Latest news with #DFLers
Yahoo
a day ago
- Business
- Yahoo
MN House, Senate convene for special session to pass state budget
Minnesota lawmakers returned to the Capitol Monday morning to complete the state's next two-year budget as agencies prepared to warn thousands of government employees of a potential government shutdown next month. Most of the state government only has funding through the end of June after the Legislature failed to pass the majority of the bills that form the roughly $66 billion state budget by the end of the regular legislative session on May 19. Gov. Tim Walz called a special session so lawmakers can finish their work. State leaders finalized the details in a series of mostly closed meetings over the last few weeks. The Senate and House went into session at 10 a.m. and are expected to finish their work by Tuesday morning. However, there's no guarantee that will happen. Democratic-Farmer-Labor and Republican legislative leaders and the governor may have signed an agreement to finish up the special session by 7 a.m. Tuesday, but nothing can stop other state senators and representatives from introducing amendments and engaging in lengthy debate on controversial bills. Some bills that are part of the budget deal between Walz, the tied House and DFL majority Senate may pass on thin margins. A proposal to end state-funded health insurance for adults in the U.S. without legal immigration status is opposed by many DFLers and may only pass with the support of Republicans and the DFL leaders who signed the agreement. Senate Majority Leader Erin Murphy, DFL-St. Paul, and House DFL Leader Melissa Hortman, of Brooklyn Park, have said they agreed to remove coverage for adults to avert a government shutdown, which would interrupt services on a much larger scale. The immigrant care proposal was the first bill the House took up Monday morning, and representatives continued to debate the matter as noon approached. If the measure passes both chambers, Walz would have a tough time vetoing it. Republicans managed to get DFLers to agree to tie the activation of health care spending to ending MinnesotaCare for around 17,000 adults in the state who came to the U.S. illegally. Meanwhile, GOP lawmakers have expressed reservations about the tax and transportation bills. The tax bill includes an increase to the sales tax on cannabis, and Republican leadership had initially said it wouldn't support any new taxes, and some members may stick to that pledge. There were also questions on Friday about whether a proposal to shift $93 million in sales tax revenue from metro counties to the Metropolitan Council would survive floor votes, as members of both parties might turn on shifting money from local governments to a central planning agency. This is a developing story that will update throughout the day. Letters: It's unfortunate that we can't have certain conversations Gov. Tim Walz calls for special session for Legislature Monday Timeline for Minnesota special session blurry as budget talks continue MN government return to office order kicks in as shutdown layoffs loom Ramsey County: Economic Development Authority to allow flexibility on housing projects
Yahoo
29-05-2025
- Business
- Yahoo
With no final MN budget deal in sight special session now likely in June
As the Minnesota Legislature blew its deadline to pass a $66 billion budget last week, legislative leaders and Gov. Tim Walz said they hoped lawmakers would return to the Capitol for a special session to enact new state spending by the end of May. That's looking less likely by the day as disagreements over a budget framework deal reached by leadership continue to slow progress. As of Wednesday, lawmakers working in mostly private groups hadn't produced any major public progress on two-thirds of state general fund spending — K-12 education, health and human services. If there isn't a state budget by June 1, thousands of state employees will start getting layoff notices warning of a potential government shutdown on July 1. Lawmakers must pass a budget by the end of June or the government runs out of funding. 'Even though it's slower than we would like, things are going well,' Republican House Speaker Lisa Demuth said at her last availability with the media last Thursday. Nearly a week later, there had been little extra progress. There was hope that there might be some kind of deal by the end of Memorial Day weekend. Now it looks like lawmakers won't return until next week at the earliest. Even if they reached a deal on all budget items on Thursday, final preparations might take at least 24 hours after bills are posted. The governor said he won't call a special session until all legislation is ready to go. There are a few areas of spending the Senate and House passed at the end of session — public safety, agriculture, housing and veterans affairs bills passed. But the biggest parts of the state budget remain unsettled. Deals on taxes, transportation and energy remain elusive as well. A 'global deal' on the budget announced two weeks ago by the Democratic-Farmer-Labor-majority Senate, DFL-GOP tied House and the governor has been troubled by disagreements over finer details. There has also been public opposition to a provision cutting state-funded health care for adults in the U.S. without legal status. DFLers ranging from self-described progressives to moderates say they oppose the change, which Republicans asked for in top-level negotiations. Opponents gathered outside the governor's office in the Capitol to protest the cuts on Tuesday, Forum News Service reported. While they oppose the cuts, Walz, House DFL Leader Melissa Hortman and Senate DFL Majority Leader Erin Murphy have indicated they'll support them in order to prevent interruption of other state services. It's hard to tell how close members are to a deal. Discussions have mostly been happening in private 'working groups' on various budget areas rather than committees. One of the few groups that is public is working on taxes, which has shed some light on the difficulties in the process. Lawmakers working on the taxes bill weren't in complete agreement last week about how the agreement will shape their decision-making. Sen. Ann Rest, DFL-New Hope, said they'd seek further guidance from leaders on how to proceed. And this Tuesday, she showed frustration with House lawmakers who didn't appear to be ready to move forward with their own offer. 'Let it be known to our leaders that the House cannot even accept their own proposal,' said Rest, the Senate Taxes chair, as the committee went into recess. Unique dynamics of co-leaders from both parties in the House working with the DFL majority in the Senate have complicated negotiations. The last time the House was tied was in 1979. Murphy called the House a 'two-headed monster.' Working groups have already passed their leadership-imposed May 21 deadline to finish work on bills, so leaders from both parties said they are getting more closely involved. It's possible they could take control of bills from committee chairs. What Minnesota laws and policies changed after George Floyd? Here are 9 topics Seeking budget deal by end of May, MN lawmakers work Memorial Day weekend Inmate rights groups demand say in Stillwater prison closure plan Matt Ehling: This open-meeting law change is a problem. Undo it, legislators MN Legislature: Budget negotiations go behind closed doors
Yahoo
24-05-2025
- Business
- Yahoo
Seeking budget deal by end of May, MN lawmakers work Memorial Day weekend
State lawmakers plan to work through the Memorial Day weekend to finalize Minnesota's next $66 billion, two-year budget, which they failed to pass by Monday's legislative deadline. Leaders hope they can wrap up negotiations between the House — evenly split between Republican and Democratic-Farmer-Labor members — and the DFL-led Senate by early next week, so that Gov. Tim Walz can call them back for a special session to pass a budget before the end of the month. If they don't, state employees will get layoff notices starting June 1 warning of a potential government shutdown in July. The fiscal year ends June 30, and the Legislature has to authorize new spending before then in order to keep the state running. 'Working groups' have been meeting since Tuesday, mostly in private, to finalize details on big spending areas like K-12 education and health and human services, which account for two-thirds of state general fund spending. 'Even though it's slower than we would like, things are going well. It doesn't appear that anyone has quit or given up, and that is a very good sign,' Republican House Speaker Lisa Demuth of Cold Spring told reporters Thursday. 'Our expectation is they'll be here working until they can come up with an agreement and move it forward.' There's been progress on a handful of bills, but as of Friday evening, there was no public information on final deals for taxes or the biggest parts of state spending. A controversial provision in the budget deal reached by legislative leaders and the governor last week may be slowing progress on the health bill. DFLers and Republicans agreed to end state-funded MinnesotaCare health insurance for adults in the U.S. without legal immigration status, a benefit DFLers created while in control of state government in 2023. Republicans agreed to preserve care for children, but many Democrats remain strongly opposed. Senate Majority Leader Erin Murphy of St. Paul wants MinnesotaCare cuts to travel as a separate bill, but Republicans want it to run with the overall health package. At a Thursday joint news conference with Demuth, House DFL Leader Melissa Hortman of Brooklyn Park said they hadn't resolved the matter. Both the DFL and Republican House leaders said they're confident Walz will sign all parts of the budget deal into law and still would approve cuts to immigrant care even if it traveled separately from a broader health bill. Further complicating matters are the unique dynamics of co-leaders from both parties in the House working with the DFL majority in the Senate. The last time the House was tied was in 1979. Murphy called the House a 'two-headed monster.' 'It's been more challenging than usual to sew this all together,' she told reporters on Thursday. Working groups have already passed their leadership-imposed Wednesday deadline to finish work on bills, so leaders from both parties said they are getting more closely involved. They haven't moved to take over the bills for committee chairs yet, but the option remains on the table. Murphy said she was skipping cabin plans for the weekend to make sure work gets done. As of Friday, most negotiations have taken place in hearings that are not publicly posted or open to the general public. A few key budget pieces had public hearings on Thursday — K-12 and human services — though the tax bill has been the only part that has had daily public hearings since the working group process started. The Legislature only passed a handful of the 20 or so budget bills in the regular session. On Thursday, Hortman said the commerce, workforce and human services bills were close to completion. While there had been some trouble with energy and K-12 education, most of the budget deals were approaching completion. House leadership sent Reps. Paul Torkelson, R-Hanska, and Zack Stephenson, DFL-Coon Rapids, to help mediate. As of Friday, it was unclear if they were any closer to a deal. 'The only ones that are very far from having a fully formed bill ready to post is probably taxes and maybe health,' Hortman said Thursday. 'The rest of them I think you are going to see posted spreadsheets soon and posted language not too long after that.' Inmate rights groups demand say in Stillwater prison closure plan Matt Ehling: This open-meeting law change is a problem. Undo it, legislators MN Legislature: Budget negotiations go behind closed doors Legislature begins work on budget deal ahead of special session MN Legislature: Pension changes for teachers goes to governor to sign
Miami Herald
23-05-2025
- Business
- Miami Herald
Amazon suspends Minnesota data center as lawmakers plan to reduce Big Tech tax breaks
Amazon says it has suspended plans for a massive data center in Becker, Minnesota, an announcement that comes after state lawmakers and Minnesota Gov. Tim Walz said they will reduce tax breaks for these projects. The Seattle-based tech giant said in a statement that it moved ahead with the project initially based on how quickly it thought it could obtain permits and utility agreements, but believes those timelines are now "more uncertain." "As a result, due to the uncertainty, we are redirecting more of our resources to focus on other projects that can provide capacity to our customers more quickly," the statement says. Amazon's project would be an Xcel customer, possibly its biggest. The project likely would cost billions to build, resulting in many construction jobs. Xcel's president in Minnesota, Ryan Long, said in an interview Thursday that "due to confidentiality" he couldn't comment on Amazon suspending the project. Long said he'd follow up after looking into "what exactly our obligations are." Becker city administrator Greg Lerud said Amazon had informed the city it was suspending work in Minnesota. "We are certainly disappointed in their decision to not proceed at this time, and hope the company reconsiders their decision as they continue to evaluate future development sites," Lerud said. The decision comes as state lawmakers are negotiating a package of legislation to govern the influx of these large-scale data centers in Minnesota. Last week, leaders at the Capitol said they agreed to eliminate a sales tax exemption on electricity for data centers. They will keep exemptions for computers, servers, software, cooling and energy equipment. Together the exemptions have been worth about $100 million a year for data center companies, though they could grow explosively. Minnesota electric utilities expect the industry to multiply nearly 40-fold. The electricity exemption makes up a small portion of the value of the tax breaks currently but would grow since the data centers use so much energy. Walz did not immediately respond to a request for comment. Some DFLers argue wealthy companies like Amazon don't need the tax breaks and that it amounts to corporate welfare. They pushed to limit the tax incentives at the Legislature this year. House GOP leaders also agreed to the roll back as part of the larger budget deal. Sen. Andrew Mathews, a Republican from Princeton who represents the Becker area, said Walz had "rolled out the red carpet for Amazon early in session" and promised to get the project done, but that he and some DFLers in the Legislature then did "nothing but try to stonewall and prolong" the regulatory process. "It's just going to put an astronomical tax hit on these hyperscalers in Minnesota that are going to consume a lot of energy and get taxed at an extremely high rate," Mathews said. "The growth of data centers are definitely coming, they just appear to be going to all of our neighboring states, except Minnesota because the Democrats are trying to drive them out of the state." There are small data centers in Minnesota, but none of the scale companies like Amazon have proposed. Facebook's parent company is building a data center in Rosemount, and developers have proposed at least 10 others. The Amazon project would have been the largest of the projects for which developers have disclosed public estimates of energy use. Lawmakers are still debating other issues, such as whether to extend the sales tax breaks that are set to expire in 2042, implement tougher rules to limit energy and water use, or impose new transparency requirements on data center companies. In February, Minnesota utility regulators said Amazon must prove it needed 250 backup diesel generators at the Becker site. The Minnesota Public Utilities Commission voted 4-0 to reject the tech giant's request for an exemption from a "Certificate of Need." It was a first-of-its-kind test of how the state will regulate this wave of giant server farms. Amazon argued the law did not apply to its emergency generators because they would supply only the data center and not the larger grid. At the time, Becker officials said Amazon had suspended site-preparation work ahead of the ruling and told the city that a permit process could delay the project by two years and limit the size of the data center. After the ruling, Amazon would not say if the decision had affected their plans in Becker. The company sought to overturn the ruling at the Legislature by easing some requirements for proving a need for backup power. That legislation has drawn support from Republicans and some Democrats who hope the project will bring jobs and other economic benefits to the state, but opposition from a segment of DFLers who fear Amazon was trying to circumvent state rules and that its generators would pollute. The PUC declined to comment. Amazon hasn't ruled out revisiting the project. It plans to keep 348 acres of land it purchased in Becker that it purchased for $73.5 million in 2024. Xcel had sold the land shortly before to a third party for $7.7 million. The transaction drew criticism from consumer advocates who thought Xcel could have gotten a better return for its ratepayers. Xcel said it would rethink its land sale contracts as a result. Amazon's decision is a blow to Becker, which is losing tax revenue and jobs as Xcel's Sherco coal plant closes in phases by 2030. This is the second large data center to pull out of the city. In 2022, Google abandoned a plan for a $600 million project at the Sherco site. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Yahoo
21-05-2025
- Business
- Yahoo
Legislature begins work on budget deal ahead of special session
Minnesota's Legislature wrapped up the 2025 regular session late Monday night without passing the state's next two-year budget. There will be a government shutdown if they don't pass a budget by June 30, so what is next? They'll have to return to the Capitol for a special session sometime before then to pass the remaining pieces of a more than $66 billion budget deal reached by Democratic-Farmer-Labor Gov. Tim Walz and legislative leaders. Major areas of the budget, like the K-12 education and health bills that account for about two-thirds of state spending, are still incomplete. There isn't a final bill on taxes either. Negotiations continued Tuesday on those incomplete budget areas with 'working groups' made up of members of both parties from the Senate and House. Compromise will be key as the House is tied between DFL and GOP 67-67 and the DFL has a one-seat majority in the Senate. Top legislators said those groups will have to finalize bills and make compromises before a special session can start. 'Hard decisions still have to be made and then we will come back when the governor calls us to finish up the work for Minnesotans,' Republican House Speaker Lisa Demuth told reporters after adjournment late Monday night. Top lawmakers and the governor said they hope to get a budget passed before June 1, when the state will have to send layoff notices to state employees to prepare for a possible shutdown. House DFL Leader Melissa Hortman told reporters before the midnight deadline to pass bills Monday that the earliest possible date for a special session was Thursday. Though she also said lawmakers might return to the Capitol on May 27, the day after Memorial Day weekend. If the budget deal makes it through in its current form, the state will have a two-year budget of more than $66 billion. It aims to control spending growth in social services and education to address a projected $6 billion budget shortfall looming later this decade. It's down from the last budget, which topped $70 billion. There are also some tweaks to state taxes that result in cuts of more than $300 million in the next four years. The deal seems to be holding together so far, though as the session wrapped up, Republicans and DFLers started blaming one another for delays and signaled they might press for changes. DFLers in particular pushed against Republican-backed rollbacks to a paid family medical leave that were outside the leaders' agreement. Many DFLers say they won't vote for a part of the deal that would end state-funded health insurance coverage for adults in the U.S. illegally through MinnesotaCare, something Republicans strongly pushed for in negotiations. 'There are a lot of parts of this budget deal that aren't what either party would want if they have they had total control,' said House Floor Leader Harry Niska, R-Ramsey. 'We're all giving up something. We expect Democrats to pull their part of the deal.' Hortman told reporters she planned to honor the deal and hoped the Legislature would avoid distractions and stay focused on getting the basic budget agreement passed. 'We've got to get on the train of working together, getting things done, and save … the partisan potshots for when we're in campaign season again,' she said. The tax working group met on Tuesday to discuss a proposal to cut overall taxes by around $308 million in the next four years, but raise the tax on cannabis sales from 10% to 15% to bring in $147 million in the same period. Already, there are disagreements on exactly what the deal does and does not allow. Lawmakers couldn't reach a consensus on tax exemptions for data centers, which may lose their exemption on an electricity tax as part of the deal. 'It would make it easier for everybody if we were all on the same page, and it's clear to me that we're not,' said Senate Taxes Chair Ann Rest, DFL-New Hope. 'We just need clarification from people who signed the agreement.'
