Here in Minnesota, a number of legislators are introducing or have introduced budgetary amendments that, if passed, will:

  • (HF 1598)  require a “super majority” or a 3/5 of a majority vote to pass a tax increase—instead of the current simple majority of 51%
  • (HF 1661/ SF 1378) limit general fund spending in each biennium (every two years) to 98% of expected income for the state and
  • (HF 1612/ SF 1364) limit all spending to the amount of all income (revenues) collected in the previous biennium.

People are still suffering the effects of the recession, and many are out of work or really scraping by right now, so saving on taxes sounds really good, doesn’t it? Especially since the state government shut down last summer all because they couldn’t agree to much of anything.  Why should they have our hard-earned dollars to sit around and bicker?

Well, on the surface, that’s a pretty sound argument, but let us dig a little deeper and see what it really means for Minnesota’s future and how it can affect each of us as individuals.

The first point to make is that in summer of 2011, we witnessed a legislature so torn in half that getting anything passed seemed nearly impossible.  As a result, the government shut down for two weeks.  That happened with a simple 51% majority vote required to get something passed.  Can you imagine how much more difficult it would be if a 60% majority vote were needed to pass a tax increase?  What if the I-35W Bridge collapsed or North Minneapolis was ravaged by the tornado under such a law?  How would our state be able to handle such an emergency when a speedy consensus to provide aid is so critical?

Another point of concern is that this type of legislative gridlock can lead policy makers to make back-room deals in order to meet their constituents’ needs.  There is no transparency in that type of process, and it allows for more corruption and shady dealing.

Limiting the state budget from future growth means limited funding toward things that most people value, such as a vibrant education system, viable roads, workforce training, and public safety. It also doesn’t allow for long-term goal setting.  This would tie the budget to yesterday’s issues, rather than the unimagined possibilities for tomorrow.

If these three amendments pass both houses of the Minnesota legislature, the plan is for them to be included on the 2012 election ballot for voters to choose.  This way, the governor will not be able to veto them.

Passage of these bills are guaranteed to harm assistance for low income renters.   Each year, we fight to preserve the renters credit, and keep funding alive for housing that lower income families can afford.  If these are issues you care about, then these budget amendments should also matter a lot to you.

The Minnesota Budget Project has great information on these three amendments (that I raided for this blog) as does the Center for Budget and Policy Priorities.  CBPP has excellent information about how similar laws are  harming other states .

If you would like to learn how to follow these bills, Speak for We has a great tutorial on how to use “MyBill” on the Minnesota Legislature’s website. Check these sites out and stay tuned to HOME Line’s site for ways you can help stop these and other harmful measures in Minnesota.

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December 22nd, the StarTribune published an insightful opinion article, “Downtown 2025 plan must include job equity,” by Avi Viswanathan of Hire MN, responding in part to the Strib’s Dec. 14th Editorial, “By 2025, a bigger, livelier downtown Minneapolis.

In his own article, Mr. Viswanathan writes, If we want a healthy economy… our approach to solving the problem of our disparities cannot be separated from any of our long-term strategies and grand visions, much less from our plans for large public and private investments. We must have a systemic and integrated approach so that equity becomes a necessary component of each and every plan for how our city and region develop.

I would like to piggy-back on these comments by raising further concern over the lack of housing affordable to people with low, very, and extremely low incomes.  Solving homelessness must also be part of a long-term strategy and grand vision, rather than a side note, intended to get some more people off the streets for a night or two. “By 2025…” credits the city with its idea to provide …permanent shelter and support services for the 300 to 500 people who will sleep outside in downtown Minneapolis tonight and most nights this winter. And that the project, …anticipates both significant corporate donations to pay for projects and funding help from all levels of government. Both will be required to accomplish this plan’s goals.

That said, I would like to now shift gears and turn some attention to a federal program called Section 3.

Have you heard of Section 3? Me neither. I never knew about this program until someone recently asked me about it.  I had to look it up. NLIHC offers a great (and more complete and accurate) description of it in their Spring issue of Tenant Talk and in their 2011 Advocates’ Guide.  Section 3 was designed as part of the Housing and Urban Development Act of 1968 to provide work opportunities for public housing residents, businesses owned by public housing residents, HUD Youthbuild participants, residents of the neighborhood or businesses that provide economic opportunities to individuals in the neighborhood, and homeless individuals.

What, you may ask, does this have to do with Minneapolis’s grand vision for its future, and the need for racial and economic equality to be addressed within the plan? 

In short (kinda), Section 3 determines that with any number of particular HUD grants used for public and Indian housing or for certain development projects (like this one, perhaps), the grant recipient is supposed to give preference for 30% of its new hires (related to the development project), to eligible individuals that are low-income, homeless, live in the neighborhood, etc. Therefore, if this project were to come to life, and becomes even partly funded by HUD grants, the city and contractors must be held accountable to hiring some of the folks experiencing homelessness and individuals with low-incomes who are already living in the neighborhood to assist with the project.

Developing sustainable communities that connect jobs and transit with more affordable housing options for low-income residents and creating job opportunities for those who need greater housing stability would be an excellent companion piece to advancing racial equity within the plan.  Not only that, but enforcing Section 3 would help to create a financial return for HUD and local housing authorities, as residents would be increasing their own contributions in rent.  That would be a much better way for the government to save than by cutting HUD programs at a time when people need jobs and housing.

According to the NLIHC, enforcement of Section 3 has been neglected until the Obama Administration began taking steps to hold grant recipients accountable to report on their hiring practices.

If advocates are vigilant in holding local governments and contractors accountable to complying with Section 3 on HUD funded projects, much of the same effort can be simultaneously and equally applied when ensuring that people of color are given a fair shot at those work opportunities as well.  What’s that saying again?  “We all do better when we all do better?”

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HOME Line Intern discusses Affordable Housing in this edition of Renters Voice

December 19, 2011

Affordable housing has been an issue that policy makers and politicians have dealt with for decades.  To be considered affordable, no more than 30% of a household’s income should go toward rent. The remaining 70% should go toward food, clothing, medical expenses etc. Currently, millions of Americans pay over 30% of their income toward rent/housing [...]

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Remain Informed on Housing Issues

December 12, 2011

As the 2012 legislative session approaches, it is important to stay informed on and watch for rental housing issues in Minnesota. Many important developments about housing concerns are occurring throughout the state, and it is more important than ever to make your voices heard in the coming months. Recently, the Star Tribune’s Randy Furst reported [...]

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What to do with an $876 million surplus

December 8, 2011

After a tumultuous summer and one of the longest state government shutdowns in Minnesota history, followed by cuts to many vital social programs, it came as a surprise when the state announced last week that it forecasts an $876 million surplus for the next biennium.  The immediate questions that jump into the minds of nearly [...]

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Michael Dahl: Policy Advocate and Creative Leader, his legacy lives on at HOME Line

November 2, 2011

Perhaps some of our readers have already heard the news that Michael Dahl will no longer be serving as Public Policy Director at HOME Line. His contribution to HOME Line is appreciated, and his enthusiasm and spirit will be missed. His work on preserving the Renters’ Credit and passing the Tenant Bill of Rights was [...]

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Burnsville Landlord has license suspended after maintenance neglect

October 21, 2011

Residents of the Country Village apartment complex in Burnsville, MN are the most recent victims of landlord neglect. The complex is infested with insects and has severe water damage causing ceilings to sag and mold to grow. In a recent article, the Star Tribune reports that the management, Lindahl Properties, had their license suspended this [...]

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MPR Reports on rising rents due to rental property tax increases

October 19, 2011

MPR News reported in a recent article that Landlords in the state of Minnesota will see property taxes on their rental units increase by about 4.6 percent. This is due to the redesign of a property tax system intended to relieve homeowners of the property tax burden. The redesign saves the state $261 million a [...]

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Renters Voice recounts how we all worked together to save the Renters Credit this year!

October 17, 2011

We’ve kept you updated play-by-play of the status of the Renter’s Credit this past summer. In this podcast of “Renters’ Voice”, we summarize the work of hundreds of people to save the Renters Credit last legislative session. With the help of legislators, Minnesota renters, and HOME Line interns, we explain the origin of the renter’s [...]

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Community Action Programs fight poverty in Minnesota.

October 6, 2011

Ever wonder how programs like Head Start and Energy Assistance are run? It’s through local Community Action Partnerships (or CAPs), and they are doing cool things all over Minnesota to help prevent poverty and create long-term solutions to poverty. Last week, a CAP conference was held in Duluth in honor of their 45th anniversary. HOME [...]

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