| For Immediate Release | For more information contact: |
| January 19, 2001 | Stephanie Brand (651-296- 2317) |
Taxes
Some fiscal observers are predicting that a sluggish national economy may force lawmakers to revise or reconsider plans for big tax cuts and spending increases this year. In November, the state Finance Department forecast a $3 billion surplus over the next 30 months, following a record $5.5 billion in tax cuts and rebates, an additional $1.6 billion for schools and nearly $4 billion for other projects. Minnesota should still be able to afford a big tax cut. Additional income tax cuts are a legislative must after 8+ years (17 forecasts) of surpluses. Any surplus means the state has collected excessive taxes.
The Health and Human Services committee held hearings this week regarding two bills (HF's 4 and 14) which eliminate the health care provider tax, commonly referred to as the "sick tax". This is a 1.5% tax currently collected from health care providers to fund MinnesotaCare, Minnesota's state-subsidized health insurance program for low-income families. Under current law, the tax is scheduled to increase to 2% in 2002.
By eliminating the sick tax, it will help to control the high prices Minnesotans face when seeking care and encourage a healthier population. The funds will be replaced with one-time and ongoing payments from the state's tobacco settlement proceeds. Both bills require that companies pass savings on to consumers as lower premium rates. Minnesotans spend more than $17 billion every year on health care.
Also on Wednesday, the Minnesota Business Partnership unveiled a recommendation to rewrite the state's health care system. Their proposals include having employers detail on paychecks the employer contribution to health insurance premiums, that a medical 401k be created to help with health care costs and that legislators strip away regulations and state mandates in order to create a more flexible health care system.
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Crime
Legislation appropriating a second installment ($41.5 million)for the statewide criminal justice information system (now called CriMNet) will reach committees soon. Gov. Jesse Ventura will reportedly support the proposal. Ventura's budget won't be released until January 23, but he reportedly agrees with many legislators that CriMNet is a vital need and an appropriate place for the state to spend money even though the funding request would eat up more than 10 percent of what Ventura has planned for increases in state spending this session. The six-year, $260 million project will make Minnesota criminal records accessible to all 1,100 law enforcement agencies in the state -- and eventually to agencies nationwide.
Drunk Driving
A federal mandate to require a .08 DUI limit and creation of felony-level penalties for chronic drunk drivers will be considered. The Department of Corrections will submit a report that lays out a plan to put DUI felons in facilities in Moose Lake or Faribault to counter opponents who say a felony DUI penalty would put the existing prison system over its capacity. The current proposal would levy felony charges on individuals caught driving drunk four or more times in a decade. Corrections estimates that roughly 1,400 offenses each year would qualify for felony prosecution. Thirty-eight states have a felony DWI law.
Agriculture
House Agriculture and Rural Development Finance Committee held hearings on the dairy industry and issues faced by producers and processors including conditions that are resulting in low prices and impacting Minnesota's economy. Three key areas in which the state could consider action include: planning, permitting and financing. The hearings will continue next Tuesday, January 23.
Environment
The Environment Committee spent time this week considering a bill that would revoke the fishing licenses of anglers who take gross overlimits of fish (in addition to penalties already in place). The committee wants to make sure that the bill doesn't inadvertently create severe punishments for those who accidently keep one or two fish over the limit or those who have a few extra fish in the freezer. Penalties would be determined based on assigned value of species.
Health Care
As our population ages, the need for and cost of long-term care will increase. Currently, the state is spending about $1 billion on long-term care for the elderly. Minnesota has more nursing beds than almost any other state, but the long-term care industry is facing changes as consumer needs and wants are changing- more seniors want to continue living in their homes as long as possible.
Suggested changes include shifting attention to home- and community-based care. Possible solutions include providing better information on options and available services for the elderly,
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expanding home options, encourage home care for individuals needing less attention, and/or recruiting and increasing pay for stable long-term workers.
As always, if you have comments or questions, please don't hesitate to call me regarding these or any other issues by calling 1-800-474-3425 or (651)296-4336. Or write to me at: Rep. Mulder, 515 State Office Building, 100 Constitution Avenue, St. Paul, MN 55155 or rep.richard.mulder@house.leg.mn.us.
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