Nelson Capitol Report: Bonding update, Southwest Light Rail, and more.

Last week marked the midpoint of the 2023 Legislative Session! And it has indeed been a  fast and furious session. 

Our Founding Fathers did not intend it to be easy to enact laws and wisely provided that each Legislative Body act as a check on the other – to prevent bills from passing into law too quickly and without thorough discussion and consideration and the citizen involvement that comes with that.

This is why we have historic, strict rules that each body must abide by, such as: Tax and Bonding bills must originate in the House before moving to the Senate for action,  limited length of each legislative session, and bills that allow the state to borrow money must be passed by a supermajority of three fifths. 

Please don’t hesitate to contact me for help with any state issue or legislative initiative: sen.carla.nelson@senate.mn or at 651-296-4848. 

Working for you,

Carla

EXECUTIVE REPORT: 

  • Bonding Bill
  • Community Economic Development Assoc.
  • Southwest Light Rail Audit
  • Universal School Meals

Bonding Bill

VIDEO CLIP: https://www.facebook.com/watch/?v=176254671851363&ref=sharing

Yesterday, the Minnesota Senate debated an early-session, one-sided bonding bill. The bill requires a 3/5 majority vote (Super majority), which equals 41 votes. The bill failed by a vote of 33–32. 

The Senate should address Minnesotans’ urgent need for tax relief in addition to the state borrowing for a bonding bill. I  have repeatedly tried to move my bill to fully eliminate the double taxation on Social Security benefits to the Senate floor. Four minority members campaigned hard stating they would do so. Thursday provided the best opportunity as the House Bonding bill came to the Senate. Adding this to a House File, much as we added tax relief to the 2020 bonding bill, would have assured its passage. While I am cautiously optimistic that the Senate will indeed pass full elimination of the tax on SS benefits, the House and Governor have repeatedly resisted and all indications are they will strip it out of the bill in conference committee. This is why attaching the SS benefit elimination on the HF Bonding bill would have assured passage. It is extremely disappointing that those who campaigned to do so voted it down. 

I have long been a strong advocate for the smart use of bonding for critical infrastructure projects, especially projects that will help Rochester and southeast Minnesota, like the Rochester Airport, the County Road 14/44 interchange, and others. I have voted for every bonding bill, every time during my 15 years in the Senate, because bonding is an important tool to address critical projects. My commitment to our critical infrastructure is as strong as ever.

But with a $19 billion surplus, our first priority should be providing tax relief to Minnesotans. We need to get this tax relief out the door right away. There is no reason to delay any further; if we work together, we can get bonding and tax relief done very quickly. I hope that Senate Democrats will begin working with us in good faith moving forward.

Watch Senator Nelson’s floor comments on the bonding bill.

Community Economic Development

This week, I presented an economic development bill for small cities to the Senate Jobs and Economic Development Committee on Monday. Senate File 2185 would provide a one-time grant of $627,000 to Community and Economic Development Associates (CEDA) for economic development grants to small communities across rural Minnesota. The grant will enable CEDA to design, implement, market, and administer basic community and economic development programs tailored to individual community needs. 

Small communities in rural Minnesota often lack the economy of scale to have the dedicated expertise needed to drive economic development. The budgets for small cities and townships are often notoriously constrained, preventing officials from accessing support for economic development opportunities. CEDA has a proven track record of helping Minnesota small communities drive economic development. This funding will allow CEDA to continue supporting economic growth in rural Minnesota.

CEDA is a non-profit organization that works with communities to support local economic development. Grants would be given to communities that otherwise can’t afford to invest in their own economic development, thus removing a competitive disadvantage. 

The bill was met with positive comments from the committee and was laid over to be considered for a larger jobs bill later in session.

Southwest Light Rail Audit

On Wednesday, Minnesota’s Office of the Legislative Auditor released a report on the troubled Southwest Light Rail line, detailing the project’s numerous problems, delays, cost overruns, and mismanagement by the Metropolitan Council.

It is no secret that Southwest Light Rail has experienced significant challenges and the Metropolitan Council’s management of the project has raised serious concerns. The Legislative Auditor’s report provides valuable insights into these issues, and I appreciate their effort to document it all.

I strongly encourage the implementation of all of the auditor’s recommendations. We should work towards improving the management and fiscal responsibility of not just this project, but all future passenger rail proposals. 

As we consider future rail projects, it is essential to learn from the issues faced by the Southwest Light Rail. We must ensure that any proposals, including those in Gov. Walz’s budget, are subject to thorough legislative and administrative review. Allocating taxpayer dollars responsibly is crucial, and our focus should be on maintaining and enhancing our transportation infrastructure, including roads, bridges, and safety measures.

Universal School Meals

Watch my floor comments about the concerns with the school lunches bill.

Parents, teachers, principals, and superintendents contact me on a regular basis about a host of education concerns, including special education funding, per-pupil funding increases, school-linked mental health, safe schools, and much more. Universal Free lunch and breakfast is not near the top of their priority lists.

The universal free lunch and breakfast bill is certainly well-intended. As a former teacher, I know from experience that hungry children are not at prime learning capacity.

That is why the federal government pays for free or reduced lunch and breakfast for students from families making less than 185% of Federal Poverty Guidelines. ($55000 family of four). In Minnesota, we go a step further and provide free lunch and breakfast for all who qualify.

It will cost taxpayers $200M per year to buy free lunches and breakfasts for children whose parents make too much money to qualify.

Students will lose $460 million in compensatory funding which is determined by the number of free lunch qualifiers.

We should redouble our efforts to reach those families who want assistance and aren’t getting it. We should do everything we can to make sure every child that is in need can obtain free lunches and breakfasts.

Supporters of universal free lunch and breakfast expressed concern that 18% of families whose children qualify for free lunch do not even apply for it. I know firsthand that in an effort to maximize compensatory funding, school districts make great efforts to seek applications from all who qualify. Many, if not most, parents who qualify but do not apply, make a conscious decision to not apply. They prefer to provide their own lunches for their children and we must respect that.

If we need to make the application and paperwork simpler, then we ought to do that. But we don’t need a universal free lunch program to achieve it. Students who need free lunch are already able to get it.

I absolutely understand the appeal of this bill. Families really need tax  relief. Inflation is cutting into their budgets, yet even with a $19 billion surplus, the majority parties have passed no significant tax relief this session.

The bill author said universal free lunches and breakfasts would be one way to provide relief. But the fact is that this relief would not go to lower-income or middle-income families, because they already have options for free lunches and breakfasts.

Instead, this bill will provide the upper-middle-class and wealthy with free lunches at the expense of everyone else, including people with no kids, grown kids, and seniors.

It is a well-meaning bill but is the wrong policy for Minnesota schools, families, and taxpayers.

Survey:

Which statement most accurately depicts your stance on the issues related to the Southwest Light Rail Audit?

  1. The SWLRT has significant problems: Un-elected Bureaucratic Mismanagement, Cost Overruns, Little to no transparency. We need more oversight.
  2. The SWLRT may have some issues, but I don’t think the Legislature needs to get involved.
  3. I don’t have an opinion on the SWLRT – I’m focused on other issues. 
  4. What else would you like to tell me? __________________

Last week’s survey results: