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Minnesota State Senator Tom Bakk Announces Retirement

After serving in the state legislature for nearly three decades, Sen. Bakk said he won’t seek reelection and will retire at the end of the year.

COOK, Minn. — With another election season on the horizon, Minnesota State Senator Tom Bakk says he’s ready to move on from politics.

Bakk, who represents Minnesota’s Senate District 3 as an Independent, announced March 17 that he will not seek reelection for another term and will retire at the end of the year.

“Representing the people of the Arrowhead region has been one of the greatest rewards of my life, made possible by the support and patience of my family,” Bakk said in a written statement. “My heartfelt thanks to my constituents for entrusting me to be their voice at the Capitol for so many years. I have always tried to do my best for the people I’ve served even if it was not always easy or popular with my own political party. The friendships and the memories I have made will carry with me forever.”

Bakk was first elected to the Minnesota House of Representatives in 1994, where he served four terms as a member of the DFL party. In 2002 Bakk was elected to the state Senate where he served as Majority Leader from 2013-2016 and Minority Leader from 2011-2012 and 2017-2020.

Last year, Bakk left the DFL Caucus to become an Independent and is currently is the Chair of the Senate Capital Investment Committee.

“There is still a lot more to be done but it is time for me to pass the torch. I’m certain there are new inspiring leaders waiting in the wings. For 28 years it has been my time to serve but now it is finally my time to retire,” his statement read.

Bakk, who has four children and eight grandchildren, lives on Lake Vermillion with his wife Laura. The senator said he expects to enjoy more sports, like hockey, baseball and basketball, with his family in the future.

ST PAUL, Minn. — Four terms in the Minnesota House followed by six terms in the Minnesota Senate. It adds up to 28 years for Sen. Tom Bakk of Cook. And he’s decided that’s enough.

Sen. Bakk announced Thursday he won’t run for re-election in his fall, joining a large exodus of lawmakers who won’t be back for the 2023 session. He said he wants to spend more time with his family, including his grandchildren who live in northern Minnesota.

“I’ve got eight grandchildren now. They’re a long way away from here,” Bakk told KARE.

“I remember going fishing with my grandpa and I want them to remember that with me. That’s very hard, especially when you get into leadership roles like I have here. For some of us that are in leadership positions this isn’t a part-time job anymore.”

Bakk, a carpenter and union leader in the state’s Arrowhead region, was first elected to the House in 1994 and won his first Senate election in 2002. He rose through the ranks to become leader of the DFL Caucus, serving as Senate Majority Leader and later Senate Minority Leader.

During those years he spearheaded efforts to raise the minimum wage and index it to the cost of living and make major investments in all-day kindergarten.

“I feel like an awful lot of good things have happened and I’ve been part of that,” Bakk remarked.

“I’m at a point where I feel I’ve paid my dues, and it’s time for someone else to pick up the flag and someone will. There’s a lot of really good people in northern Minnesota.”

Lawmaker exodus

As of Thursday, 17 of the Senate’s 67 members had announced they’re retiring. Of that group 13 have decided, like Bakk, to leave politics. Four others are running for other offices. Republicans Paul Gazelka Michelle Benson are both in the governor’s race. Democrat Jerry Newton is running for a House seat, while Karla Bigham is running for Washington County Commission.

See a full list of retiring Minnesota lawmakers here from the Legislative Research Library.

In the House so far 33 state representatives have said they’re retiring. Of those, 17 are leaving politics for now, while 12 are running for seats in the Senate. Another four House members are running for other offices.

House Majority Leader Ryan Winkler is running for Hennepin County Attorney. His fellow Democrat Rena Moran is running for Ramsey County Commission. Two Republicans, Nels Pierson and Jeremy Munson, are both running for the late Congressman Jim Hagedorn’s seat in the U.S. House.

“Senator Bakk has a very, very strong legacy of representing the Iron Range,” Republican Senate Majority Leader Jeremy Miller told reporters Thursday.

“He’s become a close friend to many here in the legislature, including me. We’re going to miss Senator Bakk. He still has work to do, though. He’s working on a bonding bill and I’m sure he has other things.”

Bakk and Sen. Dave Tomassoni, a fellow Iron Ranger, broke away from the DFL Caucus in December of 2020 and became independents who could swing either way on key Senate votes. Ten months earlier, Senate Democrats had elected Sen. Susan Kent as their new caucus leader over Bakk.

Earlier this year, Kent stepped down from the minority leader post to spend more time caring for her ailing mother. Sen. Melisa Lopez-Franzen of Edina was elected to replace Kent as Senate DFL leader, but she’s also retiring after redistricting put her in the same district with fellow Democrat Ron Latz.

Sen. Franzen praised Bakk Thursday.

In fact, redistricting played a huge role in many lawmakers’ decisions about whether to run again or retire. Others had just reached the age where, like Bakk, they didn’t want to miss time with their families.

“In his 28 years serving Northeastern Minnesota Senator Bakk has been a strong voice not only for his constituents, but for people across the state on the issues he cared deeply about, and that Minnesotans cared deeply about,” she said.

RELATED: New 2022 congressional, legislative maps released for Minnesota

Franzen cited his work on tax reform, education, stabilizing school funding and the state budget and advocating for family-supporting jobs, plus his efforts to secure funding so for the massive State Capitol restoration project and the new Senate Office Building.

Tomassoni was diagnosed last year with ALS and decided he won’t run for re-election because the degenerative disease is taking such a heavy physical toll.

“The truth is the Senate’s not going to be the same next year,” Bakk said Thursday.

“My friend David Tomassoni won’t be here. My friends Paul Gazelka, Scott Newman, Julie Rosen, Dave Clausen, and Jerry Newton won’t be here. A lot of people that have been close friends won’t be here next year. That’s a little hard.

 

(KARE 11)

Materials Prices For Nonresidential Construction Soar 21 Percent From February 2021 To February 2022; Association Warns Of More Cost Increases

Diesel Fuel Prices Spiked 57.5 Percent and Steel Mill Product Prices Surged by 74.4 Percent Compared to a Year Ago, Squeezing Already Narrow Margins for Contractors and Threatening Future Demand for Projects

Prices of construction materials used in new nonresidential construction jumped more than 21 percent from February  2021 to February 2022, according to an analysis by the Associated General Contractors of America of government data released today. The association noted that more recent price announcements made after the February data was collected suggest contractors are experiencing even worse cost pressures this Spring.

 

“Even though the February numbers represent some of the highest year-over-year price increases ever recorded, they have already been surpassed by even steeper price hikes since the war in Ukraine broke out,” said Ken Simonson, the association’s chief economist. “Since the time these prices were collected, multiple increases have taken effect for metals, fuel, and trucking, while supply chains have become even more snarled.”

 

The producer price index for inputs to new nonresidential construction—the prices charged by goods producers and service providers such as distributors and transportation firms—increased by 2.0 percent from January to February and 19.1 percent over the past 12 months. In comparison, the index for new nonresidential construction—a measure of what contractors say they would charge to erect five types of nonresidential buildings—climbed by 0.6 percent for the month and 17.0 percent from a year earlier.

 

Prices climbed at double-digit rates for nearly all categories of inputs in the cost index, Simonson noted. The price index for diesel fuel leaped 57.5 percent over 12 months. The index for steel mill products climbed 74.4 percent. The index for aluminum mill shapes jumped 37.3 percent. The index for plastic construction products rose 35.6 percent over 12 months.

 

In addition, year-over-year increases exceeded 20 percent for the indexes covering copper and brass mill shapes, 24.4 percent; lumber and plywood, 22.5 percent; asphalt and tar roofing and siding products, 22.5 percent; gypsum products, 20.7 percent; and architectural coatings, 20.3 percent. Other inputs with double-digit increases for the past 12 months include truck transportation of freight, 19.1 percent; insulation materials, 17.8 percent; concrete products, 10.0 percent, and flat glass, 10.0 percent.

 

Association officials said rising materials prices and tight labor market conditions are forcing contractors to charge more to build projects. They warned however that further price increases could undermine demand for some construction projects, threatening the sector’s recovery. They called for new efforts to ease supply chain backups and urged public officials to allow change orders to reflect the rapid escalation in materials prices.

“At some point projects will no longer pencil out as contractors have to raise bid prices to keep pace with the rapid inflation in materials costs,” said Stephen E. Sandherr, the association’s chief executive officer. “Public officials can help by giving contractors more flexibility to adjust contract amounts to keep pace with spiking materials prices.”

View producer price index data. View chart of gap between input costs and bid prices.

Appeals Court Overturns Punitive Damages for Breach of Contract in AGC-Supported Lawsuit

In a favorable decision issued March 11, the TN Court of Appeals agreed with AGC of America and AGC of Tennessee that a subcontractor cannot sue a general contractor on one and the same set of facts for not only breach of contract (seeking to recover its purely economic losses) but also in tort for misrepresentation (seeking compensatory and punitive damages).  The court of appeals ruled that the subcontractor’s ability to recover monetary damages was limited by its contract with the general contractor.  As such, the court vacated the lower court’s award of punitive damages because they were not permitted under the contract.

At AGC’s urging, the TN Court of Appeals decided that where the contract was negotiated by sophisticated commercial entities, contract law is sufficient to make wronged parties whole, noting that they can bargain/negotiate exceptional contract remedies, such as liquidated damages, should they see fit.  The case is Commercial Painting Company v. The Weitz Company.

This case grew out of a dispute between a general contractor and a subcontractor over the pace and quality of the subcontractor’s performance. The trial court awarded the subcontractor a total of $8M damages (including $4M in punitive damages) based on both contract and tort theories. AGC got involved because of concerns that the case threatens to erode the foundation on which contracting is based by allowing parties to subvert their contract (governing their rights and responsibilities) and to recover in tort what they could not obtain through their contractual remedies. In general, tort theories can justify an award of punitive damages while contract theories cannot.

AGC’s friend-of-the-court brief argued that the subcontractor should be limited to damages authorized under the contract.  The appellate court agreed and limited the subcontractor to damages contemplated by the parties, and that could be recovered under the parties’ contract, which – in this case – included a broad limitation on liability/damages and waived any damages not specified.

How To Support AGC’s Litigation Program 

The Construction Advocacy Fund of the AGC of America provides the financial resources that the association requires to extend its advocacy into federal and state courtrooms across the country.  In conjunction with the association’s legislative, regulatory and public programs, the association’s litigation program seeks to protect if not enhance the business environment for construction contractors. Without the strong and enduring support that the CAF provides, the program would struggle to match the frequently powerful parties with a vested interest in taking either the law or government policy in the wrong direction. Examples of past cases in AGC’s litigation program:

Contractor Type
Utility
Infrastructure
Federal/Heavy
Highway
Building
Industry Priorities
Construction Law

Minnesota Construction Job Growth Ranks Far Below Other U.S. States

The Legislature is barreling toward the end of its yearly session still lacking a big deal on taxes and spending but making progress around the edges nonetheless.

Without a broad framework to guide them to the finale, it’s difficult to gauge whether the Republican-led Senate, DFL-led House and DFL Gov. Tim Walz will avert a collapse on the session’s biggest items — public safety, school aid, long-term care relief and tax cuts high on that list.

They are hoping to build off earlier agreements around an insurance market shock absorber, a fix to the unemployment system and a bonus program for pandemic frontline workers.

Late last week, a couple notable breakthrough bills passed by wide margins. One dictates how $300 million from a settlement with opioid manufacturers can be spent and the other bolsters programs for military veterans.

That $65 million veterans bill was peeled away from other discussions around use of the $9.25 billion surplus lawmakers had at their disposal this year. It directs money to complete and outfit three new veterans nursing homes in greater Minnesota, steps up support programs for veterans experiencing or at risk of homelessness and rewards those who served in post-September 11th military conflicts.

House Veterans and Military Affairs Chair Rob Ecklund, who helped broker the deal with Republican Sen. Andrew Lang of Olivia, was pleased to see it move in solo fashion rather than get linked to other negotiations. So, too, were others in the House and Senate who sent it on to Walz with only one dissenting vote.

“I think what it says is despite politics, the state of Minnesota and the two bodies can come together and take care of our vets,” said Ecklund, DFL-International Falls. “Vets took care of us through their commitment overseas and other things, and the state can fulfill its obligation.”

That bill’s path is interesting, given that most of the supplemental spending proposals are tied up in massive, catchall bills. It could be an anomaly or a roadmap for other issues that are still bottled up.

House and Senate leaders said they are pushing key legislators and stakeholders to button up agreements on their own and not wait for the proverbial “big deal” to materialize.

“This year is very, very different from a normal budget year where we don’t have to have an agreement in any particular budget area. State government will continue to operate,” said House Speaker Melissa Hortman, DFL-Brooklyn Park. “And so without that kind of a backstop, I think there’s less incentive for leaders and caucuses to take a position that nothing is settled until everything is settled.”

Senate Majority Leader Jeremy Miller, R-Winona, sounded much the same.

“We want to encourage the chairs and the conference committee members to work together, find agreement and when agreement is reached, we will bring those bills up on the House and Senate floor and pass them as we go,” he said.

Nothing else is right on the cusp, but it’s conceivable that negotiators on agriculture and higher education bills could notch deals.

Those program areas are relatively small in the context of the overall state budget and the amount of the projected budget surplus they’d bite off.

There is somewhere between $7 billion to $8 billion of the projected surplus left to allocate after the session’s prior agreements.

There are four areas in competition for most of that pot of money: Tax cuts, school spending, allowances for health and long-term care programs and public safety initiatives.

The deal-at-a-time strategy will eventually narrow the focus to those competing priorities.

And at some point lawmakers will have to decide if they want to find middle-ground agreements or take their messages to the campaign trail instead.

A separate bonding bill to fund construction and general infrastructure programs through borrowing also remains in the mix. Both Hortman and Miller said serious discussions have begun there, too.

Neither chamber has put out an actual bill yet. The bonding bill requires minority caucus buy-in because supermajorities are needed to pass borrowing plans.

Expect an eventual plan to include around $1.5 billion or so in general state debt. But there could be projects funded through other types of bonds.

There is an appetite to pass a construction plan this year to make sure building work remains in the pipeline, to maximize money from the federal infrastructure law and because interest rates could be a factor.

The session ends two weeks from Monday, with a bill passage.

 

(MPR)