Minnesota Legislature returns with long agenda, short session

State lawmakers return to the Capitol Tuesday to start a three-month, election-year session. It will be DFL Gov. Mark Dayton's final session and he has some priorities he plans to push.

But with Republicans still in charge of the House and Senate, he knows it won't be easy.

"We're going to clash. We have very different ideologies. We represent very different constituencies," said Dayton, who is not seeking a third term.

A two-year budget was enacted last year, but there could be changes if the next forecast, which is expected by end of the month, shows a surplus, and the new federal tax law has put state tax law changes at the top of the agenda for Republicans.

Lawmakers need to figure out how best to line up Minnesota's tax code with the federal changes.

Republican House Speaker Kurt Daudt wants to make sure Minnesotans don't see a tax increase.

"We will try to write a bill that tries to hold Minnesotans harmless," said Daudt, R-Zimmerman. "And in areas where we can't exactly do that, we'll try to incent the kind of behavior that we want or help the kinds of folks we want to help, and that would be middle-income Minnesotans."

Dayton is also proposing $1.5 billion in state borrowing for public works projects.

Republicans say they're open to a bonding bill but say Dayton's plan is too expensive. Daudt wants the bill to emphasize maintaining existing state buildings instead of new, local projects.

Republicans and Democrats will also try to protect Minnesotans from more problems when they buy vehicle licenses or transfer titles. State officials say they need another $43 million to fix the troubled computer system known as MNLARS, which has already cost $93 million.

It's a sore spot for Senate Majority Leader Paul Gazelka, R-Nisswa, who blames Minnesota IT Services for the troubles, and wants changes.

"It's a big frustration for me that they've come back now a second time. If we do provide the money, that means it will be three times as much as what they said."

Republican lawmakers are also expected to act quickly to restore the House and Senate operating funds that Dayton vetoed last spring. Dayton ultimately prevailed in a months-long court fight over the action, but he assured GOP leaders that the fight is over.

"I want to sign the bill," he said. "I want to put it all behind us. I want to move forward."

Another legal fight is looming over Republican Michele Fischbach's dual role. Fischbach, who succeeded Tina Smith as lieutenant governor, is fighting to keep her senate seat. Democrats are pushing her to resign, an outcome that would deadlock the Senate at 33-33 until a special election could be held.

Lawmakers will have plenty of requests for more spending if there's a budget surplus.

House Minority Leader Melissa Hortman, DFL-Brooklyn Park, wants more for schools.

"We have districts all over the state borrowing money to operate and making cuts. At our state colleges and universities, all you need to do is look in the local newspapers around the state and see the cuts that local institutions are making because of the inadequate funding provided by the state."

DFL Senate Minority Leader Tom Bakk says money needs to be spent to bolster public employee pensions and to fix the state health department's problems with elder care oversight. But overall, Bakk, DFL-Cook, is warning his colleagues against spending too much.

"I worry a little bit that we're going to overcommit either on the tax side or the spending side," he said. "And ultimately a year from now the next Legislature and the next governor potentially could be here facing a deficit."