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On Tuesday, the office of Minnesota Management and Budget released their February forecast from which the legislature and governor will work this session.  The budget outlook improved since November by $209 million to $994 million.  The biennium’s general fund expenditures are expected to total $31.102 billion.  There was an increase in the corporate income tax forecast while the state continues to receive declining amounts of revenue from income taxes.
Tuesday may have been the only piece of good news the state receives for some time to come.  The FY 2012-2013 expected shortfall has grown by $363 million from the November projections to $5.789 billion.  When general inflation is calculated into the budget for the next biennium, the estimated deficit climbs to $6.97 billion.
In response to last week’s Governor’s budget proposal, committee chairs are just beginning to release their own budget proposals.  Next week, I hope to be able to provide some of the House and Senate budget proposals for the various divisions.

MAPE Day on the Hill
The 2010 MAPE Day on the Hill has been changed to April 7th due to a conflict with the legislature’s spring break.  The time and place remain the same in the Great Hall of the State Capitol at 9:00am.

Early Retirement Incentive
This is the particular legislation that I continue to receive the most phone calls and e-mails on.  The legislation, (Senate File 1679 and House File 1893) provides public employees, including retirement systems employees, a retirement incentive of up to 36 months of employer paid health insurance if you retire before July 15th, 2011.   Last session, the bills were left needing a full vote of the House of Representatives at the time of adjournment.  Under this legislation, the state would continue to pay the employer’s share of the health and dental premiums for the employee and the employee’s dependents up to a determined amount of time.  Current language in the bill allows for this incentive at the employer’s discretion. 
In order to pass, this bill will be required to go back to conference committee before being voted on by both legislative bodies and sent to the Governor.  MAPE and AFSCME are both working with the Administration to ensure support from the Governor’s office and passage of this legislation.

S.F.2876 – Private Prison Legislation
Following the closure of Appleton’s private prison this past February, a bill was introduced Monday that transfers control of a portion of the Minnesota Correctional Facility-Moose Lake from the commissioner of corrections to the commissioner of human services.  It requires the commissioner of human services to use the transferred portion of the facility to house civilly committed sex offenders while requiring the commissioner of corrections to incarcerate
50% of the Moose Lake offenders in private prisons.  This bill was referred to the Senate Judiciary Committee.
Please contact members of the Senate Judiciary Committee and let them know you do not support taking inmates from state prisons to place them in privately run prisons.  Click here to tell your senators that you oppose Private Prison Legislation.

MSRS Changes
Last Friday, the Legislative Commission on Pensions and Retirement held a hearing on H.F.2952/S.F.2573 which takes steps to fully fund MSRS’s General Plan currently funded at 86%.  Changes included lowering future post-retirement adjustments from 2.5% to 2%, reducing the benefit increases for members terminating service and deferring payments, increases vesting on future hires from 3 to 5 years and lowers interest on refunds paid out from 6% to 4%.  The hearing lasted throughout the entire day and no vote was taken. 
MSRS Executive Director, Dave Bergstrom, made it very clear that failing to pass this legislation would result in the retirement systems repeatedly returning to the legislature with legislation making more changes to fully fund the pension system including making up for any session that passed without the necessary legislation.
To contact members of the Commission on pensions and Retirement and urge passage of the MSRS bill, click here.

GAMC Override
This past Monday, the House of Representatives attempted to override Governor Pawlenty’s veto of health care legislation and GAMC before tabling the subject.
The two hour debate of HF2680/ SF2168 would create a 16-month version of General Assistance Medical Care, the state health care program serving up to 35,000 low-income Minnesotans monthly. Gov. Pawlenty vetoed GAMC legislation in favor of transitioning GAMC enrollees into MinnesotaCare.
The motion to override failed 87-46. When it became apparent that no Republicans would support the override, Rep. Sertich changed his vote to “no” in order to bring the bill up for reconsideration.  Rep. Sertich moved to reconsider the bill which passed.  He then moved to lay the bill on the table, the motion passed and the bill remains there today.

MAPE Contract Ratification Legislation
H.F. 2758 authored by Rep. Lillie and S.F. 2386 authored Sen. Metzen will ratify the negotiated state labor agreements including the current MAPE collective bargaining agreement.  H.F. 2758 and S.F. 2386 both passed in policy committee which has a deadline of March 12.  S.F. 2386 was heard last week in the Committee on State and Local Government Operations and Oversight and passed by a margin of one vote.  Some legislators did not like the step increases during the second year of the contract.

State Primary Election
S.F. 2251/H.F.2552 changes the state’s primary election to August 10.  Legislation has passed both bodies and will be sent to the governor for signature this week.  The governor has indicated that he will sign it.

MAPE Government Efficiencies
Bills have been introduced in the House (H.F. 2690 – authored by Rep. Tony Sertich) and Senate (S.F. 2169 – authored by Sen. Dick Cohen) to make MAPE suggested cuts to state government.  The legislation requires agencies to reduce contracts on outside vendors by at least the same percentage amount as the agency’s unallotments, prevents agencies from increasing designated managerial positions during a time of deficit and prevents out of state travel not associated with the agencies statutory mission or state emergency preparedness or response.  At this time, MAPE continues to work with the authors to find ways to require government to actually reduce general fund spending by a certain dollar amount based on our initiatives.

In Solidarity,

Richard Kolodziejski
MAPE Legislative Affairs Director