Minimum Wage, Bullying Bill, and MNsure

Dear Neighbors,

I wish you and your loved ones many blessings and peace during this Easter and Passover holiday season.

In this update:

1) Minimum Wage Increased to $9.50/Hour

2) Controversial Bullying Bill Signed into Law

3) Governor Admits He Knew about Problems at MNsure

4) Don’t Forget: Take my 2014 Legislative Survey!

1) Minimum Wage Increased to $9.50/Hour

The months-long deadlock on a minimum wage agreement between Senate and House Democrat leaders ended following the House Rules Committee approval of the new $90 million office building for senators.

When the House approved the new office building (I voted no), the Senate approved the minimum wage increase. In St. Paul, like Washington D.C., legislation is “traded” like this on a regular basis. It’s not right, but with one-party DFL control of state government, it will be happening on a regular basis.  

The current minimum wage is $6.15 per hour, though most employers pay $7.25, the federal minimum wage. (All of our neighboring states pay $7.25.) With Gov. Dayton’s signature, the new rates will be:

·       $9.50 per hour for large employers

·       $7.75 per hour for small employers

·       Beginning January 1, 2018, the minimum wage will be adjusted based on inflation.

I fear that going from $7.25 to $9.50 is too far, too fast for most small businesses. This fear is based both on testimony given by business owners, as well as fact.

Steve Summers of Jerry’s Foods said in committee: “We would definitely have to look at layoffs and reducing our workforce. Labor is our highest expense in the business, and this would be devastating to us.”

A recent non-partisan report from the Congressional Budget Office estimates that 500,000 to 1 million jobs would be lost if the federal minimum wage was raised to $10 per hour. What’s more, the vast majority of academic research shows every 10% increase in the minimum wage results in 1-3% fewer jobs. Under this bill, that means a 3-9% drop in state employment opportunities.

Who will that affect? In Minnesota 61% of minimum wage workers are just starting out (15-24 years old), getting their foot in the door and building a skill set for future, higher earnings. State leaders advocating for a wage increase admit that some of these jobs will be lost, but they believe the good will far outweigh the bad.

2) Controversial Bullying Bill Signed into Law

Republicans and Democrats are all on the same page when it comes to bullying – there is no place for it. However, we differ on how preventative measures should be implemented.

Last week Gov. Dayton signed into law a very controversial anti-bullying bill that over-writes current state statute and:

·       Creates a new “Climate Center” state agency ($1 million every two years).

·       Adds an unfunded mandate on schools at the cost of $20-$25 million per year.

·       Requires schools to comply with the new policy, even if their current policy is successful. (For instance, the Anoka-Hennepin School District just re-wrote its bullying policy to meet high standards, but now will have to amend it.)

·       Takes away local control from school boards/administrations and gives it to the state.

Schools across the state have told us they do not want these added mandates and unfunded costs. This is money better spent in the classroom to find, teach,and place good teachers.  We should be supporting them and giving them the tools to do their jobs rather than tying them to more reporting requirements and training exercises that do nothing to actually prevent bullying.

3) Governor Admits He Knew about Problems at MNsure

A recent Star Tribune article confirmed that Gov. Mark Dayton and his top advisors knew that major problems existed with MNsure prior to its Oct. 1 launch, yet they said nothing and did not delay its roll-out.

Despite the warnings, MNsure went live with a website that was not ready for consumer traffic, leading to frequent website crashes and continued errors.

Problems continue at MNsure, and many Minnesotans are still awaiting enrollment through the system. My colleagues and I have attempted several times to address those issues and come to commonsense solutions, but the majority party has blocked us at every turn.

·       Click here to read “MNsure defects were no surprise” from the Star Tribune

4) Don’t Forget: Take my 2014 Legislative Survey!

If you haven’t already, please take a second to participate in my 2014 legislative survey.

·       Click here to take my survey. I welcome and encourage your participation. Make your voice heard!

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 holiday weekend,

Joyce

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