Minnesota’s regular legislative session had started on January 8; it ended May 20 with the announcement of a two year state budget agreement between Governor Tim Walz (DFL), Speaker of the House Melissa Hortman (DFL), and Senate Majority Leader Paul Gazelka (R). Conference committees then worked on the details. A special session was called starting Friday morning and ending about 21 hours later on Saturday morning (May 25) with the passage of a $48.3 billion dollar budget to fund the state government for the next two years.
Walz, during the announcement, said, “We set out to make investments in education, health care and community prosperity and that is exactly what we achieved.” Republicans and Democrats can compromise and work together. Hortman said there were trade offs. Gazelka stated “sometimes it is a draw.”
Minnesota has the only divided legislature in the nation, but managed to compromise. Neither side got everything they wanted; there were winners and losers and there was grumbling about the process. There was an agreement to suspend the rules for the special session so a bill could be heard and voted on during the same day. Rep. Gregg Davids (R) complained that Walz “has taken over the legislative branch.” Minority leaders felt they were not included in all of the negotiating process.
The 13 special session bills that were passed will go to the governor’s desk to be signed into law in the week following the passage of the budget.
Walz’s proposed 20 cent gas tax increase was dropped during the negotiations, which the democrats supported in order to provide a stable, long term funding source for roads and bridges. But, the medical provider tax supported by Democrats and opposed by Republicans was extended indefinitely at 1.8%. It was slightly reduced from the 2% tax which had been scheduled to expire at the end of this year. This revenue goes into the Health Care Access Fund for medical assistance.
The budget includes $55 million to replace the troubled MNLARS with a private market system. Thirteen million was budgeted for license center operators who lost money due to the MNLARS system.
The Republicans got a small tax cut for middle income earners. The second income tax tier will drop from 7.05% to 6.85%. State property taxes for businesses will be reduced, which will reduce state revenue by $50 million per year.
Starting August 1, the use of cell phones while driving is banned unless they are hands free.
Minnesota in the past has not licensed assisted living facilities. It will be the last state to require this licensing, beginning in 2021. A licensing requirement was included in a package for elder care reform.
A 2% increase in per student funding for K-12 education will be made in each of the two budget years.
Fees will be raised on drug makers. The funds will be used for treatment for addiction and prevention services.
The reinsurance program designed to help lower health care premiums will continue.
Efforts to include gun control measures failed.
Regulation of deer and elk farms will be increased in the ongoing effort to contain the spread of chronic wasting disease.
Funding for the hire of an additional 67 correction officers over the two years was included in the budget.
Efforts to have a ban on abortion after 20 weeks did not make the final budget bill.