6.1.a. ERMUSR 06-14-2016 - Laserfiche WebLink

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Senate Majority Leader Tom Bakk (DFL-Cook) and House Speaker Kurt Daudt (R-Crown) have differing accounts as to whether there was an agreement on this amendment. With the session ending without a bonding bill, however, both leaders have asked Governor Dayton to consider calling a special session to allow one to be passed. In a press conference on May 23, the Governor stated that he has not decided whether or not to call a special session and wants to meet with legislative leadership before he makes any decisions. He did express disappointment that many important projects wouldn't be moving forward and identified a bonding bill as a priority. He specifically mentioned funding for municipal water infrastructure projects as important. MMUA Government Relations staff will continue to follow the special session discussions and keep members informed. No Refundable Sales Tax, Utility Property Tax Reform in Final Tax Package The final tax bill agreed upon by the House and Senate on the last day of session did not contain either of the provisions of interest to MMUA. Unfortunately, the provision to make the sales tax for local government construction materials refundable was not included in the bill. The total tax bill provided only $259 million in tax cuts, significantly less than the tax packages that originally passed either the House or Senate. Though a common-sense and low-cost tax proposal,the provision was one of many that fell by the wayside in end-of-session negotiations. The final tax bill also did not include reforms to the taxation of electric generation, transmission, or distribution property. Having not been discussed in the House this biennium, it lacked the support to move forward. However, both chairs (Sen. Skoe and Rep. Davids) indicated that this proposal may receive more attention in 2017. Supplemental Budget Bill Highlights The $182 million supplemental budget finalized on the last day of the session contained a few policy items and appropriations of interest to MMUA members. Highlights include: • $35 million for the Border-to-Border Broadband Program, with a $5 million set-aside for underserved areas • Several policy provisions related to the broadband program, including the speed goals recommended by the Governor's Broadband Taskforce, increased mapping, and allowing incumbent providers to challenge an application if they are planning to expand broadband service in the area. • $832,000/year appropriation increase from the General Fund to the Division of Energy Resources for increased staffing. (This replaces their original request to decouple their utility assessments from the General Fund.) • Combined heat and power (CHP) and cogeneration facilities of all sizes in investor- owned utilities' service territories would be exempt from the state's greenhouse gas emission offset requirement. (In the final days of session, MMUA had to fight off efforts by Flint Hills Resources to move language without the muni/co-op carve out from several pieces of legislation) 321