could have single-handedly crafted the plan, the bill was a negotiated compromise among all of the legislators and the Governor.
We agree with Governor Pawlenty in awaiting a federal jobs bill that would further reduce Minnesota’s deficit by $408 million (by helping sustain medical assistance payments). Being so far ahead of schedule (normally, the legislature passes budget cuts in May, not March), the legislature can continue examining all of our options when we return after Easter.
Yesterday, we also passed our Jobs II bill, which creates private investment incentives that will help create over 10,000 Minnesota jobs and spur new economic activity. Local projects, including in North Mankato, and local businesses, in Gaylord and elsewhere in our area, should benefit from this bill’s passage. I greatly appreciate the guidance from numerous small business owners in our area, who suggested many of this bill’s provisions to me.
In less than two months, we have helped tens of thousands of Minnesotans get back to work, fixed 1/3 of the state’s budget problem and have options ready for when we return after the break, restored health care for 85,000 vulnerable Minnesotans, encouraged small business development, and more.
_________________________ The simple, disturbing fact: tens of thousands of Minnesota college students are at risk of losing significant state financial aid. For many, the cut could jeopardize their return to school in the fall. As a college professor— and as a state legislator— I believe it’s my duty to share this information with you.
The Minnesota State Grant Program, which currently provides aid to over 80,000 Minnesota college students, faces a $42 million deficit. Minnesota students from low and middle-income families attending two or four-year public or private colleges or universities are eligible for grants. State Grant awards average almost $1,700 per year. About 90 percent of students receiving aid come from families with incomes under $60,000.
What caused the $42 million deficit? In 2009, Minnesota saw a 20 percent increase in students who applied and qualified for a State Grant. This was in large part due to the economy— family incomes decreased, unemployment increased, and more students enrolled in school. More students needed aid. The Minnesota Office of Higher Education (OHE) used its entire $145 million State Grant budget and borrowed from next year’s budget to meet the current need. (more…)
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St. Paul, Mn - State Representative Terry Morrow announces that the successful 2010 Minnesota bonding bill includes funds to continue upgrades along the Minnesota Prairie Line, a publicly owned rail line through five counties in Minnesota. The final bill includes $5 million to replace century-old track with stronger rails that can support larger rail cars and allow for refrigerated and other modern cars.
The Minnesota Valley Regional Rail Authority and the local rail coalition are tremendously helpful partners on this project. We already see businesses springing up along the line, with more and more looking to open or expand along the Minnesota Prairie Line. This freight rail line means lower shipping costs for farmers, more competitive costs for businesses, and a stronger economy in our part of rural Minnesota.
The Minnesota legislature passed the Capital Investment (public works) bill much earlier in the session than is typical. The final package will create well over 10,000 jobs, putting Minnesotans back to work as early as the spring construction season. Governor Pawlenty signed the bill on Monday, agreeing with $680 million in public works projects.
During the fall and winter, we learned that the major step that the state of Minnesota could take to help our economy recover was to pass a public works bill quickly. Early action means that we can see savings from lower construction costs this year. By working on these bills even before the legislative session started, we will see the benefits in 2010.
For more information, contact Rep. Terry Morrow at 651-296-8634, or by email at rep.terry.morrow@house.mn.
State Representative Terry Morrow Representative is calling for creation of a Minnesota local natural disaster assistance program before major flooding occurs in the Red River and Minnesota River valleys this spring. Morrow’s proposal, House File 1378, would help local governments recover from disasters that do not qualify for a presidential disaster declaration. His plan would also enable state emergency management officials to provide the state match portion for Federal Emergency Management Agency (FEMA) disaster assistance payments.
Now is the time to act. We know that the conditions are set for serious floods in Minnesota. It’s better to prepare now than to scramble in the aftermath. The National Weather Service has predicted major flooding in Minnesota. Since not all costs are covered under FEMA programs, Minnesota should proactively prepare a fund rather than continuing its wait-and-see approach to helping communities recover financially. (more…)
Mankato Free Press, 3/13/2010
NORTH MANKATO — Special legislation allowing North Mankato to recoup about $1 million it spent to prepare for a Belgrade Avenue development ran into a brick wall in the state House last year.
Prospects appear to be much better in 2010.
“I just think times are different,” said Mayor Gary Zellmer, who pitched the North Mankato office and residential project in a meeting with House Speaker Margaret Anderson Kelliher earlier this year. “Last year wasn’t the time. This year is.”
The major problem a year ago was the opposition of House Tax Committee Chairwoman Ann Lenczewski to North Mankato’s tax-increment financing plan. A Bloomington Democrat, Lenczewski portrayed the city’s request as an attempt to recoup its site development costs on the Marigold Dairy site without using the more visible — and unpopular — option of higher property taxes.
This year Lenczewski has agreed to include the provision in a broader bill aimed at using tax incentives to promote job creation and economic growth.
“Our basic approach is to look at what the state can do from a tax perspective to create jobs,” said Rep. Terry Morrow, DFL-St. Peter, who is sponsoring the North Mankato legislation.
Morrow said the TIF proposal fits the goal well, and he reminded Lenczewski of that.
“Let’s say I’m very persistent,” Morrow said. (more…)
