Present:
Adam Castle, Tim Headlee, Crystal Kreklow, Matt Stenger, James Hemshrot, Kurt Crosby, Clay Haglund, Molly Kennedy
1.Secretary’s Report: Pass the hat for May meeting for Jeffrey Spann. Contact Tim Headley with questions and concerns. Motion to send up to $100 for funeral by stenger, 2nd by Crosby. Motion passes. We will be having a card going around for signing. Card will be in the 700 office. If you are unable to make the meeting for pass the hat, get your donation to someone who will be attending. Motion to donate $300 to Mankato area mountain bikers MAMB by Crosby for Gold level sponsorship. 2nd by Stenger. Motion passes.
2. Treasurer-Antonino Guerrero:
STATEMENT OF INCOME AND EXPENSES FOR MONTH ENDING March 2017
CASH BALANCE BEGINNING OF MONTH: $ 50788.09
INCOME FOR THE MONTH: $ 6400.03
EXPENSES FOR THE MONTH: $ 8127.31
CASH BALANCE ENDING OF MONTH: $ 49060.81
SUBMITTED BY: Antonino Guerrero.
3. Correspondence:
4. New Business:
MSOP Report
MSH Report
Refer to meeting minutes
5. Old Business:
6. Items from the membership:
7. Officer Reports
Presidents Report-Tim Headlee:
VP-Matt Stenger:
VP- Eric Hesse:
Executive Board: Ryan Cates
Executive Board: Luke Frederick:
Executive Board: James Hemshrot:
Executive Board: Molly Kennedy:
Executive Board: Kurt Crosby:
CS FACILITY SUPPORT: Homer:
CS MSH / CRP / Nursing Nights: Stacy Mueller
Council 5 Crystal Kreklow: Legislative Update:
Julie Bleyhl
Legislative Director
April 13, 2017
Pension Commission The Pension Commission meeting scheduled for the evening of Day on the Hill was cancelled as was the meeting for the following week. The cancelling of the Pension Commission Meetings did not deter AFSCME members from continuing to push to protect Minnesota by funding pensions tomorrow and today.
Governor Dayton's 2017 budget appropriates $100 million to provide more resources for public pensions. These funds are needed due to increased life expectancy of retirees and the state adopting more conservative expectations for investment returns. Defined benefit pensions are a major incentive to work in the public sector and provide dignity and security for retirement. Defined benefit pensions also fuel Minnesota's economy. A retirement dollar turns over seven times in a local community.
The Pension Commission will meet next Tuesday, April 18th at 5:30 pm in room G-15 of the Capitol to hear testimony from MMB Commissioner Myron Frans regarding the Governor's proposed pension bill. At an earlier meeting, AFSCME testified in strong support of the Governor's plan. We encourage members to attend each of the Pension Commission Meetings.
State Government Finance We continue to strongly oppose the House and Senate Senate State Government Finance Bills. The House Bill cuts $430 million out of state government. The bill would destroy state services with the layoff of hundreds of state employees. With a $1.6 billion surplus, this cut is not only unnecessary but shows major disrespect for our state employees.
In addition to the severe cuts, the bill interferes with our collective bargaining process by interfering with how collective bargaining contracts are approved. Obviously, the goal of this language is to make it more difficult for contracts to be approved.
The bill changes the school employee health bid process which will work to the detriment of school employees. The bill also allows state employees to opt out of health coverage and then attempts to obtain large savings without knowing the number of employees who would opt out.
Following is a comparison of the House and Senate State Government Bills:
- Both the House and Senate omnibus state government finance bills provide for arbitrary cuts to various agencies and departments
- The House version of SF 605 cuts state government by $90 million
- The Senate provides for across the board spending cuts ranging from 7.5% -10+% to all agencies and departments.
- Both the House and Senate bill contain language that would cap the amount of state employees hired.
- Both the House and Senate bills contain language that radically change the way in which contracts are ratified. This new language will require an affirmative vote of the Legislature in order to pass contracts.
- Both the House and Senate bills would allow state employees to opt-out of state benefits.
Commissioner Frans has gone on-the-record to state the Governor would veto these bills in their current form and has warned he is strongly opposed to large, arbitrary cuts to state government.
Health and Human Services
Following is a comparison on the Health and Human Services Bills. Both bills use cuts, shifts and gimmicks to arrive at their spending target.
House
CUTS & SHIFTS:
MA Grants - $10 million for “Integrated Health Partnership Project” targets networks with high enrollment of MN health care programs or uninsured, poorer health, lower quality of care scores, and proven opportunity to improve health outcomes and reduce costs. Dean is the author and Freiberg is co-author.
Removing MA Forecast Inflation - $151 million 18-19 and $465 million in 20-21.
Mnsure technology and operations - $40 million.
Managed Care Payment Delay - $135 million.
Eligibility Verfication/MA Audit - $170 million in 18-19
BAD PROPOSALS:
Transition MNSURE to Federal Market Place – Costs $3 million in 18-19
Hands Off Child Care Act – Repeals 179A.50-179A.53
UNFUNDED AFSCME PRIORITIES:
$57.8 million - Child Care Assistance
$3.8 million - HCMS Rule Implementation
$44.6 million - Central Office Operating Adjustment
$22.8 million - MN Security Hospital Staffing, St. Peter
$10 million - MN State Operated Services
$3.9 million - Minnesota Sex Offender Program Reforms
$11.1 million - CCDBG (Child Care) Licensing and Background Studies
$5 - DCT System Monitoring Upgrades
OTHER UNFUNDED PRIORITIES
$12.9 million - MinnesotaCare Buy-In Option
$47.9 million - (SEIU) Self Directed Workforce Negotiations
$9 million – (County Priority) Integrated Service Delivery & MMIS Modernization
$2.5 million - Minnesota Adult Abuse Reporting Center
PARTIALLY FUNDED PROJECTS:
CABHS – Funds the first two years, as requested by the Governor, and builds the 2019 amount into 20-21 budget.
HEALTH CARE ACCESS FUND AND PROVIDER TAX:
No repeal of sunset on provider tax - $42 million in FY 20-21
Whereas the Senate and Governor propose increased spending out of HCAF – the House proposes cutting over $11 million in each biennium.
Senate
CUTS:
8.5% & 10% reduction to the DHS central office in FY18 & FY19 – increase from the initial 7%
7% reduction to Direct Care and Treatment over 18-19 = roughly $5.9 million
SHIFTS:
The Senate realizes savings by “shifting” MA capitation payments for three groups - 1) Elderly and Disabled 2) Adults without children and 3) Families with Children. This shifts payments for April, May and June of 2019 and 2021 into 2020 and 2022 respectively. They do not track the budget into 2022 so the result is “savings” of more than $167 million.
UNFUNDED AFSCME PRIORITIES:
$57.8 million - Child Care Assistance
$3.8 million - HCMS Rule Implementation
$44.6 million - Central Office Operating Adjustment
$22.8 million - MN Security Hospital Staffing, St. Peter
$10 million - MN State Operated Services
$3.9 million - Minnesota Sex Offender Program Reforms
$11.1 million - CCDBG (Child Care) Licensing and Background Studies
$19.6 million – Improvements to Child Protection and Foster Care
OTHER UNFUNDED PRIORITIES
$12.9 million - MinnesotaCare Buy-In Option
$47.9 million - (SEIU) Self Directed Workforce Negotiations
$9 million – (County Priority) Integrated Service Delivery & MMIS Modernization
$2.5 million - Minnesota Adult Abuse Reporting Center
PARTIALLY FUNDED PROJECTS:
DCT System & Electronic Monitoring Upgrades – Governor requested $5 million over 18-19 – Senate funds $1 million.
CABHS – Governor requested $896,000 in 18-19 and $2.6 million in 20-21. Senate funds the 18-19 requests only.
HEALTH CARE ACCESS FUND AND PROVIDER TAX
$42 million lost in 20-21 if provider tax sunset is not repealed. The Senate does not repeal this sunset.
Governor proposes spending $732 million out of HCAF for his priorities whereas the Senate proposes spending $374,000.
Taxes
Following is comparison of the House and Senate Tax bills. Both bills create structural a structural deficit and provide benefits for billionaires.
The Governor has proposed a tax bill around $300 million which is greatly targeted and helps middle-class, working-class Minnesotans.
The House tax bill provides for a $1.35 billion dollar tax cut
Exempts Social Security benefits from the state Social Security Tax under a certain exclusion amount
Raises the statewide business property tax threshold to the first $200,000 of market value being excluded from paying this tax.
The House eliminates the inflator on the statewide business property tax.
The House conforms the state estate tax rate and threshold to the federal level.
This provision greatly benefits wealthy Minnesotans, the wealthiest 1,200 Minnesota families are helped with this provision.
The House Tax bill does not provide for an increase to LGA or CPA, nor does it fund the Governor's proposal for the Working Family Tax Credit. The Governor proposed an increase of $20 million for LGA added to base funding and $10 million for CPA added to base funding.
The Senate adopted an amendment on the floor that would cap Minneapolis' LGA to $50 million
The Senate bill provides for $900 million in tax cuts
?The Senate reduces the first tier tax rate, which disproportionately helps wealthy ??Minnesotans
?The Senate sets the statewide business property tax threshold at the first $100,000 of ??market value, $100,000 less than the House's bill.
?The Senate bill eliminates the inflator on the statewide business property tax.
?Makes significant changes to the estate tax by conforming to the federal threshold.
?Increases the social security tax threshold exclusion.
TOTAL Senate: $899 million in tax cuts in FY 18/19 and $1.112 billion in tax cuts in FY20/21.
. Public Safety and Judiciary