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May 22, 2008
2008 Citizens League Policy Advancement
Many of the Citizens League's positions were advanced through legislation in the 2008 session. Here is a summary of what happened in major areas of our policy work.
1. TRANSPORTATION ADVANCEMENT
More transparent pricing and more choices come with increased funding
Value Capture Study (HF2800)
$300,000 (reduced from a proposed $325,000 in the budget bill) is appropriated to the Center for Transportation Studies at the University of Minnesota. Included will be the exploration of two recommended mechanisms from the 2005 Citizens League report "Driving Blind" among other types of value capture. Value capture is one way for beneficiaries of transportation investments to pay more directly based on the benefit received.
Urban Partnership Agreement (UPA)
To offer a choice for solo drivers to buy free flow on I-35W from downtown Minneapolis to Lakeville and provide increased transit and other choices in the congested corridor.
- $133 million in federal funding
- $55 million in state funding
- Free-flow pricing (HOV lane conversion and dynamic shoulders)
- Bus rapid transit (BRT) from Minneapolis to Lakeville
- Expansion of flex-time based on results-oriented work environment model
Parts of the state matching funds were provided in House File 2800 ($24 million) and House File 380 ($21 million). Senate File 3058 is the UPA policy bill and was signed into law on May 11.
Additional impacts of the UPA:
- Expands discussions of region-wide pricing and transit improvements
- Lakeville joins metro transit taxing district and gets a lot of benefit with park and rides stations, bus-rapid transit (BRT) and high-occupancy vehicle (HOV) lane.
2. TAX POLICY ADVANCEMENT (HF3149)
Direct homeowner property tax relief and examination of subsidies
Higher thresholds for the property tax refunds
Direct property tax relief for homeowners and renters based on ability to pay was increased by $25 million from a maximum of $1,450 to $1,850. The Citizens League position is that there should be no cap on the Property Tax Refund (PTR) program (from our 2000 report "Assessing Minnesota's Property Tax."
More appropriate Mall of America subsidy package
No use of the regional tax base sharing pool called Fiscal Disparities to subsidize the phase II parking ramp. More financing from mall users and more scrutiny if any level of government backs the bonds. The Citizens League opposed a fiscal disparities exemption for the MOA expansion.
JOBZ and LGA
Changes based on the Legislative Auditors report on JOBZ and a study of LGA were included in the tax bill.
3. HEALTH CARE ADVANCEMENT (SF3780)
The final health care reform package is an important starting point to transform the system from a market reform perspective. It includes several important provisions which we will address in a separate post. Critical mass for the amount of the medical care delivery system that will be subject to the reforms is a big question. What level and type of governance that is needed to reveal value in medical care is also an open question.
Posted by Bob DeBoer at May 22, 2008 12:32 PM