April 23, 2013 From the office of

Senator John Pederson

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

WEEK IN REVIEW
Last week, as Minnesotans across the state paid their state and federal taxes, the governor and the majority party in the House and Senate told Minnesotans they dont pay enough. Democrats in the legislature formally announced their plans to add taxes to everyday items that hit at everyones pocketbook like clothing, over-thecounter medication, haircuts, beer, and even higher taxes on water. Theyre also proposing new car insurance taxes and new utility taxes to fund solar projects. Nowhere on the long list of tax increase proposals are ideas to reduce the cost of government and make it more efficient and effective. In fact, last week the majority party in the Senate voted to get rid of the watchdog commission thats charged with getting rid of government waste (the same day they voted to give themselves a 35% pay increase). Weve also seen proposals to spend taxpayer dollars on wasteful spending items like snowmaking machines in northern Minnesota (SF 709 - see photo) and the creation of a new 11member commission to determine paint colors on bridges (SF 1319). There is no excuse. Minnesotans deserve better. My focus is on creating a more efficient and effective government, not a more expensive government. Im committed to working together with Democrats to eliminate wasteful government spending and helping to build a healthier economy. Hardworking taxpayers cant afford for government to waste their money. Before we ask for another cent, we need to go line-by-line through Minnesotas budget to ensure that government is as efficient and effective as possible. Lets cut wasteful spending. Lets spend better, not more. JUST THE FACTS ON THE TAX PROPOSAL Last week the Senate Tax Reform Division approved tax recommendations expected to be included in a larger Senate omnibus tax bill. The Division report increases taxes by about $400 million of the $2 billion total Senate tax increase plan, and notably expands the sales tax and increases cigarette and business taxes. As highlighted last week, the Division report includes many of the sales tax proposals contained in Governor Dayton's initial budget, though ultimately removed from the governor's plan in light of public opposition. The Division report calls for an overall reduction in the general sales tax rate, combined with new sales taxes on goods and services including clothing, over the counter drugs, personal services including haircuts, and auto repair. The Division report also includes a $0.94 per pack increase in the cigarette tax, similar to cigarette tax increase proposals by Governor Dayton and House Democrats. This week, the Senate Majority plans to roll out

the full tax bill widely expected to include over $1 billion in income tax increases including a new fourth tier. TRANSPORTATION The Transportation Finance Committee passed its Omnibus Transportation Finance Bill last week. The next stop for the bill will be in the full Finance Committee. The bill currently includes a sales tax on gasoline (which equates to an eight cents per-gallon gas tax increase that will escalate with prices), a $3 increase for drivers licenses, a 3/4-cent Metropolitan sales tax for transit, a city street maintenance fee, and an increase in the motor vehicle sales tax. In total, the bill raises over $1,000,000,000 in new taxes in FY 2016-17. Click here for an article from MPR outlining the fee increases. HIGHER EDUCATION By a vote of 46-18, an Omnibus Higher Education bill won Senate approval this week and is being sent to the House of Representatives for that bodys consideration and action. The legislations most notable feature is its over 10% increase in state appropriations ($263 million), which matches the governors proposal. In contrast to the House version, the Senate takes a balanced approach in the sense that the new spending is divided evenly between the University of Minnesota (UMN), Minnesota State Colleges and Universities (MNSCU), and the Office of Higher Education (OHE). JUDICIARY Last week the Data Practices Omnibus bill passed off the Senate floor. This bill includes many provisions intended to protect Minnesotans' information. Of great concern is what information the government, specifically the Department of Health, is collecting on Minnesotans, what consent the government obtained to collect and store the data, and how the government uses the data. The bill is now awaiting action in the House of Representatives, and it is likely that we will have a conference committee between the two bodies to iron out differences. The Judiciary Budget bill passed the Senate floor last Tuesday. The $1.7 billion budget covers the courts, the Department of Corrections, and a number of other boards or divisions that relate to the judiciary and/or public safety. We now await action by the House of Representatives. I-94 UPDATE As a reminder, the I-94 resurfacing project began on April 1 with 24/7 single lane traffic between Clearwater and St. Cloud. Click here for more detailed information on the project. MY BILLS For more information on all the bills our office is working on in the Senate, click here: my bills. KEEP IN TOUCH During this legislative session we will work to keep you informed. Please feel free to pass this newsletter on to your friends and neighbors, encouraging them to subscribe by going to my Senate page and typing in their email into the subscribe bar. The same process can be used to unsubscribe from this mail ing list. Follow this link to subscribe. You can also e-mail my legislative assistant at emily.pugh@senate.mn to sign up. We will always welcome your ideas, questions, and comments. You can also find me on Twitter (@Senjohnpederson) and Facebook. Please call or write any time. Thank you for the opportunity to serve our District in St. Paul! Sincerely, Senator John Pederson 27 State Office Building 100 Rev. Dr. Martin Luther King, Jr. Blvd. St. Paul, MN 55155 sen.john.pederson@senate.mn 651.296.6455

John Pederson