BLOG: Paying Back Schools, Tax Relief, Veterans' Jobs and Permitting Reform

Last week was the last of our committee deadlines so most of this week was spent on the Senate floor. We still have a great deal of work to do before we adjourn, including finishing up several conference committees and passing the rest of our omnibus policy bills.

Education Shift
Last week, the Senate passed a bill Sen. Daley co-authored which will speed up the payment schedule of delayed funding to our schools. To resolve the differences between the House and Senate versions of the bill, a conference committee met and agreed Wednesday to final language. If signed into law by Gov. Dayton, effective immediately, the bill would move from a 60 to 70.2 percent payment shift by using $430 million from reserves.

This bill is the responsible step needed to address the school shift that was part of last year’s budget compromise and begin to chip away at the large debt to schools that existed before Republicans held the majority. If Gov. Dayton agrees to make school budgets a priority, undoing last year’s shift will help districts manage their cash flow and replenish their reserves.

Tax Relief Bill
This week the Senate passed up the Omnibus Jobs & Tax Relief bill, which provides more than $100 million in tax relief next year and $300 million over the next three years for families and job creators, two-thirds of which is for individual income taxpayers. For families, one of the important income tax changes that the measure addresses is the “marriage penalty” for tax year 2012. Conformity to the federal married tax provision was in last year’s tax bill but was vetoed by Gov. Dayton. Married taxpayers taking the standard deduction were required to add back $1,950 of income (married filing separately - $975) as part of taxable income for their Minnesota individual income tax return. For retired veterans the bill includes Sen. Daley’s subtraction of military retirement pay subject to MN state income taxation. There will also be an increase in the formula for the targeted homeowner property tax refund.

For job providers, tax relief for businesses and job creators makes more capital available for investment, equipment, expansion and additional employees. It makes long term, sustainable changes to improve the jobs climate, not just short term fixes. The provisions in SF 1972 send a signal to entrepreneurs, investors and job creators that Minnesota is open for business.

Veterans Unemployment
On Thursday the Senate unanimously passed a bill authored by Sen. Daley that aims to help ease high veteran unemployment rates in Minnesota. SF2354 encourages the state to make a greater effort to hire veterans by adding them to the list of protected groups for jobs in state civil service and make them a group more sought out for recruitment by the state. State veterans groups highlight an unemployment rate of more than 19 percent for recently returned veterans. Only Michigan and Indiana veterans fare worse.

In SF 1689 private sector employers are responsible for hiring veterans to their old positions and are exposed to civil liability if they fail to comply. However the state—through the 11th Amendment of the Constitution—is immune from civil liability if the state does not re-hire a veteran to their previous job. This legislation puts the state on par with the private sector in veterans’ reemployment contests and removes the state immunity from liability in adherence to federal age discrimination, fair labor standards, family and medical leave and the Americans with Disabilities Act (ADA) laws. The bill also protects National Guard members by requiring employers to similarly respect service and ensure reemployment regardless of whether duty time is spent in Minnesota or another state.

Cutting Red Tape
On Thursday the Senate voted to pass the conference committee report on Senate File 1567, a bill to cut red tape and help businesses invest in Minnesota, creating jobs for Minnesotans. This jobs bill builds off of work we did in 2011 to find efficiencies in environmental permitting. Specifically, this bill continues to streamline the permitting process, removes duplicate services and reforms government so it moves at the speed of 21st Century commerce. Senate File 1567 is en route to the Governor’s office for his consideration.

Teacher Layoff Reform
The bill that will end Minnesota’s strict “Last In, First Out” (LIFO) standard for layoffs of teachers that addresses only seniority and not performance remains in conference committee. Sen. Daley and other House/Senate conferees have agreed on language, they have agreed to hold on finalizing the committee report in order for legislative leaders to engage further with the Governor on this important issue.