Local lawmakers review consequential legislative session

May 24—NORTH MANKATO — From the largest infrastructure spending package in state history, to paid family leave, child support programs, as well as tax cuts and increases, area lawmakers praised and criticized the just concluded legislative session.

"We focused on children and families," said Rep. Jeff Brand, DFL-St. Peter. He said a variety of bills are estimated to reduce child poverty in the state by a third.

But the sole Republican on the panel of four, Sen. Rich Draheim of Madison Lake, said he was disappointed in how much money was spent by the DFL-controlled Legislature and DFL governor and how many new mandates and tax increases were approved.

"There wasn't a stone left unturned in looking for a nickel," he said of various tax increases used to fund new and ongoing initiatives. "When you look at all the new tax increases, by my count it's $9.67 billion."

He said the increased spending "created a fiscal cliff" and will cost all Minnesotans more in virtually everything they do.

The forum, at South Central College Wednesday morning, was moderated by Andy Wilke, executive vice president of Greater Mankato Growth.

Sen. Nick Frentz, DFL-North Mankato, said tax increases targeted those in the top 2% of income earners. He said that while the tax on Social Security benefits wasn't completely erased, only those in the highest income levels will now have to pay the tax.

Frentz said more generous child tax credits will help kids and families and said increases in aid to cities and counties will help take pressure off local property taxes.

Rep. Luke Frederick, DFL-Mankato, said reducing child poverty and helping young families will make the state a place where young families want to move to.

And he said increases in the renter tax credit will help many Minnesotans. "More people are renting rather than owning their own home."

Draheim praised increased funding for nursing homes, including increasing what they can pay employees. "We got $300 million extra (for nursing homes)," he said, referring to the Republican minority. He said his caucus used its leverage in the bonding bill, which requires more than a simple majority to pass, to get the additional funding.

A law requiring paid family leave, with businesses and employees paying an added tax to fund it, was generally portrayed by the Democrats on the panel as a way to allow more people to work even when they have to care for themselves or a loved one, but there were differences over the details.

Frentz said he was initially a no vote on the early legislation crafted by the House because he didn't think the bill had taken into account enough of the input from business owners. He said he voted for the final package because he thought enough compromise had been made to address small business concerns.

"It remains to be seen how it works out," Frentz said of the family leave requirement.

Frederick said small employers with nine or fewer employees who make less than $50,000 a year will not have to pay an additional tax for the family leave package.

Draheim said Republicans have favored creating a private insurance product that businesses could get to fund paid family leave for their employees. "It was a free market option."

He said the new family leave law is overreaching, too costly to businesses and employees, and expands the definition of "family" too broadly, allowing someone to get paid leave to care for a roommate. He said many companies already had their own paid family leave programs that fit their needs.

"There are no options in this bill. It's one size fits all," Draheim said.

Brand said paid family leave will help businesses attract and keep workers and will attract young people to move here from other states.

Frentz said Democrats' focus on families and children is essential if the state is to add, not lose workers and population.

"We have 1.8 kids per every two adults, so we're going backward. We need young families to move here." Frentz said one of the first things young families consider is good schools, something he said the Legislature provided more funding for.

Draheim said the $2.5 billion in infrastructure spending, including cash and bonding, helped key needs such as water and wastewater plants as well as nursing homes, but emphasized that needed funding could have been done with cash only.

Frentz said the infrastructure package "was the biggest victory for this area."

The package includes funding for Minnesota State University for a new classroom building, money for the St. Peter Treatment Center, and funding for major upgrades to the Mankato waste treatment plant, which is also connected to several area communities.