Mr. Dahle Goes to St. Paul

I received a call today from a man in LeSueur.  I had knocked on his door last weekend, and he told me he was fed up with the “crap” that the Republican Party was shoving in his mailbox and that I had his vote.  He was probably referring to the negative ads citing spending for gorilla cages, polar bears, or sculpture gardens, all part of a recent capital investment bill.  While I am not inclined to acknowledge what my opponents are up to, I will gladly provide some context to this piece of legislation.

The Senate’s version of the Capital Investment Bill is developed following hundreds of meetings that are held around the state.  By the time it is heard on the Senate floor, it is a wide-ranging piece of legislation, which includes investments in public infrastructure throughout Minnesota.  While it is easy to cherry-pick one or two items out of the hundreds included in these investment packages and criticize the vote, a look at the bigger picture reveals an investment in Minnesota while preserving past investments made by our citizens.

One could vote against the Como Zoo, the Ordway Theater and the sculpture garden in Minneapolis. But to do so, one would have to also vote against millions of dollars in investment for education, the environment, health care, our veterans, and the creation of more than 10,000 jobs.  In and near my own district, the bonding bill included money for parks and trails, the Minnesota Valley Regional rail line,  correctional facilities, and the deaf and blind academies.  I staunchly support job creation via projects like these, no matter where in Minnesota they are located.

Among the hundreds of other items included in the capital investment bills were funds for the U of M, our state colleges, flood prevention, financing for infrastructure in rural Minnesota, improvements for roads and bridges, early childhood facilities, RIM (Reinvest in Minnesota), and vital dollars for our veterans homes.  The Como Zoo project alone created more than 1,000 jobs.

When this bill was heard in the full Senate, I was part of a bipartisan landslide (57 ayes, 10 nays) that voted to pass it and send it to the Governor for his approval.  The debt service on the bonds for these projects was well within the limits set to maintain our AAA bond rating as a state.  With construction costs coming in under bid, interest rates at all time lows, this was the right time to invest in Minnesota and get people back to work.

I will continue to run a positive campaign and I will continue to welcome a phone call or two from my constituents who are ready to send me back to St. Paul.  I look forward to working with them and for them.

On September 22, 2010, heavy rain across a wide swath of Southern Minnesota caused widespread flooding and property damage across 32 counties.  Federal disaster assistance is expected to cover 75% of the losses, dependent on the damage estimates completed by officials from the Federal Emergency Management Agency, who were on site shortly after the disaster.

Residents and business leaders in the region have been quick to call for state assistance in getting this part of Minnesota on its feet again.  Most critical among the needs are road and bridge repair, school funding assistance to get displaced students back into class, and help for homeowners in need of shelter with winter fast approaching.

Also included in the legislation is language and funding to assist the North Central Minnesota community of Wadena, after a June 17, 2010 tornado caused extensive damage to a number of public facilities there, including the community center, school, and school district offices.

Officials from the House, Senate, Governor’s Office, and various state agencies have met over the course of the past week to craft a bill which provides some state assistance to help homeowners, business owners, and farmers recover, and assist communities and counties in repairing damaged infrastructure.

The bill includes $80.2 million in flood/tornado relief, and is targeted at specific agencies and areas, including public safety, transportation, natural resources, agriculture, employment and economic development, housing finance, education, and human services.  The money comes from the General Fund and some general obligation bonding dollars and trunk highway bonds.

Overall, the flood-relief sections of the bill contain $5 million from the Trunk Highway Fund, $32.5 million from the General Fund, $26 million from bond proceeds, and $10 million from the State Transportation Fund.  The $6.6 million in tornado relief comes in the form of $5.89 million from the General Fund and $750,000 from bond proceeds.

The Governor is expected to sign the bill later today.

The Governor has called for a special session of the Minnesota legislature to be held Monday, October 11.  Governor Pawlenty and key legislators have noted that we are likely to use a similar approach as was taken in 2007 with the Rushford flood.  In that year, heavy rains in mid-August caused a rapid and dramatic rise of the Root River, and numerous homes, farms, and businesses in the Fillmore County community of roughly 2,000 were damaged.

Contained in that bill was a total of $146 million from the General Fund, the Petroleum Tank Clean-up Fund, the Trunk Highway Fund, bond proceeds, trunk highway bonds, and the State Transportation Fund.

Spelled out in the 2007 legislation were specific appropriations to flood relief, the departments of Public Safety, Transportation, Natural Resources, Employment and Economic Development, Education, Human Services, and Revenue, and the Board of Soil and Water Resources, the Pollution Control Agency, the Housing Finance Agency, and the Minnesota Historical Society,.  There was also money appropriated for bond sales.

Federal Emergency Management Agency have been assessing the damage to homes, farms, and businesses.  Governor Pawlenty has already asked President Obama to declare the region of southeastern Minnesota a disaster area.  The Governor said that there is $235 million available at the end of this biennium that could be used for the flood-relief efforts.  He also mentioned federal funding that was passed over this summer may be used for the 2010 relief efforts.

Last night, Representative Bly and I met with city officials to talk about the pending legislation.  We have been in discussion with city officials, business owners, and residents affected to ensure that the special session and legislation will be able to provide the assistance needed to get our community back on track.

This past Wednesday I was part of an Ag forum in New Prague to talk about Agriculture issues affecting District 25.  Independent candidate John Grimm and Republican candidate Al DeKruif were also present at the forum sponsored by LeSueur County Farm Bureau, Pork Producers, Corn and Soybean Producers, and the Dairy Industry.

I am proud of the work I have done for district 25 and greater Minnesota.  The Eminent Domain bill I authored in the Senate and eventually signed into law puts landowners and farmers on a much fairer playing field when dealing with the public utilities such as the CapX2020 project and the pipelines a few years ago.  It was a bipartisan effort that involved a lot of local citizens who have been directly affected by the Public Utility exemption in the past.

I was the chief author of the bonding bill that sent $5 million dollars to the Minnesota Prairie Line railroad, a short line rail that is vital to the ag industry on the western side of my district.

On a broader scale, I believe agriculture policies must be enacted to allow farmers to receive a fair price through open markets.  We need to create incentives and programs that encourage young people to become farmers.  It is critical to maintain Minnesota’s family farm system of agriculture.  Minnesota must be proactive in meeting the growing consumer demand for food that is family farm raised, locally grown, and identity preserved.  We need to promote farming that benefits the environment.  And finally, we need strong local communities that depend on strong local control.  We should protect rural democracy. Local governments must maintain the right to put in place and enforce local planning and zoning ordinances.

This past Thursday, after a couple of hours greeting State Fair visitors from the Minnesota Senate booth, I headed south to Savage to step aboard a barge for a trip down the Minnesota and Mississippi River towards St. Paul.  The trip was sponsored by the Highway 169 Corridor Coalition as over 100 members made the 3 hour trip. We often think of the Hwy 169 corridor as roads and rail, but we cannot overlook the importance of the river in making this area a truly inter modal transportation network.

The 3 R’s (road, river, and rail) along Hwy 169 are economically vital for funneling freight into the Minneapolis/St. Paul Metro Region from the Mankato area and southern Minnesota. This area produces almost half of Minnesota’s corn, soybeans and ethanol, which makes Minnesota third in the nation for production among all states. Other major commodities moving along this corridor include aggregates, clay and sand, hogs, manufactured goods and food products.  The corridor connects major producers of ethanol, biodiesel and their byproducts to markets and refiners along ‘ethanol alley,’ the southwest freight corridor formed by Highway 60 and the Union Pacific Railroad.

The Ports of Savage are important for grain exports via the Minnesota and Mississippi River systems, guaranteeing low-cost, competitive transportation to regional and world markets for Minnesota farmers. The corridor is expected to play a future role in expanding access from western Minnesota agricultural producers to the Ports of Savage via routes capable of bypassing Metro congestion.  This is good news for the communities in my district along the corridor as we work to put together a long range plan of maximizing economic development for the area.

This past Tuesday, Representatives David Bly, Patti Fritz, and I visited with Rice County Commissioners and several other Rice county officials.  It was a good meeting with an opportunity to hear the concerns of our county leaders who have some real concerns with the state budget and its effects on county services.

The point was made clearly by County Administrator Gary Weiers that County governments are finding it increasingly difficult to carry out the federal and state government’s business with continued cuts to County program aid.  Without reducing the mandates, business as usual cannot continue. In 2010 State funding to Rice County was reduced by over $1.3 million. Revenue reductions without mandated reductions are a cost shift from state to local governments.    This has a big effect on social services, our district courts, and the dozens of agencies and departments that allow local government work to for Rice County residents.

Paul Beaumaster, Rice County attorney, expressed concerns that reductions to the courts are impacting counties by attempting to shift costs for legal representation in certain cases.  Lines have become blurred as to who should pay the real costs of our court system, the state or the county?  Mark Shaw, director of Social services, expressed his concerns that severe budget cuts now will have long term implications later.  Those people served by county services, even more during the recession, will have greater needs at greater taxpayer expense, unless they receive help now.  With the state facing a $6-7 billion shortfall next biennium, we need to be talking about solutions now.  The Representatives and I will be meeting with County officials throughout the district in the months to come.

This past week I spoke at a meeting of the Northfield Downtown Development Corporation along with Representative David Bly. A few days later I spoke at at a gathering of the New Prague Chamber of Commerce along with Representative Laura Brod. With a couple of dozen persons on hand, the topics focused on the recently completed legislative session and the outlook for the next session. Of course there were some concerns expressed about Local Government Aid cuts, rising property taxes, the next state budget, the overall economy, and the health of our downtown businesses.

The legislature did enact several enact several measures designed to improve our business climate. In addition to a $680 million capital investment bill, the House and Senate passed the Angel Investor Tax credit, equal to 25% of taxpayer’s investments in small Minnesota businesses involved in high-tech, bio science, and green manufacturing industries. The Historic structure rehabilitation tax credit (20% of the rehabilitation costs) designed to assist in upgrading historic buildings, was passed along with a Research and Development tax credit. This credit is designed to spur innovations within Minnesota companies by increasing the current 5% tax credit to a 10% tax credit. it also expands eligibility for the tax credit to partnerships and LLC’s, rather than just corporations.

The legislature also directed the Dept. of Employment and Economic development (DEED) to identify at risk businesses in the state and develop tools the state can use to retain and attract new businesses. It also creates a fast action economic response team that would work with at risk businesses to ensure they are utilizing state services and identify their needs to ensure they are being met. The response team would also assist out of state businesses looking to relocate in Minnesota. The Senate also passed a bill that was into law that prescribes DEED to raise private funds for the Office of Entrepreneurship and Small Business Development and maintain a virtual network of resources that are available for new Minnesota business ventures and entrepreneurs.

Finally, the legislature passed a bill this session to fund a comparative study to look at the effects of state regulations on costs and delays in starting a small business in MN, Wisconsin, Iowa, and the Dakotas as well as the typical costs that go along with businesses in retail, manufacturing, and services industries. The study will be conducted by a state higher education institution, and will serve as a guide for future lawmakers as they outline the state’s economic development strategy.

While the State faces the daunting task of cutting over $900 million from the budget this year and who knows how many billions next year, it would seem easy to look over the State’s allocations and start whacking away. Believe me, it’s not that easy.
Let’s look at one particular item, buried deep in the Judiciary budget: the Sentence to Serve Program, just one of the items on the Governor’s chopping block. This program takes prisoners out of the local jails and allows them to “work off” part of their jail time, as well as other direct costs. The city of LeCenter has used the Sentence to Serve program several times. The prisoners there helped paint the city owned swimming pool, cleaned up debris along Highway 99, helped with brush chipping, worked at the city/county recycling center, painted city buildings, and picked up trash at the local parks. These probationers work hard. They finish their work with a real sense of accomplishment. Today a city council woman from Waterville shared a story with me of a recently released prisoner who asked her for directions to the local park he had worked on a few years ago. He was proud of the work he had done and was eager to revisit the fruits of his labor.
These tangible benefits are totally lost in the monetary considerations of a budget crisis. It is so important that we as a State take a holistic and systematic view of the costs and benefits of any program. There is so much at stake.

I recently held a town meeting in a small town on the Western side of my Senate district. As the town meeting turned its focus to the budget crisis, one gentleman stood up claiming to have all of the answers regarding Minnesota’s budget woes. He said he had a proposal for “solving the state’s budget deficit without raising taxes.” I said I was interested in his “list” and he said he would be sure to send it to me. Sure enough, a few days ago I received a document outlining what some of those cuts might look like. Here is a small sampling of some of what Minnesota could expect (and I quote):

• Eliminate intrusive and ineffective home visiting and mental health screening programs
• Eliminate Early Childhood Professional Development
• Eliminate Kindergarten Readiness Assessment and Intervention Programs
• Eliminate Preschool screening and ECFE (Early Childhood Family Education)
• Eliminate Early Childhood Literacy
• Eliminate After School Community Learning Grants
• Repeal the public school staff development mandate
• Reduce the number of MNSCU campuses
• Require the DNR to fully self-fund via fees
• Eliminate Local Government Aid
• Reduce Court appropriations and increase attorney’s annual license
• Reduce Human Rights Department funding
• Provide Health Insurance subsidies, not Health care services and payments

No thank you. If this list is a solution, count me out. The cuts to early childhood education alone would set this state back 30 years creating a host of problems for years to come. We need to reaffirm the connection between intelligent investments and the public benefits we receive in return. We are a state of community minded people who care about our children, our neighbors, the elderly, and the poor. We value these public assets and most of us are more than willing to pay for them.

The document to which I refer comes from the Minnesota Budget Solutions Coalition which includes organizations such as the Minnesota Majority, Taxpayers League of Minnesota, Minnesota Family Council, and NFIB Minnesota Chapter… to name a few.

Imagine Junior working and saving for years, pocketing part of the money he earns on his paper route, hoping to squirrel away enough money for a down payment on his college education. That’s a nice story until Dad breaks open the piggy bank to skim off some funds that he says aren’t being used.
The same story is being played out in the Minnesota state budget. Workers forward part of their hard earned pay into dedicated funds only to see the Governor raiding their piggy banks to transfer the money to the General Fund. Last year the Governor proposed eliminating the Health Care Access Fund and transferring all provider tax revenues into the general fund. Why should the Health Care Access Fund serve as a slush fund to pay for projects unrelated to health care or to balance the state’s budget?
This year we learned the Governor’s supplemental Budget was to transfer $267,000 from the snowmobile dedicated account and another $400,000 from the ATV account to the General Fund. Only after organized outrage from these groups did the Governor back down from that proposal.
Electrical contractors are seeing a $1.5 million transfer from the Construction Codes and Licensing Division’s continuing education fund to the General fund. These dollars were paid for by electrical contractors from across the state to offset costs related to education courses, seminars and registration fees for necessary ongoing and required training.
Pick up the daily paper and you will read more of the same. The Star Tribune reported today the Governor’s supplemental budget calls for $1.2 million to be taken from the state’s Water Recreation Account – funds generated by the 860,000 boaters in the form of fee and boat registration – and transferred to the General Fund. Projects that include boat ramps and canoe and boat route management get axed.
More and more of our dedicated funds are not finding their way to their original and intended purpose. Those paying into these various funds are left holding a broken piggy bank with less incentive to continue paying. They are angry and rightfully so. Allowing this practice is a dangerous precedent and will lead to further raiding of our dedicated accounts.