Minimum Wage Hike for Airport Workers

On Monday, the Metropolitan Airports Commission backed a $10 an hour minimum wage for about 2,800 employees of airline subcontractors.

Commission members voted 11-4 for the proposal, which requires the airport minimum wage to always be $1 more than the State minimum. It takes effect August 1. Commission Chair Dan Boivin expects wage talks to continue, but said the airport needs to stay competitive to keep airlines from going to similar size airports in the Midwest. The four members who voted against the measure said it wasn’t their place to set minimum wage standards, preferring the decision be left to State lawmakers.

Some union leaders say the Commission’s decision should be viewed only as a first step and are advocating for at least $15 an hour.

Winkler’s Seat

Gov. Mark Dayton set a special election for Nov. 3 to fill the House District 46A seat. If a primary is needed it would be held Aug. 11.

The seat is being vacated by Rep. Ryan Winkler (DFL-Golden Valley) on July 1. Winkler resigned because his family is moving to Belgium this summer for his wife’s job.

The filing period for candidates runs from June 17 until June 22. Two DFL candidates have already registered campaign committees for the contest: Peggy Flanagan of St. Louis Park, Executive Director of Children’s Defense Fund, Minnesota; and Tim Reardon of Golden Valley, founder of Cheassisi Consulting. Winkler has endorsed Flanagan. She has been active in efforts to raise the minimum wage, which was a key issue for Winkler.

Rural MN Report Card

During last year’s state House elections, Minnesota Republicans promised voters the GOP would focus on issues of relevance to Greater Minnesota. Republicans and Democrats are arguing about the effectiveness of the session in helping rural Minnesotans.

“If this was the session for greater Minnesota and economic development, greater Minnesota better not hope for another session like this,” Rep. Tim Mahoney (DFL-St. Paul) said during a hearing on the Jobs and Economic Development budget bill at the end of session.

Lawmakers heard about the poor condition of roads and bridges in greater Minnesota and the need for more spending to fix them and both Republicans and Democrats pledged to take action. However, the impasse over a major transportation funding package turned into one of the session’s greatest failures. The standoff came down to differences over whether to increase the gas tax to pay for new road and bridge construction. In the end, only a “lights-on” transportation bill was signed into law.

Legislators may revisit the issue next year, but political positions are unlikely to change before the 2016 election.

Also abandoned was a Republican effort to pass a tax bill, which included property tax cuts for farmers, and an increase in local government aid for rural towns.

A proposed thirty million dollars in broadband funding, a priority for rural Minnesotans, fell to ten million dollars.

Not all was lost. Farmers who lost bird flocks due to Avian Flu got some relief and lawmakers added $138 million to the budget for nursing homes – a key issue since outstate Minnesota has higher concentrations of elderly people and nursing home care is in high demand.

Sex Offender Program Ruling

U.S. District Judge Donovan Frank ruled Wednesday it’s unconstitutional for Minnesota to keep civilly committed sex offenders locked up indefinitely. He made it clear he wants to work quickly, ordering a pre-hearing conference for August 10 “to fashion suitable remedies.”

State officials sought to assure the public that the ruling would not bring the immediate release of offenders and that the State would continue to defend its law. “We continue to believe that both the Minnesota Sex Offender Program and the civil commitment statute are constitutional,” Gov. Mark Dayton said in a statement suggesting the State plans to appeal the decision.

More than 700 civilly committed sex offenders had sued the State claiming it was unconstitutional to keep them locked up indefinitely and that they don’t get adequate treatment from the program run by the Minnesota Department of Human Services.

Legislators have been waiting to see how the case played out in federal court. Frank said lawmakers have to do something about a program he called “draconian” and in need of “substantial changes.”

Electricity Rates

Gov. Mark Dayton signed a Jobs and Energy budget bill that gives an electricity rate break to mining companies, paper mills and steel mills. It aims to help lower energy costs for companies competing in a global marketplace, among them the taconite mines on the Iron Range. Sen. David Tomassoni (DFL-Chisholm) said about 1,000 people working in the taconite mines on the Iron Range have been laid off in the past year. He said lowering the cost of electricity will help these companies compete.

To pay for the break for industrial companies, residents and smaller businesses may have to pay more. Sen. John Marty (DFL-Roseville) said he didn’t object to helping out steel and paper companies, but worries that the way the law is written, other companies could also take advantage of it. He said that means higher rates for everyone else.

It’s not clear yet how many companies would seek a rate reduction under the new law. Those that do would have to apply to their power company, which would then have to ask for approval from the Minnesota Public Utilities Commission.

Even though the threat of a rate hike is real for residents, rates could go even higher if U.S. Steel and other companies go out of business.

Net Metering

Local power companies have had to buy excess electricity from Minnesota homeowners who have solar panels on their roofs and farmers with small wind turbines. The utilities must also sell electricity to those customers when they need it. The arrangement is known as “net metering.”

As part of the recently passed Jobs and Energy budget bill, beginning in July, a municipal utility or a co-op can begin charging new net metering customers a “reasonable and appropriate” fee simply for being part of their electric grid system.

Current customers are not affected by the change. The new language also does not apply to the State’s largest power company, Xcel Energy, so Xcel customers interested in adding solar would not be affected.

Net metering was designed as an incentive for renewable energy investment. According to Science Policy Director for Fresh Energy, J. Drake Hamilton, the upcoming change is unfair. Supporters of the change insist it will level the playing field for all customers. Kristi Robinson, Distribution System Engineer at Steele-Waseca Cooperative Electric, said net metering customers pay less than other customers but use the system more, because they both buy and sell electricity.

It’s also not clear how much utilities will charge. It’s up to the municipal utility or co-op to decide.

Senate Environment and Energy Chair John Marty (DFL-Roseville) thinks it will cause market uncertainty for Minnesota businesses involved with renewable energy. However, House Energy Chair Pat Garofalo (R-Farmington) believes it was a necessary fix.