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Yahoo
3 days ago
- Business
- Yahoo
Walz calls special session with lots of work in short timeframe
The Brief Gov. Walz has called for a special session on Monday, three weeks after the regular session ended without a complete budget agreement. Republicans' push to cut undocumented adults out of MN Care will travel in a standalone bill, not in the health bill. But the health bill will include a provision that the Department of Health gets no funding if the standalone bill doesn't become law. ST. PAUL, Minn. (FOX 9) - It took 18 days, but Minnesota finally has a special session scheduled to finish a budget and avoid a government shutdown. One and only Monday is the big day and, if things go as planned, the only day. Legislative leaders and Gov. Tim Walz hammered out some details on what they said were the hardest bills to hash for instance, the Republican plan to cut MN Care for undocumented adults will be a standalone bill, not in the health the health bill will include language saying the Department of Health gets no funding unless that standalone bill and guarantees like that have them very close to the finish line. Short timeline House leaders Lisa Demuth and Melissa Hortman walked to the podium together Friday, poised to start a sprint to the finish line.A signed agreement shows the 14 bills they plan to pass in 21 hours starting Monday at 10 a.m., including a new bill and another previously on life support. "There will be a standalone data center bill and there will a bonding bill and so since some of those pieces came together pretty late last night," said Speaker Emerita Hortman (DFL-Brooklyn Park). Data centers will lock in some tax breaks for 35 years in exchange for losing an exemption on electricity. In total, the 2026-27 budget will cut about $5 billion from the last two years and leave almost a $2 billion surplus. Getting there hasn't come easy. "You'll hear that not everybody is happy about every part of it, and that's to be expected," said Speaker of the House Demuth (R-Cold Spring). Winds of change? And the bills could still change. County commissioners blasted the transportation agreement Friday for taking half their regional sales tax proceeds and giving it to the Met Council for Bus Rapid Transit projects. "I truly feel at multiple levels our partnership between the state and the local government is being betrayed and broken," said Scott County Commissioner Jody Brennan. Amendments are still possible, but all four legislative leaders and Gov. Walz would have to agree on any changes from now on."As far as other land mines, there could always be, but I feel confident in the agreements that we have," said Demuth. The special session agreement calls for them to get everything done in one day, which technically means they can go until 7 a.m. on Tuesday. Leaders say they can get it done, but it's possible they'll still need more time, which would bring about a whole new set of problems. Delayed for now Because a government shutdown would be 21 days away, furlough notices are supposed to go out to every non-essential state worker on Monday. But legislative leaders and the governor are working with unions to push that back a day.


Axios
4 days ago
- Business
- Axios
Minnesota lawmakers slog away at state budget impasse (again)
Minnesota lawmakers are at risk of blowing through another self-imposed target for finishing the state budget. State of play: Legislative leaders and Gov. Tim Walz want a special session to pass the remaining bills by the end of this week, so that tentative layoff notices won't go out to tens of thousands of state workers on Monday. Yes, but: The path — and the vote math — for getting the full budget across the finish line remained a work in progress as of Thursday, as leaders and chairs continued to negotiate (and re-negotiate) a slew of hot-button policy and spending issues that have tripped up talks for months. The big picture: The Legislature is about as closely divided as it can get — with a tied House and Democrats holding a one-vote majority in the Senate. Those dynamics, plus political differences within the two caucuses and the threat of a projected deficit in future years, have made this two-year budget an especially complicated plane to land. What they're saying: "We're at a point right now where, quite candidly ... every single legislator is potentially a veto over the whole deal," Walz told reporters Wednesday. Friction point: Part of the challenge, Walz and other leaders say, is that multiple issues, disputes and details threaten to derail the delicate "deal" leaders announced near the end of the regular session. To resolve them, leaders must make changes that appease certain members and constituencies whose votes are needed, without alienating others whose votes are also essential. Zoom in: Some of the outstanding hangups are tied to issues that have been sticking points all session, while others are smaller policies that matter to individual legislators whose votes are needed. They include: 🩺 MinnesotaCare: Progressive Democrats won't vote for a budget bill that includes the agreement to end state-subsidized health care for undocumented adults, meaning the rollback would need to pass as standalone legislation with many GOP votes. Republicans, fearful of being double-crossed by Democrats and Walz, want language tying the fate of other critical issues to the MNCare legislation's enactment as a failsafe. 💰 Taxes: Leaders intervened after a bicameral, bipartisan working group failed to strike an agreement on a tax package, releasing a "skinny bill" that sticks to policies included in the framework leaders signed off on in late May. Tax chairs from both sides of the aisle rejected that compromise measure straight away, sending negotiators back to the drawing board. While the Legislature doesn't need to pass a tax bill as part of the budget, the revenue impacts matter for the state's bottom line. 🚙 Local funding: Language in a transportation spending bill that would shift some sales tax revenues from metro counties to the Metropolitan Council was met with blowback from local leaders and some legislators. A chair involved in negotiating that provision issued a statement Thursday raising concerns about how it came together and calling for more public input on the idea. ⚡️ Data centers and more: Behind-the-scenes negotiations are still swirling on a host of other hot-button issues, including potential changes to Minnesota's new ban on non-competes, tweaks to the Earned Sick and Safe Time law and proposals related to taxes and incentives for data centers. 🚧 Bonding: Talks are also ongoing on whether to tackle a capital investment package authorizing hundreds of millions of dollars for roads, infrastructure and other construction projects. That needs bipartisan support in both chambers to pass. 📆 Schedules: Legislators are people too, and the start of summer brings graduations, weddings, vacations, and other conflicts and commitments that can complicate attendance (and votes), especially on the weekends. Case in point: One member has a family funeral this weekend, Walz noted, and DFL Sen. Nicole Mitchell is scheduled to spend part of Monday at a hearing for her upcoming burglary trial, which is set to start June 16. Wild card to watch: Senate Republican Leader Mark Johnson didn't sign the budget framework agreement reached in late May. That's notable because Senate DFL Leader Erin Murphy will need their votes to pass budget bills that can't get support from members of her caucus and to suspend rules for a speedy special session. Whatever concessions and changes Senate Republicans seek in return for their support could result in leaders losing votes from more liberal factions of the DFL caucuses. What's next: If the Legislature isn't done by Monday, tens of thousands more state workers will get formal notice that they may be temporarily laid off if lawmakers fail to meet their June 30 deadline for getting the budget done.
Yahoo
03-06-2025
- Business
- Yahoo
Overtime period appears nearly done as budget deals materialize
The Brief Legislative leaders expect this to be the last week to start without a special session announced to vote on final budget deals. Legislators have agreements on every necessary omnibus budget bill. They're still working out policy issues in some cases. The health bill isn't finalized, but a spreadsheet shows MN Care cuts that seem to match an agreement to drop undocumented adults from the healthcare program. The education bill is written out and includes a steady budget for the next two years, but large cuts for 2028-29, mainly to special education. ST. PAUL, Minn. (FOX 9) - The finish line might finally be visible for Minnesota's drawn-out budget deal. 'The end is near' Week three of overtime is here, and leaders expect it to be the last one. Lawmakers tell FOX 9 a special session could happen as soon as Wednesday. Leaders still have some heavy lifting to do in their policy negotiations, but there's an agreement now on the money in every bill, and the details are starting to become public. For example, the health bill isn't written out yet, but a spreadsheet includes major cuts to Minn-Care, which matches an agreement to remove undocumented adults from the program. Steady for now The biggest slice of Minnesota's budget pie is essentially done and Democrats protected some of the changes they made during their trifecta two years ago. "An education formula that is still indexed to inflation," said Rep. Cheryl Youakim (DFL-Hopkins). "And a bill that does not repeal unemployment insurance for our hourly, valuable hourly workers." But Republicans warn this budget could serve as a canary in a coal mine. It leaves funding steady for the next two years — without cuts even to private schools, as the governor had suggested. Cuts coming But in the next budget, this agreement calls for $420 million in cuts that will undoubtedly hit school districts hard. "You look at the declining enrollment, you look at the special ed costs coming up," said Rep. Ron Kresha (R-Little Falls). "I hope that people and school boards and superintendents and teachers alike are looking at this going how are we going to mitigate the risks that are in front of us." Some of the cuts are already laid out — including $48 million in transportation funding for special ed students. "I know the decisions around what programs would receive reductions was not easy," said Education Commissioner Willie Jett. "The hardest one was in special education." Blue Ribbon scalpel Jett will head up a Blue Ribbon commission to chop another $250 million from special education, almost 10% of the entire special ed budget for 2028-29. What's left? And at least one policy issue may still be up in the air. "If any of you have strong opinions either for or against them, seclusion rooms are that issue if you will," said Sen. Steve Cwodzinski (DFL-Eden Prairie). "We're still working on it." The expansion of seclusion rooms that passed in the Senate is not in the fully written education bill, but working group members tell us it's possible this isn't the final version of the bill that'll be up for a vote during the special session.
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.
Yahoo
21-05-2025
- Business
- Yahoo
Surprise snags are part of unfinished business at Minnesota Capitol
The Brief Some surprise snags are among the reasons legislators couldn't complete a budget during the 2025 regular session, which wrapped up Monday. A cannabis tax increase, who chooses University of Minnesota regents, and paid family and medical leave are among the unexpected differences after a global budget agreement last week. Working groups are working on a Wednesday evening deadline to sew up the various bills before leaders inject themselves into the negotiations. Gov. Walz plans to call a special session when agreements are in place, but likely not until next week at the earliest. ST. PAUL, Minn. (FOX 9) - Several months' worth of drama at the Minnesota Capitol ended with a whimper Monday night, and now we're into overtime. Surprise snags The most difficult issues are still unsettled, but some surprise snags have popped up as well. The legislature hit the finish line without completing eleven out of the 20 omnibus bills, but the work started Tuesday to sew those up. Most of those negotiations are happening behind closed doors, but taxes – the last bill expected to pass – was the first to get a public hearing in between times. House and Senate tax bills are vastly different, but last week's global agreement between leaders bridged a lot of the gap. It's also a surprise sore spot in the agreement because it includes increasing the cannabis tax from 10% to 15%. "Look, we said no tax increases, and so that applies to everything," said Senate Minority Leader Mark Johnson, (R-East Grand Forks). New deal? Senate Republicans didn't sign the deal, and they're trying to use some rare leverage for the minority party to sweeten it. "There were a number of issues that were popping up," said Senate Majority Leader Erin Murphy (DFL-St. Paul). Murphy said Republicans are trying to tweak at least six bills from the terms leaders agreed to last week. House GOP leadership acknowledged only one change, but with some DFL support. "There's a majority in the Senate that wants to fix paid family medical leave, but Democrats are continuing to hold that up as something that would not be possible," said House Floor Leader Harry Niska (R-Ramsey). Still holding The GOP also argues that DFLers want the biggest tweak because a lot of them are still fighting the change to MN Care coverage for undocumented immigrants, but that seems like one of the pieces most likely to stick whenever the special session arrives, probably not until next week at the earliest.