How a rate increase fares at the legislature is unclear – as is every major issue. The House and Senate, which staked out their positions on major tax and spend issues this week, are light years apart on four key issues:
- Transportation: The House spends $300 million out of the general fund; the Senate majority is adamantly opposed to using general fund money for roads and bridges.
- Tax relief: The House gives the lion’s share of the $900 million surplus back in tax cuts, while the Senate approach is much more limited.
- Bonding: The two bodies will differ widely on how much to borrow and spend for capital building projects.
- HCBS rate increase: The House grabs savings from MN Sure for a one-time five percent rate increase; The Senate has no increase. The House provision gets the issue on the table for consideration of a permanent increase for some unknown amount.
Two things happen next. House and Senate leaders and Governor Dayton negotiate a global deal and conference committees work out differences on all spending proposals. Until – and if – the leaders work out a global deal, the conference committees will have little to do.
How our rate increase fares depends in large part on how it plays into discussions on transportation spending and tax relief. Our direct and grassroots advocacy will focus on legislators who can influence the global talks and conference committee.
If ARRM or the Best Life Alliance asks you to contact your legislator it is because that person can influence the big decisions. In the end, the interaction of those big issues – including bonding – may have bearing on getting some kind of rate increase.
The pathway to getting an increase this year is uncertain, depending on day-to-day developments at the capitol. We simply don’t know yet what will shake out in the end, so we need to keep shaking the tree if we are to prevail. Stay tuned, especially for calls to action. We have three weeks until the legislature adjourns on May 23rd.
- Bruce Nelson, CEO