Green Acres Repeal Clears House, on Second Reading in Senate

A bill sponsored by Big Lake legislator Rep. Mary Kiffmeyer (R-District 16B) has passed the Minnesota State House, taking aims at restoring the Green Acres program to its status before an 11th-hour change in the 2008 session virtually dismantled the program.

Green Acres, a tax deferment program vital to local farmers in Wright County – more farmers per capita used the program here compared to any other county – was amended in that 2008 session, ending a program that saved small farmers and farmers with “non-tillable” land thousands of dollars in property taxes each year.

A Band-Aid approach to fix the bill was created in the 2009 session, but created “more bureaucracy” with another government program to oversee a different tax deferment program, according to Sen. Amy Koch.

“It was a struggle to get through, but something the minority [Republicans] thought we needed at that time to give farmers who were going to end up paying thousands in deferred taxes a bit of a break,” Koch said. “The ultimate goal was to get Green Acres back to the program it was.”

Green Acres was targeted by legislators in the northern part of the state due to “abuse.” Legislators from Kandyohi County, for example, said game lodges and so-called “hunting farms” were using the program to avoid paying taxes on land that was actually raising revenue at a higher clip than its agricultural classification would have.

An inside look at HF012 highlights can be found on the AgriNews website, which also breaks down SF022, which is the companion bill. The only stark difference between the two bills is that the Senate file asks for a current aerial photograph from landowners enrolling in the Rural Preserve program, which was the 2009 program aimed at fixing the changes to Green Acres.

“Really the only solution is a full repeal [of the 2008 changes],” said Kiffmeyer.

 Here’s what else has been going on at the State Capitol, as St. Michael-Albertville’s representatives march toward the self-imposed budget deadlines.

Rep. Paul McDonald: McDonald joined his colleagues in voting for HF12, which passed the House with bipartisan support.

He also joined the Republican Caucus in introducing the House’s 2011-2012 budget, which included cuts across the board for higher education, health and human services and Local Government Assistance.

Gov. Mark Dayton has spoken out against the proposed budget.

One place McDonald said he hopes the House and Governor can agree is examining the slate of bonding projects still on the state’s books.

“We have been looking between the couch cushions, under the car seats and just about everywhere else to find spare change that will help us chip away at our budget shortfall. A couple of proposals that are making progress in the House address bonds used to fund construction projects throughout the state,” McDonald said in an e-mailed update to St. Michael Patch.

“With one plan, we are looking to cancel around $60 million we’ve appropriated for projects which have failed to get off the ground. Pulling the plug on these idle projects would put approximately $60 million toward fixing our bottom line. We’re taking a hard look at what maybe wasn’t shovel-ready, or where the process stalled for one reason or another. These projects could be considered for reinstatement down the road when hurdles causing delays are cleared.”

McDonald said the House is also asking the MMB (Minnesota Management and Budget office) to examine current loans and possibly refinance, which would save the state thousands of dollars on bonded projects.

Sen. Amy Koch: Koch’s goal of repealing the ban on nuclear generating facilities (licensures) in Minnesota seemed on track, but has of course stalled since the tragic earthquake and tsunami in Japan. A partial meltdown to at least two reactors there has put the bill on the shelf, with Gov. Mark Dayton hinting he wants a provision for waste storage included on the bill, which would kill it as it did in 2010.

Koch, instead, has been busy defending the Senate’s budget proposals. A comprehensive list of those budget proposals can be found right here.

“There are going to be some cuts that are going to hit pretty hard,” Koch said before the Senate went into budget talks about two weeks ago.

But Dayton sent out letters to the leadership, including Koch, who is the Senate Majority Leader. The scathing language called initial budget proposals from committees “draconian.”

Koch referred in local media to the letter as a “barrier.”

The budget process will push toward a self-imposed deadline of March 31, but it appears the GOP will run into resistance once those budget bills hit the governor’s desk.