Reform 2.0 was the focus of the 2012 legislative session. We are proud of the successful work we’ve done to modernize government, making it more effective and affordable.
Government will never be able to live within its means with outdated, rigid public systems and entrenched bureaucracy. Our priorities over the legislative session instituted many reform initiatives that will help create a stronger private sector economy, raise student achievement, put more people in charge of their health care decisions, and reduce the cost of government.
We focused on three key reform areas. These included restoring confidence and growing the private sector economy, reforming education and health care, and reducing the cost of government.
Here’s how we did it:
Goal: Restore confidence and grow the economy
Republicans in the legislature traveled to dozens of cities and met with hundreds of business owners, local government leaders, and interested citizens to gather input on how to restore confidence and grow the private sector. We discussed the problems businesses face when dealing with government and drafted bills to alleviate these issues. The legislature passed, and the Governor signed three key pieces of legislation that will help meet this goal.
Created a jobs advocate at the Department of Economic Development to help businesses navigate the complex permitting process. Business leaders need a liaison that will assist them in meeting permitting requirements.
Streamlined environmental review and permitting to speed up the permitting process. Many businesses voiced concern over the cumbersome process.
Allowed business to hire outside consultants to write and facilitate the permitting process while requiring state officials to identity permit deficiencies within 30 days.
We are now five weeks into the 2012 Legislative session and the Republican plan is working.
Minnesota Management and Budget released the February forecast this week, showing an increased budget surplus, a continuation of November’s forecast. In total, the state now has a $1.2 billion surplus, a much brighter outlook than last year’s $6.1 billion deficit. This revenue growth was not a result of new taxes. Rather, it was due to needed reforms contributing to an economic climate more conducive to long-term growth. However, this is only the beginning and there is more to be done.
Our Reform 2.0 agenda will create a business and entrepreneur friendly climate by decreasing regulation, reforming government, and lowering the tax burden. In addition to a positive budget forecast, more reform bills passed the House this week:
HF 1850 or the “gainsharing” bill passed the House. This will increase the financial share of savings state employees are eligible to receive for bringing forward government reform ideas.
HF 545 directs state agencies to do an analysis of the potential impact of loss of federal funds either through the federal government becoming insolvent or slowing of federal funds to the state. Washington’s inability to balance its budget is a reminder that we must always be ready to address the impact loss of federal funds may have on state government.
HF 1560 designates the Office of Administrative Hearings (OAH) as the final decision maker in contested cases over agency rule-making. Under current law, if a state agency makes a new rule, citizens and businesses have the right to contest if they feel it was unfairly made. Contested cases are heard by an administrative law judge in the OAH but the agency has the power to reverse the OAH decision. HF 1560 creates a more level playing field for businesses and citizens by removing current bias in contested cases.
HF 1812 allows the Commissioner of Administration to enter into or approve a state agency contract for waste removal. Under current law, before a state agency can enter into a contract with an outside vendor for services, they must find that no current state employee is able and available to perform the needed services. In other words, instead of looking to private sector waste management companies, current law mandates that a state employee must handle capitol area trash. This bill is common sense and removes an unnecessary statute.
Education Reform Continues
HF 273 provides parents in low-income school districts with the option of sending their child to a better performing school. Increasing choices for parents is a major part of the education initiatives in Reform 2.0. Last year, the Wall Street Journal named 2011 the “Year of Choice,” recognizing a national trend of significant expansions in school choice programs. Unfortunately, Minnesota is still lagging behind. Keeping low-income students in poor performing schools expands the achievement gap and leaves children behind in poverty. Every parent and child in Minnesota should have access to the best school that meets their needs and HF 273 is a step towards this goal.
In other education reform news, newspapers across the state are endorsing the “Last in, First Out” bill that passed the House and Senate. The Fairmont Sentinel argued “seniority as the sole basis for job retention has long been a thorn in the side. It is an absurdity sparked by unionism that everyone knows has nothing to do with life in the real world. What should count? Productivity.”
The LIFO bill allows school districts to consider more than just seniority when making layoff decisions. We are hopeful Governor Dayton will do what’s best for students and sign it into law.
Thursday: Mayor Control of Mpls/St. Paul schools (HF 2621) and Empowering parents to request school district intervention in a persistently low-performing school. (HF 2580) in Education Reform.
Education reform is a key part of Reform 2.0, and this op-ed in the St. Cloud Times shows how improved education and job growth go hand-in-hand:
Minnesota businesses have traditionally distinguished themselves with their ability to compete in the global marketplace. A highly trained workforce drives our success.
The bad news: That excellence faces a shaky future due to an unsatisfactory disparity in K-12 student performance. Minnesota has among the widest achievement gaps in the country — persisting among racial groups as well as across socioeconomic levels. The problem surfaces from Worthington to Duluth, from Winona to Moorhead.
The good news: We can change our course if we focus on teacher quality — the single-most important in-school factor in determining student success.
Current high school graduation rates fall below that, at 76 percent overall and 50 percent for minorities.
"That means we're not refilling the labor pool with the same level of skill that's leaving it," Stinson said.
If the reason we came out of the recession more quickly is a better educated work force, then we need to be highly concerned about graduation rates and the achievement gap between white students and their peers of color, Stinson advises.
Minnesota's educated workforce is a powerful resource for Minnesota business, and education reform and workforce readiness issues are high on many legislative agendas, as they should be.
This week was encouraging for education reform advocates. Two crucial reforms aimed at improving the quality of Minnesota’s teaching force passed the House. Earlier in the week, the House voted unanimously to require teaching candidates to pass a basic skills exam prior to receiving a teaching license. The House also passed the LIFO bill, which authorizes school districts to base layoff decisions on a mix of performance evaluation and seniority. Under current law, seniority is the lone factor in teacher layoff decisions. Reforming this mandate will provide school districts the needed flexibility to retain the best teachers for our kids in order to improve academic achievement.
This week in the spotlight:
There is still more we can do to assist our business community and local governments in the permitting process. Sponsored by Rep. Fabian, HF 2095 builds on last year’s bipartisan environmental permitting reform. The bill would allow businesses to hire independent permit applicant professionals to oversee projects and require state officials to identify permit deficiencies within 30 days. This will make permitting less difficult and less costly for businesses, while contributing to an economic environment more suitable for job growth.
As aging baby boomers enter retirement, many are concerned how they will finance their care in the face of rising costs. Nursing home care can deplete an entire life-savings and leave families with nothing to inherit. This week, Representative Shimanski introduced HF 2254 which allows proceeds of an accelerated death benefit to be used for nursing home costs.
In essence, the bill would allow the conversion of life insurance benefits to a long term care policy. Under current law, the state requires those in nursing homes to use all their existing assets for the cost of care before Medicaid steps in to pay for it. By expanding the definition of life insurance to include long-term care, not only will the state save money in Medicaid, it will provide seniors flexibility for planning their future. Moreover, long-term care insurance will enable seniors to keep homes, farms, properties, and other assets within their families, instead of losing all they have for nursing home care.
Tracking reform 2.0:
HF 1850 passed the State Government Finance Committee this week. This bill expands last year’s “gainsharing” initiative that provides state employees with a financial share of the savings from their own government reform ideas.
Representative Franson introduced HF 2212 to end a state mandate that one percent of appropriations for public projects be spent on art work for state buildings.
Representative Diane Anderson introduced HF 2251. This reform bill transfers health regulation power from the Department of Health to the Department of Commerce. Currently, the DOH regulates health management organizations (HMOs) and the DOC has jurisdiction over all insurance including health. Since HMOs and health insurance are related, it makes sense for both to fall under jurisdiction with the DOC which is better equipped at regulating insurance. This will create more transparency and efficiency in the system.
You can track all the Reform 2.0 bills as they move thru the Legislature using the Bill Tracker page at reform2.mn.
From Representative Mike Benson, printed in the Rochester Post-Bulletin:
This session, Republicans in the Legislature have an agenda called Reform 2.0. It’s based on many ideas that were brought forward by Minnesotans at statewide listening sessions.
We’ve already heard many concerns opposing this type of change, but the status quo clearly isn't working.
In the past 20 years, Minnesota has gone from a leader in student reading score tests to the middle of the pack, and our achievement gap remains a problem. In an effort to give them the best education possible, don’t we owe it to our kids to reform our K-12 system and try some new ideas?
Monday, July 16, 2012 at 9:56AM