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Yahoo
3 days ago
- Business
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MN government return to office order kicks in as shutdown layoffs loom
Gov. Tim Walz's order for state employees to return to the office at least half-time went into effect this week as Minnesota government workers started receiving warnings of potential layoffs if the Legislature fails to pass a budget by the end of June. Parking lots around the state Capitol complex appeared slightly fuller than usual Monday as the requirement kicked in for the main offices of some agencies based in St. Paul, though many agencies won't have to return to the office more until later this summer. John Wilson, an economist with the state Department of Transportation, said he had already been working at the office most days, but his office has gotten much busier. Work hasn't changed much for Wilson for now. But the prospect of temporary layoffs next month looms over his head. He's worked for MnDOT for 15 years and remembers the 20-day government shutdown in 2011, when the GOP-controlled Legislature and Democratic-Farmer-Labor Gov. Mark Dayton couldn't reach an agreement on the budget. 'Everybody says, well, you know, there's no sign it will come to that, but I remember it felt like that last time,' Wilson said. ' I certainly wouldn't place my bets now.' The Department of Transportation is one of many state agencies that will run out of funding after June 30. It's been two weeks since state lawmakers ended the regular legislative session without passing all of a roughly $66 billion two-year budget. Areas that make up two-thirds of the budget — Health, Human Services and K-12 Education don't have new funding yet either. However, corrections and public safety budget bills have been passed. Legislative leaders from the DFL majority Senate and the House tied between the DFL and Republicans say a final budget is close and could pass in a special session by the end of the week. Most conversations have been happening in private meetings, though lawmakers have provided signed agreements for big spending areas like education and health. It comes after several delays. When the regular session ended on May 20, House DFL Leader Melissa Hortman said she hoped to get a budget done before layoff notices went out. But the process has already started. Minnesota has already told 700 employees that they could be temporarily out of a job a month from now if the Legislature doesn't pass a new two-year budget, according to Patrick Hogan, a spokesman with Minnesota Management and Budget. The first group to get notices was represented by the Minnesota Nurses Association, and more could follow. If there isn't any action by June 9, thousands more will receive messages, according to MMB. The Minnesota Association of Professional Employees, which represents around 18,000 state employees, opposes the return to office order and is holding informational rallies at the Capitol on Tuesday and Wednesday this week as it continues to negotiate a new contract with the state. MAPE, which has said a strike is not off the table over the return to work order, also called on state leaders to overcome 'political gridlock' and pass a budget amid continued uncertainty about funding at the federal level as well. 'These notices may be conditional, but the harm is real. Workers will have to prepare for lost income, disrupted lives and a government shutdown that would impact every Minnesotan who relies on public services,' union president Megan Dayton said in a recent statement. 'We hoped our elected officials in Minnesota would serve as a barrier to the dysfunction and chaos coming out of Washington.' MAPE has said it's concerned about disruptions to families who have adjusted to flexible schedules and caring for children at home. They're also concerned about whether there will be enough office space after years of remote work. Agencies, including the Department of Human Services, Health and Revenue, have gotten exemptions to the June 1 return date. This spring, Walz ordered government workers to report to the office at least 50% of the time if they live within 50 miles of their workplace in a move that state employee unions claimed caught them by surprise. Originally, the range was 75 miles, but the governor reduced the distance in April. Around 60% of state employees already worked in person and did so throughout the pandemic, according to the governor's office. The state has about 50,000 employees. The governor has said his order aims to boost 'collaboration' and help state agencies build better organizational cultures. The move is also supported by businesses in downtown St. Paul, who say they've struggled from the post-pandemic shift in work styles. It's yet to be seen just how much the return to office order will affect downtown, but St. Paul Downtown Alliance president Joe Spencer said businesses are excited to have more workers back. 'There are a lot of great things about working in downtown, especially in the summertime,' he said. 'So, hopefully, they find a welcome reception, and they indeed feel our enthusiasm to have them back in the office.' Ramsey County: Economic Development Authority to allow flexibility on housing projects Special session looms as Minnesota lawmakers narrow remaining budget obstacles Letters: St. Paul should take care of what it has before spending on new things Derrick Thompson's trial begins in deaths of 5 women Letters: Stop with the antisemitism
Yahoo
22-05-2025
- Business
- Yahoo
MN Legislature: Budget negotiations go behind closed doors
Lawmakers continued trying to piece together Minnesota's next two-year budget on Wednesday, though details of the process remained largely behind closed doors. Only one bill that's part of the $66 billion budget framework deal is getting public hearings so far: taxes. Other meetings on the dozen or so bills legislators need to pass aren't publicly posted or open to the public. Since lawmakers didn't finish a budget by the May 19 deadline, they're meeting in 'working groups' to get bills in shape before returning for a special session to pass a budget. 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. Transportation and higher education also still need work. Leaders say they hope a special session could happen as soon as the end of the week, or possibly following the Memorial Day weekend. Members of the House tied between Republican and Democratic-Farmer-Labor members and the one-seat DFL-majority Senate are working on remaining bills in private discussions to hash out final details before Gov. Tim Walz calls them back to the Capitol. Since they aren't in session, they are instead meeting for working groups rather than as full-fledged committees. Much like the overarching budget negotiations between the governor and legislative leaders earlier this month, the public is in the dark about what's happening during these discussions. When it comes to the groups currently developing budget bills, Matt Ehling, a board member with Minnesotans for Open Government, said putting key decisions behind closed doors can obscure who or what influenced decisions. 'Having more access to the process would allow the public to see what legislators are weighing and what they're not weighing,' he said. 'The rationale is often as important as the outcome.' Ehling said it's during this part of the process where the public loses sight of how state leaders make decisions. There may have been public hearings on many bills in the past few months, but now the leaders go underground and emerge with a deal which they then sign off on with limited discussion in a public committee. 'They basically have created a situation where they block out the public from being able to weigh in on these issues,' said Hamline University political science professor David Schultz. 'These are working groups. They're not official. It's just a way of avoiding transparency and avoiding accountability.' There also isn't any publicly available document with complete details on the deal between Walz and legislative leaders. Most of the information has come in the form of statements from officials. And the information hasn't always been complete. For example, Republican House Speaker Lisa Demuth made it seem like cuts to state aid for private schools are off the table, while House DFL leader Melissa Hortman has told reporters that they remain subject to negotiations. A cut to the state family and medical leave payroll tax touted by Demuth as part of the deal turned out to be a decrease to a cap on the maximum rate. Meanwhile, lawmakers working on the taxes bill weren't in complete agreement Tuesday about how the agreement would shape their decision-making. Sen. Ann Rest, DFL-New Hope, said they'd seek further guidance from leaders on how to proceed. Schultz said leaving the details of the global budget agreement externally vague serves a useful purpose for legislators who will have to make difficult compromises. He called the budget agreement announced by the governor, Senate DFL Majority Leader Erin Murphy and leaders in the 67-67 tied House last Thursday more of a 'framework' than a 'deal.' 'By keeping it so general, it … gives each side an ability to spin the deal in a way that most favors them,' he said. 'If you put too much detail into it, you might not be able to sell the deal to either the rest of your members of your party, or to your supporters or to the voters.' At least for the top-level agreements, Hortman said private meetings between leaders and the governor are the best way to arrive at a compromise before delegating work to different committees. Things didn't work as well when cameras were in the room during past administrations, she said. 'You need people to be able to say what's their bottom line and to make their emotional pitch and to say where their caucuses are and say where their votes are,' Hortman told reporters Monday. 'People have to really show their cards. So that is a space that has not ever and probably will not ever be transparent.' Lawmakers and the governor have to finish the budget by June 30 or the state government shuts down. Committee leads had until 5 p.m. Wednesday to finish their work. Hortman told reporters Monday that she and other leaders could get involved with the process if there weren't any agreements by that time. Legislature begins work on budget deal ahead of special session MN Legislature: Pension changes for teachers goes to governor to sign Big pieces of MN budget unfinished; Legislature to return for special session Former state legislator Melisa López Franzen ends campaign for U.S. Senate MN Legislature sends Stillwater prison closure to governor; key budget pieces remain
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.'
Yahoo
20-05-2025
- Business
- Yahoo
Most of MN budget unfinished as Legislature reaches final hours of session
With just hours remaining in the regular 2025 legislative session on Monday, Minnesota lawmakers still hadn't granted final passage to major pieces of the upcoming two-year state budget, including bills on taxes, education and health care spending. A special session will be required to enact last week's $66 billion or so budget framework agreement reached by Gov. Tim Walz, the Democratic-Farmer-Labor majority Senate and DFL and Republican leadership the 67-67 tied House. As of Monday afternoon, only a handful of the 20 or so spending bills that comprise the budget had made it through both the Senate and House and were headed to Walz's desk to be signed into law. Around two-thirds of the general fund budget — human health and human services and K-12 education — remain up in the air, and there are still unresolved questions about support for the budget deal. Walz told reporters Monday afternoon that he wasn't worried about getting the budget done before the June 30 deadline, and that the biggest pieces often come last. He added he'd call lawmakers back to the Capitol for a special session 'when the work's done' on final bills and that he hopes it will only be for one day. If the Legislature doesn't pass a budget by the end of the two-year fiscal period, the state government will shut down. Layoff notices start going out to state workers on June 1. If there is no deal by then. Lawmakers and the governor said they hope to wrap up the budget before the end of May. Despite leaders calling it a 'deal,' it's only an agreement between top lawmakers and the governor and some of it is still up for intense debate. Walz, Senate Majority Leader Erin Murphy, House DFL Leader Melissa Hortman, and Republican House Speaker Lisa Demuth, signed off on the deal, but many DFLers are not on board with an proposal to end state-funded MinnesotaCare insurance coverage for adults in the U.S. illegally. That was a GOP priority in negotiations, and DFL leaders say they agreed to it because they wanted to avert a government shutdown on July 1 — which would interrupt a significant range of services in the state. Many DFLers say they won't support the proposal. And they've also accused Republicans of trying to make late changes to the deal, like creating more rollbacks for the state paid family and medical leave program. 'Republicans keep moving the goal posts. None of the GOP demands are necessary to pass the state budget bill,' said House Floor Leader Jaime Long, DFL-Minneapolis. Demuth blamed the late budget bills on a weekslong House DFL boycott at the beginning of session that delayed business as the tied chamber's power struggle worked its way through court. 'As I've talked about from the very start that I believed that we could have gotten this done on time,' she said. 'Our Democrat colleagues didn't show up for work and we ended up doing that. 23 days in a row.' Special sessions become the norm for passing a budget under divided government. The last time a divided government passed a budget without going into overtime was 2007. As of 7 p.m. Monday, lawmakers had passed a number of smaller pieces of the budget. One big part of the budget deal that got some pushback was the closure of the aging state prison in Stillwater, though the House and Senate approved that change in a judiciary and public safety budget bill over the weekend. Besides that, bills on agriculture, veterans affairs, housing and Legacy Amendment funds for outdoors, parks and the arts are also on the way to Walz. Changes to public employee pensions headed to becoming law as part of a bill passed by the Senate Monday will help insulate state State Patrol and other state public safety pensions against inflation with cost of living adjustments. Most of what makes up the budget hasn't made it to the finish line. A health bill that carries they deal cut MinnesotaCare benefits for adults in the U.S. illegally has not made it to a vote in either chamber. A tax bill has not yet materialized, though as part of the budget deal the state plans to raise the tax on cannabis products. Republicans got DFLers to agree to cut the maximum rate for a payroll tax for the new paid family and medical leave program from 1.2% to 1.1%. Walz's proposed reduction of the overall state sales tax rate and the creation of a new tax on services like accounting and legal advice did not make it to the final deal. Nor did a Senate DFL proposed first-in-the-nation tax on social media platforms. A pre-K-12 education budget bill that holds state spending level to inflation for the next two-years still hasn't made it through. A GOP push to eliminate unemployment for hourly school workers is also headed for the dustbin as a result of the budget deal, DFLers said. The education budget makes up around one-third of the current $71 billion two-year state budget. Under the deal, education spending will remain level for the next two years other than the required inflation-tied increases. Higher education, transportation and human services also remain unfinished. Former state legislator Melisa López Franzen ends campaign for U.S. Senate MN Legislature sends Stillwater prison closure to governor; key budget pieces remain Letters: More politicians should follow Walz's lead on money for religious institutions MN House passes education budget after unemployment debate delays Unions oppose plan to close the aging Stillwater state prison
Yahoo
15-05-2025
- Business
- Yahoo
With no budget deal yet, special session increasingly likely at Capitol
Hopes of state lawmakers passing a more than $60 billion two-year budget on time are fading at the Minnesota Capitol. Daily marathon negotiation sessions between Gov. Tim Walz, the Democratic-Farmer-Labor majority Senate and the House tied 67-67 between the DFL and Republicans, have failed to produce a final budget deal. On Wednesday, Democratic-Farmer-Labor leaders said it's increasingly likely lawmakers will have to go into overtime, as it'll be difficult to beat the May 19 deadline to pass bills. The government shuts down on July 1 if they can't reach an agreement. Speaking to reporters outside the governor's cabinet room Wednesday, Senate Majority Leader Erin Murphy, DFL-St. Paul, said it's important the Legislature gets the budget right and doesn't push its staff too hard in the final days of the regular session. 'I do think it is important to recognize that human beings work here and human beings need sleep,' she said, later stating more plainly: 'I think a special session is very, very likely if not inevitable.' House DFL Leader Melissa Hortman said weeks ago that she expected a special session. Republican leaders say they remain hopeful a deal can be reached before Monday's midnight legislative deadline, but as of Thursday, there are only five days remaining to pass bills. 'I still think there's a chance we can get this thing by the time, but I think as the hours go by, it becomes a little more difficult,' Walz said at a Tuesday news conference unrelated to the budget. He added that the special session may happen soon after next Monday's adjournment and needn't drag on for days if he and leaders can reach a deal before officially returning to the Capitol for business. The governor calls a special session. State leaders' inability to finish their work on time will cost Minnesota taxpayers, though exactly how much is hard to pin down. It will depend on the number of days and the amount of work they'll need to complete. The cost could be more than $17,000 a day. Senators and representatives earn a yearly salary of $51,750, and they can collect $86 per day per diem for meals and other incidental expenses. Legislative salaries are fixed, but if all 201 members of the Senate and House collected their full per diem, it will cost the state $17,286 per day. That's the maximum, and it's not likely all lawmakers will claim the full amount. They haven't in the past. House Public Information Services in 2019 estimated that a special session costs the state anywhere from $10,000 to $20,000 per day. Other costs that are harder to pin down include pay for seasonal legislative staff who will work overtime. Operations at the Capitol also carry costs. The lengths of special sessions can vary greatly. In 2021, lawmakers returned to the Capitol for 24 days from mid-June to early July to pass the 2021-2023 budget and address an extension of Walz's COVID-19 peacetime emergency. In 2017, lawmakers convened for three days to complete the budget. In 2019, lawmakers only returned to the Capitol for one day immediately following the regular session to pass a previously negotiated budget bill, which didn't have quite enough time to reach the finish line of the regular session. Walz told reporters this week that his hope is that this year's special session would be the same if he ends up calling one. This year's legislative session got off to a slow start as the House DFL, temporarily at a one-seat disadvantage, boycotted the session for three weeks to deny a temporary Republican majority quorum to pass bills and conduct other business. That ate into the Legislature's time, but special sessions have become increasingly common in recent history, especially during a budget year. Often, the governor calls a special session to address emergencies, as Walz did several times during the COVID-19 pandemic. They've also become the norm for passing a budget under divided government. The last time a divided government passed a budget without a special session was 2007. DFL trifectas — where one party controls the governor's office, Senate and House — passed budgets with no special session in 2013 and 2023. In all other years without one party control, lawmakers had to return to the Capitol for overtime. In 2011, Minnesota's government shut down for 20 days after Gov. Mark Dayton and the Republican-controlled Legislature couldn't reach an agreement on the budget. The Legislature is working with a $456 million surplus for the next two years, but a $6 billion deficit looms in 2028-2029. What the state should cut to prepare for that bleaker outlook is central to the debate between DFLers and the GOP. Many Democrats are hesitant to water down new social programs and mandated employer benefits they created in 2023. Key sticking points include unemployment benefits for hourly public school employees, which Republicans want to end. The DFL budget frameworks lean on funding cuts for nursing homes and long-term disability waivers, which Republicans oppose. There are also debates over whether the state should continue offering MinnesotaCare coverage to people without legal immigration status. Republicans claim that it will cost the state a significant amount in the future based on higher-than-expected enrollment, but so far, the costs they predict have not materialized. MN moves to strengthen DWI laws after fatal St. Louis Park crash With one week left, what's happening with the MN budget at the Legislature? Joe Soucheray: No other governor has tried to pull off this pathetic budget stunt Gov. Walz encourages legislators, and anglers, to get the lead out Minnesota Senate OKs new anti-fraud office, but much work remains
