Pay Raises
Gov. Mark Dayton and the Republican House are sparring over state agency commissioner pay. Last month, Dayton increased pay for 26 commissioners and department heads by a total of $802,000. Republicans say the raises are outrageous. But Dayton said the salary hikes were necessary to attract and retain top talent to state government. He says it also puts state pay in line with other units of government. During a House Ways and Means Committee hearing on Monday to consider the deficiency bill, Rep. Drazkowski (R-Mazeppa) offered an amendment, which was adopted, for a one time reduction in the budgets of the agencies impacted by the deficiency bill to send a message over the raises.
Rep. Roz Peterson (R-Lakeville) has introduced a bill, HF666, which would give the Legislature the authority to approve the salary of certain executive branch officials.
Ebola Funding
On Monday, the House Ways and Means Committee passed, as amended, HF264, the deficiency bill which included money for the four hospitals that stepped in to assist with the Ebola crisis. The bill was amended to appropriate $2 million for Fiscal Year 2015 to the General Fund for the Commissioner of Health to provide grants to eligible hospitals and the EMS regulatory board. It breaks the funding down by each of the four hospitals and EMS board. (This language is also in Senate bill). The bill was placed on the General Register for floor consideration where it also lies in the Senate.
Lottery
Gov. Mark Dayton made it clear this week he will again veto legislation that tries to limit Minnesota Lottery sales. He criticized the bills that would ban lottery sales at gas pumps, ATMs and online. Lawmakers passed a similar bill at the end of the 2014 session, and Dayton issued a pocket veto.
Dayton outlined a possible new proposal for lottery proceeds, dedicating some of the money to a special state fund for school construction and college campus improvements. Dayton said it would help remind Minnesotans of the importance of lottery funds.
Transportation
In an effort to offset the projected cost of improvements, Gov. Mark Dayton wants railroads to pay significantly higher property taxes. Dayton’s plan would generate more than $20 million a year for the state and $45 million for local governments. It would expand the taxable property of railroads to include train cars, locomotives, bridges and other structures and update the method for determining the value of railroad property.
State officials identified $240 million in rail improvements that are needed statewide. Minnesota Revenue Commissioner Cynthia Bauerly said that much of the new tax money collected from railroads would go to cities, counties and townships along rail lines.
BNSF Railway spokeswoman Amy McBeth said there are questions about the legality of the proposal, saying it appears to be a violation of a federal law that precludes different treatment of railroads.
House Tax Committee Chair Greg Davids (R-Preston) called the proposed tax regressive, punitive and a non-starter. Senate Tax Committee Chair Rod Skoe (D-Clearbrook) said he wants to learn more. His panel will take a close look at the proposal later this month.
