The legislature reconvened last week for the 2012 session. It is always
humbling to be on the House floor; first days really bring that out. Thank you
again for allowing me the honor of representing you at the legislature.
We start this year in a very different place than we did a year ago. In January
of 2011 we were facing a more than $5 billion budget deficit; this year the
budget is balanced and current revenue projection have allowed us to refill
important reserves. We will receive one more budget forecast on which we will
build whatever budget changes are needed. That will come in February. While
there is no certainty the economy does seem to be improving leaving some room
for mild optimism.
However, we cannot forget the consequences of last sessionās budget compromise
ā the outcome of a bitter, unfortunate government shutdown that affected the
livelihoods of so many in our community. The final budget solutionāthat every
DFL legislator voted againstārelies on accounting shifts and gimmicks that ask
our middle class, students, and seniors to pay more. Elimination of the
Homestead Credit means that homeowners, renters, and small businesses are
seeing another year of skyrocketing property taxes. Perhaps, more troubling is
the borrowing against our future generations the budget relies on. To date, we
have borrowed $3.45 billion dollars from our schools, equally a loss of $3,383
per student in Minnesota.
Unfortunately despite all the challenges we face this session, the Vikings
stadium issue is getting most of the mediaās attention. It generates the
greatest back room speculation, and the least substantive progress of any
issue. There are lingering rumors as to if a bill will even be introduced this
session let alone pass. Iāll have more to say about that in a future
newsletter.
After hearing from so many of you, itās clear that jobs are an important issue
for our community. Governor Dayton and DFL legislators have already released a
comprehensive jobs package in an effort to get the 175,000 unemployed
Minnesotans back to work. The plan will provide job-training opportunities to
enhance the skill-set of our current workforce and provides a means for Main
Street Minnesota businesses to compete nationally and globally. The main
financier of this proposal comes through the closing of corporate tax loopholes
ā a measure that Republicans have historically opposed. I expect sharp debate
and real ideological differences over both job creation and tax policy.
Another important piece of the jobs package is investment in infrastructure.
Traditionally even numbered years are years when we bond for public projects
around the state. The Governor has released a $775 million bonding proposal
targeted at public infrastructure and job creation around the state.
Predictably GOP leaders have been cool to his proposal, questioning if there
will be a bonding bill this year and how large it will be if there is one.
I expect the sharp partisan tensions to be very much a part of this yearās
session as they were last. GOP leadership has indicated intent to bring another
constitutional amendment forward, requiring voters to provide a
government-issued photo ID before exercising their right to vote. The Obama
Administration has questioned the impact of this national trend towards voter
ID and its disproportionate impact on the voting rights of low income, elderly,
and young people. Additional possible constitutional amendments that may be
heard early this session, possibly before the February 7 precinct caucuses,
include several related to budgeting, including limiting the rights of the
legislative majority to raise taxes and capping the total amount of state
spending at certain arbitrary levels. The DFL leadership has asked that the
legislature focus on job creation and not constitutional amendments.
Several bills introduced last week are intended to reverse decisions made in
the final budget solution of last year. These include tax credits that were
āinadvertentlyā eliminated, health program changes that have negatively
impacted immigrants, and of course changes to the property tax system that
significantly raised property taxes on many residences and small businesses. I
have to wonder if the final negotiations last year hadnāt been held behind
closed doors in a locked and darkened Capitol if some of these consequences
couldnāt have been foreseen and avoided.
Itās clear: this session will be critical to the direction we as Minnesotans
want to take our state. I pledge to you that I will continue my focus on the
issues that unite us and move us forward into shared prosperity, instead of
engaging in divisive issues that will ultimately leave us in a legislative
gridlock once more. I look forward to hearing from you about your ideas as to
how best solve these issues. Please contact me with your questions, comments,
and concerns.
Thank you,
Jim Davnie
State Representative, 62A