~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only...

16
I No.' A Publication about the Minnesota State Senate Vol. 11, No.1 Session '85: new directions This document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project. http://www.leg.state.mn.us/lrl/lrl.asp

Transcript of ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only...

Page 1: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

I ~o.1I No.'

A Publication about the Minnesota State Senate Vol. 11, No.1

Session '85: new directions

This document is made available electronically by the Minnesota Legislative Reference Library as part of an ongoing digital archiving project. http://www.leg.state.mn.us/lrl/lrl.asp

Page 2: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

Table of contents:31 Tax reform: a long-range plan

Minnesota Tax Commission presents its repolt amid calls for taxreform.

61 State budgeting is complex processPreparing the state's budget is a time-consuming procedure andinvolves all areas of state government.

81 Policy committees to tackle vital issuesLawmakers begin the 1985 session with several issues to be resolved.

151 Taylor to lead Senate minorityIR Senator outlines areas of concern among minority caucusmembers.

The JanualY 1985 issue of Perspectives offersa preview of some of the major issuesconfronting lawmakers this session. Inaddition, Perspectives highlights therecommendations of the Tax StudyCommission, outlines the state's budgetsetting process and offers a brief profile ofMinority Leader Glen Taylor.

2

The Senate Public Information Officeprovides a weekly news summary, calledBriefly, of Senate committee and floor actionalong with a schedule of the next week'scommittee hearings. To be placed on themailing list, simply call or write SenatePublic Information, Room B-29, StateCapitol, St. Paul, MN 55155, (612) 296-0504.

Writers: Karen L. ClarkSteve Senyk

Photographer: Mark Iv\. Nelson

On the cover:

111e capitol rotunda, with the Star of theN011h and the grand stairway leading to theSenate Chamber, will be filled with activitywith the start of the 1985 Legislative Session.111e capitol building, designed by CassGilbert, celebrated its 80th birthday, January5th. Photo by Mark M. Nelson.

Page 3: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

A blue ribbon tax study commission made sweeping recommendations for tax reformafter completing an intensive 19 month study of Minnesota's tax structure. photo by s. Senyk

Ta reform: a long-range planby Steve Senyk

For over a year, the governor's 16-memberMinnesota Ta,x Study Commission, chairedby St. Paul Mayor George Latimer, has beenstructuring a tax framework that is intendedto remove inequities in the system, stabilizerevenue and put l'vlinnesota in aneconomically competitive position. 111eirrep0l1, adopted December 8, has drawnconsiderable discussion. Senate MajorityLeader Roger Moe, Tax CommitteeChairman Douglas Johnson and SenateMinority Leader Glen Taylor all identifiedrecommendations that they would notsuppott. Governor Perpich has said, too, thathe would not propose all of thecommission's recommendations thissession. Latimer has suggested, though, thatthe rep0l1 is not designed to serve as tax

legislation for 1985. Rather, it recommendssignificant changes in the state's taxstructure which commission members feltcould be used as a basis for future tax policyconsideration.

Income taxCommission members recommended thatMinnesota income taxes be cut 20 percent­$477 million during each of the next twoyears. 111e cut would be funded by $300million from the state's surplus and $177million from expanding the 6 percent salestax to clothing and personal services. (Thegovernor has recommended a $604 millionincome tax cut over a two and one-half yearperiod. Moe announced that the Senate DFLcaucus supports a cut of between $400-$600million over two and one-half years, and

Taylor said the minority caucus suppottssignificant income tax reduction.)

In examining Minnesota's income taxstructure, the commission discovered that atleast thirty sources of income are eithertaxed by the federal government and not bythe state of Minnesota, or by the state andnot the federal government. Commissionmembers agreed that the modifications tothe income tax raises administration andtaxpayer compliance costs. Furthermore, thecommission felt that the state deduction forfederal taxes paid accomplishes nothing thatcannot be handled in a Simpler manner.

The commission proposed that Minnesota'stax base conform to the federal tax base andthat the state adopt the federal definition ofthe taxpaying unit, which is the married

3

Page 4: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

Senate Majority Leader Roger Moe and Tax Committee Chair Douglas Johnson pledge their support for taxreform at a recent capitol news conference. Below: St. Paul Mayor George Latimer, chairman of the Tax StudyCommission.

couple. TI1US, a family with one wage earnerwould not be taxed at a higher rate than afamily with two wage earners.

Under the commission's proposals,Minnesota's income tax deductions andcredits would conform to those of thefederal government. State taxpayers wouldtake a percentage of the federal credits:political contribution; residential energy;child and dependent care and low incomecredits. The commission agreed thatlvlinnesota taxpayers would not be able todeduct federal taxes paid or adoptionexpenses. They decided not to recommendwhether education expenses should bedeductible or not. Minnesotans would haveto pay taxes on present income exclusions,such as unemployment compensation andpension contributions. But, Minnesotanswould be able to deduct IndividualRetirement Accounts (IRAs) contributions.

Property taxMembers of the commission concluded intheir repOlt that Minnesota's present systemof property classification, property taxcredits, and refunds is a system that is toocomplex. They stated that it createsincentives for higher local spending, thusplacing a higher tax burden on allMinnesotans. Members contend that the taxcredit program is provided in a "crude andpoorly targeted manner" and discouragesefficient administration, taxpayer

4

understanding and patticipation in the fiscalsystem."

In light of these arguments, the commissionrecommended that the credits be eliminatedand that Minnesota's property classificationsbe reduced from about 70 to 3.

Minnesota's propelty tax relief programprovides a total of $803 million in relief:$624 million in credits plus $179 million inthe circuit breaker program. Thecommission recommended that the $624million in credits be used foracross-the-board mill rate reduction andanother $179 million be used for a revisedproperty tax relief program, which aimsrelief to low and moderate income peopleby considering propelty value, income andtaxes due,

The across-the-board mill rate reductionproposal would also lower the mill rates oncommercial and industrial property. TIlerates would be lowered through theproposed mill rate reduction and propertyrelief program. Thus, the commissionretained the favored status for homesteadand farm property tax relief.

Minnesotans combined tax liabilities forincome and property taxes would be lowerunder the commission's proposals. (Seechart.)

photo by S. Senyk

Sales taxIn order to stabilize tax revenue and toreduce Minnesota's reliance on income taxrevenues, the commission agreed thatMinnesota's six percent sales tax should beexpanded to include clothing and personalservices. Personal services would includeservices such as funerals, repairs andhaircuts. This expansion would increasesales tax revenue by $177 million, whichwould then be used to supplement theproposed income tax relief.

Page 5: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

The information above provided by Tax Study Commission.

Senate leaders respondSenate leaders from both political partiespraised the commission for recognizing theneed for income tax reduction, but theyeach indicated pal1S of the repOit that theycould not SUppOit.

In outlining the Senate DFL's approach totax reform in 1985, Majority Leader RogerMoe said, "First and foremost, we intend topass a substantial income tax cut ... I thinkyou can comfOitably say it is going to liebetween four and six hundred milliondollars. We intend to target that income taxrelief to the middle income as much aspossible. We do not intend to abandon along standing commitment that we made tohomeowners, to farmers and to smallbusinesses in the form of property taxrelief." He said that the DFL majority intendsto simpli~r the income and property taxsystems. But, Moe said, the DFL caucuswould not SUppOlt the expansion of the sixpercent sales tax to clothing and personalservices and the elimination of thehomestead and agriculture land credits.

Concerning income tax simplification, TaxCommittee Chairman Douglas Johnson saidthat the committee is examining the effectsof disallowing the state deduction onfederal taxes. He said, however, "I think it isvelY safe to say that the tuition tax credit issafe, and that it would not be droppedunder any circumstances." He added thatthey are also looking at adopting the federalIRA deduction, but that since only one outof ten Minnesotans have an IRA, nine out often people would not benefit from the taxrelief.

Johnson disagreed with the commission'sproposal to eliminate the agricultural landand homestead credits. "Our position wouldbe not to do away with the homestead

Sen. Glen Taylor

credit or ag land credit. We see that as beingspecial tax relief targeted to farmers andhomeowners in Minnesota ... we think thatit is impol1ant to keep those two credits."

Reducing the number of propel1yclassifications from 70 to 3 would causemassive shifts in property taxes, saidJohnson, "in which the big benefactorswould be large commercial and industrialpropel1ies, railroads and utilities, at theexpense of farmers, homeowners and smallbusiness people."

phOIOS by lvlark M. Nelson

Expanding the sales tax would be the wrongapproach, said Johnson. "\X!e think that itwould also be a major mistake in 1985,when the effOl1 is to cut taxes, to increasetaxes or expand taxes in any way as hasbeen suggested by the commission."

Minority Leader Glen Taylor said, "I like thesignificant approach to income taxreduction, but the commission's full repOltis not the final solution. " He later added, "IfMinnesota is to become competitive, iflvlinnesota is to stalt stemming the loss ofbusinesses and jobs, then down the roadmore steps will have to be taken to flllthertrim taxes."

Taylor disagreed with extending the salestax and eliminating the propelty tax credits."The extension of the sales tax means someof the income tax reduction is really a taxshift. 111e same goes for the plan to disallowthe deduction for federal taxes paid on stateforms and the proposal to eliminate thehomestead and ag propelty tax credits."

111e debate on tax reform will continuethroughout the legislative session, and thetax commission repOlt will selve as ablueprint for fUl1her discussions andimprovements in Minnesota's tax structure.

5

Page 6: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

Senate Finance Committee Chairman Gerald Willet and fiscal analyst David Buelow standwith the budget documents developed by various state agencies and departments. Duringthe 1985 session, the Finance Committee will review and approve state spending for thenext biennium.

6

StatebudgetingIII

1S

complexprocessby Karen 1. Clark

One of the most significant tasks set beforelegislators this session will be determiningthe state's biennial budget. The budgetprocess, which occurs in eachodd-numbered year, is a complex,time-consuming procedure and involves allareas of state government.

The process for anyone state agency ordepattment begins long before thelegislative session. Staff from the agency andfrom the Department of Finance work formonths preparing the agency's budgetbefore presenting it to the appropriateHouse and Senate committees.

The preparation of the state's total budget tobe set this year began in the fall of 1983,when Depaltment of Finance controllersmet with each depaltment's staff to plan forthe budget document and establish itsformat. During the spring and summer of1984, Finance Department officialsconsi<;lered the budget guidelines set by thegovernor.

The last year of the biennium-in this casefiscal year 1985, which is from July 1, 1984to June 30, 1985-is the base year forfiguring the next biennial budget. TheDepartment of Finance, using fiscal 1985 asthe base year, plugs in the appropriatenumbers to account for inflationaly factors,employee salaries and other cost factors.The budget manual, with these figures, isthen transmitted to the individualdepaltments and agencies. Staff at thoseagencies then begin the actual writing oftheir proposals into a budget document.

Page 7: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

Senate Finance Subcommittee members meet to complete the line-by-line analysis of statebudget documents.

Each item in a departmental budget isaccompanied by a narrative descriptionstating the goals of the patticular item andexplaining the reasons for the expenditure.Each state depattment has accountingofficers and budget narrative coordinatorswho insure that the actual dollar figures areaccurately reflected by the narrative pOltionof the budget document.

In May of 1984, budget narrativecoordinators, accounting officers, divisionand staff officers of a department met todiscuss the budget guidelines and theinstructions for developing the governor'soption list for special analysis.

Any changes in programs or policies werenoted, discussed and prioritized in responseto actual available dollars. Through thesediscussions, all alternatives were weighedand many of the toughest decisions weremade. Since the governor andcommissioners are firmly commited toholding the line on state spending, thepriorities within each depattment werecarefully analyzed. Thoughout the summermonths and into the fall, further discussionswere held involving staff from thecommissioner's office.

The narrative pOltion of the budget wasedited to highlight the reasons and methodsfor any changes from the previous year.Along with setting priorities for theprograms and services provided by theagency, budget personnel struggled withproblems of finding alternative sources offunding, perhaps through fees for service orthrough federal programs. The depaltmentstaff fUlther refined the document to insurethat it falls within the guidelines set by thecommissioner. Formal meetings were heldto further refine the approved change levelsand to determine more cost effectivemethods of delivering services.

The department's budget is then submittedto the Finance Depmtment. Finance officialssummarize all the numbers and beginanalysis of the change items suggested byindividual agencies.

In December, department heads andFinance officials meet with the governor tobegin the final review process for eachdepartment's budget. Controllers for eachagency make sure that all the numbers arecorrect and that the narrative pOltions of thebudget document clearly reflect thedepaltment's recommendations and thegovernor's priorities. 111e governor thenaddresses a joint session of the legislature inlate January and formally presents the state'sbiennial budget.

With the formal presentation to theLegislature, the budget setting processenters yet another complex phase. In theSenate, the Finance Committee is divided

into four major subcommittees, each ofwhich is responsible for developing a majorspending bill.

Finance Committee Chairman Gerald Willethighlighted the various steps the FinanceCommittee members and staff take inpreparing the budget measures. Eachsubcommittee begins by hearing overviewpresentations from the depattments andagencies for which it is responsible. At thesame time, \\Tillet said, there is constantcommunication with staff from the TaxCommittee in order to keep track of currentand projected revenue that would bederived from the package of tax proposalsbeing developed by the members of the TaxCommittee. In addition, he said, after thebeginning of the legislative session, any billsintroduced that have fiscal implications areanalyzed to determine the impact on totalstate spending.

Willet emphasized that the Senate"understands that the budget is very tightand we are committed to holding the lineon budget increases. Everything is subjectto change at the beginning of the session,"he said, "and then to /luther modification asthe Tax Committee moves fOlward."

After the governor's address in JanualY, theFinance Subcommittees begin the line byline analysis of the actual figures andnarrative contained in each budgetdocument. Each subcommittee chairmandevotes several meetings to hearing publictestimony on each depattmental or agencybudget. Subcommittee members must thentake into consideration all the backgroundmaterial; Finance Depattment, agency andpublic testimony in order to make decisionson individual budget items. Subcommitteemembers are also kept informed of currentand projected revenues and must makedecisions based, not only on the need for a

patticular program, but also on the revenueavailable for such a service.

At this point, each subcommittee begins thepreliminary mark-up of each budgetdocument. lI'lembers give preliminaryapproval to budget items and decide onappropriate budget cuts where possible.After the preliminary mark-up phase,testimony from agencies, FinanceDepattment officials and the general publicis again heard. Numerous computer runs aredone to insure that all the numbers are validand correct and calculations are made toassess the effect of various spendingalternatives.

Once the preliminary figures are input, thebill drafting process is initiated. Eachsubcommittee develops one large bill forapproval by the members of thesubcommittee, and amendments, or

photos by Mark M. Nelson

changes, to the bill may be made at anypoint.

After approval by members of thesubcommittee, the bill is sent to the /llllcommittee and then on to the /llll Senate. Atthe same time a similar process is occuringin the House of Representatives. However,House members may have a final versionthat differs dramatically from the Senateversion. After passage by both bodies, eachbill goes to a conference committee wheredifferences between the two versions areworked out. \'\Ihen a compromise has beenreached, each body must repass themeasure and fOlward it on to the governor.The governor has the option, on spendingbills, of using a "line item veto." 111at is, ifthere is a particular item in an agency'sbudget that the governor is strongly against,he may veto that patticular item withoutvetoing the entire package. Once thegovernor does sign the bill, the state'sbudget is set for the entire biennium.

7

Page 8: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

The first day of the session, January 8, members of the Rules and Administration Committee, chaired by Sen. Roger Moe, met in room 15,the newly refurbished hearing room directly beneath the capitol rotunda.

photo by Mark M. Nelson

Policy committees to tackle vital issuesby Steve Senyk

Minnesota legislators will begin the 1985session with several major issues beforethem. The Minnesota Tax Study Commissionhas presented its tax reform package, andlawmakers on both sides of the aisle havemade tax cuts a top legislative priority. Statelawmakers will determine the state's level ofspending for the coming biennium, andfinances will need to reflect possiblechanges in state revenue. In addition, manyfarmers are financially depressed, theunemployment insurance compensationfund is still in the red, the state's elderlypopulation is growing, and many statebridges are deficient. 111is article highlightsonly some of the several legislative issues tobe discussed this session.

Agriculture andNatural Resources

Farm financingAccording to a recent Department ofAgriculture survey, it is reasonable to

8

assume that 35 percent of Minnesota's100,000 farmers will be forced out offarming within five years due to financialdifficulties. Agriculture and NaturalResources Chairman Gene Merriam said hiscommittee will be looking at variousproposals designed to help the farmer.

The depanment's survey indicated thatabout 70 percent of Minnesota's farmershave loans. Twenty-five percent of thosefarmers have a debt vs. asset ratio above 70percent. That means for every ten dollarsthey have, they owe at least seven dollars toa lending institution. Department officialsreponed that those farmers can reasonablyexpect to be out of business within twoyears. Twenty-six percent of the farmerswith loans have a debt vs. asset ratiobetween 40 to 70 percent. "These peopleare losing net worth and are in danger oflosing their borrowing ability and theirability to farm," reponed a statement issuedby Agriculture Commissioner Jim Nichols.

Last session, the Legislature enacted farmland tax relief and other programs thataddressed other farm problems, such asagriculture land preservation andconservation. But the department's survey

indicated that farmers want additionalsolutions.

Eighty-three of the farmers who respondedto the survey want the state to marketMinnesota products more aggressively; 74percent would like the state to increase thenumber of Minnesota food processors; 61percent want tax incentives to encourageland owners to sell or lease land tobeginning farmers; 57 percent wantminimum price standards; 55 percent wantincentives to agriculture lenders torestructure farm debt; and 54 percent wantresearch in new crops and farmingtechniques.

Combined seweroverflowLawmakers will be reviewing the problem ofcombined sewer overflow. St. Paul,Minneapolis and South St. Paul have somecombined storm and sanitaty sewers, whichsometimes increases polluted discharge intothe Mississippi River. Normally, thecombined wastewater is sent to a treatmentplant in St. Paul. However, when rainflow isheavy, the wastewater overflow is divertedinto the Mississippi River because pipes

Page 9: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

leading to the plant are not large enough tohold all of the discharge. The federal CleanWater Act prohibits the discharge ofuntreated sewage into any of the nation'swaterways. TIle discharges can beeliminated, according to the MetropolitanCouncil, by completing a storm and san italysewer separation program initiated by thethree cities, or by collecting, storing andtreating all of the combined stormwater andsewage. The Council proposes legislation toestablish a state construction grant programto provide financing for accelerating theseparation of the sewers. Merriam said hiscommittee will study how critical theproblem is; what the practical limitations areof taking action; and who is going to pay forthe separation.

SuperfundIn 1983, the Legislature created theEnvironmental Response and Liability Act,better known as the "Superfund" law. It wasenacted to provide a tool for speeding thecleanup of hazardous waste sites; to create afund to help pay for the cleanup; and tohold palties responsible for damages causedby the release of hazardous waste. TIlebusiness community is asking for the law tobe reviewed because they claim companiesare finding it difficult to obtainenvironmental impairment liabilityinsurance.

The law holds a company strictly liable forconsequent injury due to the disposal ofhazardous waste, whether or not thecompany was negligent in its actions, Also,businesses are held liable retroactively forwastes dumped since 1960. One of severalcompanies responsible for injllly can berequired to pay more than its share ofdamages if other companies are unable topay. The Minnesota Commerce Depaltmentis studying the availability of impairmentliability insurance in Minnesota as comparedto other states. Merriam said the committeewill review the issue if Minnesotabusinesses are having a problem obtaininginsurance.

Solid WasteIn addition, Merriam said the panel will alsobe reviewing proposals concerning solidwaste landfills in the metro area. TheMetropolitan Council has set a goal ofeliminating solid waste landfills in the TwinCities. The Council's plan is to reduce theamount of waste generated within themetropolitan area and to recover usefulmaterials and energy. To help achieve thegoal, the Council recommended that theLegislature enact laws that would eliminatethe land disposal of unprocessed wastewithin the metro area by 1990; require theseparation ofyard waste and recyclablematerials at the source by 1988; and

increase financial SUppOit for waste recoveryand reduction programs.

The Metropolitan Council believes theproposals would help conserve landfillspace, reduce the number of new landfills;and reduce the environmental risks causedby landfills, In addition, they feel the statefunds would encourage more effectivewaste recovelY programs by helping localgovernments finance the programs throughtheir initial stages.

Commerce andEconomicDevelopment

Interstate bankingA 1956 federal law prohibits bank holdingcompanies from purchasing banks inanother state unless the state has enacted alaw permitting interstate banking. TIleLegislature has considered bills that wouldpermit various forms of interstate banking,but no enabling legislation has beenenacted. Committee Chairman Sam Solonsaid he is expecting legislation to beintroduced again this session and that theCommerce and Economic DevelopmentCommittee will review the issue.

Proponents of interstate banking argue thatbanking service improves when larger banksare able to move into a market. They arguethat expansion increases competition,resulting in reduced loan interest rates andincreased deposit interest rates in thosemarkets. Also, since larger banks offer moreservices, the variety of services andavailability of credit may increase.FUlthermore, proponents feel that regionalinterstate banking, or interstate bankingrestricted to states within the same region,would be more beneficial because of theeconomic similarities within the regionalstates.

Opponents argue that competition woulddecrease and that smaller banks wouldstruggle because of the competition fromlarger banks.

MEED programThe 1983 Legislature enacted the MinnesotaEmergency Employment DevelopmentProgram (MEED) to address Minnesota'shigh unemployment problem and tostimulate economic grmvth. The programpays employers up to four dollars an hourfor wages and one dollar an hour for lUngebenefits for each person hired. M, ofOctober, the program had placed nearly19,500 of the 87,000 eligible applicants. Theprogram is scheduled to end December 31,

1985. Solon said that the committee hasbeen looking at the progress of the jobprogram.

Without the emergency jobs program, someprogram palticipants will have to be placedin the care of counties' general assistanceprograms. According to Peggie Jackson,management analyst for the MEED program,38,8 percent of the patticipants enrolled inthe program would be eligible for GeneralAssistance, which would burden counties'GA programs, Solon indicated that fundingthe program will be all issue if lawmakersdetermine that it should be continued.

Education

Task force reportsEducation Committee Chairman JamesPehler said that the committee will bereviewing several repOtts mandated lastyear. A task force on alts education isexamining the current status of publicschool alts education programs. The panelis studying the question of whether there isa need for improving or expanding theprograms. In addition, the task force isassessing the need and benefits ofestablishing a School for the PerformingAlts.

The Minnesota Higher EducationCoordinating Board is studying teachereducation programs in the state. The boardwill report on the quality of the presentprograms and recommend ways to improveteacher preparation programs.

In addition, a legislative commission isconducting a bargaining impasse study.Commission members are investigating thecollective bal'gaining process in the publicschool system, and will makerecommendations for ways to improve thenegotiating process.

Lawmakers will review a repOit on themicro-computer pilot project. Currently,Minnesota school districts must repolt alldistrict financial information to theDepaltment of Education throught the useof a main computer system. The Legislaturerequested that several districts experimentusing a micro-computer to collect andreport the information. Their repolt on theexperiment will come before the 1985Legislature.

Public educationreorganizationThe Minnesota Business Partnership hasissued several recommendationsreorganizing public education in Minnesota.The recommendations include requiring

9

Page 10: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

students to complete a core program incommunication, social studies, science andmathematics; allowing high school studentsin grades 11 and 12 to attend schoolprograms of their choice; and revisingteacher preparation requirements. Pehlersaid the committee will be looking at thePartnership's recommendations.

For the past few years, the Legislature hasbeen encouraging local involvement insetting educational goals in order toimprove instruction. Teachers have becomeinvolved in administrative goal setting.School districts as well as school personnelhave become more involved in planning,evaluating and assessing educational goals.Senator Pehler said his committee willcontinue to study ways to stimulate localmanagement in setting and assessingcurriculum development.

Pre-school educationLast year, lawmakers reviewed a bill thatwould mandate school districts to establishand coordinate educational services forpre-school handicapped children. Membersof the Education Committee requested afiscal impact analysis of the program. TIlebill, which required school districts,counties and other local units ofgovernment to work together to provide theservices, was intended to stimulate thechildren's developmental abilities to enablethem to be at an optimum learning levelwhen entering school. Pehler said the issueis likely to be reintroduced this session.

Education aidsMembers of the Education AidsSubcommittee will be put to the task ofsetting the foundation aid formulaallowance for the next biennium. TIle 1985allowance is $1,585 per pupil unit and themill rate is 23.5 mills. (Mill rate is the levelof property ta'(ation. One mill is .001 of onedollar. In 1985, each ta'(ing unit of propertyis taxed 23.5 mills for educational purposes.Per pupil unit is a measurement used todetermine student enrollment.Kindergatteners are considered .5 of a pupilunit; elementary students are 1 pupil unit;and high school students are 1.4 per pupilunits.)

Elections andEthics

Study of the LegislatureLast session, the Elections and EthicsCommittee asked the Humphrey Institute toconduct a study of the Legislature's structure

10

and performance. Headed by Dr. RoyceHanson, the study will include a closeexamination of the Legislature'sorganizational structure, size andprocedures. To supplement this two-yearstudy, the institute will be conducting avariety of seminars on the legislativeprocess. Different guests will be invited tospeak on issues relating to the legislativepl'Ocess.

In conjunction with the study, the Electionsand Ethics Committee will be. holdingvarious informational hearings to solicitcomments from experts on issues relating toMinnesota's Legislature: size, structure andthe length of members' terms. CommitteechairmanJ~romeHughes said thecommittee will invite former lawmakers andgovernors to discuss the issues this session.

Recodification ofcampaign lawsThe SecretalY of State's Office has created atask force for the purpose of recodi~'inglaws relating to fair campaign practices andelection contests. Task force and committeestaff member Kathy Foley said theirrecommendations will come before theLegislature this session.

Employment

Unemploymentinsurance fundL'lst year, lawmakers failed to resolve theproblem of the unemployment insurancecompensation nll1d deficit. At the beginningof the 1984 legislative session, the deficitwas $425 million. It has shrunk considerablybecause of increased economic activity,increased federal tax collections and lowerunemployment rates. TIle state must pay tenpercent interest on part of the deficit. In1982, the federal government imposed a flatunemployment penalty ta'( that affectsemployers equally and is not based on anemployer's experience of having laid offworkers. That ta'( increases yearly until theloan is paid in nili. Eliminating the deficit isnecessalY to relieve business owners of thefederally imposed ta'(. However, iflawmakers increase the employers'unemployment compensation payroll tax,the owners will be paying higher ta'(es inaddition to paying the federally imposedta'(.

Employers claim the program's benefits aretoo costly. TIley want lawmakers to reviewthe program's accessibility-therequirements a worker must meet in orderto become eligible for compensation; theduration of benefits-how long anunemployed worker can receive benefits;and the benefit levels-how much a workerreceives when unemployed.

Senator Florian Chmielewski, chairman ofthe Employment Committee, said the issuewill be among the committee's top prioritiesthis session. He said committee memberswill be looking at ways to alleviate thefederally imposed tax.

Minimum wage backlogCommissioner Steve Keefe of theDepartment of Labor and Industry hasindicated that he would like to reduce thebacklog of cases filed against employers forfailing to comply \vith the state's minimumwage laws. TIle Legislature would need topass legislation to enable the department toexpedite the review process. Chmielewskisaid the committee will consider legislationto assist the department.

Comparable worthThe Legislature passed a law last sessionrequiring local units of government toevaluate jobs by conducting comparableworth studies. They were also required toset up equitable pay schedules betweenfemale-dominated, male-dominated andbalanced classes of employees by August 1,1987. TIle intent of the law is to eliminatethe differences in pay between classes ofemployees whose jobs are considered to beof comparable worth. Chmielewski said thatconforming to the law will place large costson local units of government. He said thatthe state should be responsible for "pickingup the costs we have forced upon localgovernments." He added that he would likehis committee to study the issue.

Energy andHousing

Alternative fuelsMinnesota's dependence on impOlted fuelshas been a concern for lawmakers andcitizens for years. Reducing Minnesota'sdependence on those fuels would help fightincreasing energy costs and helpMinnesotans and Minnesota businesses savemoney. However, to date, alternative nlelshave not developed into economicallysuitable sources of energy. l\'lovingalternative nlels from the experimental stageto the useable stage has proved costly.According to committee staff, committeemembers will continue to examine ways tomake energy sources such as hydropower,wind power, fiber nIels, and recyclingwaste-to-energy more ~conomically

prudent and attractive.

The current state tax credit for alternativeenergy sources ends this year, and

Page 11: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

committee staff said lawmakers would haveto enact legislation to allow the credit tocontinue.

CogenerationA 1978 law encourages small producers ofpower, or cogenerators, to produceelectricity by requiring the larger utilities tobuy power from the wind generator ownersand the hydropower producers. The utilitiesare required to pay the small powerproducers and cogenerators the costs theutilities avoid by not having to buildadditional generating capacity. 111eassumption is that the consumer will paythe same price for the power, and smallproducers of electricity will have theincentive to produce the alternative sourceof energy. However, the problem isdetermining the amount of avoided costs. ASenate subcommittee is studying the issueand preparing recommendations that wouldhelp determine ways to calculate avoidedcosts.

Housing for the elderlyAnother issue that will come before thecommittee, according to staff, is the cost andavailability of housing for the elderly. In thenext five years, 650,000 people who head

households will reach sbcty years of age.According to Monte Aaker, researcher for theMinnesota Housing Finance Agency, thisincrease will increase the need foradditional rental housing for the elderly.Federal policy changes have resulted in thereduction of approved contracts for theconstruction of subsidized housing forsenior citizens. In 1978, HUD approved theconstruction of 20,000 units under theapproved federal section 202 senior housingprogram. 111at number has been reduced to10,000 units in 1984. Aaker said that meantonly 40 units would be constructed this yearin Minnesota.

GovernmentalOperations

PERAThe Governmental Operations Committee,chaired by Senator Don Moe, has beeninvestigating the management practices ofthe Public Employees Retirement Account(PERA) because of alleged improper acts bysome board members and staff. As a resultof several interim hearings, Moe said that,"111ere definitely will be significant changes

photo by i','lark M. Nelson

in the organization and administration ofPEI~." Any proposed changes will beconsidered by the committee.

Constitutional officersDifferent proposals to merge the stateconstitutional offices of Secretary of State,State Auditor and State Treasurer failed lastsession. tvloe said that the issue ofeliminating some of the offices is a "likelyprospect for legislation." Past proposalsincluded creating one position of "StateComptroller" to replace the functions of thethree offices.

Metropolitan CouncilproposalsThe Metropolitan Council has proposed thatthe Council be allowed to appoint the chairsof the Regional Transit Board (RTB) and theMetropolitan \'\Iaste Control CommissionOvIWCC), and that the Council be allowedto prepare guidelines on the practices andprocedures of the two agencies. Moe saidthat the committee will consider theirproposals along with other matters relativeto the Met Council.

Salaries

Lawmakers will be reviewing ways to insure that alternative energy sources, such as thiswind generator, can be developed into economically suitable sources of energy.

Moe said the committee will also be lookingat the pay rate of the state departmentheads. Proponents of increasing pay for statecommissioners claim that higher salaries arenecessary to insure that the most qualifiedpeople are interested in working for thestate. The pay bill would also include someminor changes to the current salarystructure, said Moe.

Legislative commissionsThe Governmental Operations Committeewill be considering eliminating somelegislative commissions. "I am going tomove for the elimination of some legislativecommissions. My belief is that we haveburdened the Legislature with too manylegislative commissions and in doing sohave detracted from standing committees,"said Moe. Moe did not indicate whichcommissions the committee would considereliminating.

Health and HumanServices

Deinstitut~onalization

In 1980, the state of Minnesota reached anagreement with a state hospital patientconcerning allegations of failing to provide

11

Page 12: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

JudiciaryDrinking ageMinnesota will have to raise its drinking ageto 21 or face the possibility of losing federalhighway funds, according to a federal lawenacted last .July. Minnesota would lose fivepercent of its federal highway funds if theage is not raised by October 1, 1986. Anadditional five percent would be lost if theage is not raised to 21 by October 1, 1987.Senator Allan Spear, chairman oLhe.Judiciaty Committee, said that if membersagree to conform to the federal mandate,the committee will follow the governor'srecommendation of complying with the lawuniformly with other states to avoidpotential border problems.

photo by L salzman

development of community based services.The intent was to contain medical assistancecosts by developing less expensivecommunity based services.

The Strategy on Aging Task Force was alsocreated to review programs that would bemore effective and less costly thaninstitutional nursing programs. 111e taskforce has recommended that an incomesupport program for the elderly bedeveloped to encourage independent living;that the Legislature provide incentives toencourage the planning and delivery ofsocial services to the elderly; and thatincentives be provided to encourageindependent or semi-independent livingarrangements for the elderly. Berglin saidher committee will consider therecommendaticms.

citizens and mentally retarded persons. As aresult, there has been a significant grmvth inhome health care services. In response tothis grmvth, the Department of Healthcreated a task force to examine ways toinsure adequate home health services. Thetask force has formed recommendations,which include the licensing and regulationof home health care service agencies orproviders. The committee will review theirrecommendations, said Berglin.

Berglin said that legislation to help morecounties provide child care programs couldcome before the Legislature. During the lasttwo years, the Legislature has appropriatedabout $3 million to help counties providechild care programs for low-incomefamilies. From that allotment, twenty-fourcounties were able to establish some levelof subsidized child care. However, theamount allocated is far shOtt of the demand.The Department of Health estimates that $40million is needed to meet the need ofsubsidized child care.

Strategy on aging

Child care

Legislation regulating home health care services is just one 0

before the Health and Human Services Committee.

In 1979, Minnesota ranked first in the nationin medicaid reimbursement days of nursinghome care. Currently, 60 percent of thestate's medical assistance budget goes toinstitutional care. Only one percent is spenton community based services. The 1983Legislature put a moratorium on theconstruction of nursing homes andimplemented a preadmission screeningprogram in order to encourage the

adequate institutional care. The agreement,referred to as the Welsh vs. Levine consentdecree, called for the deinstitutionalizationof state hospital patients. The intent was tomove the patients into home-likecommunity facilities. 11ms, the state mustreduce the state hospital patient populationto 1,859 by 1987. According to theDepartment of\X'elfare, state hospitalpatients numbered 2,155 as of.June 30,1984.

Nursing homereimbursement

Home health careservices

The State Planning Agency is preparingrecommendations to ease the effects ofdeinstitutionalization on state employeesand communities where the hospitals arelocated. Health and Human ServicesCommittee Chair Linda Berglin saidcommittee members will review theagency's repc)[t and consider appropriateactions.

The 1983 Legislature altered the nursinghome reimbursement system in order tocurb long-term nursing home costs. The oldreimbursement method, referred to as acost-based system, reimbursed nursinghomes solely on their expenses. 11ms, thestate was reimbursing the homes for costs ofpatient care as well as improvements madeto the homes. The 1983 Legislature alteredthis system to better reflect the rental cost ofthe propelty and the operating cost. Theystructured a two-payment system. First,nursing homes would be reimbursedaccording to a reasonable value of rental forthe nursing home property cost. Secondly,the home's operating costs would be basedon the level of care a patient requires. Thus,a home would be reimbursed at a higherrate if the level of care for the patients isgreater. 111is "case mLx" reimbursementsystem would also apply to mentallyretarded residents. A national firm ispresently calculating ways to help the statebetter determine the level of care requiredfor patients. Berglin said the state andlawmakers will continue to monitor theimplementation of the new reimbursementsystem to insure that long-term costs arecontained.

Berglin said that the committee will beclosely watching the success of the state'sequal rates requirement under the nursinghome reimbursement system. She said thelaw was enacted to insure that rates toprivate patients and public patients areequal and that private patients are not overcharged.

The state has set policy encouragingalternatives to institutional care for senior

12

Page 13: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

Juvenile codeSpear said that his committee will spendconsiderable time studying the governor'stask force recommendations to revise thejuvenile code. In recent years, counties havebegun to move away from putting juvenileoffenders through the coun ~ystem andmove toward out-of-court programs.Programs have been established to allowjuvenile offenders to work out an agreementwith the victim for compensation of losses.In addition, counties are ttying to avoidout-of-home placement of juveniles andestablishing programs to help both thefamily and the juvenile in the home. TIletask force is reviewing how the criminaljustice ~)'stem treats juveniles and whetherthe punishment is adequate or too harsh invarious areas.

Crime victim's rightsAn attorney general's task force is studyingthe issue of victim's rights and is expectedto present recommendations that wouldhelp crime victims deal with crime and alsodetermine to what extent the victim shouldbe involved in the judicial process. TIle1983 Legislature enacted a law to allowvictims of crime to become more involvedin the judicial process. The law required theprosecuting attorney to inform the victim ofa plea agreement and of the victim's right toexpress, in writing, any objections to theagreement. The victim was also given theright to request restitution. Spear said thathis committee will study the task forcerecommendations in light of action that wastaken previously.

photo by Mark M. Nelson

Judiciary Committee members will be examining a number of important issues thissession, ranging from raising the drinking age to revising Minnesota's juvenile code.

Court unificationLast session, the Judiciaty Committeedefeated a proposal that would unitY thecounty and district courts. The issue couldbe discussed again this session, Spear said.

Child abuse reportingThe Minnesota Legislature enacted a law in1982 requiring professionals responsible forchildren's care, such as teachers, socialworkers, doctors, and other child careprofessionals, to report suspected childabuse to the local welfare or lawenforcement officials. However, JudgeCharles Porter of Hennepin Countydismissed the charges in a recent case,stating that the state law was too vague.POtter ruled that the law was inconsistentbecause it mandated reponing when aperson had "reasonable cause to believe"that a child was abused. In anothersubdivision of the law, it requires a personto repon "suspected" abuse. Spear said thecommittee will work to clari!)' the law.

Local Government

Urban expansiondistrictsThe League of Minnesota Cities has askedthe Legislature to create a task force toaddress the problem of delivering servicesto new residential areas expanding outside acity's boundaries. To provide services to thenew resident, cities would rather annex thearea. However, the townships where theresidential areas are located, would rathercontract with the city for services. Also,some townships choose to obtain urbantownship powers in order to be granted thepowers of a statutol)' city.

The Coalition of Outstate Cities hasrequested a committee hearing on theirproposal to create urban expansion districtsto address the problem. They contend thatplanning for and serving urban orurbanizing areas should remain with thecities. Their proposal would allow the citycouncil to designate urban expansiondistricts to be reserved for expansion. Thus,

new residential areas would be able toannex the area.

Schmitz said the committee will look at theissue this session, and if it is necessalY, tocontinue working out a solution during theinterim.

Public Utilities andState RegulatedIndustries

Universal phone serviceLast year's breakup of the world's largestcorporation, American Telephone andTelegraph, was a result of a consentagreement that ended an eight year oldantitrust suit by the Department ofJusticeagainst AT&T. The agreement called for thedivestiture of AT&T's wholly or paniallyowned subsidiaries into seven independentregional companies. Each of the regionalcompanies must provide local phone

13

Page 14: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

service without the financial SUppOlt ofAT&T.

\\1hen Northwestern Bell was AT&T, highlocal phone costs were offset with subsidiesfrom long distance and business servicepremiums as well as revenues fromequipment sales. Local phone rates did notreflect the actual costs. As a result of thedivestiture, local phone companies wereforced to set higher phone rates in order tocover the costs of providing local phoneservice.

Because of the higher local phone rates,committee members are concerned that lowincome people are finding it more difficultto afford phones. Even though the federalgovernment is mainly responsible forhandling issues that affect the divestiture,states could become involved in enactinglaws to help low income people meetphone costs. According to committee staff,members of the committee will study waysto insure that everyone can afford a phone.

Transportation

Gas tax proposalsThe Depattment of TranspOltation hasproposed that the Legislature considerindexing the motor fuel t:LX to allow it toautomatically adjust, once a year, to offsetdeclining motor fuel revenues. According toa depattment repolt, road funds fall asconsumption of motor fuel declines. Lowerfunds decrease annual highway workprograms, and the depattment anticipates acontinual decline in consumption.Minnesota's fuel tax is the main source ofhighway funding, and the depattment saidthat the indexing is not intended to be a t:L,{increase to do more highway work, but anincrease to maintain a constant level ofwork. (Minnesota's current gas t:L,{ is 17cents per gallon. ) TIle committee willreview the depattment's proposal, saidcommittee chairman Clarence Purfeerst.

Purfeerst said that it is likely legislation willbe introduced to increase the tax on leadedmotor fuel and lower the tax on ethanolblended gasoline. TIle t:LX on leaded fuelwould be to discourage consumption, thusdecreasing the amount of pollutantsresulting from the burning of the fuel, hesaid. The incentive for ethanol fuelconsumption would aid Minnesota'seconomy, he said.

Motor vehicle excise taxTo help boost highway funds, the 1981Legislature decided to transfer the motorvehicle excise tax from the state's general

14

operating fund to the highway distributionfund. That transfer was to phase in over aneight~year period, with 75 percent of thedollars going to highways and 25 percent totransit. However, during the budget shOltfallyears, the Legislature delayed that transfer.Thus, money obtained through the vehiclesales remained in the general operatingfund to help meet budget shottfalls. L1Styear, lawmakers voted to speed up theexcise t:L'{ transfer to the highway fund.However, the state is still pressed foradditional highway dollars. Purfeerst said heis introducing a bill to accelerate the transferof the vehicle excise t:LX to the highwayfund.

Ten-ton routesMembers of the Transportation Committeewill also consider a proposal to increase thenumber of ten~ton truck designated routesin the state. Five-:L'{le ten-ton trucks arerestricted to cettain routes in Minnesotabecause their weight erodes roads morequickly and reinforced construction isneeded. However, according to Purfeerst,semi~truck drivers contend that access toareas within the state is limited because toofew ten~ton roads are designated. Because ofthe state's dependence on the truckingindustry, Purfeerst said legislation toincrease the number of ten-ton routes isforthcoming.

Bridge repairThe Minnesota Depattment ofTranspOltation has labeled about 4,000bridges as "deficient." TIlese bridges willhave to be replaced or repaired within thenext few years in order to be operational.Purfeerst said that a bridge bonding bill willbe introduced to increase the amount offunding for bridge repair.

Light rail transitSeveral proposals suppOlting the creation ofa light rail system in the Twin Cities havebeen introduced in past sessions. Purfeerstindicated that legislation could beintroduced again this session, but he saidthat lawmakers might not be willing to funda light rail project, especially if no federaldollars are available.

Veterans andGeneral Legislation

Long-term careThe 1983 Legislature required that theDepartment of Veterans Affairs conduct astudy to review the need for developinglong-term care services for Minnesota

veterans. Currently, Minnesota has about105,000 veterans who are over the age of 65.By the year 2000, that number will increaseabout 50 percent to 157,000. The number ofveterans over age 80-those most likely toneed long-term care services-will increasefrom the current 5,500 to over 60,000veterans by the year 2000. \'\1hile thedepartment's task force recommended thatthe current long-term care system inMinnesota is sufficient to meet the needs ofmost elderly veterans, they recommendedthat more attention be directed tocontracting with private nursing homes forveteran care. (About 4,000 ivlinnesota elderlyveterans are in long-term care facilities;however, only 6.5 percent of those are inthe two state veterans homes. The otherveterans are in private or federal VAfacilities. )

TIle task force recommended that the stateconcentrate on developing non-institutionallong~term care service for the elderlyveteran and the younger disabled veteran.The committee, chaired by Senator BobLessard, has been holding hearings on thetask force's recommendations.

Big Island VeteransCampTIle Big Island Veterans Camp on LakeMinnetonka has been a center ofcontroversy during the past few years.Discussions have centered on whether theIsland should remain exclusively forveterans or be sold to the Hennepin CountyPark Reserve District for use by the generalpublic. TIle camp is in need of severalimprovements, and funding is not availablefor those improvements. Committee staffsaid the issue will be discussed again thissession.

Bingo limitsThe committee will also be looking atwhether the prize limits for bingo should beraised, committee staff said. Veterans andfraternal organizations located near bingohalls on Indian reservations cannot attractplayers because state law restricts theamount of prizes that can be awarded. (Statelaw does not apply to the bingo hallslocated within the reservations.) TI1Us,nearby organizations are having a difficulttime raising money.

Animal abuseTIle committee will also be looking intohow well the state protects animals fromabuse. In the past few years, several cases ofanimal abuse have occurred throughout thenation, and staff said the committee wants tobe sure that Minnesota's laws effectivelyguard against animal abuse.

Page 15: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

Taylorto leadSenateminority

photo by Mark M, Nelson

Sen. Glen Taylor

by Karen L. Clark

The start of a new legislative session alwaysbrings promise of change and newbeginnings. The statt of the 74th LegislativeSession is no exception. For the MinnesotaSenate, one of the most significant changesis the selection of Glen Taylor as the newleader of the Senate Independent~

Republican Caucus.

Taylor's election was brought about by theresignation, effective January 9, of Sen.James Ulland. Ulland resigned in order totake the position of Vice-President ofCOlporate and Internal Communicationswith the First Bank System.

Independent-Republicans met November16 to hold an election for the minority post.Sen. Glen Taylor emerged as the new Senateminority leader.

Taylor, a businessman from Mankato,characterized his new role as that of afacilitator. "I intend to use the strengths ofindividual members; to allow individualsenators to use their best talents in solvingproblems before the Legislature."

In addition, Taylor said that he felt he had"the ability to work with any senator orrepresentative. , . to use the 'art ofcompromise' to arrive at workablesolutions." He said that it was his intentionto select the best people from the caucus towork on specific legislation.

Taylor said that the primary goal of thecaucus for the I9R5 session is to providesound alternative proposals to those offeredby the DFL majority. TIle IR senators willformulate those alternative proposalsthrough the committee process, by offeringamendments to bills on the Senate floor andby engaging in critical discussion of theissues.

Taylor emphaSized that often the goals ofboth caucuses are velY similar but that oftenshat·p differences arise through the advocacyof differing solutions. For instance, he citedthe fact that nearly all panies agree thatthere will be a ta,'( cut agreed upon duringthe coming legislative session. However,Taylor pointed out, there are widelydiffering approaches as to how the ta,'( cutwill be enacted. In addition, he added thatwith many major issues, conflict is drawnupon urban-rural or agricultural-industriallines rather than political party lines.

Taylor indicated that he plans to restructurethe caucus into two major committees: apolicy committee to focus on broad issuesand a steering committee to implementcaucus actions on the Senate floor.

Taylor said that because of the change ofm:Jjority in the House of Representatives, hehopes the Senate minority will have anoppOltunity for more input in discussionswith the Senate majority. He emphasized therole of compromise in policy decisions and

stated his willingness to cooperate with allpanies.

Aside from the budget setting process andthe ta,'( cut issue, Taylor also expressed hisinterest in the educational issues that willcome before the Senate this year. "We musthave a well educated populace in order tomeet the economic demands of the future,"he said. He indicated two priority areas:better preparation at the elementary andsecondary levels; and a strong emphasis onhigher education. Taylor added, "We mustallow experimentation in new directions,"for instance those directions suggested bygroups such as the Minnesota BusinessPartnership,

Another key area of concern is theunemployment compensation fund deficit,Taylor said. Specifically, he mentioned twoapproaches to the deficit problem. First,shifting toward ta,'(ation of those businesseswhich use the system most and, secondly,looking at the administration of current lawsat the local level with an eye towardtightening up poor practices. The latterapproach would be especially significant inthat employers would feel better about thesystem, he said.

Taylor concluded by saying that serving asminority leader "offers both oppoltunity andchallenge. Public St\rvice is impOltant,"Taylor said, "because decisions made duringthese exciting times lay the ground work forMinnesota's Rlture."

IS

Page 16: ~o.1I No.' A Publication about the Minnesota State Senate ... · IRA deduction, but that since only one out often Minnesotans have an IRA, nine out of ten people would not benefit

PHONE PARTY SENATOR ROOM" DIST. PHONE PARTY SENATOR ROOM" DIST.

296-5981 DFL Adkins, Betty A. 235 Cap, 22 296-0760 DFL Petty, EricD, 323 Cap, 626455 IR Anderson, Don A. 103 SOB 12 7809 DFL Pogemiller, Lawrence J. G-24 Cap, 585975 IR Belanger, \X!illiam V, J1'. 107 SOB 41 4167 DFL Purfeerst, Clarence M, 303 Cap, 253903 IR Benson, Duane D, 109 SOB 32 9251 IR Ramstad, Jim 123 SOB 455094 IR Berg, Charles A 115 SOB 11 2889 DFL Reichgott, Ember D, G-27 Cap, 464261 DFL Berglill, Linda 323 Cap, 60 4125 IR Renneke, Earl W, 117 SOB 354131 IR Bernhagen, John 113 SOB 21 4875 DFL Samuelson, Don 121 Cap, 132084 DFL Bertram, Joe 328 Cap, 16 7157 DFL Schmitz, RobeltJ. 235 Cap, 364848 IR Brataas, Nancy 139 SOB 33 4310 IR Sieloff, Ron 135 SOB 644182 DFL Chmielewski, Florian 325 Cap, 14 4188 DFL Solon, Sam G, 303 Cap, 75003 DFL Dahl, GregOly L. G-24 Cap, 50 4191 DFL Spear, Allan H, G-27 Cap, 592302 DFL Davis, Charles R. G-24 Cap, 18 6238 IR Storm, Donald A. 125 SOB 426820 DFL DeCramer, Gary M, 303 Cap, 27 8660 DFL Stumpf, leRoy A 306 Cap, 12859 DFL Dicklich, Ronald R. 306 Cap, 5 9457 IR Taylor, Glen 147 SOB 248298 DFL Diessner, A. W, "Bill" 325 Cap, 56 4101 DFL Vega, Conrad M, G-29 Cap, 398867 DFL Dieterich, Neil 235 Cap, 63 3809 DFL Waldorf, Gene G-24 Cap, 662877 DFL Frank, Don G-28 Cap, 51 8091 DFL Wegscheid, Darril 309 Cap, 374123 IR Frederick, !Vlel 119 SOB 30 4147 DFL Willet, Gerald L. 121 Cap, 48138 IR Frederickson, Dennis R 143 SOB 239307 DFL Freeman, Michael 0, 303 Cap. 40 'Capitol or State Office Building, St. Paul, MN 551554183 DFL Hughes, Jerome M, 328 Cap, 549305 IR Isackson, Doran L. 151 SOB 283826 IR Johnson, Dean E, 105 SOB 15 PHONE COMMITTEE ROOM"8881 DFL Johnson, Douglas J. 205 Cap, 64248 DFL Jude, Tad 235 Cap, 48 296-4157 Agriculture & Natural Resources 24 Cap,1240 IR Kamrath, Randy P, 133 SOB 20 4158 Econ, Development & Commerce 303 Cap,1253 IR Knaak, Fritz 149 SOB 53 4185 Education 306 Cap,4120 IR Knutson, Howard A. 121 SOB 38 8866 Elections & Ethics 328 Cap,4302 DFL Kroening, Carl W, G-24 Cap. 57 8865 Employment 325 Cap,1945 IR Kronebusch, Patricia Louise 153 SOB 34 8864 Energy & Housing 29 Cap,4351 IR Laidig, Gaty \Xl. 145 SOB 55 6436 Finance 121 Cap,3205 DFL Langseth, Keith G-24 Cap. 9 4175 Governmental Operations 309 Cap,8017 DFL L1ntty, Marilyn M, G-24 Cap, 67 4151 Health & Human Services 323 Cap,4136 DFL Lessard, Bob 328 Cap, 3 4191 Judicimy 27 Cap,8869 DFL Luther, William P, 205 Cap, 47 4150 Local & Urban Government 235 Cap,1279 IR McQuaid, Phyllis \Xl. 132B SOB 44 1767 Public Util. and State Reg. Indus, 235 Cap,8075 IR Mehrkens, Lyle G, 127 SOB 26 4196 Rules & Administration 208 Cap,4154 DFL Merriam, Gene G-24 Cap, 49 4839 Taxes & Tax Laws 205 Cap,4264 DFL Moe, Donald M, 309 Cap, 65 4186 Transportation 303 Cap,2577 DFL Moe, Roger D, 208 Cap, 2 1771 Veterans' & General Leg, 328 Cap,4871 DFL Nelson, Tom A. 301 Cap, 314334 DFL Novak, Steven G, 203 Cap, 521282 IR Olson, Gen 132C SOB 43 PHONE SERVICE OFFICE ROOM"4241 DFL Pehler, James C. 306 Cap, 174135 DFL Peterson, Collin C. 205 Cap, 10 296-2887 Index 231 Cap,3988 IR Peterson, Darrel L. 141 SOB 29 2343 Sec. of the Senate 231 Cap,4274 DFL Peterson, Donna C. G-29 Cap, 61 0504 Public Information B29 Cap,8018 DFL Peterson, Randolph \Xl. 326 Cap, 19 8088 "Hotline" (daily schedules)

16

If yOll no longer wish to receive ollr publications please notify the Senate Public Information Office to have YOllr name removed from the mailing list.