Front-line Worker Bonuses, Gov. Walz’s Proposed Budget and More
Front-Line Worker Bonuses
This session, the Minnesota House, Senate and governor’s office are all hoping to provide bonuses to front-line workers affected by the pandemic. Last year, front-line worker bonuses were stalled by disagreements among the working group in charge of distributing the funds. This year, disagreements over the scope of the bonuses continue. Senate Republicans are pushing for the original appropriation of $250 million that would focus primarily on bonuses for health care workers. House Democrats and Gov. Tim Walz want to expand bonuses to childcare, health care, school, grocery store, food service, transportation, long-term care, disability services, building service, public safety, retail and manufacturing workers. The expanded proposal would increase the price to $1 billion.
Gov. Walz’s Proposed Budget
Gov. Walz and Lt. Gov. Peggy Flanagan finished rolling out their budget plans last week. The total plan will use $7.6 billion from Minnesota’s general fund and $1 billion from other sources, including federal pandemic relief funds.
The budget items are organized under the umbrellas of health and safety, children and families, and economic opportunity.
Health and Safety
- $300 million over three years to cities, counties, and tribes across the state to meet local public safety needs. An average city would get $240,000.
- Recommend funding for safe and responsible legalization of cannabis for adult use in Minnesota. A new Cannabis Management Office would be responsible for regulation.
- Stabilize affordable housing: $100 million to preserve and improve “Naturally Occurring Affordable Housing.”
- $40 million in funding for the Minnesota Department of Veteran Affairs. These service bonuses would go to post-9/11 veterans who have been historically excluded from service bonuses.
Family and Childcare
- Expanding pre-kindergarten for 23,000 children (combination of school-based programs, Head Start, childcare centers and family child care programs).
- Support for childcare providers, including stabilization grants of over $90 million.
- Adding 2% to the general education formula and additional funding for special education to stabilize funding.
- Proposals to address teacher and staff shortages in public schools.
- $77 million over the next three years to hire counselors, social workers, school psychologists, nurses, and chemical dependency specialists in schools across the state.
Economic Opportunity
- “Walz Checks”: Deliver $700 million in direct payments to more than 2.7 million Minnesota households. Single tax filers earning up to $164,400 receive $175. Married couples jointly earning $273,470 would receive $350.
- $115 million for the caregiving sector. Providing incentive payments, tuition reimbursement, and childcare grants to increase retention in the industry.
- $2.73 billion to replenish the Unemployment Insurance Trust Fund.
- $170 million to expand broadband access.
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