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 March 27, 2008
 
 
 
 
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Dear Rachel,

After returning from Easter recess this week, legislators got back to work with a vengeance, working on two major tax bills and moving the governor's recommendations - and their own budget fixes - rapidly through committee.

Now is the time of year when your involvement becomes increasingly necessary. Read on to find out more about what your legislators are considering, and be sure to take the time to talk to them about issues that affect your business.

Note: If you'd rather not receive this e-newsletter, please send an e-mail to kblandin@tunheim.com with "Unsubscribe from In Touch" in the subject line.

Tax Bill Update/Action Alert

TaxesThe Senate Tax Committee passed its version of a tax bill out of committee this afternoon, though the bill's future is unclear.

The bill represents a very significant overall tax hike that, like its House counterpart HF4103, hits job providers the hardest - not the best strategy in a challenging economic environment. TwinWest opposes this bill in the form in which it passed out of committee, and we will continue to work with pro-business legislators in the House and the Senate and Governor Pawlenty to make changes that will not place our state at a competitive economic disadvantage by discouraging business and job growth.

Read about what the bill would do and specific provisions TwinWest opposes.

Please call your legislators today and let them know you oppose these major tax increases (find out who represents you and how to contact them). Remind them state spending still increases 9 percent under the governor's plan to address the 2008-2009 shortfall, so increases in state general fund taxes are not necessary - especially not in this time of economic instability.
Legislature Considers Changes to LGA
State CapitolOn Wednesday, a room full of Minnesota mayors packed the House Property Tax Relief and Local Sales Tax Division for what was deemed "Local Government Aid Day."

Six bills were presented, with testifiers attacking the current LGA system, asking to reroute money or proposing to reinvent the entire system.

One of those, HF3756, sponsored by Division Chairman Rep. Paul Marquart (DFL-Dilworth), would inject $90 million more into the system and change how the money is divvied out to communities. He said the bill was negotiated by mayors, city officials and Minnesota city coalitions from across the state.

Laid over for possible inclusion in an omnibus bill, the bill would:

  • Replace current "regional center aid" with a "jobs-based aid" and double city aid for communities with fewer than 5,000 people.
  • Freeze the aid received in 2009 for subsequent years, with inflation factored into the mix.
  • Create one formula to calculate LGA that applies to every community in the program.
  • Require a study group comprised of legislators and city officials to analyze the program and recommend changes.

Marquart insisted increasing LGA would provide property tax relief to homeowners because cities can pay for services with LGA instead of property taxes. However, there are no requirements in the bill that would ensure cities reduce their property taxes by an amount proportionate to what they receive in LGA.

Special Session Bill
GavelThe power to call a special session could be in the hands of more than just the governor.

Awaiting action by the House Rules and Legislative Administration Committee is HF2554, sponsored by Rep. Lyndon Carlson (DFL-Crystal). It was approved by the House Ways and Means Committee on a divided-voice vote.

The bill proposes a constitutional amendment be put before state voters at this year's general election. It would allow the Minnesota Legislature to be called into session by the leadership in both bodies or by a petition among the majority of members in each body. At the moment, only the governor can call a special session.

A session would be limited to seven days; however, there is no provision indicating the session could not be extended another seven days through a leadership agreement or another petition - meaning a full-time Legislature could be created seven days at a time.

A companion bill, SF3072, sponsored by Sen. Ann Rest (DFL-New Hope), awaits action by the Senate Rules and Administration Committee.

Fiscal Disparities Hearing Held

Mall of America

A provision to use a portion of property tax dollars from the metro region's fiscal disparities pool to pay for the Mall of America's proposed expansion was included by amendment in the tax bill that passed out of the Senate committee earlier today. 
 
The amendment would allow Bloomington to recapture dollars it would pay to the pool based on the Phase II expansion of the Mall of America. Specifically, those revenues would be used to pay for new parking structures. No money from other cities or properties would be allowed to go to the project, but the proposal would reduce the overall dollars in the pool, meaning net recipients would see a decline in the amount of money they receive, prompting them to reduce services or increase property taxes on all classes of property in their jurisdiction.
 
Another argument against this type of subsidy is that it could open the door for more and more private projects to raid the fiscal disparities pool, with little oversight as to need for the subsidy or a contractual arrangement with clear benchmarks and responsibilities.

For more information on the metro area's fiscal disparities program, take a look at TwinWest's Business Agenda, or contact Jason Flohrs, director of government affairs, at 763.450.2225 or jasonf@twinwest.com.

Upcoming events:

 
 
Member Orientation
Wednesday, April 2
8:00 - 9:00 a.m.
ROI: Learn how to make the most of your TwinWest member investment and get a jump start on networking
 
St. Louis Park
Business Council
  Thursday, April 3
7:30 - 9:00 a.m.
ROI: Stay up to date on issues affecting your business and community
 
Minnetonka City Connection
Thursday, April 3
8:00 - 9:00 a.m.
ROI: Meet your neighbors and talk with city leaders, including Minnetonka Mayor Jan Callison
 
April Legislative Breakfast:
Conversation with U.S. Congressman Jim Ramstad
Friday, April 4
7:30 - 9:00 a.m.
ROI: Hear firsthand Congressman Ramstad's reflections on his years as a public servant
NOTE: Tomorrow (Friday, March 28) is deadline to save $10 on registration
 
Government Affairs Committee
Wednesday, April 9 
7:30 - 9:00 a.m.
ROI: Hear a session update and participate in a preliminary conversation about federal endorsements and the negotiating process at the State Capitol
 
Note: The TwinWest Government Affairs Committee will hold its April meeting one week earlier than usual (see above for new date) at the TwinWest Chamber office. The date has been changed due to member and staff involvement in the U.S. Chamber's Small Business Summit in Washington, D.C., from April 16-18. For more information, call Jason Flohrs at 763.450.2220 or e-mail jasonf@twinwest.com.
 
 
 
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County, City and School News

Metro Transit:
  • When the economy starts sliding, no money problem stays fixed for long. That reality is about to hit the Legislature, which returns today from a brief recess to start rebalancing the budget members had thought they'd left in sturdy shape only 10 months ago. They'll also need to shore up Metro Transit's finances, which legislators thought they'd set on solid footing a month ago when they put into law a 10-year, $6.6 billion package over Gov. Tim Pawlenty's veto. Read the Star Tribune editorial.
Hennepin County:
  • Hennepin County commissioners are scheduled to vote April 1 on whether to increase the sales tax by 0.25 percent. The option for the tax was embedded in a recently passed transportation bill that, among other things, also increased the state's gas tax. If the measure passes Tuesday, collection of the increase will begin July 1. If no action is taken, the commissioners have until October to authorize the tax. View a Channel 12 report for a brief description or read a Sun Newspapers article for a detailed story.

City of New Hope:

  • If you're interested in being on the New Hope City Council, now is your chance: New Hope residents have until April 11 to apply for a soon-to-be-vacated seat on the City Council. Steve Sommer, a six-year councilmember, announced his resignation March 10, effective April 15. Read the New Hope-Golden Valley Sun Post article.

Robbinsdale Area Schools:

  • An intensive, six-week strategic planning process begins in Robbinsdale District 281 next week, as district officials try to get feedback from the community on Robbinsdale Area Schools. Read the Crystal-Robbinsdale Sun-Post article.

Wayzata Public Schools:

  • Wayzata Public Schools have been recognized by SMART Technologies, the makers of SMART Board, as a SMART Showcase District. Wayzata Public Schools are the second Minnesota district, and one of 11 districts in the nation, to receive the recognition. This recognition acknowledges the commitment of the district to the implementation, training, and support of SMART Technologies, including SMART Boards, Airliners, Senteo student response systems and software to support these tools.

Showcase districts are leaders in the adoption and use of technology that improves student outcomes and teacher effectiveness. As a showcase district, Wayzata Public Schools will host educators from around the nation who are interested in seeing how teachers and staff apply best practices for using technology products to improve student performance. For more information, visit the company's Web site and read the Star Tribune article.