Legislative News and Advocacy                         April 11, 2013

In this Issue 
  
  
  
  
 
 
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New Website!
  

Hearth Connection launched a new website in April! Check it out at hearthconnection.org

 

 

 
Take a look at the revamped content, fresh design, and new resources!

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  More ways 

  to Connect: 

 

  Website

 

kids   Twitter
 
   /HearthConnect

 

kids  Blog 

 kids YouTube

      /Hearth2446

 

 
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Dear  , 

  

 

Thank You for Supporting Homeless Day on the Hill!  

 DayonHill

Over 450 people attended this year's lobby day at the State Capitol!  

 

The hearing on HF 937 (the House services bill championed by the Homes for All coalition) and Homeless Youth Act that morning was packed with supporters--to the point that some stepped out of the hearing to maintain fire code!  Richard Hooks Wayman of Hearth Connection testified for the services bill in addition to Steve Horsfield of Simpson Housing and Nancy Cashman of Center City Housing.  Check out a great article on the event by ABC Newspapers, "Standing Room Only at Discussion on Bills to Help the Homeless," or a storify on the day's events.

crowd at hearing for HF 937

 

The press conference and meetings with legislators during the Day on the Hill helped elevate the issue of homelessness and need for housing and services in Minnesota. THANK YOU to everyone who came out that day or made calls or emails to your legislators. Your support makes a huge difference!

 

Missed the Day on the Hill in March? You can sign up for "speed lobbying" on various days throughout April with the Minnesota Coalition for the Homeless.  

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Homes for All Legislative Advocacy  H4A 

 

The Homes for All Coalition includes over seventy different nonprofit organizations including affordable housing developers, housing advocates, and homeless service providers.  The bills introduced by the Homes for All coalition include:

 

Housing (MHFA) bills

Services (DHS) bills

The Senate Health and Human Service Finance Division heard SF 797 last week, which appropriates money for long-term homelessness supportive services, transitional housing programs, emergency assistance grants as well as housing and services for homeless youth. Funding for both of these proposals is included in the House Housing omnibus bill (more details below) and they have been laid over for possible inclusion in the Senate health and human services bill as well.

 

The Senate Health and Human Services Finance Division also took testimony concerning the Homeless Youth Act, SF 565 (Dibble), which would increase funding for grants to organizations offering street outreach, drop-in centers, emergency shelter, transitional living programs and/or supportive housing for homeless youth, youth at risk of homelessness and runaway youth. 

 

On the House side, the House Housing Finance and Policy Committee released its omnibus housing bill last week. Budget items for FY 2014-2015 of interest include:

  • No change in funding for the Bridges Housing program.
  • $3 million for the "Homeless Youth Act" which will be used for grants to organizations offering street outreach, drop-in centers, emergency shelter, transitional living programs and/or supportive housing for homeless youth, youth at risk of homelessness and runaway youth.
  • $1.8 million for long-term homelessness supportive services, which provide coordinated, intensive services to individuals, youth, and families in supportive housing.
  • $500,000 for transitional housing services for people experiencing homelessness.
  • $500,000 for emergency services grants which funds services and emergency shelter for people who are experiencing homelessness.
  • $1 million to fund rental assistance for people who have been incarcerated to help support successful reintegration into the community and to reduce recidivism.

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Long-Term Homeless Services  LTHservices 

 

Hearth Connection continues to advocate for investment in services to support households with long histories of homelessness.  Throughout the session, Hearth Connection's Executive Director and lobbyist have met with many legislators

Senator Clausen and Rich Hooks Wayman

 to discuss the need for services and affordable housing.  We are grateful for the work of Amber Backhaus, our lobbyist and champion at the Capitol, for her expertise and tireless work.

 

There is movement at the Capitol in support of long-term homeless services. SF 1013 and HF 1132 would provide funding for long-term homeless services by an additional $10 million for the biennium. If you are a constituent of any of the legislators below, please thank them for supporting investments in long-term homeless services.

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Affordable Housing Included in Bonding Proposals!     Bonding 


The MN House released a bonding bill Tuesday that includes $50 million for affordable housing! $35 million would go towards nonprofit housing infrastructure programs in the Minnesota Housing Finance Agency (MHFA), and $15 million in General Obligation (GO) Bonds for public housing rehabilitation. This is great news, as the Homes for All coalition has worked hard this session for a $50 million investment in bonds for housing (as well as an additional $50 million in housing and services programs).

 

Governor Dayton released his bonding proposal on Monday and included $40 million in bonds for MHFA--$10 million in GO Bonds to rehabilitate public housing, and $30 million to acquire and rehabilitate foreclosed properties, build or acquire and rehabilitate permanent supportive housing, and acquire and rehabilitate federally subsidized rental housing.  While the Homes for All coalition continues to advocate for a $50 million investment in bonds for housing, the inclusion of affordable housing in the Governor's bonding proposal is a positive reflection of a commitment to housing issues and the amazing work of advocates.  
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Budget Update    BudgetUpdate 

 

The Homes for All Coalition and Hearth Connection have been focused on the budget and appropriations to homeless services and affordable housing.  We are now a little more than halfway through the Legislative season and the budget process is starting to shape up.

 

The February budget forecast was released and showed that the State was collecting more revenue than anticipated.  At the start of the session, the Legislature thought they would have to plug a $1.1 billion deficit.  After the release of the February forecast, the deficit was reduced to just over $600 million.  This allowed the Governor to release a supplemental budget

 

The Majority in the Legislature and Governor Dayton continue to talk about passing a budget that does not borrow from our future and dismisses budgeting gimmicks and perennial deficits. 

 

Proposed housing budget is on target at $98 million. The House housing bill would make governor's one-time funding increases permanent.

 

HHS spending goal drops $150 million. The House Health and Human Services Finance Committee began deliberating what they see as priority spending and where they might capture savings to wind up at the targeted spending limits.

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Spending Targets Released 

SpendingTargets 

The House and Senate released their budget targets in late March, which specify how much the finance committees can spend in the FY2014-2015 biennium. The targets are an important part in the budgeting process, because they show the Majority's priorities and guide the finance committees in putting together their omnibus budget bills.

 

There are many similarities between the House and Senate targets, with both proposals raising revenues (increasing taxes) to cover a $627 million deficit in the next biennium budget.  However, the details of how the revenue will be raised (taxes) is yet to be determined.  Most advocates expect to see an income tax increase on the highest-income households similar to Governor Dayton's proposal, and others anticipate a temporary income tax surcharge on the wealthiest Minnesotans to help pay back the school funding shift that was part of last biennium's budget.

 

Both chambers made a commitment to reducing property taxes and backing large increases in education. The House and Senate each also distribute more than $200 million in increased spending to public safety, economic development, judiciary, housing, agriculture, state agencies, and budget affairs.  

 

However, the reduced targets (cuts) to Health and Human Services left many people stunned.  Governor Dayton proposed a spending increase of $170 million for the Health and Human Services (HHS) budget, but the House and Senate have both recently proposed cutting HHS by $150 million. The lower spending targets left many stakeholders and advocates concerned and frustrated, especially given the overall size and increases to every other area of the House and Senate budget proposals.  The lower targets to Health and Human Services will force the committees to consider cuts to vital services that help low-income, disabled, and homeless Minnesotans as they continue to struggle with the slow economic recovery. 

 

April 19 is the deadline for the finance committees to approve their omnibus budget bills.

 

Senate Budget Targets   

BUDGET AREA

BASE FUNDING

SENATE TARGET

DIFFERENCE

E-12 Education

15.177 B

15.663 B

+486 million

 (+3%)

Higher Education

2.565 B

2.828 B

+263 m

 (+10%)

Health and Human Services

11.362 B 

11.209 B

-152.8m

 (-1.3%) 

Environment, Econ. Dev. & Agriculture

523 m

658 m

+135 m

 (+26%)

State Depts and Veterans

898 m

926 m

+28 m

 (3%)

Transportation and Public Safety

333 m

320 m

-12.8 m

(-3.8%) 

Judiciary

1.672 B

1.760 B

+88 m (+5%) 

Tax Aids and Credits

2.71 B

3.174 B

+463 m

(+17%) 

Capital Projects/Bonding

1.5 B

1.61 B

+110 m

(+7%) 

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Last Year's Big Issue: Vikings Stadium  Vikings 

  

The new Vikings stadium is gaining attention again in the State Legislature over its financing. Read more here.

 

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Taxes Update   Taxes 

 

Since the February budget forecast, which estimated a reduction in the state's deficit from $1.1 billion to just over $600 million, Governor Dayton submitted a supplemental budget to the legislature updating his spending priorities. The Governor and leadership in both bodies have different spending targets. Now it is up to the tax committees to figure out how enough revenue will be raised to cover the proposed appropriations and the remaining deficit for the upcoming biennium.  Some taxing tools being discussed include:

  • A fourth tier income tax;
  • a temporary income tax surcharge on that fourth income tier to cover previous bienniums' school shifts.  However, the surcharge would place Minnesota as the second highest marginal tax rate in the country;
  • sales tax expansions; and
  • increased taxes on tobacco and alcohol.

After a large public relations outcry from the business community, Governor Dayton dropped his business-to-business tax proposal in mid-March. Services consumed by businesses (accountants, hair dressers, lawyers, etc.) would have been subject to sales taxes.  Dropping business-to-business sales taxes created a gap in the budget plan. This forced Governor Dayton to eliminate a $500 per year property tax rebate for homeowners. The House and Senate are proposing bills that would offer property owners rebates; however, the proposals base the rebates on property value and need rather than a set amount for homeowners across the board.

  

 

I hope you will continue to join Hearth Connection in making a strong case that investments in data-driven, accountable services and supportive housing programs for people experiencing  long-term homelessness is the right approach for Minnesota.

 

 

Thank you, as always, for your commitment to ending homelessness in Minnesota.

 

Sincerely,

 

 

Richard Hooks Wayman

Executive Director

Hearth Connection