2008 MAPE Legislative Session Review

Summary

The 2008 legislative session has come to a close.  With over 8,000 bills introduced during the biennium, legislators still managed to adjourn on time following agreements on many bills that were passed throughout the day and evening of Sunday, May 18th.  Despite the revenue raised by overriding the Governor’s gas tax veto, the state was forced to cut state government budgets by four percent to meet the nearly one billion dollar deficit caused by the state's lack of revenue.  The Legislature used half a billion dollars from their rainy day fund and over $100 million in new revenue from closing corporate tax loopholes on foreign operating corporations to minimize the cuts to state agencies and the potential loss of state jobs.  Under the Governor’s proposal, cuts to state agencies would have come at double the cost.

For MAPE, there was some legislation passed that will impact our members.  However, most legislation that could have benefitted the most was either vetoed by the governor or removed from omnibus bills at the last minute pending a veto threat by the governor.  Below are some explanations of legislation impacting MAPE employees.

Team MAPE members continued the momentum built up last session, by contacting their legislators in significant numbers. Over 120 members attended Day on the Hill and members made over 1,000 legislator contacts. These efforts were particularly important in successfully getting our contract passed and signed by the Governor well before the end of session.

Collective Bargaining Agreements:
On April 17, 2008, Governor Pawlenty signed the state’s labor agreements into law.  This was unique.  Nearly all MAPE contracts have been passed on the last day of the legislative session as amended into another bill.  By going through committees, being voted on by both legislative bodies,  MAPE was able to maintain a specific vote count on our contracts that shows who opposed this legislation.  Rep. Karla Bigham and Sen. Jim Metzen carried the bills, spoke very highly of the work done in the negotiating process, and worked diligently to get the bill passed on its own.

Workforce Planning and Retention:
On April 18th, 2008, Gov. Pawlenty reneged on his promise to MAPE by issuing a document titled “Supplemental Budget Concerns” and listing “Compensation Increase Provisions” as one of his concerns.  The Governor referred to our workforce planning and retention legislation as a “compensation increase”.   Near the end of the session, the Governor issued another document expressing concerns that the language would increase compensation budgets.

The legislation passed both bodies and was amended into the major budget bill that was sent to a conference committee to have the differences worked out.  The provision remained in the bill until it was removed on Saturday morning, May 17th,  just  two days prior to the adjournment of the session, after several meetings with the Governor’s office and a threat to veto the entire budget deficit bill.  The Governor does not believe the state should fairly compensate their employees based on their own hay studies.

Health Care:

• Minnesota made small strides toward universal health care coverage despite the large deficit the state was faced with. The Governor’s attempt to raid the Heath Care Access Fund of $250 million was negotiated down to $50 million.  12,000 additional Minnesotans will be eligible for Minnesota Care despite the Governor’s attempt to shuffle funds and disqualify a large number of people currently subsidized by MnCare.
• In another provision, the Health Care Reform conference committee placed a provision in the bill at the request of the Governor to provide high deductible insurance plans (HSA accounts) to members of the Managerial Plan and the Commissioner’s Plan.  MAPE views this as a slippery slope to negotiating benefits away from state employees who have sacrificed wages and went on strike to maintain the health insurance benefits they currently have.  The plans will be an option that will allow people who experience medical problems to option back into SEGIP at open enrollment and pass the costs on to the people currently in SEGIP.  The provision never received a hearing and one of the chairs of the committee was quoted as saying that it was put it in the bill, “to give the Governor a chip”. 
• The legislature also attempted to make it illegal to do health care assessments.  That provision was later removed from the Data Practice omnibus bill.  Provisions such as these are adamantly opposed by MAPE when they are established as part of the collective bargaining process.
• MAPE worked to prevent a legislative study by the Department of Finance that would, in part, seek to determine costs of including teachers into the state employee health care plan.  Such a study is a huge concern on the brink of another $2 billion dollar deficit with inflation.  It is highly unlikely that the state will have the revenues to include reserve money for such a large insurance group without raiding the current reserves that state employees created through bargaining.  There are also many more variables that need to be studied when considering the inclusion of such a group in the state’s insurance plan.  MAPE believes studies done involving negotiated benefits shall include all parties including state unions, legislators, and the Department of Finance.

Governor’s Veto’s

• The Governor vetoed legislation that defined dependents for purposes of group benefits for local government employees to include unmarried children under the age of 25.
• The Governor vetoed legislation that would have expanded sick leave benefits to an employee’s spouse, sibling, parent, step-parent, or domestic partner.
• The Governor vetoed a resolution for the Employee Free Choice Act giving all workers in the United States the right to join unions.
• The Governor, as expected, vetoed legislation that would have required DHS to notify defined legislators at least six months in advance of closing one of their facilities. 
• The Governor vetoed whistleblower legislation that was part of another bill.  This legislation would have protected state employees from disciplinary action for communicating with a legislator.
  

Pensions and Retirement

• Legislation now mandates retirement annuities be payable as a 50 percent joint and survivor benefit covering the employee’s spouse unless the participant’s spouse waives the joint and survivor benefit.
• Legislation passed that eliminates the statewide public retirement plan post-retirement adjustment mechanism if or when the funding ratio falls below 80 percent or falls below 85 percent and remains at that level for two consecutive years.  Upon elimination, there will be a 2.5 percent post-retirement adjustment.  All assets would be funded back to the retirement funds.
• The Pension Commission has committed to studying retirement benefits compared to national averages, the adequacy of the benefit, and what can/should be done to improve the benefits.

Other State Government Provisions

• A provision is now in state law that states an employee may be granted paid leave to donate blood at a location away from work.  The leave may not exceed three hours in a 12 month period.  Employees must provide at least a 14 day notice to the employer.
• Legislation passed preventing a collective bargaining agreement from prohibiting provisions related to work-place communication.
• Legislation passed requiring labor candidate screening for 2-4 MnSCU Board members to be sent to the Governor.  They may be assigned by the Governor in 2010 and every six years after.
• Legislation mandating a $43,000 cut to the Department of Labor and Industry’s prevailing wage division must not result in the department not filling vacancies.
• New unpaid leave and discrimination language was passed that prevents employers from taking action against an employee because of the membership of the employee's spouse, parent, or child in the armed forces.  Employees must be allowed to attend their child’s events relating to the military service of a spouse, parent or child. An employer must allow unpaid leave of no more than two consecutive days or six days per calendar year for military departure or return ceremonies, family training or readiness, or military reintegration programs.  During such leaves, the employer cannot compel an employee to use vacation time or impact an employee’s accruals.