Dear Neighbor,
Friday is the 1st and 2nd deadline in the House, meaning bills must reach Ways and Means or the Tax Committee to remain viable for passage this session. April 17 marks the third and final deadline, the date by which committees must act on finance bills.
With deadlines looming, it was encouraging to see a meaningful Office of Inspector General anti-fraud bill finally advance through committee this week. I have mentioned this bill numerous times. It is the prime example of legislation, with massive bipartisan support (it passed the Senate 60-7), but gets blocked for partisan horse-trading. The bill introduces much-needed oversight and accountability to state programs. Federal officials have estimated that fraud within Minnesota’s social services and Medicaid programs could total $9 billion or more. That estimate is based on investigations into 14 high-risk Medicaid programs, with officials suggesting that a significant portion of the approximately $18 billion billed since 2018 may be fraudulent.
Despite an effort to gut the bill, it has advanced with some minor modifications. The House State Government Finance Committee approved the bill on Tuesday and sent it to the Judiciary Committee for further action.
This progress shows that even in a House that’s split 67-67, meaningful legislation can advance when the focus remains on serving Minnesotans rather than partisanship.
Meanwhile, the Children and Families Committee, which I chair, has been actively hearing bills to improve safety and reduce the costs of childcare. This includes a bill I have authored (H.F. 495) that would make all childcare expenses tax-deductible, improving affordability.
Currently, one of the few childcare tax benefits the average Minnesotan receives is a pretax dependent care credit. This credit has been $5,000 since the 1980's. Thankfully, Congress finally increased that credit by 50% to $7,500. Meanwhile, the annual cost of care for a single infant was around $6,000 in the 80's and is over $20,000 today. As a father with two in childcare, I appreciate the increase, but Minnesota should lead the way and make the entire cost tax deductible.
The bill advanced to the Tax Committee and will receive a hearing today. It will be included in our tax package to make life affordable again for middle-class families. My hope is that it can survive negotiations and become law later this year.
Legislation moves fast in the final months of session. I will do my best to keep you updated as things come together or fall apart. Please don't hesitate to reach out on any issue important to you.
Sincerely,
Nolan