Latest news with #DFL-controlled
Yahoo
7 days ago
- Business
- Yahoo
Infrastructure package is dead this year, Minnesota legislative leaders say
Photo by. A bill to fund critical public works projects — including upgrading the state's roads, protecting Minnesota's drinking water and expanding city sewers — is dead this year, legislative leaders said Thursday. The Minnesota Legislature in even years typically passes an infrastructure package — known as a 'bonding bill' around the Capitol because it's funded with borrowed money — that costs hundreds of millions and sometimes billions of dollars. But partisan tensions appear to have won out this year and killed the bill's prospects. Bonding bills require a 60% supermajority in both the House and Senate to pass, meaning it needs robust bipartisan support. Legislative leaders and Gov. Tim Walz are working to button up budget bills in hopes of convening a special session next week to pass the biennium budget, after failing to complete their work before the constitutionally mandated May 19 adjournment. If lawmakers fail to pass a budget by June 30, the government will shut down. The DFL-controlled Legislature passed a $2.6 billion infrastructure package in the 2023 session, including $1.5 billion in bonds, following three legislative sessions without an infrastructure deal. The 2023 package included more than $317 million for upgrades to college buildings in the University of Minnesota and Minnesota State systems, $9 million for security upgrades at the State Capitol and $443 million for economic development initiatives, much of which went to Twin Cities metro nonprofits that assist people of color. Last year, the Legislature failed to pass a bonding bill. Democrats at the time blamed Republicans for making their necessary votes contingent on Democrats killing the Equal Rights Amendment. House DFL caucus leader Melissa Hortman on Thursday told reporters that Senate Minority Leader Mark Johnson, R-East Grand Forks, is trying the same tactics this year. 'Johnson has a price tag that includes lots and lots of other things far outside the bonding bill, and so I think he's going to overplay his hand, exactly as he did in 2024 and there will again not be a bonding bill,' Hortman said, laying the blame on Senate Republicans. Asked what kinds of demands Johnson is seeking, Hortman said, 'He just wants to rewrite every other bill.' In a statement, Johnson said Democrats refused to compromise. 'Democrats are the only ones unwilling to work together to pass (a) bonding bill and are playing political blame games to appease their activist base,' Johnson said. A lack of bonding bill this year could also cost Minnesota more money in the long run. Republicans in Congress are considering eliminating a tax break that lowers the cost of public infrastructure projects across the country, as they try to gather savings to pay for a major tax cut that would especially benefit the wealthy. If passed, the cost of borrowing for state and local governments would increase, meaning taxpayers would foot the bill.
Yahoo
27-04-2025
- Business
- Yahoo
Disability funding, taxes at issue as MN Legislature crafts state budget
The countdown is on at the Minnesota Capitol, where lawmakers have about three weeks to produce the next two-year state budget. If they don't get tens of billions of dollars in spending bills on the way to the governor's desk by May 19 to be signed into law, they'll have to return to the Capitol for a special session. Barring that, the state government runs out of funding and shuts down on July 1. When asked at recent news conferences about the prospects of a budget getting passed on time, Democratic-Farmer-Labor and Republican legislative leaders sounded optimistic. But a few key sticking points have the potential to derail the final stretch of the session and drag the Legislature into overtime. Republicans have been firm that they won't approve a new state budget with any new taxes, and they've resisted DFL proposals to reduce spending on disability services and nursing homes to help address a $6 billion deficit looming at the end of the 2020s. Meanwhile, DFLers don't want to water down the programs and benefits they created while in control of state government in 2023, such as paid family and medical leave, universal free school meals, and free college tuition for families with lower incomes. As lawmakers plot out state spending for the next few years, a health budget bill has emerged as a key issue in negotiations between the House tied between the GOP and DFL, the DFL-controlled Senate and DFL Gov. Tim Walz. Education is another potential snag, where the governor is proposing reductions in special education that Republicans oppose. Minnesota has a projected surplus of $456 million for the next two years, but a deficit of around $6 billion is expected for the 2028-29 fiscal year. Republicans say the Department of Human Services cuts Walz proposed in his $66 billion two-year budget will disproportionately affect counties that rely on state aid for long-term disability reimbursements. However, state budget officials have warned that half the budget could be long-term care by the 2030s if reimbursements aren't curbed. Walz has proposed cutting around $5.5 billion from the state budget in the next four years, with about $1.4 billion of that from disability waivers. It appears Senate DFLers are on board with the overall cuts, though in the tied House, the cut target was around $3.8 billion. Instead of disability waivers and other cuts, Republicans say the state should seek to address fraud and cut state-funded health care benefits for people in the country illegally, which the DFL-controlled government approved in 2023. Higher-than-expected enrollment grew the costs of those new MinnesotaCare benefits three times more than originally expected, potentially costing the state about $600 million by 2029, Republicans said. 'We can't afford it and we're looking at cuts to nursing homes and other health and disability services,' House Speaker Lisa Demuth, R-Cold Spring, told reporters Tuesday. DFLers disputed GOP characterizations of the program and claims of total expenses to the state. At a news conference on the state Capitol steps Thursday, Sen. Alice Mann, DFL-Edina, said the program is designed to help cover the costs that end up being absorbed by health care providers. 'That is not going to fix anything,' she said. 'Republicans are telling you that if we take away peoples' health care, that's going to fix the problem. Those are absolute lies, and it's egregious what they said. They are taking our crumbling health care system and they're blaming it on immigrants.' Another issue in the budget negotiations is education. Republicans want to cut unemployment benefits for hourly school workers like paraprofessionals and bus drivers, another policy DFLers passed in 2023. House DFL Leader Melissa Hortman said addressing impasses might take getting other components of the budget put together first in order to create more wiggle room on the more controversial items. 'As we get more of the bills on the table … we can start to solve the problems that are across issue areas,' she said to reporters at a news conference after Walz's State of the State address on Wednesday night. 'So it may be that something in a different arena breaks something loose in health.' Other pieces of the budget are coming together and seeing passage out of key committees and on the floors of the House and Senate. There's been some progress so far on the veterans and housing budget bills, for instance, and others continue to move forward. In his State of the State speech, Walz acknowledged that Minnesota had to make tough choices in order to preserve services and made overtures to Republicans to work toward a budget to keep the state in a good position amid potential uncertainty under President Donald Trump. 'This budget wasn't written to please everyone. It was written to bring everyone to the table. And when we get there, no doubt we'll have some disagreements,' Walz said. Walz has proposed changes to the state sales tax that would modestly reduce the overall rate but introduce new taxes on services like legal advice and accounting. Legislative DFLers also are proposing what they say is a first-of-its-kind tax on social media platforms like Facebook and X that could raise $334 million over the next four years. It is to be based on the collection of user data, which platforms profit from by selling to advertisers. Both are non-starters for Republicans, who say the state grew spending too much in 2023, when DFL-controlled state government increased the two-year budget by nearly 40% to more than $70 billion, used a considerable amount of a record $18 billion surplus and introduced billions in new taxes and fees. 'We are one of the highest-tax states in the nation, we don't need to be going back to Minnesota taxpayers to get that money,' said Senate Minority Leader Mark Johnson, R-East Grand Forks, as GOP leaders took questions from reporters after Walz's speech. Amid tariffs on foreign goods, cuts to the federal workforce and potential cuts to Medicaid under the Trump administration and a Republican-controlled Congress, there are concerns about potential economic impacts on Minnesota that may require lawmakers to return to the Capitol later this year. If a recession results from U.S. trade policy or if the state loses significant federal funds, the Legislature might have to reconvene to address shortfalls. So far, however, those potential challenges have not shaped budget negotiations. Hortman said lawmakers can't take any real action until Congress takes final action on Medicaid. Senate Majority Leader Erin Murphy, DFL-St. Paul, echoed that sentiment, telling reporters this week that the state needs to focus on the immediate needs of the state before it can pivot to potential disruptions at the federal level. 'The best thing that we can do right now is to pass a stably balanced budget that people can count on,' she said. 'And that's the work that we have to do between now and the end of the session.' Ethics panel: MN Senate President must disclose possible future conflicts Concern over vaccine misinformation prompts UMN initiative to preserve data Walz seeks GOP help on budget, blasts Trump 'chaos' in State of the State speech Jim Gelbmann: Our partisan endorsement process is unrepresentative, polarizing and self-serving Minnesota gun-carry permit age drops from 21 to 18 after legal challenge
CBS News
25-04-2025
- Business
- CBS News
Proposal in Minnesota Legislature would repeal jobless benefits expansion for hourly school workers
There is a clash at the state capitol over jobless benefits for hourly school workers during the summer months that could be a sticking point in end-of-session negotiations. A 2023 Minnesota law made employees like bus drivers, teacher aides and food service workers eligible for unemployment insurance between two academic years when students are on break. The state approved $135 million in supplemental aid to cover the cost instead of schools until 2027 or sooner if the money ran dry. Now there is a debate over extending that funding — and by how much — and another about repealing the law altogether. In the tied House, an education funding deal between Republicans and Democrats that will be officially published next week would end the expanded unemployment benefits in September 2028. During a news conference Friday, workers impacted warned that any change would force them to quit in order to make ends meet. Cat Briggs, a school bus driver, said the benefits covered half of her weekly wages last year. "That little bit of economic security meant that I did not have to choose between taking care of my kids — my bus, my kids — and my grandchildren," she said. "If the legislature takes away my unemployment benefits, there is no way I can continue in my job, it will be economically impossible. I will have to resign." Workers like Briggs say the benefits have helped them stay in their jobs, while some school districts rebuff the claim that it helps with retention of employees. More than 21,000 hourly school employees are eligible for the benefits, according to the Minnesota Department of Employment and Economic Development. But any proposed changes in the House bill next week are far from final. Education leads in that chamber will have to work with the DFL-controlled Senate and Gov. Tim Walz to hash out differences in all spending plans before the next two-year budget is actually complete. In a statement, Rep. Ron Kresha, the Republican co-chair of the House Education Finance Committee said this about the proposal: "After Governor Walz proposed to cut school funding, the House GOP responded with a robust, flexible funding bill empowering schools to recruit and retain the best staff." House Speaker Lisa Demuth, R-Cold Spring, this week told reporters this issue was a sticking point during negotiations. Due to the tie, no bill will pass off the House floor without bipartisan agreement. "When it gets put back on the taxpayers statewide, and then eventually it will be put back on the communities, the problem with that is we would be paying for people to stay home and not educate kids," Demuth said. "Those are hourly workers that had temporary jobs, whether they were a few months or a few hours, whatever that would be. It doesn't line up with regular unemployment." Meanwhile, the Senate education funding bill keeps the program in place and also earmarks more state aid to schools so they don't have to pick up the tab. Many districts are facing budget shortfalls this year. Rep. Emma Greenman, DFL-Minnepaolis, called the issue a "line in the sand moment for Democrats." "The choice is clear for DFLers: do we acquiesce to the Republicans' cruel agenda of taking away things from workers, particularly our most vulnerable workers, or do we reject and resist GOP efforts to take away protections and benefits?" she said. Lawmakers must adjourn session May 19 to avoid a special session, which has happened frequently in recent years when there has been divided state government.
CBS News
23-04-2025
- Business
- CBS News
How to watch: Gov. Tim Walz's 2025 State of the State will address federal woes, Minnesota's way forward
What to expect from Gov. Tim Walz's 2025 State of the State address What to expect from Gov. Tim Walz's 2025 State of the State address What to expect from Gov. Tim Walz's 2025 State of the State address Wednesday night at the State Capitol, DFL Gov. Tim Walz will speak to state lawmakers and Minnesotans in his State of the State address. The state constitution requires the governor give the annual speech and it comes at a crucial time, with just weeks left in the legislative session. Walz has been in office for the last six years and he's expected to reflect on what he sees as his accomplishments in that time and what's to come — working on the next two-year state budget with the Legislature and an uncertain future ahead with federal funding cuts. Walz will address lawmakers at 7 p.m. in the House chamber — a departure from last year, when he took the speech on the road to Owatonna High School. A spokesperson says he will discuss how Minnesota has become a state that values and protects security, opportunity and freedom, but will also underscore what he calls the chaos and turmoil of the Trump administration. In the previous two years, Democrats controlled both chambers of the legislature and Walz was in office. With the trifecta, they accomplished big progressive priorities. This year looks different: Minnesota is back to a divided government and the governor is expected to highlight that it's possible for Minnesotans to find a "better way" to govern than what we're seeing in Washington. Because of the tied state House and DFL-controlled Senate, lawmakers will be forced to find compromise with each other as they hash out the next two-year budget. GOP House Speaker Lisa Demuth said she hopes Walz will use the time to bring everyone together at this crucial time, with one month until session ends. How to watch Gov. Tim Walz's 2025 State of the State address What: Gov. Tim Walz's 2025 State of the State address Gov. Tim Walz's 2025 State of the State address Date: April 23, 2025 April 23, 2025 Time: 7 p.m. 7 p.m. Location: Minnesota State Capitol – St. Paul Minnesota State Capitol – St. Paul Online stream: Live on CBS News Minnesota in the player above and on your mobile or streaming device, or on WCCO's YouTube page.
Yahoo
03-04-2025
- Business
- Yahoo
Senate Democrats want to borrow over $1.3 billion for infrastructure; House has lower target
Photo by. Labor and city leaders joined Senate Democrats Thursday to call for a $1.35 billion investment in Minnesota infrastructure projects, which would fund water treatment plants, city sewer expansions and road and bridge repairs. But the House, which is evenly split between Republicans and Democrats, has agreed to spend up to $700 million on infrastructure projects — around half of the Senate DFL target. DFL House Leader Melissa Hortman said Monday the House target could change in negotiations with the Senate and governor. Known around the Capitol as a 'bonding bill,' the Legislature typically funds public works projects with borrowed money in even years; the Constitution requires a 60% supermajority for passage, which means the bill requires robust bipartisan support. Bonding bills raise money for infrastructure projects by directing state agencies to sell off bonds; the state then pays back the bond holders over time, with interest. 'At a time when the federal government is slashing funds for community projects, it's more important than ever that state lawmakers support these shovel-ready projects,' said Sen. Sandy Pappas, DFL-St. Paul, who chairs the Senate Capital Investment committee. There's another reason lawmakers may feel more pressure to pass a bonding bill immediately: Congressional Republicans are considering changes to tax law that would cause interest rates on bonds to rise significantly, making infrastructure projects more expensive to finance. Historically, the Minnesota Legislature passed a budget in odd-numbered years and a bonding bill in even-numbered years, but lawmakers failed to reach an agreement on a bonding bill in 2024. The DFL-controlled Legislature passed a $2.6 billion infrastructure package in the 2023 session, including $1.5 billion in bonds, following three legislative sessions without an infrastructure deal. Pappas said the inconsistency in passing bonding bills has created a backlog in the list of projects; water and sewer plants across the state are aging out at the same time, she said. Labor unions back the bonding bill because it would create new jobs for blue collar workers; cities want the bonding bill to pass because they rely on state funds to complete local projects.
