Summer 1995
Highlights from the 1995 Legislature
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.
The pace in St. Paul was fast and furious toward the late-May close of the 1995 legislative session (and subsequent special session) as state legislators dealt with finalizing a two-year, $18 billion budget.
Legislators were reluctant to increase taxes, create more government, or institute more programs. Thus, the 1995 session could be characterized as uneventful; a straightforward response to basic governmental needs.
A look at some of the highlights this session:
SCAB RESEARCH FUNDING APPROVED -- Wheat and barley growers obtained a state commitment of $1 million in scab research funds, through a non-controversial and bi-partisan effort.
The only trouble with scab funding came early in the House bill. The subcommittee that funds the University of Minnesota is dominated by urban legislators, and that committee did not include any funds for wheat and barley scab research.
But in the full education committee, Rep. Jim Tunheim (D-Kennedy) moved to specifically earmark $1 million for scab funding. The committee accepted this motion and the scab funding became part of the higher education bill.
Hats off to Senator LeRoy Stumpf (D-Thief River Falls) for carrying the bill in the Senate and in the conference committee, to Rep. Tim Finseth (R-Angus) for carrying the bill in the House, and Rep. Tunheim for his motion in the education committee.
WORKERS COMP SEES REFORM -- A long-awaited bill to reform the state's workers compensation system passed, and while the bill itself is lengthy and technical, supporters say it should cut premium costs by 11.4 percent.
Much of the credit for passing this bill goes to rural DFL House members, who parted company with urban and labor-backed counterparts to vote for this reform package. The bill cleared the Senate also, despite the objection of some Senators with strong labor ties.
The Governor has been pushing for meaningful workers comp reform since 1991 and has signed this bill into law.
NO-FRILLS TRANSPORTATION FUNDING -- A two-year transportation budget cleared both chambers in the final hour before the regular session deadline. Although the $2.1 billion package contains about $1.6 billion for highways, IR and DFL critics say the funding was not adequate. As well, some feel mass transit, especially in the Twin Cities area, will be pinched by this budget.
In a separate bill, $4.5 million will be made available for bridge repair through the use of state bonds.
A proposed increase in the gasoline tax was not part of the transportation bill. Supporters argued that a five-cent per gallon increase was necessary to sufficiently maintain existing roads and bridges. However, in keeping with the anti-tax sentiment at the Capitol this year, legislators refused any increases.
WETLANDS REFORM BLOCKED -- Property rights advocates worked hard at changing some provisions of the state's wetlands protection law. However, despite clearing most hurdles for passage, the bill was blocked by a procedural motion in the special session, and supporters failed to get the 45 votes necessary to bring the bill to the Senate floor for debate. Thus, it was effectively killed this session, although that doesn't preclude another run at reform next year.
PROPERTY TAX REFORM ELUDED -- The House and Senate passed tax bills that made mostly housekeeping-type changes. Included was a provision that exempts used farm machinery from sales tax for one more year.
But property tax reform remains unresolved. Several ideas to change the state's property tax system were floated in both chambers this session. Bills were introduced and some hearings were held, but in the end the issue of reform was dodged.
In fact, the $5.8 billion K-12 school funding bill that passed during the special session opened the gate for local property tax increases next year.
State lawmakers have been quick to pass the buck, pointing out the decision to increase property taxes will be made by local school districts. Analysts estimate the property tax increase will average 5% (on the school district portion) and total $100 million statewide.
Ultimately, the momentum for reforming the property tax system has only been heightened as a result of the last-minute tax increase. Since all 201 seats are up for grabs next year, this issue will probably play a pivotal role in the 1996 elections.