April 25, 2008
In this Issue:
House and Senate Ask for Bonding of Central Corridor Project
Legislation Introduced in Response to NWA/Delta Merger
Transportation Policy Bill Passes the House
Governor Appoints New MnDOT Commissioner
U.S. Senator Norm Coleman To Address MRCC Members in May
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House and Senate Ask for Bonding of Central Corridor Project
The House and Senate responded to the governor’s budget balancing offer from earlier this week, with a proposal that House Speaker Margaret Anderson Kelliher (DFL-Mpls) said moves them a step toward agreement in balancing the projected $935 million biennial deficit.
Gov. Tim Pawlenty offered to split the difference on the use of the Health Care Access Fund surplus to preserve existing health care programs funded through the General Fund.
The legislative offer includes cuts totaling $164 million in areas where there is already some consensus and $40 million that could be negotiated. A second bonding bill could be in the picture as well, with a proposal for $107 million in debt service that would fund the Central Corridor transit project and a new Minneapolis Veterans Home, leaving approximately $37 million for other projects.
House and Senate leadership stand firm, however, on their intent to increase school funding for the remainder of the biennium and protect the Health Care Access Fund from use as a budget-balancing tool. Kelliher said the governor’s recent offer left her optimistic that there could be agreement on the fund’s use. However, his proposal to cut health care and higher education funding were too “severe”.
Looking to next week, House Majority Leader Tony Sertich (DFL-Chisholm) said budget negotiations will continue with the governor, and Monday the House could take up the omnibus education policy bill.
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Legislation Introduced in Response to NWA/Delta Merger
In light of the recent merger between Northwest and Delta airlines, lawmakers have proposed a way to get Delta to fly into Minnesota and stay here.
HF4208, sponsored by Rep. Kurt Zellers (R-Maple Grove), would give tax incentives to Delta in an attempt to lure the company from Atlanta.
The bill would also phase out the corporate tax rate for every business in the state starting in 2010. The House Taxes Committee laid over the bill for possible inclusion in the omnibus tax bill. There is no Senate companion.
If it were to relocate its headquarters to the state, the bill would extend the benefits in the International Economic Development Zone around the airport to Delta, and provide:
• a property tax exemption for its headquarters at the MSP International Airport;
• a sales tax exemption on all purchases; and
• a 1 percent refundable tax credit for added jobs in Minnesota that pay between $30,000 and $100,000 per year.
Getting rid of the corporate tax rate would top $1 billion if eliminated at once, according to a House fiscal analysis. Instead, the bill would phase out the tax, and it could pay for itself because businesses would stay in the state or expand.
Some lawmakers were skeptical about whether the proposal to reel in Delta is worth the return.
Rep. John Lesch (DFL-St. Paul) said his impression of the merger was that it was too late to do anything about it.
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Transportation Policy Bill Passes the House
Sponsored by Rep. Frank Hornstein (DFL-Mpls), HF3800 includes changes related to pupil transportation, vehicle registration, towed vehicle contents, graduated driver licensing, traffic regulations, use of wireless devices while driving, railroad walkway safety and regulations for movers of household goods. It contains close to 30 member provisions.
Following the 82-44 vote, the bill is Senate bound, where Sen. Steve Murphy (DFL-Red Wing) is the sponsor. One part of the bill takes aim at distracted drivers by restricting a person behind the wheel from using a wireless communications device to compose, read or send electronic messages while the vehicle is moving or part of the flow of traffic. Exceptions are provided if it is in a voice-activated or other hands-free mode; for obtaining emergency assistance; if the person believes their life or safety is in immediate danger; and in an authorized emergency vehicle while performing official duties. Hornstein sponsored this provision in HF3726.
Based off HF2628, sponsored by Rep. Kim Norton (DFL-Rochester), the bill places types of passenger and driving time restrictions on provisional license holders. It would require that during the first six months of a provisional license, the young person would be permitted to have one person under age 20 in the car with them, not counting immediate family. That would increase to three in the ensuing six months.
During the first six months of provisional licensure, the bill would also prohibit a person under age 18 from driving between midnight and 5 a.m. except when the driver is going between the person’s home and job or school event where no transportation was provided, the driver is driving due to a job or the driver is accompanied by a licensed driver or state identification card holder who is at least 20.
One of the more controversial measures on the House floor would allow those whose vehicle is impounded to retrieve some essential contents under certain circumstances without paying for vehicle retrieval.
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Governor Appoints New MnDOT Commissioner
Governor Tim Pawlenty this week appointed Tom Sorel as Commissioner of the Minnesota Department of Transportation (Mn/DOT).
Mr. Sorel currently heads the Federal Highway Administration (FHWA) division office in Minnesota. The FHWA is a part of the U.S. Department of Transportation (USDOT) and provides financial and technical support to state and local governments for constructing and preserving America’s highway system. He starts at Mn/DOT on Monday, April 28.
Mr. Sorel, 51, has held various positions with the FHWA since 1978 including Major Project Team Leader at the agency’s headquarters in Washington, D.C. and Director of Planning and Program Development and Chief of Technology Services in Albany, New York. During the 2002 Winter Olympic Games in Salt Lake City, Mr. Sorel was the USDOT liaison for federal transportation issues and led the effort to build the infrastructure for the event.
Mr. Sorel received his degree in civil engineering from State University of New York in Buffalo and his Master of Business Administration from Thomas College in Maine. He has also received a Certificate of Conflict Management from Cornell School of Industrial/Labor Relations and an Associate Certificate Project Management from George Washington University.
In addition to many FHWA performance awards, he received the Presidential Honor for leading the federal transportation response, recovery, and rebuilding efforts in Minnesota in the aftermath of the I-35W Bridge Collapse. He currently serves on the boards of the Center for Transportation Studies at the University of Minnesota, Minnesota Guide Star, and the Transportation Engineering and Road Research Alliance.
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U.S. Senator Norm Coleman To Address Chamber Members in May
Senator Coleman will be sharing with MRCC members his unique perspective of the happenings in Washington D.C. and the outlook for the Congress. Senator Coleman’s first priority in Washington is getting things done for Minnesota, especially in the areas of energy independence, health care reform and economic and job growth. In addition, we will hear the Senator’s thoughts on the national foreclosure crisis, its impacts to Minnesota, and what is being done in Washington to address this issue. To register, click here.
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by the Minnesota House of Representatives and the Minnesota State Senate.
For answers to questions or to provide comments,
call (612) 370-9100 or visit the website at www.minneapolischamber.org
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