Dear ,
Greetings! Here are a few updates on policy and politics related to ending homelessness in Minnesota:
New Budget Forecast Brings Positive News -- But No Restored Funding for LTHSSF
The Minnesota Management and Budget Office released its February Economic Forecast on February 28. The forecast offered some positive news by reducing the state's deficit from $6.2 billion to just over $5 billion for fiscal years 2012-2013. The shaving of $1 billion off the deficit forecast was due to reductions in projected expenditures and increases in projected revenues to the state.
However, Tom Stinson, state economist, warned that the course of our recovery could be altered by federal budget actions and employment growth. Legislators still face an historic task of ameliorating the $5 billion deficit, which is estimated to total around 13% of the state's general fund. Due to budget decisions made in the past few years, there are no savings or one-time federal monies to rely on. The Legislature has a deadline of May 23 to pass a budget before adjournment.
Both political parties have seized the opportunity to pitch their priorities. Governor Dayton vowed to eliminate a proposed income tax surcharge, restore funding for metro and rural transit, reinstate funding for fire safety training, increase the Research & Development credit to promote Minnesota's job growth, and provide $5 million to the Department of Economic Development for the Minnesota Investment Fund. Homeless advocates are waiting to see if cuts in funding to the Long-Term Homeless Supportive Services Fund (LTHSSF) and the Housing Trust Fund (HTF) will be restored as well.
Tony Sutton, Chair of the Republican Party of Minnesota, made the following statement, "The improved budget forecast released today proves that the best budget solution is economic growth, not tax hikes as Governor Dayton has proposed. We need to make Minnesota a more business-friendly environment, which will create jobs and speed economic recovery." Republican legislators will begin to put together their budget in the next few weeks. Their self-imposed deadline to hear all finance bills is March 25.
As previously noted, structural budget problems will trouble
Minnesota beyond the next biennium. The Minnesota Daily states that the current estimated shortfall for the 2014-2015 budget cycle is about $4.4 billion. For more in-depth information on the forecast, visit the Minnesota Management
and Budget's website.
__________________________
Legislators Attend Open House 
Several state legislators attended an open house last Friday to find out more about homelessness in their area. Three state Representatives (Liebling, Quam, and Norton) and two Senators (Senjem, Nelson) from Southern Minnesota came to talk to people who have experienced homelessness and learn about a local program serving long-term homeless adults.
Zumbro Valley Mental Health Center organized the open house; its Homeless Services Team helps people who are long-term homeless, but funding for the program may be in jeopardy with the Governor's proposed budget. The event was a great opportunity for people to share their experiences with homelessness and raise awareness with lawmakers. Sen. Carla Nelson said, "They shared their stories with me, some I'll never forget." A local news station also covered the open house - see the story here! __________________________
Pending State Bills 
Throughout the Legislative session we wish to highlight bills that may help frame public debate on policy matters or that directly impact services and housing for people experiencing
long-term homelessness. Here is a quick list of bills that grabbed our attention:
HF 466 seeks grant funding for the Minnesota Assistance Council for Veterans (MACV) to offer continued outreach and support of homeless veterans. Authored by Representatives
Morrow, Gauthier, and Brynaert, the bill was introduced before the State Government Finance Committee. No hearings have
been completed on the bill.
HF 746 would require DHS to issue a request for funding proposal (RFP) for an integrated, on-line eligibility and application portal for community members seeking food stamps, cash assistance, child care assistance, or health care programs. The bill is sponsored by the following Representatives: Mack, Abeler, McDonald, Downey, Marquart, McFarlane, McElfatrick, Loon, Sanders, Kelly, and Stensrud. HF 746 was introduced on February 28 to the Health and Human Services Reform Committee.
__________________________
Federal Policy Update
While Minnesota continues to confront conflicts over its budget, the U.S. Congress is having its own debate on the FY2011 Budget (which was supposed to be passed on October 1 of last year). During the first week of March, Congress is expected to pass a short-term measure to keep the government functioning until March 18. On February 19, the House of Representatives (controlled by a Republican majority) passed a FY2011 funding bill that included $1.865 billion for McKinney-Vento homeless assistance grants (Supportive Housing Program and Emergency Solutions Grants), no new HUD-VASH vouchers, stable funding for the Runaway and Homeless Youth Act, and no funding for a new Housing and Services for Homeless Persons Demonstration project (pitched by the National Alliance to End Homelessness).
Advocates assume that the Senate will counter-propose funding legislation that goes above and beyond the House proposal. The Senate may release such a proposal this week.
Now is the time to make a call to your U.S. Senators and urge them to include:
- $2.2 billion for HUD's McKinney-Vento Homeless Assistance Grants programs;
- 10,000 new HUD-VASH vouchers to support homeless veterans;
- 10,000 new vouchers for the Housing and Services for Homeless Persons Demonstration project; and
- $165 million for the Runaway and Homeless Youth Act to support unaccompanied minors
Several House members are encouraging their colleagues to support increased funding for homeless services. Representatives Gwen Moor (D-WI) and Al Green (D-TX) are circulating a sign-on letter asking members of the House to support increased funding for McKinney-Vento and HUD-VASH.
Please consider calling the Senate Switchboard (202-224-3121) and contacting the housing staffers in your Senators' DC offices today! You can submit comments and report any progress to Amanda Krusemark at akrusemark@naeh.org.