Scab Research Funding Promising this Session
By Bruce Kleven, MAWG State Legislative Strategist
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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.
Generally, there are not a great deal of agriculture issues at the capitol this session. Sen. Joe Bertram (D-Paynesville) has introduced a bill that will permanently exempt used farm machinery from sales tax. The corporate farm law, a controversial issue last year, is not scheduled for any debate this year.
The Minnesota Association of Wheat Growers and the Minnesota Barley Growers Association have identified several focus areas this session:
SCAB RESEARCH FUNDING -- The number one issue for the MAWG and MBGA is to secure continued funding for scab research. The Governor has provided $1 million for the scab initiative in his budget, and this is certainly good news for growers. We are working on a bill in conjunction with the University of Minnesota that will appropriate funding through the legislative process.
Bi-partisan support for research funding has been pledged in both Houses, and with support from the Governor and the Minnesota Department of Agriculture, we are optimistic that a research program will be funded.
PROPERTY TAX REFORM -- Dean Johnson, Senate Minority Leader (IR-Willmar), has indicated that property tax reform is at the top of his list. Other groups, such as commercial, industrial, lake homeowners, and apartment owners, have indicated that they also want property tax reform.
There's little consensus on how to fix the current system early this session. The challenge is to find a way to reform the property tax system without raising taxes. At this point in time, it appears that major reform is unlikely, but small changes are possible.
WORKERS COMP REFORM -- Several legislators are talking about workers compensation reform, and like property taxes little consensus on reform so far. Bills have been introduced that would limit the amount of compensation received and also target fraudulent cases. Some type of workers compensation reform will most likely be passed this year.
ROAD AND BRIDGE FUNDING -- Bills have been introduced that would raise the gas tax to pay for road and bridge repair in Minnesota. One bill would change the formula used to "split up the pie" between rural and metro roads; another bill does not. Because of the budget situation, the only way to pay for increased highway funding is to raise a tax.
However, the Governor and key legislators have pledged not to raise any taxes. At this point in the session, it is possible, but unlikely, that road and bridge funding will be increased in any significant way.
OVERALL, BUDGET IS UNDERLYING ISSUE
Perhaps the biggest overall issue at the legislature this year is the budget. The Department of Revenue has indicated that Minnesota will face a budget shortfall of over $750 million in the next two years, despite strong economic growth.
The legislature has its work cut out as it tries to work through budget gaps, yet balance the budget without raising taxes. Growers should keep in mind that any agriculture issues must be considered in light of budget pressures.
Senator Majority Leader Roger Moe (E-Erskine) says we should expect a bare bones, business-as-usual session. He has indicated that voters sent a message to incumbents that they want government trimmed and taxpayer money spent more wisely; thus he does not foresee major new programs or controversial issues.
Welfare seems to be at the top of everybody's reform list. The first bill introduced in each House this session was a bill to reform welfare. Although this is a high profile issue, the end result will most likely be limited reform, since most legislators will be unwilling to attack funding for nursing homes and the elderly.
Other topics on the agenda this year include government reform, education funding, the minimum wage law and possibly the Target Center.
The biggest buzzwords around the capitol this session: "no new taxes." The Governor has made this pledge and will most likely stick by it. Republicans gained seats in November on this promise. And even incumbent Democrats have realized that any tax increase could hurt them at the polls.
Thus, there's a feeling in the capitol halls that legislators may step gingerly about issues this year, cautious to approve new programs or add more government. As such, this should be a straight-forward session without too much controversy.