Good morning. Here’s your Wednesday Digest: 1. Cities strain to address public safety concerns. Budget debates in Minneapolis and St. Paul have been especially contentious this year. Members of groups like Black Lives Matter and Reclaim the Block turned out in force throughout the monthslong public hearing process in Minneapolis. Activists argued that public safety initiatives aimed at putting more cops on the streets would result in more potential for police brutality. Protesters heckled Minneapolis Mayor Jacob Frey during his budget announcement in August when he said he wanted to add 14 officers to the city’s police force. And activists continued to challenge the mayor last week when he proposed a compromise. “You care about the cops more than the many. You gave them gold and gave us pennies,” they chanted, as one of the demonstrators poured a bag of pennies on the floor of a City Hall conference room. MPR News
2. Trade deal lifts uncertainty for Minnesota exporters. A new trade deal for the United State, Mexico and Canada means business as usual for most Minnesota industries that depend on the trade partners, according to a University of Minnesota international trade expert. The U.S., Mexico, Canada Trade Agreement, or USMCA, will replace the North American Free Trade Agreement, which has been in place since 1994. Top Democrats on Tuesday announced a deal with the White House that would allow it to move forward. "The changes that have been made don't affect, in my view, the general shape of our advantages from NAFTA, but what they do is get rid of the uncertainty about whether or not NAFTA is going to continue," said Robert Kudrle, a professor at the U’s Humphrey School of Public Affairs. MPR News
3. Small distillers fear tax relief could dry up. A few weeks before the champagne corks pop to usher in 2020, one branch of the liquor business is viewing the New Year with trepidation: craft spirits. A federal excise tax relief for small distillers included in the $1.5 trillion tax reform bill in 2017 is set to expire at the end of the year. If it is not renewed by then, the distillers could see their excise taxes go up fivefold, potentially setting back much of the growth the industry experienced over the last two years. Chris Montana, the president of the American Craft Spirits Association and owner of DuNord Craft Spirits in Minneapolis, said the end of that tax relief could mean trouble for microdistilleries in Minnesota and across the country. They may have to cut workers, raise their prices or shut down altogether, he said. “If we get there and fall off the backside of that cliff, I think it will be devastating for our industry,” Montana said last week. Star Tribune
4. Bakk facing challenge over caucus leadership. Democrats in the Minnesota Senate will meet early next month to consider whether a change is needed in caucus leadership. Senate Minority Leader Tom Bakk, DFL-Cook, is facing a challenge from Sen. Susan Kent, DFL-Woodbury. The debate will likely pit rural members of the caucus against urban lawmakers. A caucus meeting originally scheduled for Tuesday was postponed because several members were unavailable to attend. Bakk said he heard from many who said they wanted to participate in the discussion. “It’s a big deal,” Bakk said. “It’s about more than just a vote. It’s about a conversation. If there are problems, what are they? Let’s talk them through.” MPR News
5. MNLARS on track, but faces risks. Minnesota is on track to meet the project implementation deadlines for replacing the state’s troubled driver and vehicle registration system known as MNLARS, the Office of the Legislative Auditor reported Tuesday. However, the auditor’s report found some minor risks to completing the project on time and on budget, and said managers should address them soon. The most serious involved requirements added by the 2019 Legislature for researching alternate ways of determining vehicle licensing fees, and for exploring self-service licensing, title and registration capabilities. Moving ahead on those ideas could mean delays and higher costs, the report said. The Associated Press
| 