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CBS News
a day ago
- Business
- CBS News
Saturday special session? Leaders in Minnesota Legislature hope to avoid layoff notices to thousands of state workers
Minnesota legislative leaders and Gov. Tim Walz hope there will be a special session of the Legislature this weekend before layoff notices will be sent to nearly 30,000 state workers on Monday. They had pushed for mid-week, but by Wednesday they said negotiators still hadn't buttoned up outstanding issues, causing further delays. Walz will call a special session when the bills are complete, drafted and ready for passage. Leaders and key lawmakers have been working on the remaining parts of the budget for weeks, largely out of public view. DFL Speaker Emerita Melissa Hortman said Wednesday they are "urgently" trying to finish by the weekend to avoid sending state employees that dreaded message. But other self-imposed deadlines have come and gone since the regular session ended May 19 and lawmakers began their behind-the-scenes work to finish everything up. "We are making progress. It is as slow as molasses, but molasses is good, and we are going to get done. I cross my fingers," said Senate Majority Leader Erin Murphy, DFL-Saint Paul. This is the most closely divided Legislature in Minnesota history, which makes the process uniquely delicate and difficult to get everything done. It's unclearif there are even the votes to pass some parts of the carefully crafted agreement they made in late May. "We're at a point right now where, quite candidly, and the legislators know this—I'm not even saying as a pejorative—every single legislator is potentially a veto over the whole deal to get some of this done," Walz said. Among the sticking points are how they will pass a rollback of state health coverage for undocumented immigrants—a compromise reached by GOP and DFL leaders. There is also some contention with a transportation funding package and provisions in a tax bill. Many DFL lawmakers deeply oppose the cuts to MinnesotaCare for adults who are living in the country illegally. Murphy has said it needs to be a stand-alone bill to ensure passage, an acknowledgment of the many likely defectors she will have in her caucus, which only has a one-seat majority in the chamber. Republicans will need to support it. House Speaker Lisa Demuth, R-Cold Spring, said for a stand-alone bill to happen, her caucus needs language in the legislation to ensure it won't be vetoed. Republicans, she said, want that assurance, even though Walz signed the agreement with leaders that included the change. "Some of the things that we're looking at is if that would be broken out into a separate bill, there would have to be a guaranteed contingency—say, funding for MDH, or whatever that might look like—that would be a guarantee that that bill would both be passed and enacted," she said. If lawmakers do not finish by the weekend, the layoff notices will be sent Monday morning, Walz said. Failure to pass the rest of the budget by June 30 will trigger a partial government shutdown on July 1, the start of the next fiscal year. The governor told reporters he doesn't think that will happen, but nevertheless Minnesota Management and Budget—which oversees the state's finances and payroll and HR operations for state workers—is following protocols to prepare for that possibility. Some state services, agencies and programs would remain operational in that scenario because the Legislature did approve some budget bills before session ended last month, like spending plans for the judiciary and state government offices like the secretary of state and attorney general.
CBS News
2 days ago
- Business
- CBS News
Minnesota lawmakers continue to finish work behind the scenes, layoff notices go to most state workers soon if they don't pass budget
Minnesota lawmakers continued their behind-the-scenes work on Tuesday as they eye a partial government shutdown next month if they don't complete the next two-year state budget by July 1. Most state employees will receive layoff notices next Monday if a special session approving those spending plans isn't over by then, Gov. Tim Walz's office said. Walz won't officially call lawmakers back to the capitol until all of the remaining bills are ready to go. Lawmakers have been in mostly private meetings to make that happen, finding agreement and then sending it to the revisor's office for drafting. Key lawmakers have been meeting in "working groups" since the May 20, after the regular session ended, to sort out the details of each unifinished bill. Some broader agreements and actual proposals are posted on the Legislature's website, including a K-12 spending package. If they don't complete their work by the deadline at the end of the month, state services and programs would only partially shut down because some parts of the budget did pass before adjournment last month, including funding for the courts, attorney general's office, and agriculture and veterans departments. State workers in those agencies would be held harmless. The last time there was a government shutdown was in 2011. Four years ago in 2021, lawmakers in a divided capitol narrowly avoided one, passing the remaining parts of the budget June 30 during a special session. DFL Senate Majority Leader Erin Murphy told WCCO Sunday she hopes there will be a special session this week, but legislative leaders and key negotiators have blown past other self-imposed deadlines the last few weeks. What's unclear is how the Legislature will approve a part of a budget deal between legislative leaders and the governor that would remove undocumented immigrant adults from a state program providing health care coverage, which is sparking outcry among several DFL lawmakers. Murphy has said it needs to be a stand-alone bill, while GOP House Speaker Lisa Demuth wants it to be part of a broader health package.
CBS News
4 days ago
- Business
- CBS News
State leaders hopeful for Minnesota budget deal ahead of special session
Thousands of Minnesota state workers will be getting layoff notices in the next few days because the Legislature has failed to come to a budget agreement. If the budget standoff continues through the end of this month at the Minnesota Capitol, there will be a state government shutdown on July 1 — the first time that's happened since 2011. For weeks, legislative leaders insisted they would have a balanced budget by the end of the session on May 19. That obviously didn't happen. The state is required to adopt a balanced budget every two years, and this is one of those years. And right now, the Legislature has a lot left to do. Among the bills not passed is the E-12 Education budget, representing about 30% of the total state budget, and the State Health and Human Services budget, which accounts for about 28%. Despite half the budget unfinished, leaders continue to be optimistic. DFL Majority Leader Erin Murphy, who was a guest on WCCO Sunday Morning at 10:30 a.m., says she's hopeful a budget will be ready so Gov. Tim Walz can call a special session for the Legislature to vote on it. "Gosh, even this week, we're hoping that it can be this week. I know everybody needs to give the revisors the time to draft the legislation," Sen. Murphy said. While the Minnesota House is tied at 67 Republicans and 67 Democrats, the Senate has a one-vote DFL Majority at 34 to 33. That slenderest of margins is one reason that reaching an agreement has proved so difficult. Another hold up has been the issue of free health insurance for undocumented immigrants. Legislative leaders — including GOP Speaker Lisa Demuth, DFL Speaker Emerita Melissa Hortman, Sen. Murphy and Walz — agreed to roll back the benefit for undocumented adults and leave it in place for children. But the pushback has been swift and strong. DFL legislators immediately protested the rollback agreement, even demonstrating at the governor's offices. Sen. Murphy says with the slim majorities, a compromise had to happen. "It is a very, very difficult vote for me and it is a very contentious issue for my colleagues, and rightfully so," she said. "But it was a chief priority for the Republicans." With DFL legislators deeply fractured, it's unclear how and when a new budget deal will be finalized. Walz says only when the deal is completely set will he call a one-day special session so the legislature can vote on the budget and he can sign it.
Yahoo
6 days ago
- Business
- Yahoo
Beer shortages, dirty parks: What happens without a Minnesota budget deal?
The Brief Minnesota is now one month away from its first government shutdown since 2011. For 20 days that July, the state laid off 19,000 workers. State parks and rest areas didn't get cleaned. Horse tracks couldn't operate because the Minnesota Racing Commission was closed. And liquor stores, restaurants, and bars started to run out of beer because the DPS employees who renewed alcohol licenses were laid off. Leaders are optimistic they'll avoid a shutdown in 2025. They're expecting a special session as soon as next week. But some high hurdles still need to be jumped for that to happen. ST. PAUL, Minn. (FOX 9) - There was no obvious movement on Friday towards a complete budget deal at the Minnesota Capitol, but legislative leaders say they're confident a special session should come next week. They have one month to avoid the first government shutdown since 2011. What's shaking? A few privately arranged agreements popped up on the legislature's website Friday, leaving just three omnibus budget bills to sew up. But there are still some big hurdles to jump and legislators who were at the Capitol for the last shutdown are hearing some echoes of 2011. Like a semi overturned in the Lowry Hill tunnel blocking traffic, cutting MN Care insurance for undocumented adults while keeping it for kids could block the road to a budget."If that is to pass, it's going to have to pass separately," said Senate Majority Leader Erin Murphy (DFL-St. Paul). "That has not been a part of the discussion in the rooms," said her House counterpart, Speaker Lisa Demuth (R-Cold Spring). Maybe we have For now, the blockage doesn't seem as immovable as it was in 2011 when a GOP majority in the House and Senate couldn't convince DFL Gov. Mark Dayton to sign off on a budget. Then-Senate Majority Leader Amy Koch says this year sometimes feels the same, but she sees differences. "They have more like pots of trouble where we had like the one big thing," Koch said. Parks, horses, beer During a 20-day government shutdown in 2011, the state had to lay off 19,000 state workers, forcing closures at state parks and rest areas, and stressing out a lot of people. "I didn't know if it was going to last two hours, two days, two months, two weeks," state worker Brice Wickstrom told FOX 9 after the 2011 shutdown ended on July 21. Horse tracks couldn't operate because the state racing commission was shut down, so Canterbury Park lost nearly $3 million. That won't happen this year because a new law allows the commission to continue working with outside funding. But a beer shortage could once again ail liquor stores, bars and restaurants. "They're just disgusted," Minnesota Licensed Beverage Association rep Tony Chesak told FOX 9 about those businesses in 2011. "They're upset to the point where they're just trying to stay in business."State employees responsible for renewing alcohol licenses could be out during a shutdown. Koch believes that was a major motivating factor convincing Gov. Dayton to agree to Republican terms and end the shutdown. She hoped it would be a political winner. "We're going to run on this budget," she told FOX 9 in 2011. "We're going to talk about closing $5 billion forecast deficit without raising taxes. That's a big thing." The GOP lost both the House and the Senate in the next election, but budget forecasts have stayed sunnier. "Since then, we've never had a deficit," Koch said Friday. Until now, that is. The latest forecast predicted nearly a $6 billion deficit by 2029, which is one of many reasons this year's negotiations have been so difficult.
Yahoo
28-05-2025
- Business
- Yahoo
Ugly divides revealed in budget negotiations even as leaders express optimism
The Brief Legislative leaders expressed optimism Tuesday that a budget deal could be finalized by the end of this week and a special session would start next week. An explosive taxes meeting -- one of the few working groups meeting publicly -- revealed some deep divisions on the road to finalizing agreements. Layoff notices will likely need to go out to state employees next week because July 1 is when a government shutdown would happen without a deal. ST. PAUL, Minn. (FOX 9) - An explosive day at the Capitol has revealed some deep divisions as legislators try to work out a state budget before a special session. Explosive day They're on the clock to avoid a government shutdown and we saw the good, the bad and the ugly Tuesday. Walking into the governor's office, Speaker of the House Lisa Demuth, (R-Cold Spring), Senate Majority Leader Erin Murphy, (DFL-St. Paul), and House Speaker Emerita Melissa Hortman, (DFL-Brooklyn Park), were all smiles — Hortman even expressing optimism that the finish line is near. "We're hoping to wrap things up this week and that the revisor will finish drafting soon thereafter," she said, acknowledging a special session would likely follow next week if everything goes right. Missing pieces But reasons for pessimism are also abundant. Senate Minority Leader Mark Johnson was absent Tuesday and hasn't been invited to meet with the other leaders in five days. And most of the negotiations are happening behind closed doors, but two working groups are meeting in public. Tensions escalated in the taxes group Tuesday when Sen. Ann Rest pushed House members to dry the ink on a couple compromises proposed by the House members. "To move forward, the Senate is accepting your offer," said Sen. Rest, (DFL-New Hope). "One would think that the House would vote for their own offer. All those in favor, please say aye. Aye. Opposed, say no. The motion fails. Let it be known to our leaders that the House cannot even accept their own proposal." MN Care's till Tuesday The issue of healthcare coverage for undocumented immigrants is also still a powder keg. A few dozen protesters rallied in front of the governor's office, hoping to convince negotiators to back down from the change cutting undocumented adults out of MN Care. They argue the coverage saves money in the long run and it's the right thing to do with the budget. "Always it has to be a moral document, but people tend to make a political document," said Pablo Tapia, an organizer from Blaine. Deadlines approaching They're working under a couple deadlines at the Capitol now. The state government would shut down without a deal before July 1. And because of that, layoff notices have to go out to state employees if there's no deal before next Monday -- 30 days notice. That seems like a foregone conclusion now, even in the best-case scenario.
