STATE OF MINNESOTA

Office of Governor Mark Dayton

116 Veterans Service Building 20 West 12th Street Saint Paul, MN 55155

November 10, 2016

The Honorable Kurt DaudtSpeaker of the House

Room 463, State Office Bldg.
St. Paul, Minnesota 55155
Dear Speaker Daudt:
I want to clarify my position, regarding the content of a possible Special Session
before the start of the next Legislative Session on January 3, 2017. I insist that its sole
purpose be to provide much needed financial relief to those Minnesotans, who buy their
health insurance through the "Individual Market" and do not receive the federal tax credits
available through MNsure.
Two weeks ago, I offered a proposal that would provide a 25% rebate to those
Minnesotans, at a cost of approximately $300 million, which would be funded by redirecting
that amount, which would otherwise be added to our current $1.9 billion Budgeted Reserve.
Since then, my administration has been working continuously to refine the proposal, to draft
legislation, and to work with the health insurance companies, who would need to help
implement it.
It is critical that if we are going to provide relief, we do so quickly. Thousands of
Minnesotans have already purchased their health insurance for the upcoming year. However,
thousands more are still considering their options and deserve to be able to make informed
health care choices knowing whether or not the state will cover 25% of their monthly
premium costs.
I agree that we also need to work on longer-term market solutions for 2018 and
beyond, but those important discussions should not prevent us from providing immediate
relief for Minnesotans some of whom will receive their first bills next month. My Health
Care Task Force on which each of the four Caucuses has a member - is meeting in
November and December, and will have recommendations in January to inform our
discussions about longer-term changes that we will need to address early in the next
Legislative Session. Understandably, 201 Legislators will have their own views on how best
to make affordable health care available to all Minnesotans.
Thus far, I have not received a reply to this proposal from you or your Caucus. I left
a voicemail message with you yesterday morning and have yet to receive a reply. I offered to
be conciliatory. However, your press remarks yesterday, contrary to mine, contained yet
another round of the same pre-election attacks on MNsure, the Affordable Care Act, and me.

Voice: (651) 201-3400 or (800) 657-3717

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Printed on recycled paper containing 15% post consumer material and state government printed

The Honorable Kurt Daudt

November 10, 2016
Page 2

That partisan political rhetoric is counter-productive, if you and your Caucus

genuinely desire to provide this needed financial aid before the next Legislative Session. As
for last Session's tax and bonding bills, we spent four months this summer and fall trying to
reach an accord among the four Caucuses. Those efforts were unsuccessful. They are thus
matters, which should properly be passed on to the next Legislature, in which, I note,
Republicans will control both bodies.
Furthermore, I am deeply concerned about the fiscal impact of enacting both a health
care relief package, at the cost of some $300 million, and the previous tax bill, which would
cost $782 million in this and the next biennium. I believe it would be fiscally irresponsible to
spend $1.082 billion from a surplus, which was forecasted nine months ago.
The next Budget Forecast, which will be issued on December 2nd, will provide us
with an up-to-date assessment of our current and projected fiscal situations. It will provide
the information, which the Legislature and I should have, before we take over a billion dollars
from the State Treasury.
I believe that we need to determine very quickly, with Senator Bakk, Representative
Thissen, Senator Hann, or their designees, whether or not we can agree to, and commit in
writing to, a Special Session within these parameters. The Minnesotans, who are facing the
severe increases in their health insurance costs next year, deserve to know very soon, whether
or not we will provide the financial assistance they need.

cc:

Senator Tom Bakk, Senate Majority Leader

Senator David Hann, Senate Minority Leader
Representative Paul Thissen, House Minority Leader