Legislative Session picking up steam

I hope you had a happy Easter and were able to spend time with family and friends as you celebrated your personal faith tradition. Spring is just around the corner and the Legislature is picking up steam as Committee policy bills are making their way to the floor.

I am continuing to approach this year as a ‘fix-it’ session, focusing on repairing the mistakes from last year:

Provide school districts flexibility in the implementation of the many 2023 unfunded mandates.

Correct the 2023 tax bill Net Operating Loss error. Read on below for further details.

Provide common sense fixes to Earned Safe and Sick Time and Paid Family Medical Leave. Both new laws have already led to unintended consequences and confusion for employers and employees alike.

Update Marijuana law to include ~Health and safety warning labels much like tobacco labels, ~add a clinical pharmacy expert to the state cannabis advisory council, ~prohibit advertising of candy and dessert-flavored cannabis products

Please contact me with your suggestions or for help with any state issue or legislative initiative: sen.carla.nelson@senate.mn or at 651-296-4848.

It is a privilege to serve you!?

Budget Targets Released

The DFL Governor along with House and Senate Leaders reached budget target agreements

Additionally, in 2023, $980M was set aside for the 2024 bonding bill. In total, these targets lay out $540 M of additional state spending over the next four years. On top of that, we have a $1.5 Billion structural budget deficit, which means our state is spending more than it takes in.

As always, there are more needs than money available. I will view each spending request in light of: the nearly 40% increase in state spending passed last year, our structural budget deficit, and, is it the rightful role of government.

Increasing taxes is not the answer. Check out the Tax Incidence Study. You will note we are a progressively, high-taxed state.

We must be responsible stewards of Minnesota taxpayer dollars.

Net Operating Loss Fix

On Tuesday last week, the Minnesota Senate finally approved a repair to the 2023 legislative error that would have hit Main Street Minnesota businesses with a $15 million tax hike. The Net Operating Loss (NOL) tax change was to take effect in tax year 2024, but an error in the 2023 bill made it effective in tax year 2023. As a result, small businesses and entrepreneurs would have been on the hook for $15 million more in taxes.

This error was noted months ago when both Senate and House Tax Chairs sent signed correction letters to Gov. Walz. Usually, that is enough to correct the error; however, not this year!

I co-sponsored the legislation needed to force the correction. I am glad it passed the Senate and House and now needs the Governor’s signature. I remain dismayed at the delay. Moving forward, I hope the Legislature can work together to address urgent issues like this more effectively and more rapidly. Minnesotans expect no less of us.

Rochester Sports & Recreation Complex Sales Tax Exemption

Rochester Councilman Shaun Palmer joined me to testify before the Senate Tax Committee in support of my bill to exempt Rochester from paying sales tax on construction materials for the voter-approved Rochester Regional Sports & Recreation Center. This bill is projected to reduce the cost of the project by $1.3 Million.

Stay tuned. This bill was laid over for possible inclusion in the Senate Omnibus Taxes Bill.

Addressing School Budgets

To my great dismay, this year’s education policy bill did not include any provisions to address the unfunded mandates that are burdening our school districts. On top of that, the bill included additional mandates! I continue to hear from teachers, parents, and superintendents that cuts are being made in schools throughout Minnesota due to the costs of these unfunded mandates.

I sponsored SF-5245: a school mandate relief bill to give local school districts flexibility in the implementation timeline of the 2023 unfunded mandates. Unfortunately, it did not get a bill hearing; however, my colleagues and I offered it as an amendment to the education omnibus bill.

The amendment would allow school boards to transfer new funding from one use to another if passed by the school board in a recorded resolution vote that lists the purpose & amount of funds transferred.

These relief measures would be in place for the next 3 school years and would apply to mandates from the 2023 education omnibus bills plus any new mandates in the 2024 education legislation.

Unfortunately, the amendment was voted down on a party-line vote.

I am concerned that without bi-partisan solutions, our schools will continue to face structural budget difficulties similar to those facing our state budget.

Carla Nelson represents Dodge County and portions of Olmsted County in the Minnesota State Senate.