2013 Legislative Session From the office of

Senator John Pederson

Senate District 14 Serving Benton, Sherburne & Stearns Counties Office: 27 State Office Building, Saint Paul, Minnesota 55155

FINAL SESSION REVIEW

Dear Neighbors: The 2013 legislative session adjourned on May 20th. It was an exciting few months in St. Paul as we strived to make Minnesota the best place to work and raise a family. During this legislative session I had the opportunity to serve as the ranking minority member of the Transportation and Public Safety Committee, and I also served on the Capital Investment Committee and the Finance Committee. My main focus is and always has been to best serve the members of my district in central Minnesota and to advocate on your behalf. To do this I worked closely with members on both sides of the aisle in the Senate and House, as well as with local government officials in our area. I also benefitted greatly from your input. Thank you for voicing your concerns, opinions, and general comments throughout the session. This legislative summary provides you with an overview of the work we did at the Capitol this session. It is an honor to serve you in the Minnesota Senate. Please call or write any time with your input, questions, or comments. Sincerely,

John Pederson BUDGET AND TAXES Under Governor Dayton and legislative Democrats, the states budget will increase by nearly $3 billion from $35.4 billion to $38.3 billion over 8 percent.

Under this tax plan, every Minnesotan will unfortunately pay more in higher taxes and fees. For example, Minnesotans will pay new sales taxes on internet purchases on Amazon and eBay and digital downloads like iTunes and eBooks, 50% more taxes on car rentals, new taxes on equipment repair for businesses, satellite TV services, and telecom equipment. Groceries, medical products and gas prices will likely rise due to a new warehousing sales tax being passed onto consumers. Electric bills will go up due to additional mandates on utility companies. Health insurance premiums will rise for small businesses and families not eligible for subsidies under the Health Insurance Exchange. In addition, drivers licenses, vehicle registration, and vehicle title fees are also increasing.

Photo: Senator Pederson testifying before the Senate Transportation and Public Safety Committee with St. Cloud Mayor Dave Kleis and Chief of Police William Blair Anderson

We will now have the 2nd highest income tax on comparative incomes, and the 4th highest marginal rate in the nation with a new 25% tax-rate increase for our highest tax bracket. Fortunately, some of the proposed tax increase plans were stopped a new statewide sales tax on clothing, new sales taxes on common goods and services like auto repair and haircuts, a new gas tax increase and metro sales tax for transit. Rather than creating a more effective government, I believe the legislatures work will result in more wasteful, inefficient government with diminished accountability, fewer standards, and less opportunity. By permanently increasing spending over the next two years by nearly $3 billion, hardworking taxpayers will lose more of their paychecks in order to fund more inefficient government programs. For example, I did not support the measure that eliminated the GRAD Standards for high school students. We should be increasing opportunities for all students and reforming our education system, not dumbing down our diploma by getting rid of the current assessments for students. Also, the newly created Health Insurance Exchange will do nothing to guarantee better healthcare, lower insurance premiums, increase coverage, or create savings in the healthcare system. We also spent hardworking taxpayer dollars on bailing out the City of St. Paul, union pension funds, a boat landing bathroom, a tree museum, subsidies for Hollywood film and TV production companies, and much more. Before we take another dime from hardworking taxpayers, we should go line-by-line through the budget and cut the waste. I believe in a different approach. I believe Minnesotans should be able to keep more of their hard-earned money, and ought to be trusted to make their own decisions. I believe its the governments job to provide more opportunities for all Minnesotans, not just create a bigger, more wasteful government.

It was great to see many groups of Senate District 14 residents at the Capitol this year. Thank you to the groups for taking the time to travel to St. Paul:

LEGISLATIVE HIGHLIGHTS

CHILDCARE PROVIDER UNIONIZATION All childcare providers should be able to provide quality, affordable services to parents without government interference, however Democrats passed legislation that forces a unionization vote on childcare providers. This unwanted, unnecessary legislation will make childcare more expensive and less accessible for families and taxpayers by unionizing independent businesses.

Central MN Boys and Girls Club WACOSA MN School Nutrition Association MN State College Student Assoc. The Inter-Faculty Organization MN School Counselors Assoc. St. Cloud Area Learning Center for the Minnesota Association for Alternative Programs (MAAP) STARS MN Beer Wholesalers Assoc. Minnesota Telecom Alliance Service Employees International Union (SEIU) Pro-Choice Minnesota Institute of Scrap Recycling Industries (ISRI) Joint Religious Legislative Coalition (JRLC) MN Rural Health Association MN Rural Electric Association Music Therapy Assoc. of MN MN Citizens for the Arts REM Central Lakes Associated Builders and Contractors Care Providers of MN MAPE MN Association of Realtors MN Trucking Association Central MN Builders Association Sauk River Watershed District MN State Building and Construction Trades Council

THANKS
FOR VISITING!

Photo: Senator Pederson in the Capitol rotunda with students, teachers, and parents from St. Cloud Christian School

MISPLACED PRIORITIES IN THE HEALTH AND HUMAN SERVICES BUDGET I support prioritizing our elderly and vulnerable in the Health and Human Services budget and voted to give a 5% cost of living increase for long term care, nursing facilities, and disability workers in both 2014 and 2015, totaling a 10 percent increase over the next biennium. Many long-term care facilities and workers are in crisis and deserve our support. However, the 2013 Health and Human Services budget spends $11.27 billion which is a .5% decrease in General Fund spending. Unfortunately, most of this budget prioritizes spending millions to comply with Washington, DC mandates and conformity over doing a better job for our nursing homes and most vulnerable. Our seniors deserve better.

HEALTH INSURANCE EXCHANGE Part of the federal healthcare reform legislation (the Affordable Care Act) asks each state to set up an internet portal (known as an exchange) for the purchase of health insurance. Small businesses with up to 50 employees or individuals can purchase health coverage in the exchange. Its estimated about 1/4th of Minnesotans will use the exchange starting this October. Minnesotans have the best healthcare in the nation. Our responsibility is to ensure that the Minnesotans who use the exchange have affordable and accessible healthcare choices and their healthcare information is kept private. As it stands, MNSure the exchange passed this year by the legislature will do nothing to guarantee better healthcare, lower insurance premiums, help people keep their family doctor, protect privacy, and be accountability to those participating. Rather, the exchange is an extremely expensive government infrastructure that guarantees the creation of a super-agency with layers of bureaucracy between Minnesotans and their healthcare. I offered common-sense amendments to address these concerns but no substantive improvements were accepted.

HIGHER EDUCATION Students and families will benefit from a two-year tuition freeze at the University of Minnesota and our Minnesota State University system. Total funding increased by nearly 10% and helped our State Grant program for student financial aid, paid for the tuition freeze at the U of M and MNSCU, and provided more flexibility for online courses. 2nd AMENDMENT RESTRICTIONS (failed); Democrats tried repeatedly to pass legislation that would limit the nd 2 amendment rights of law-abiding gun owners in Minnesota. Eventually, they determined their proposals did not have the needed support to pass the House or Senate and they abandoned their effort. K-12 EDUCATION K-12 education spending is 41% of our budget ($15.7 billion) and the legislature voted to increase spending by $485 million for a 3.1% increase. All-day kindergarten will be available free of charge beginning in the fall of 2014, and schools are given an additional $158 per pupil increase over two years. Unfortunately, the bill also removes the student requirement to earn a passing score on a statewide exam in reading, writing and math to graduate. Every student deserves the opportunity to succeed, but getting rid of assessments means a high school diploma is little more than a timecard. Students and our state deserve better. SCHOOL SHIFT Im also disappointed the final education budget did not fully or even partially repay the school shift, which is an outstanding debt owed to schools by the state. ENERGY AND A NEW SOLAR MANDATE The legislature voted to add a new solar Photo: Senator Pederson in his office with members from the Central standard mandate on power companies, MN Builders Association which I did not support as it will make energy more expensive and less reliable for consumers. I worked to reduce energy costs by voting to expand energy choices and eliminate inefficient subsidies and mandates.

State Senator John Pederson

27 State Office Building 100 Rev. Dr. Martin Luther King Blvd. St. Paul, MN 55101 (651) 296-6455 sen.john.pederson@senate.mn

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