Capitol Update from Rep. Peppin

Dear Neighbors,

In this edition:

1) State of the State Overview

2) Obamacare to Cost Schools $200 Million Statewide

3) Has the Minnesota Business Climate Improved? Nope, Just the Opposite

4) Visitors

1) State of the State Overview

Gov. Mark Dayton gave his State of the State address Wednesday night—months later than usual. In fact, this was one of the latest State of the State speeches ever given since 1858, the year Minnesota became a state.

With only two weeks remaining this legislative session, the governor wasn’t in a position to outline his goals for the year, as is custom. Instead, he focused largely on the successes of his last four years in office and suggested what he would do should he return to office next year.

Only time will tell what impact $2.4 billion in new taxes and fees and a $3 billion (10%) government spending increase will have on our economy.

The governor touted $508 million in middle class tax relief. What he failed to mention is $1.7 billion in new taxes are still on the books that affect Minnesotans of all income brackets.

MNsure was also on the list of his successes, but MNsure’s shortfalls have far outweighed the successes. Some have found affordable health insurance through MNsure, however, we need to address the fact that up to 280,000 Minnesotans were forced off their health plans because of federal health care expansion. What’s more, struggles continue with sign-ups through the $160 million glitch-ridden MNsure system, and some families cannot even afford what MNsure has to offer.

No one takes delight in the failures at MNsure, but many of us believe free market health care reforms provide a much better alternative to a federal- and state-run system like Obamacare and MNsure.

The governor made claim of a successful “Unsession”—a year devoted to taking needless laws off the books and saving taxpayers money. As former chair of the Government Operations committee, I have been keeping track of the so-called “Unsession” bills. To date, zero active boards and commissions have been eliminated, and minimal tax dollars have been saved. In fact, 1,500 new bills were introduced this year to create more laws.

I am troubled by Gov. Dayton’s call for more spending in the future. Yes, I agree we need to prioritize K-12 education, transportation funding, and so on. But we need to determine needs versus wants.

In short, Gov. Dayton’s solution to a more vibrant economy is to continue to spend more with the hope that this results in economic growth. That is not the correct path for Minnesota.

2) Obamacare to Cost Schools $200 Million Statewide

It is estimated that schools statewide will have to pay $200 million over the next three years to come into compliance with Obamacare, according to the nonpartisan office of Minnesota Management and Budget.

The increased school expenses come from a number of factors including rising health care costs, penalties, and covering part-time staff. Depending on the size of the district, schools must comply with Obamacare regulations by either 2015 or 2016.

I have not yet heard what the impact will be on the individual school districts within our legislative district (Osseo-Maple Grove, Elk River, Anoka-Hennepin, Rockford, and Buffalo), but will continue to monitor this situation. It is troubling that federal health care expansion deemed “affordable” is taking precious resources out of our schools’ classrooms and putting it toward bigger bureaucracy.

3) Has the Minnesota Business Climate Improved? Nope, Just the Opposite

Due to the historic tax increases enacted last year by the DFL majority and Gov. Dayton, the Tax Foundation dropped Minnesota’s business tax climate to fourth worst in the nation. That’s down two spots from last year. Only California, New Jersey, and New York ranked lower. Once again, Minnesota continues to penalize entrepreneurs and small business job creators.

In analyzing the states with the worst business climate, the report notes, “Minnesota, by contrast, enacted a package of tax changes that reduce the state’s competitiveness, including a retroactive hike in the individual income tax rate. Since last year, they have dropped from 45th to 47th place.”

For the full report, go to: http://taxfoundation.org/article/2014-state-business-tax-climate-index

4) Visitors

Constituent Kelly Eull of Maple Grove was my guest at the State of the State address.

A group of constituents from District 34A won a "Day at the Capitol" as part of a charity auction: Genna Haddad (far right), Jill Larson (second from right), along with Lauren, Taylor, Gabrielle, and Carly.

******

If you’re ever at the State Capitol, please do not hesitate to contact my office to set up a meeting. I can be reached at rep.joyce.peppin@house.mn or 651-296-7806. I’m here to serve you!

Have a wonderful week,

Joyce

**Encourage your neighbors and friends to sign up for my email updates at www.house.mn/34A