2008 Legislative Session Update
Catholic Charities’ Office for Social Justice
May 6, 2008
OVERVIEW
With less than two weeks remaining before the May 19th legislative adjournment, the state Capitol is abuzz with activity. The hectic pace at the Capitol this session has left even the most experienced advocates looking to catch their breath. Passing a bonding bill and finding a solution to the $935 million dollar deficit were the main orders of business entering this session, but there have also been thousands of other bills that have been jockeying for the attention of our lawmakers.
We can already celebrate the victory on some of our important priorities, particularly funding for supportive housing. In this update, we will focus on what remains on the table, and some ways that we can continue to influence the process.
Most of the legislation that we support is alive and well, though nothing is ever done until passed by both houses and signed by the Governor. The next two weeks will take an incredible effort from the grassroots advocacy community to ensure that our sizeable deficit is not balanced at the expense of crucial anti-poverty and health care programs.
The budget deficit, coupled with a grim economic outlook, lead us towards some tough decisions as a state. It is essential that we encourage our legislators to respond in a way that protects the common good by defending the poor and the vulnerable.
Heath and Human Services and the Budget Deficit
The House and the Senate are still in negotiations with the Governor’s office regarding the budget deficit. All three branches agree on using budget reserve funds and broad cuts across the board. The Governor has backed off his original plan to take $250 million from the Health Care Access fund, which funds programs for the poor and low-income workers. While this is a major step in the right direction, Health & Human Services (HHS) still faces a disproportionate burden in balancing the budget.
On Monday, May 6th, the omnibus budget conference committee released the HHS agreement between the House and the Senate. The agreement includes $147 million in general fund reductions to HHS services for the current biennium (compared to the original $526 million by the Governor).
Some of the major components include:
· Using $63 million of the $92 million in reserves from the Temporary Assistance for Needy Families (TANF) account to balance the budget. TANF is the federal welfare-to-work program. This money will be shifted to the general fund to help balance the budget. We oppose this shift because these dollars will no longer be available for important anti-poverty programs.
· $8.2 million in TANF dollars used to improve services for low-income families, including increasing work support grants for counties, repealing the family cap for families on MFIP and providing funds for long-term homelessness services (see public assistance section below).
· No funds are transferred from the Health Care Access Fund.
· Transfers $9 million in unspent funds for the Basic Sliding Fee child care program to the general fund. These funds should be used to reduce the 3,700 families currently on the waiting list instead of being used to fill the budget gap.
· There are significant reductions in funding for hospitals and some for pharmacies.
· Nursing home facilities get a slight cost of living adjustment.
· All grants from the Dept. of Human Services and Dept. of Health are reduced by 1.7%.
· Reductions in services for individuals with disabilities.
This is not necessarily the final proposal from the legislature, as amendments will be offered. There are high-level talks on a consistent basis between House and Senate leadership and the Governor’s office as they work towards a compromise before the May 19th deadline.Heath Care
We are pleased with the Governor’s decision to protect the integrity of the Health Care Access Fund. However, he has also suggested $125 million in cuts to General Assistance Medical Care (extremely poor childless adults) and Medical Assistance (low-income adults and children) that would have a devastating impact on the lives of Minnesotans.
Health care reform bills have passed through both the Senate and House (SF 3099 and HF 3391) to expand access to MinnesotaCare and invest in preventative care. The legislation is in conference committee at this time. Funding for these programs would come from the same HCAF funds the Governor had recommended to use for the budget shortfall.
Action Opportunity: Call House and Senate Leadership & Governor Pawlenty and ask them not to balance the budget through cuts to health care programs for low-income Minnesotans. (See phone numbers at the end of this update).
Public Assistance
As mentioned above, the Governor and the legislature use the federal TANF funds to help plug holes in the budget. We argue that these are not “surplus” funds so long as more than 150,000 children in Minnesota live in poverty. These safety net and workforce funds are exactly the investments we should deploy, not deplete, in a weakening labor market.
In a letter from the Governor to the legislature outlining his concerns about legislative budget proposals, The Governor states concern that there would be nearly 9 million dollars in additional funding for work supports to the public assistance program while other areas are being cut.
Even in a budget cutting year, three important initiatives for very low income families are moving forward in the supplemental budget bill:
· Repealing the ‘Family Cap’: Passed in 2003, the Family Cap freezes the cash allowed for public assistance, even if a new baby is born into the family.
· Paid work experience: This program gives people the skills and work experience needed to move into the competitive labor market.
· Funding to community agencies to help low wage working parents repair and replace cars.
Action Opportunity: Call the Governor and members of the budget conference committee and ask that they approve the above provisions. (See phone numbers at the end of this update).
Minimum Wage
At a May 2nd press conference, legislative leadership joined Archbishop Harry Flynn in calling for greater dignity and respect for workers, and asked that the legislature and the Governor approve an increase in the minimum wage.
On May 6th, a joint House and Senate conference committee agreed upon a final proposal to send to the Governor. The bill would raise the minimum wage to $7.75 by July 2009 (from a planned federal increase of $7.25). In an attempt to deliver a bill the Governor would sign, they inserted a training wage for workers under the age of 18, stripped the annual inflationary increase, and lowered the increase from $7.90 to $7.75. Furthermore, small businesses will have a rate $1.00 less than larger employers.
Senate File 875 should be on the Governor’s desk by the end of the week.
Action Opportunity: Contact the Governor and ask him to sign the minimum wage bill! (See phone number at the end of this update).
Housing
Access to impounded vehicles for low-income individuals: Language that is part of a larger Transportation Finance bill (SF 3223 and HF 3800) would allow individuals who are low-income to access their personal belongings, clothing, identification, school books, work tools, and whatever else may be in the car.
To remedy this situation, the legislature has devised an innovative solution. If an individual is enrolled in a state or federal public assistance program, they must be granted access to the contents of their vehicle, and will be able to remove their personal items from their impounded vehicle.
The Transportation Finance omnibus bill is currently in conference committee, where they are working out the differences. We are cautiously optimistic that the impound provision will remain in the final bill sent to the Governor.
Criminal Justice
Catholic Charities supports bills that would have a positive impact on the lives of ex-offenders in Minnesota; these bills continue to work their way through the legislature.
Senate File 2790 and House File 2996 would defer prosecution for a limited set of first-time drug offenders, protect ex-offenders from “collateral sanctions”- those impediments to housing, employment, and other services that ex-offenders so often face, and direct the Department of Corrections to assess the need for re-entry facilities for ex-offenders.
After meeting a stringent set of eligibility requirements, an ex-offender would be eligible to apply for a “certificate of good conduct,” which he or she would then be able to use to prove rehabilitation when applying for jobs or housing.
Both pieces of legislation have been substantially changed (and weakened) as they have moved through their houses of origin, but they both make progress towards better treatment of ex-offenders. A conference committee has been scheduled for next week to work out the differences between the House and Senate versions of the legislation.
Action Opportunity: Call members of the conference committee (listed below) and ask them to retain provisions in the conference report that allow ex-offenders to apply for certificates of good conduct.
· Rep. Paymar (651) 296-4199
· Rep. Liebling (651) 296-0573
· Rep. Eastlund (651) 296-5364
· Sen. Higgins (651) 296-9246
· Sen. Moua (651) 296-5285
· Sen. Ingebrigtsen (651) 297-8063
Contact Information for Items Above:
For more information on this update, contact Patrick Ness at 651-291-4484; Adam Robinson at 651-291-4536 or Kathy Tomlin at 651-291-4537.
Catholic Charities
April 15, 2008
OVERVIEW:
The overarching theme of this legislative session has quickly become the $935 million budget deficit. The economic outlook for our state looks grim, as housing markets continue to decline, and gas and food prices continue to increase. It remains important that we encourage our legislators to respond to this crisis in a way that protects the common good by defending the poor and the vulnerable.
Governor Pawlenty’s budget fix included deep cuts to health care, welfare-to-work funds, and other programs that benefit struggling people. The Legislature’s set of proposals is being finalized in a conference committee, and could be presented to the Governor for his signature very soon. Tension is increasing as legislative leaders provide budget shortfall solutions that protect the Health Care Access Fund and transfer money from the “rainy day” cash flow account, but the Governor threatens to veto their proposals.
Our deficit is real and must be addressed. Catholic Charities has a special responsibility to voice our values and priorities at the Capitol. In this environment of economic downturn, it seems irresponsible and unwise to cut the safety net out from under those Minnesotans who are fighting to make ends meet.
Already this year we have made real progress in funding for supportive housing and protecting renters from the effects of the mortgage foreclosure crisis, and we will continue to advocate for just public policy on all of our legislative agenda items. Below are some details of the specific issues the Office for Social Justice is tracking this legislative session.
If you have questions about this update, please contact Patrick Ness at 651-291-4484.
HOUSING:
Bonding dollars for supportive housing: Even after Governor Pawlenty line-item vetoed over $200 million out of the 2008 bonding bill (HF 380), housing advocates were able to celebrate a substantial victory.
This year’s bonding package provides $30 million in 501(c)3 bonds for supportive housing, $2.4 million in debt service on those bonds, and $1 million in flexible loan and grant money that can be used for homelessness abatement projects and programs.
Funds from the sale of 501(c)3 bonds will be distributed by the Minnesota Housing Finance Agency to non-profit organizations to build or renovate units of supportive housing, keeping the State of Minnesota’s Business Plan to End Long Term Homelessness on target.
Mortgage foreclosure crisis’ effect on renters: Two sets of bills (SF 2908 and SF 2910) that modified the ways foreclosures can impact tenants were signed into law by Governor Pawlenty on April 4th.
These new laws modify the ways landlords who are working through the foreclosure process can structure new leases, and allow tenants to stay in their homes or apartments while landlords go through the mortgage redemption process.
Most importantly, however, these new laws alter the ways tenants are cleared of a property during a
foreclosure process. Prior to this law, a tenant was evicted by local law enforcement. This eviction became part of the tenant’s permanent criminal record, and made it difficult to find new housing.
These new laws prevent eviction for tenants and expunge the evictions from the records of those who have been removed from the residences due to landlord foreclosure.
Access to impounded vehicles for low-income individuals: Language that is part of a larger Transportation Finance bill (SF 3223 and HF 3800) would allow individuals who are low-income to access the contents of their towed and impounded vehicles is slowly making its way through the legislature.
When homeless individuals are using their cars as a place to live and sleep, they’re also using them for storage. When vehicles are towed and impounded, the owner loses access to anything that’s in the vehicle- personal belongings, clothing, identification, school books, work tools, and whatever else may be in the car.
To remedy this situation, the legislature has devised an innovative solution. If an individual is enrolled in Minnesota Family Investment Program (MFIP), MinnesotaCare, Supplemental Security Income (SSI), or another state or federal aid program, they must be granted access to the contents of their vehicle, and will be able to remove their personal items from their impounded vehicle.
The bills have a few more committees to pass through, and are expected to receive hearings on the House and Senate floor in coming weeks.
HEALTH CARE:
Governor’s budget fix threatens to deplete the Health Care Access Fund: Facing a $935 million projected deficit, Governor Pawlenty presented budget recommendations that include transferring $250 million from the Health Care Access Fund (HCAF) to the state’s General Fund to help eliminate the budget shortfall.
In real terms, that means that tens of thousands of Minnesotans will lose access to health coverage. In their budget solutions, the House and Senate have protected HCAF funds, and are suggesting that those funds be used to expand access to health care coverage.
To that end, plans have passed through both the Senate and House (SF 3099 and HF 3391) to expand access to MinnesotaCare and invest in preventative care. Funding for these programs would come from the same HCAF funds the Governor is attempting to use to remedy the budget shortfall.
MINIMUM WAGE:
Progress is occurring on increasing the minimum wage to $7.90 by June of 2008 (SF 875 and HF 456). A House floor vote is scheduled for May 1st, and will be followed by a conference committee. While the Governor has some concerns with the bill, we are hopeful that it will be signed into law.
IMMIGRATION:
Immigrant related policy is at a stalemate this session. Proactive legislation such as the Minnesota Dream Act and a citizenship tax credit did not advance, yet we have successfully blocked most legislation that would be hurtful to immigrant communities in Minnesota.
Governor Pawlenty and the minority party of the Minnesota House have attempted to outlaw cities’ rights to separation ordinances, which prevent employees of city services (primarily police officers) from acting as immigration enforcement agencies. While St. Paul and Minneapolis have both passed separation ordinances to increase the effectiveness of community policing and bring greater safety for undocumented immigrants who are victims of domestic violence, the Governor has threatened to strip all Local Government Aid (LGA) from those cities who continue to implement these ordinances. Efforts to repeal separation ordinances have failed by close votes in the Minnesota House.
It is quite possible that negative amendments to be offered to existing policy bills during debate on the floor of the Minnesota House. It is difficult to predict what they may address, but could be linked to health and human services, public safety or transportation issues. The session will be a success if immigration does not become a highly politicized and controversial topic as we close out the legislative session and head into the election season.
CRIMINAL JUSTICE:
Catholic Charities supports several bills that would have a positive impact on the lives of ex-offenders in Minnesota. Senate File 2790 and House File 2996 would defer prosecution for a limited set of first-time drug offenders, protect ex-offenders from “collateral sanctions”- those impediments to housing, employment, and other services that ex-offenders so often face, and direct the Department of Corrections to assess the need for re-entry facilities for ex-offenders.
Both pieces of legislation are awaiting hearings in the Finance Committees of their houses of origin.
PUBLIC ASSISTANCE:
Even though there is a budget deficit, three important initiatives for very low-income families are moving forward in the supplemental budget bill:
Unfortunately, there are proposals in both houses and by the Governor to use the federal TANF (federal welfare-to-work program) funds to help plug holes in the budget - funds we argue are not a surplus as long as more than 150,000 children in Minnesota live in poverty.
Governor’s budget proposes to deplete the TANF account, as well as to transfer $8 million out of the Workforce Development Fund and $2 million out of the Minnesota JobSkills Partnership fund. These safety net and workforce funds are exactly the funds we should deploy, not deplete, in a weakening labor market.
Property Tax Moratorium for Nonprofits:
A moratorium on any changes in property tax exemptions is moving forward until a more permanent solution can be worked through with the Minnesota Department of Revenue. Permanent legislative changes will be recommended during the 2009 legislative session.
Updated: 4-3-08
