WEEKLY LEGISLATIVE UPDATE

FROM
FOR
THE

OFFICE

OF SENATOR

DAVE THOMPSON

PROUDLY SERVING SENATE DISTRICT 58

THE WEEK ENDING:

FRIDAY, FEBRUARY 8, 2013

IN-DISTRICT OFFICE HOURS:

Farmington Saturday, February 16th10:30-NOON Farmington Library Lakeville Saturday, February 16th2:30-4:00 P.M. Lakeville South, Room D204 (community room)
* Please send an email to amy.strenge@senate.mn to reserve a 15 minute time slot.

HEALTH INSURANCE EXCHANGE BILL

S.F. 1, the Minnesota Insurance Marketplace Act was passed by the Tax Committee Thursday. At the end of the hearing an amendment was introduced to change the way the exchange will be funded. Rather than assessing a tax on insurance premiums, money will be used from the tobacco fund. Ironically, proponents of the exchange will now predominantly tax middle and lower income people to fund a program that is supposed to help middle and lower income folks. Lets just say the logic escapes me.

GOVERNOR'S BUDGET
In Wednesday's State of the State address, Governor Mark Dayton defended his plan to raise taxes in order to grow government programs. The Governor's budget relies on some $3.6 billion in new taxes, including a broad $2.1 billion expansion of sales tax on new goods and services. New sales taxes would be imposed on transactions including clothing articles over $100, overthe-counter drugs, haircuts, auto repair services, and a wide range of new business to business services. Details continue to emerge on the impact of the Governor's sales tax expansion. For example, consumers would pay an estimated $77 million in new sales taxes on clothing purchases, $108 million on haircuts and other personal care services, and $199 million on auto repair services.

HEALTH AND HUMAN SERVICES

S.F. 5, a bill to expand Medical Assistance coverage passed out of the Health and Human Services Finance Committee on Wednesday. This bill expands coverage for persons up to 138 percent of the federal poverty guideline. Senators expressed concerns about the bill because the expansion is offered by the federal government under the Affordable Care Act. While the federal government says they will pay for the cost of newly eligible enrollees for the first few years of the program, the expansion will cost Minnesota taxpayers an unknown amount once the federal funding ends. Once again, the federal government is forcing a program on the states, expecting the local taxpayers to pick up the tab.
CONNECT WITH SENATOR THOMPSON:
www.senate.mn/SenatorThompson www.twitter.com/ThompsonSenate Sen.Dave.Thompson@senate.mn

EDUCATION
I attended an informational session in the Education Committee that introduced us to a plan to encourage greater cooperation between high schools and colleges. They also discussed input from the business community that would encourage high schools to help students think about career possibilities.