Spring 1995
Mid Session, Budget Still Driving Factor
By Bruce Kleven, Legislative Strategist; Minnesota Association of Wheat Growers & Minnesota Barley Growers Association
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Prairie Grains is the
official publication of
the Minnesota
Association of
Wheat Growers,
North Dakota Grain
Growers Association,
South Dakota Wheat,
Inc., and the
Minnesota Barley
Growers Association.
BUDGET -- The legislature sets a two-year budget every other year. This is a budget setting year and most of the debate so far has centered around budget issues. Bills that are non-controversial or non-monetary have begun to move along the system and should have an easy time passing, but controversial bills and appropriations bills have been highly scrutinized by all committees.
The most recent budget forecast released in February indicates a $200 million surplus in the 1996-1997 biennium. Governor Carlson wants the surplus tucked into a rainy-day fund to prepare the state for expected aid cuts from Washington later this year. DFL leaders in the House and Senate argue the surplus should be used for education and property tax relief now, because any state savings will send a message to Washington that Minnesota can withstand more cuts than other states. This issue promises to be a major sticking point between the two parties the rest of the session.
SCAB FUNDING -- The scab funding bill easily passed the House and Senate Agriculture Committees earlier this session. The bill, authored by Rep. Tim Finseth (R-Angus) and Sen. LeRoy Stumpf (D-Thief River Falls) has been referred to funding committees in both houses for specific appropriations.
The bill appropriates $1 million to the University of Minnesota to continue scab research. This appropriation is part of the Governor's budget, and the bill has gained bipartisan support in both the House and the Senate. Passage of this bill continues to look strong.
UNIVERSITY AG SPECIALS -- An important issue related to scab funding is the Governor's proposal to roll State Agricultural Specials into the general budget of the University of Minnesota. The current funding mechanism for agricultural programs is a number of individual grants from the state that are ear-marked for specific ag programs.
The Governor's proposal would eliminate specific designations for agriculture and instead the state would make a lump-sum grant to the University, so it can decide internally how to divide the state aid. This is an area of concern for all agricultural interests because it seems the University is becoming less concerned with rural issues despite its land grant root. However, this proposal had met very lukewarm reaction at the Capitol and it appears at this point the ag specials will be safe for another two years.
PROPERTY TAXES -- Late last fall the political climate looked promising for some type of property tax reform package. Voters sent a clear message they want both the size and cost of government reduced. Although several groups are continuing to work diligently at property tax reform, much of the steam has disappeared since the beginning of the session. The primary reason seems to be the budget: no one can find a comfortable way to pay for reform.
However, Sen. Majority Leader Roger Moe (D-Erskine) has proposed a property tax freeze for the next two years. Legislative analysts suggest the Governor's budget will force local units of government to make up differences between revenue and spending with increased property taxes. Sen. Moe argues the no new tax pledge applies to all taxes in the state, including property taxes. There is some speculation that Sen. Moe's plan will force elected officials to make hard choices and eventually force the property tax issue to the table.
PROPERTY RIGHTS -- Another issue that surfaced during the last election was the issue of government intrusion and the rights of individual landowners. A bill that requires compensation for the taking of private property by government action has been introduced by 20 authors in the House and 19 authors in the Senate. Current Supreme Court rules require 100 percent taking before compensation is given, and this bill provides taking if a law (such as the wetlands law) reduces the value of the property by 5 percent or $1,000, whichever is less. The bill also requires the Attorney General to review proposed agency rules to determine whether they contain potential takings.
WETLANDS -- Legislators are also taking a hard look at the Wetlands Conservation Act. Various landowners feel the Act has gone too far. Government agencies responsible for enforcing the act admit that some changes are needed. Three bills are currently moving through the House Environment Committee and the likely outcome will be some sort of compromise.
WORKERS COMPENSATION -- A substantial number of bills relating to workers compensation have been introduced in both Houses. Considerable testimony on workers compensation has been presented at Senate hearings. However, the House has not yet taken up the issue.
Like property tax reform, workers compensation reform appears to have lost some steam since the beginning of the session. Legislators with strong ties to labor have begun to dig in their heels to prevent major changes to the current system. While a reform package is still very likely, the final version remains unclear.
OTHER ISSUES -- Other bills of interest to wheat and barley growers include a permanent sales tax exemption for used farm machinery, a possible state crop insurance program and expansion of the limited liability company law. Each of these bills are just beginning to move through the process and the final outcome will probably be determined toward the end of the session.