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Ewald at the Capitol: Legislature Passes State Budget in Special Session

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June 13, 2025

LEGISLATURE PASSES STATE BUDGET IN SPECIAL SESSION

Legislature Passes State Budget in Special Session

The legislature finally completed the state’s two-year budget early Tuesday morning after a lengthy 21-hour special session. They narrowly avoided the June 30 deadline, which would have resulted in a partial government shutdown. The day progressed smoothly, a nice change of pace from an intense regular session defined by a tied House membership and three special elections.

The 2025 legislative session began with a power struggle in the House after a court ruled that a Democratic member did not meet the residency requirement for his seat, leaving the body with a 67-66 Republican majority. House Democrats denied a quorum by staying away from the Capitol to prevent House Republicans from operating as the majority during the first three weeks of session.

A special election to fill the seat was won by the Democratic candidate, restoring the House to a 67-67 tie. A power-sharing agreement gave the speakership to Rep. Lisa Demuth (R) and required 68 votes to pass legislation. There was also concern that Republicans would not allow Rep. Brad Tabke to take his seat after a close election and a court decision declaring Tabke the winner.

The Senate faced its share of challenges as well, despite an amiable start. Sen. Kari Dziedzic (DFL) sadly passed away in December. The Senate was tied 33-33 and operated under a power-sharing agreement until a special election was held to fill the vacant seat, which DFL candidate Sen. Doron Clark won, restoring the party’s majority to 34-33. Then, in the middle of the session Sen. Justin Eichorn (R) resigned after his arrest for solicitation of a minor. A special election was held to fill the seat, won by Republican Sen. Kari Heintzeman.

In addition to all this uncertainty, the budget forecast for the next biennium showed the state facing a significant budget shortfall. Legislators struggled to agree on how best to address the deficit, and negotiations were made even more difficult given the tie in the House and a slim Democratic majority in the Senate.

After adjourning the regular session on May 19 without a budget deal, the legislature spent three weeks hashing out an agreement on the unresolved budget areas — largely behind closed doors. The new budget spends $66 billion over two years, 8% smaller than the previous $72 billion plan passed in 2023, reflecting the end of federal pandemic aid and a more negative fiscal outlook for the state. Although legislators closed nearly half of the projected long-term deficit, Minnesota is still expected to face a $290 million deficit in the 2028–29 budget cycle. Most of the $283 million in cuts came from the Department of Human Services.

As part of the compromise, Democratic leadership agreed to pass a key Republican priority to repeal MinnesotaCare coverage for undocumented adults, a move strongly opposed by most in their caucus. A $700 million capital investment bonding bill was also passed with bipartisan support. The budget is headed to Gov. Tim Walz’s desk, and he has 14 days to sign or veto the bills.

The legislature’s work may not be finished. Another special session may be required later in the year if Medicaid cuts are passed at the federal level, which would result in an even more dire fiscal situation for the state.

Following is a summary of the key legislation passed this year.

Health Finance Bill (HF 2)

The House Health Committee and the Senate Health and Human Services Committee were tasked with building a biennial budget that included a $97.6 million reduction in FY26-27 and a nearly $298 million reduction for FY28-29. This budget area includes appropriations for the Departments of Health, Human Services, and Children, Youth, and Families, and incorporates the House Children & Families Committee budget.

HF 2 includes funding for several new initiatives, including establishment of a dementia services program, maternal death review and reporting, and creation of a rural emergency medical services uncompensated care pool to help EMS providers receive payment for unreimbursed services. It also includes a training and staffing grant program to support the recruitment and education of emergency medical technicians.

The bill creates a prepared meals grant program, provides regional food bank grants, dedicates funding for Tribal food programs, and establishes a new family supportive housing grant program. Additional investments include opioid overdose prevention education and grants to expand access to opiate antagonists on Tribal College campuses.

HF 2 also includes a number of child welfare and early care investments, such as a one-time appropriation to upgrade the county child welfare case management system. It enhances childcare provider support with grants for installing security cameras and strengthens oversight for maltreatment notices. Additionally, the bill requires social media platforms to include mental health warning labels.

The bill creates or expands several programs to address healthcare workforce & licensing, including establishing a limited licensure for foreign medical graduates and providing a path to full licensure. It also establishes licensure for certified midwives and reduces the fee for speech-language pathology assistant licensure.

Finally, HF 2 establishes the County Administered Rural Medical Assistance (CARMA) Program, which builds on the existing county-based purchasing model for Medical Assistance enrollees in greater Minnesota. CARMA aims to improve care coordination by integrating health care, public health, and social services at the local level to better address health-related social needs.

The Department of Health budget was tied to the passage of HF 1, which repeals MinnesotaCare coverage for undocumented persons. Had HF 1 not passed or if Gov. Walz does not sign the bill, funding for the Department of Health will not be approved.

Human Services Finance Bill (HF 3)

The House and Senate Human Services Committees were tasked with building a biennial budget that included a $270 million reduction in FY26-27 and an $820 million reduction in FY28-29. The omnibus human services policy bill was passed and signed by Gov. Walz on May 23.

Included in the finance bill is funding for the Self-Directed Worker Bargaining agreement, which is the collective bargaining agreement between the state of Minnesota and SEIU-Healthcare for self-directed home care service providers. HF 3 also includes funding for wage increases in nursing homes, funding support for implementing recommendations from the Nursing Home Workforce Standards Board, and a new licensing and oversight system for autism service providers.

To address the budget reductions, HF 3 includes a cap on inflation adjustments for long-term care waivers at the consumer price index or 4%. It also adjusts nursing facility payment formulas to reduce automatic inflation indexing, places tighter restrictions on what Medical Assistance covers for day and unit-based services and reduces pay for overnight supervisory caretakers when they are not awake.

Additionally, the bill establishes an advisory task force to advise the legislature and governor on ways to reduce cost growth in long-term services.

MinnesotaCare Eligibility (HF 1)

HF 1 was a compromise stand-alone bill agreed to by legislative leaders. In the House, Speaker Emerita Melissa Hortman was the only DFL vote in favor of the bill, which passed 68-65. In the Senate, Senate Majority Leader Erin Murphy and Senators Hauschild, Kupec, and Rest voted in favor, which passed 37-30. No Republicans voted against HF 1.

MinnesotaCare provides subsidized health insurance to low-income individuals. Legislation passed in 2023 authorized eligibility for undocumented persons, adults over the age of 18 years old and children under the age of 18 years old; it took effect Jan. 1, 2025.

HF 1 limits undocumented persons’ eligibility for MinnesotaCare to those 18 years old or older to the number of people already enrolled in MinnesotaCare as of the effective date of HF 1 (the day after the governor signs the bill into law) AND provides that as of Jan. 1, 2026, undocumented persons over the age of 18 are not eligible for MinnesotaCare. MinnesotaCare eligibility for undocumented persons under the age of 18 years is maintained in HF 1.

Education Finance (HF 5)

The Education Finance Committee was tasked with crafting a biennial budget that incorporated a $420 million reduction for FY28-29, while still responding to immediate fiscal pressures facing school districts. HF 5 meets the $420 million reduction target but does so by trimming a few areas of the education budget. Most notably, the bill reduces reimbursement for special education transportation and establishes a Blue-Ribbon Commission charged with identifying $250 million in cost-saving strategies within special education.

To offset some immediate challenges, HF 5 includes a $50 million appropriation for compensatory revenue, which supports targeted services for students from low-income families. Most importantly, the bill protects the K-12 general education per-pupil funding formula, the core funding stream for school districts, from any cuts — marking a significant policy choice amid broader reductions.

Jobs/Labor Bill (SF 17)

The recently passed Jobs and Labor bill made several changes for businesses and local governments, focusing on workplace policies that impact both employers and employees.

One of the changes involves the Paid Leave Law. In a move aimed at easing costs for employers, the bill lowers the maximum annual premium rate that can be charged by the paid leave program. Previously set at 1.2 percent of taxable wages, this rate will now be capped at 1.1 percent, offering a modest reduction in payroll expenses for businesses.

The bill also makes two changes to the Earned Safe and Sick Time (ESST) law. First, employers now have a bit more flexibility when it comes to verifying an employee’s need for ESST. Specifically, employers can request reasonable documentation after two consecutive scheduled work days of ESST use, rather than the previous threshold of three days. Additionally, the bill clarifies how ESST hours are allocated for part-time employees and those who join a company mid-year.

Transportation Finance (HF 14)

The Omnibus Transportation bill (HF 14) provides $9.88 billion in transportation funding over the next biennium and includes $115 million in general fund transportation cuts agreed to by legislative leaders and the governor. Most of the reductions in the bill will be to public transportation in both the metro and Greater Minnesota as well as a temporary reduction in future proceeds from the sales tax on auto parts that were to be dedicated to transportation.

The bill authorizes funding for $454.09 million for state road construction and $650 million to rebuild Duluth’s Blatnik Bridge.

Policy changes include increasing the annual Electric Vehicle fee to a minimum of $150 and $75 for plug-in hybrid vehicles as well as establishing a new per-kilowatt hour charge at public electric vehicle charging stations.

The bill did not include a delay in the measurement of greenhouse gas emissions in transportation projects or a proposal brought forward late in the legislative process to shift half of the funds ($93 million) that counties would collect from a metro-wide sales tax toward the Metropolitan Council to build out Metro Transit’s bus rapid transit lines.

Capital Investment/Bonding Bills (HF 17 and HF 18)

HF 17 provides $6.5 million in general fund (cash) funding for a variety of projects such as funding for law enforcement emergency entry device grants at schools, replacing a statue located in the U.S. Capitol of Henry Mower Rice with a statue of Hubert H. Humphrey, and the public safety officer hearing protection program. The bill passed the House 96-34 and the Senate 37-30.

HF 18 provides approximately $700 million in bonding funds for projects with a strong focus on transportation and water infrastructure funding. The bill passed the House 116-15 and the Senate 57-10 with significant bipartisan support.

Taxes (HF 9)

The House (93-39) and the Senate (34-33) passed an omnibus tax bill which increases state revenue by $118 million, mainly through a combination of the increased cannabis gross receipts tax, eliminating a tax exemption for electricity use by data centers, and repealing local government cannabis aid.

The bill includes tax breaks for research and development and makes changes to a handful of city Tax Increment Finance districts.

The bill does not contain cuts in County Program Aid and Local Government Aid to cities and counties that were originally contained in the Senate regular session tax bill.

A governor’s initiative to expand sales taxes to financial services (including accounting services) is not in HF 9.

State Government Finance/Elections (SF 3045)

Legislation providing $1.35 billion to fund state government agencies passed the House (116-18) and Senate (36-31) during the regular session of the legislature. SF 3045 increases funding to the operations of agencies for the 2026-27 biennium by $46.5 million. The bill also contains numerous oversight provisions to identify and prevent fraud and abuse in the state and provides greater oversight into the state government through the Office of the Legislative Auditor.

SF 3045 also contains numerous election administration provisions such as requiring absentee voter applicants to provide both a Minnesota driver’s license or state identification card number and the last four digits of their Social Security number to verify their identity, requiring mailed and online absentee ballot applications to be received at least five days before an election and requiring counties to formalize a chain of custody plan for handling election-related materials, and establishing an absentee ballot delivery deadline of 5:00 p.m. on election day.
 

 

 

Ewald at the Capitol: Legislature Fails to Pass Budget Before Adjournment

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May 20, 2025

LEGISLATURE FAILS TO PASS BUDGET BEFORE ADJOURNMENT

The legislature adjourned on Monday night without completing most of its key budget bills, despite an agreement announced last week by Gov. Tim Walz and legislative leaders on global budget targets. While a few omnibus budget and policy bills have passed, the legislature will need to come back for a special session to finish passing the rest of the $66 billion two-year budget this week. The governor is the only one who can call the legislature back for a special session — and he has said he will not do so until the legislature reaches agreement on the remaining budget bills.

Legislative leaders have agreed to a plan where working groups will form to find agreement on the unfinished bills. They are expected to hold public, in-person meetings starting Tuesday (today); they must finish their work by 5 p.m. on Wednesday, May 21. However, the special session will happen after that deadline.

So far, six major budget bills have passed both chambers and are headed to Gov. Walz’s desk to be signed into law: state government finance and elections, veterans and military affairs, housing, agriculture, legacy funding, and public safety. Notably, the public safety bill included a last-minute proposal to close the Stillwater prison, a move that received criticism from both sides of the aisle for being negotiated behind closed doors without input. Another significant change redirected $77 million from the Duluth-to-Twin Cities Northern Lights Express toward extended unemployment benefits for hourly school workers.

Several of the most consequential budget bills remain unfinished — including those for education, health and human services, taxes, and transportation. Deep divisions remain within and between the two parties. One major sticking point is the proposal to end MinnesotaCare health coverage for undocumented adults — a top Republican priority that has received fierce pushback from progressive Democrats. Democratic leaders have suggested it may be taken out of the health bill and voted on separately. There’s also growing tension around potential cuts to private school aid. Senate Democrats argue it wasn’t part of the global budget agreement, while House Republicans are adamant that they won’t accept any reductions. Additionally, Republicans also want to revisit the paid leave and earned safe and sick time laws for proposed changes. Democrats have argued that is not part of the leadership agreement.

The divided House, which is evenly split, requires bipartisan cooperation on every vote. In the Senate, where Democrats hold a slim majority, Majority Leader Erin Murphy must secure every member’s support to pass any bill. Bipartisan compromise remains a major roadblock in getting anything passed; however, legislative leaders have expressed hope that they can wrap up the budget by Memorial Day.
 

 

 

Ewald at the Capitol: Budget Bills Update

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April 15, 2025

BUDGET BACKGROUND & UPDATES

The budget forecast released by Minnesota Management and Budget in March showed a challenging outlook for the state’s finances. The projected balance for Fiscal Year 2026-27 is $456 million, which is $160 million lower than previous estimates in November. The projected deficit for Fiscal Year 2028-29 has risen as well, from $5.15 billion in November to almost $6 billion. The negative financial outlook means that the House and Senate have reduced budget targets, which are guidelines for how much general fund money committees can allocate as they put together the state budget. In the House, due to the tied nature of the body, Democratic and Republican leadership negotiated a compromise that would reduce spending by $1.2 billion for the upcoming budget cycle and $2.6 billion in future years. The most significant cuts would be in health and human services.

The targets released by the Senate Democrats reduce state spending by $754 million in the upcoming two-year budget and by $1.7 billion in future years. As in the House, the largest cuts would be in health and human services, as well as environment, energy, transportation and education.

Last week, most House and Senate finance committees put the finishing touches on their budget bills. When the legislature returns from the Easter/Passover break next week, these bills will be heard in the House Ways and Means and Senate Finance committees before moving to the floor of each respective body. There are differences between the House and Senate versions of the bills, which must be reconciled before adjournment on May 19. If agreements are not finalized and passed by then, a special session will be needed to pass a budget and avoid a government shutdown.

Here is where things stand with budget bills of interest right now:

K-12 EDUCATION COMMITTEES

Overall, the Senate education budget bill target allowed for no increases in spending in FY26-27 and a budget reduction of $687 million in FY28-29. Key components of the Senate proposal include removing future funding inflationary increases in basic per-pupil funding, which is the backbone of funding for public education, reduction in charter school facilities maintenance funding, and eliminating funding provided to private school materials, health and counseling services, and transportation. The Senate proposal provides one-time funding for school districts to cover costs related to unemployment insurance benefits for hourly school employees and address fiscal cliffs related to funding that supports low-income, at-risk students.

The House budget bill target allocated $40 million in one-time funding for FY26-27 and no increase in FY28-29. The House has not yet advanced their education budget bill.

HOUSE CHILDREN AND FAMILIES COMMITTEE

Overall, the House Children and Families budget bill target was $25 million in FY26-27 and a budget reduction of $15 million in FY28-29. The key proposal in the bill appropriates one-time funding of $40 million for an IT modernization project of the child welfare system. Additional funding is also provided for food shelves, food banks and prepared meals, low-income asset-building programming, federal compliance for childcare assistance, and early learning scholarships.

SENATE HEALTH AND HUMAN SERVICES COMMITTEE

The Senate Health and Human Services (HHS) Committee was required to reduce spending by $261 million in FY26-27 and reduce spending by $336.8 million in FY28-29. And while the target required them to reduce spending, the Senate HHS omnibus bill did include some new spending because the Senate HHS budget included budget cancellations, increases in certain health-related fees, shifts from the Health Care Access Fund, and an increase in the Provider Tax to make up for the spending reductions.

The Senate HHS budget bill funds programs and grants in the Departments of Human Services, Children, Youth, and Families, and Health. It includes funding for mental health programs like Psychiatric Residential Treatment Facilities and grants for youth mental health, HIV/AIDS support services, homelessness supports, and the establishment of a dementia services program. The bill also includes $10 million for an IT modernization project of the child welfare system, ongoing funding to meet federal compliance for childcare assistance, and funding for food shelves, food banks and prepared meals.

HOUSE HEALTH COMMITTEE

The House Health Committee budget target required a budget reduction of $50 million in FY26-27 and a budget reduction of $175 million in FY28-29. The House Health Committee has yet to come to an agreement on an omnibus health budget bill.

SENATE HUMAN SERVICES COMMITTEE 

The Senate Human Services Committee budget target required a reduction of $272 million in FY26-27 and a budget reduction of $430 million in FY28-29. The committee captured some of these budget reductions through reducing federal waiver expenditures, grant and administrative reductions and transfers, and billing and other fund modifications.

The bill includes new funding for several substance use disorder programs, support services for people with autism under age 21, and operating funds for the newest state agency, the Department of Direct Care and Treatment. The bill also moves the Governor’s Council on an Age-Friendly Minnesota into the Age-Friendly Minnesota Council and provides additional funding to the Minnesota Board on Aging. It also includes additional funding for critical access nursing facilities and payments to SEIU Healthcare under a self-directed bargaining agreement.

HOUSE HUMAN SERVICES COMMITTEE 

The House Human Services Committee budget target required a reduction of $300 million in FY26-27 and $1 billion in FY28–29. The committee was able to capture some of these budget reductions through reducing waiver growth, funding cancellations, and billing modifications. The bill also includes a nursing facility surcharge, which is listed as a savings of just over $177 million over the next four years. It also would reinstate parental fees under the TEFRA program (Tax Equity and Fiscal Responsibility Act), which provides Medical Assistance benefits for children with disabilities.

The House Human Services Budget invests $125 million over four years in the Community First Services and Supports program, which allows people greater independence by ensuring that they have services to stay in their own homes and replaces personal care assistance and the consumer support grant. It also includes funding for housing and homelessness support services like Safe Harbor Grants, Homeless Youth Act Grants, Shelter Capital and the Emergency Services Program. Finally, the bill funds programs to improve and expand internal systems, including the Department of Human Services program integrity and investigative analytics infrastructure and a new background studies disqualification program under the Office of the Inspector General to address fraud, waste, and abuse.

HOUSING COMMITTEES

The Senate Housing and Homeless Prevention Committee had a budget target of $3 million in FY 26-27 and $1 million in FY 28-29. In putting together their budget, the committee also took back $10 million from previously appropriated but unspent community stabilization funds. The Senate’s housing and homelessness budget invested largely in additional funding for the family homelessness prevention and assistance program. The bill also included additional funding for infrastructure programs in Greater Minnesota and community-based first-generation homebuyer programs.

The House Housing Finance and Policy Committee had a budget target of $75 million in FY26-27 and $7.6 million in FY28-29. The House budget includes one-time additional funding for housing infrastructure programs and workforce housing programs in Greater Minnesota, manufactured home grants, low-income affordable housing infrastructure programs, and Housing Infrastructure Bonds.

TRANSPORTATION

The House Transportation budget target provides no change from the February forecast base Transportation budget in FY 26-27 and FY 28-29. Key proposals found in the bill include additional funding in road construction, reductions in passenger rail service, delaying implementation of the greenhouse gas emissions assessment project and vehicle miles traveled requirements, and authorizing online driver license renewals.

The Senate Transportation omnibus bill target provides $227 million in reductions to the general fund in FY26-27 and $132 million in FY28-29. Some of the key provisions include additional funding for state roads, operating increases for MN Department of Transportation and Department of Public Safety, numerous traffic safety measures, cancelation of funding for the proposed passenger train between Duluth and the Twin Cities, Northern Lights Express, and a temporary adjustment in the percentage of sales tax on auto parts appropriated to the Highway User Tax Distribution Fund.

TAXES

The House and Senate Taxes Committees are not subject to committee deadlines and generally produce tax bills later in the legislative session. Both committees have been holding hearings on bills and laying them over for consideration for future inclusion in an omnibus tax bill.

The House Taxes budget target reduces tax aids and credits by $40 million for FY26-27 and FY28-29. The Senate Taxes Committee target includes tax increases of $365 million in FY26-27 and $370 million in FY28-29.

KEY LEGISLATIVE DATES

April 11-21, 2025 – Passover/Easter Break

April 11, 2025 – Third Committee Deadline

April 23, 2025 – Gov. Walz’s State of the State Address

April 29, 2025 – Senate District 6 Special Election

May 19, 2025 – Last Day of the 2025 Minnesota Legislature (Adjournment)

THE IMPACT OF CITIZEN TESTIMONY

Testifying before a legislative committee is a powerful way to influence policy and ensure your voice is heard. However, the process can seem intimidating, especially if you’re new to it. So, Ewald’s Government Relations Team has created a video to walk you through the steps of preparing and delivering effective testimony. A recent blog post shares real stories about the impact of citizen testimony.

Watch the Video Now
 

Read Our Blog Post
 

HELPFUL RESOURCES TO FOLLOW ACTION AT THE STATE CAPITOL

Follow these links to keep up with action at the State Capitol:

To find your legislators, visit Who Represents Me

For updates on activities at the House of Representatives,
visit the House Session Daily website.

For updates on activities at the Senate, visit Senate Media Services.

To follow committee hearings, visit the Combined Committee Schedule.

To watch House committee and floor sessions, visit the
House of Representatives YouTube Channel.

To watch Senate committee and floor sessions, visit the Senate YouTube Channel.
 
 

 

 

Ewald at the Capitol: Special Elections

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HOUSE DISTRICT 40B SPECIAL ELECTION RESULTS

The vacant seat in House District 40B has now been filled, resolving the story of which party controls the Minnesota House. The special election for the seat was held on March 11, and the DFL candidate, David Gottfried, won 70.15% to Republican candidate Paul Wikstrom’s 29.75%. Last week he was sworn in, restoring the body to a 67-67 tie.

This development significantly changes the landscape for the rest of the legislative session, as a power-sharing agreement is now in place. This means that committees will be co-chaired by a Democrat and Republican with equal members from each party serving on the committee. Until last week, Republicans had been controlling committees with a one-vote advantage. The tie will put legislators’ ability to work together in a bipartisan manner to the test, particularly as they begin to craft the state budget for the upcoming biennium — because now bills will need bi-partisan votes to advance.

The power-sharing agreements also confirmed that Rep. Lisa Demuth (R) will continue to serve as Speaker of the House for the next two years and Republicans will maintain the majority on a new anti-fraud committee for two years.

SENATE DISTRICT 6 SPECIAL ELECTION

Just when things seemed to get back to normal after the House special election, an unexpected shakeup unfolded in the Senate last week. State Senator Justin Eichorn was arrested on March 17 during a police sting operation in Bloomington for solicitation of a minor. Facing bipartisan calls for his resignation and potential expulsion from the Senate, Eichorn resigned on March 20. Senate Democrats now hold a 34-32 majority in the Senate until a special election takes place. The governor has called a special election for April 29 with a primary on April 15. As of March 27, six people had filed to run — five Republicans and one DFLer. Filings opened March 26 and will close April 1.
 
GOVERNOR’S BUDGET PROPOSALS

Gov. Tim Walz released his new budget recommendations for the upcoming biennium on March 21, revising his previous recommendations to align with the more negative financial outlook in the February budget forecast. The proposal includes an additional $409 million reduction in spending over four years. It proposes additional cuts of $162 million for 2026-27 and $247 million for 2028-29, primarily in the education budget. The proposed cuts are on top of his budget recommendations released in January.

DEADLINES

Deadlines help narrow the number of active bills. Traditionally, a bill must clear all policy committees to meet the first deadline. The second deadline requires bills to clear all policy committees in both chambers. This year the legislature agreed to a combined first and second deadline, set for Friday, April 4.

The third deadline is set for when finance committees must pass their budget bills. That deadline is scheduled for April 11.

KEY LEGISLATIVE DATES

March 29-31, 2025 – Eid Recess

April 1, 2025 – Legislature Resumes

April 4, 2025 – First and Second Committee Deadlines

April 11-21, 2025 – Passover/Easter Break

April 11, 2025 – Third Committee Deadline

April 23, 2025 – Gov. Walz’s State of the State Address

April 29, 2025 – Senate District 6 Special Election

May 19, 2025 – Last Day of the 2025 Minnesota Legislature (Adjournment)

THE IMPACT OF CITIZEN TESTIMONY

Testifying before a legislative committee is a powerful way to influence policy and ensure your voice is heard. However, the process can seem intimidating, especially if you’re new to it. So, Ewald’s Government Relations Team has created a video to walk you through the steps of preparing and delivering effective testimony. A recent blog post shares real stories about the impact of citizen testimony.
Watch the Video Now
Read Our Blog Post

HELPFUL RESOURCES TO FOLLOW ACTION AT THE STATE CAPITOL

Follow these links to keep up with action at the State Capitol:

To find your legislators, visit Who Represents Me

For updates on activities at the House of Representatives,
visit the House Session Daily website.

For updates on activities at the Senate, visit Senate Media Services.

To follow committee hearings, visit the Combined Committee Schedule.

To watch House committee and floor sessions, visit the
House of Representatives YouTube Channel.

To watch Senate committee and floor sessions, visit the Senate YouTube Channel.

Ewald at the Capitol: Work Is Moving Rapidly; MMB Releases Budget Forecast

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WORK IS MOVING RAPIDLY; COMMITTEE DEADLINES ANNOUNCED

With the uncertainty of the first few weeks of the legislative session behind us, work at the Capitol has been moving along at a rapid pace. The House is being run by a 67-66 Republican majority. Bills are moving through the committee process, and some have even made it to the House Floor.

A special election for the vacant seat in House District 40B will be held on March 11, which might shake things up by restoring the House to a 67-67 tie. Legislation is humming along in the Senate as well, which has an established 34-33 DFL majority.

Committee deadlines have been announced, providing a timeline for passing bills through the committee process. The first and second deadlines, where committees must act favorably on bills in both bodies, are scheduled for April 4. The third deadline, for major appropriation and finance bills, is scheduled for April 11.

BUDGET FORECAST

Minnesota Management and Budget (MMB) released its February budget forecast on Thursday, a critical milestone as the legislature begins crafting Minnesota’s state budget for the next two fiscal years.

The forecast shows a challenging outlook for the state’s finances. The projected balance for Fiscal Year 2026-27 is $456 million, which is $160 million lower than estimates in November. The projected deficit for Fiscal Year 2028-29 has risen as well, from $5.15 billion in November to almost $6 billion. Spending is outpacing revenue, largely due to increased costs in education and health and human services (HHS). HHS spending is set to become the largest part of the state budget, driven mainly by long-term care costs.

In a Thursday press conference, MMB officials also spoke about how changing policies at the federal level — like tariffs, spending cuts, and layoffs of federal workers — are introducing uncertainty into the economic forecast.

Gov. Tim Walz, speaking on the new forecast, emphasized that his budget will focus on curbing spending growth “around the edges” without stopping or drastically cutting services. Key provisions in his budget proposal from January include a reduction in special education transportation funding, a cap on automatic year-over-year growth rates in Medicaid waivers, and an expansion of the sales tax base to services provided by investors, bankers and lawyers.

Leaders from both parties also spoke at the press conference. Democratic-Farmer-Labor (DFL) leaders said that the state is in good economic shape, and that a worsening economic outlook is due to uncertainty around federal policies. Republican leaders placed the blame for the current state of Minnesota’s budget outlook on spending by the DFL trifecta during the past biennium.

House and Senate Leaders will use this updated forecast to develop budget targets for committees, which will give committee chairs an amount they have to spend as they begin developing their omnibus budget bills. Differences between the House and Senate budget bills will need to be worked out in a conference committee.

KEY LEGISLATIVE DATES

March 11, 2025 – House District 40B Special Election

March 29-31, 2025 – Eid Recess

April 1, 2025 – Legislature Resumes

April 4, 2025 – First and Second Committee Deadlines

April 11-21, 2025 – Passover/Easter Break

April 11, 2025 – Third Committee Deadline

May 19, 2025 – Last Day of the 2025 Minnesota Legislature (Adjournment)

THE IMPACT OF CITIZEN TESTIMONY

Testifying before a legislative committee is a powerful way to influence policy and ensure your voice is heard. However, the process can seem intimidating, especially if you’re new to it. So, Ewald’s Government Relations Team has created a video to walk you through the steps of preparing and delivering effective testimony.
Watch the Video Now
 

HELPFUL RESOURCES TO FOLLOW ACTION AT THE STATE CAPITOL

Follow these links to keep up with action at the State Capitol:

To find your legislators, visit Who Represents Me

For updates on activities at the House of Representatives,
visit the House Session Daily website.

For updates on activities at the Senate, visit Senate Media Services.

To follow committee hearings, visit the Combined Committee Schedule.

To watch House committee and floor sessions, visit the
House of Representatives YouTube Channel.

To watch Senate committee and floor sessions, visit the Senate YouTube Channel.

Ewald at the Capitol: House Reaches Deal to End Stalemate; DFL Regains Control in Senate

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HOUSE REACHES DEAL TO END STALEMATE; DFL REGAINS CONTROL IN SENATE

Things at the Capitol have started to revert to normal as the fourth week of the legislative session comes to a close. On Monday, the Senate swore in its newest member, Sen. Doran Clark (DFL-Minneapolis), bringing the body back to a 34-33 DFL majority. The new DFL majority terminated the power-sharing agreement the body was operating under, so they will have full control of committees going forward.

In the House, the nearly month-long stalemate has come to a close. House leadership agreed on how to organize the body, with Rep. Lisa Demuth (R-Cold Springs) serving as Speaker of the House for the next two years.

The agreement allows Republicans to chair committees while they have a 67-66 majority, until the special election to fill the seat in 40B on March 11. If the DFL wins the seat, the House will be tied 67-67 and committees will be run by co-chairs from each party. Until then, Republicans will have a one-seat majority on committees.

Another provision of the agreement creates the House Fraud and Agency Oversight Committee to investigate fraud in state government programs. Last, the agreement requires Republicans to seat Rep. Brad Tabke (DFL-Shakopee), whose election was filled with uncertainty when it was discovered that 20 votes had been thrown out. With the agreement in place, DFL members returned to the Capitol Thursday for the first time this session, ending their three-week boycott. Work will now begin on putting together a new two-year state budget.

KEY DATES

Updated budget forecast: March 6

Eid: March 29-31

Easter/Passover: April 11-21

Constitutional adjournment: May 19

THE IMPACT OF CITIZEN TESTIMONY

Testifying before a legislative committee is a powerful way to influence policy and ensure your voice is heard. However, the process can seem intimidating, especially if you’re new to it. So, Ewald’s Government Relations Team has created a video to walk you through the steps of preparing and delivering effective testimony.
Watch the Video Now

HELPFUL RESOURCES TO FOLLOW ACTION AT THE STATE CAPITOL

A few helpful links to follow the action at the State Capitol:

To find your legislators, visit Who Represents Me

For updates on activities at the House of Representatives,
visit the House Session Daily website.

For updates on activities at the Senate, visit Senate Media Services.

To watch House committee and floor sessions, visit the
House of Representatives YouTube Channel.

To watch Senate committee and floor sessions, visit the Senate YouTube Channel.
 

Ewald at the Capitol: Chaotic Start to Legislative Session

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2025 LEGISLATIVE SESSION HAS CHAOTIC START

The lead-up to the 2025 legislative session has been filled with an unprecedented level of uncertainty. The 2024 election resulted in a 67-67 tie in the House. DFL and Republican legislative leaders came to a tentative power-sharing agreement to organize the 2025 session, which included committee structure, co-chairs, and appointments. However, this agreement fell apart due to complicated situations with two House seats. The DFL winner of the House District 40B seat, Curtis Johnson, was ruled ineligible to assume the seat as the judge found he did not meet the district’s residency requirements. A special election on January 28 will fill this seat. While the voting history of the district historically leans DFL, the outcome remains to be seen. Should voters elect the DFL candidate, the body will again be tied — but for now, Republicans have a 67-66 operational majority.

The other point of contention this year is the House District 54A seat, where DFL Incumbent Brad Tabke won reelection by 14 votes. The validity of the election was called into doubt upon the discovery that 20 ballots were thrown out by accident, a significant development due to the razor-thin margins of the election. A recount was held to rectify the situation, which Tabke won. The Republican candidate for the district challenged this outcome in court, citing the 20 missing ballots, but on January 14 a Scott County judge upheld the Tabke win and stated that there is no basis for a special election. Despite this, House Republican leaders have suggested that they may refuse to seat Tabke.

Given these unique circumstances, the start of the 2025 Legislative session on January 14 was tumultuous. Republicans have committed to acting as the governing party in the House with their 67-66 operational majority, which includes forming committees and electing the Speaker of the House. The DFL response is to deny a quorum by not attending House proceedings until a power-sharing agreement is formed, or until the body is once again tied after the special election. The DFL exacerbated tensions further by swearing in their members over the weekend at the Minnesota History Center.

Both sides held firm on Tuesday, creating a strange sight on the House Floor. Secretary of State Steve Simon presided over a half-full House Floor, with all DFL members absent. Simon found that a quorum was not present and subsequently adjourned the body. Republicans challenged the decision and continued with business by electing Rep. Lisa Demuth as Speaker of the House. Members have been meeting in committee throughout the week, with only Republican members present. DFL members have been meeting with constituents and lobbyists remotely or in their districts. The DFL is suing House Republicans over what they call an “unconstitutional session.” Secretary of State Simon also filed a legal petition asking the Minnesota State Supreme Court to void Republicans’ actions. Republicans plan on going forward with the work of the House, but indicate they would abide by a Supreme Court ruling. Gridlock is expected for the foreseeable future.

BIPARTISANSHIP IN THE SENATE

In contrast to the division in the House, proceedings in the Senate have been calm and agreeable. The body began the session with a 33-33 tie due to the death of Senator Kari Dziedzic in December. A special election to fill her seat in District 60 is scheduled for January 28, and is expected to go to the DFL. DFL and Republican leaders have come to a power-sharing agreement to govern the body until then. The agreement allows for co-presiding officers, co-chaired committees, and equal representation in committee membership. On Tuesday, DFL Sen. Bobby Joe Champion and Republican Sen. Jeremy Miller were elected co-presiding officers.

GOVERNOR RELEASES BUDGET RECOMMENDATIONS

On January 16, Gov. Tim Walz released his budget proposal for the next biennium. The governor’s watchword during his Thursday afternoon press conference was “fiscal responsibility,” as he spoke about measures to trim state spending to balance the budget.

The proposal includes a sales tax reduction, while also “closing loopholes” in the tax code by expanding the sales tax to legal, banking, brokerage and accounting services. Other recommendations include an increased surcharge levied on health maintenance organizations, limits to growth rates in Medicaid waivers, a reduction in special education transportation reimbursement, and anti-fraud measures like increased enforcement authority and tougher penalties.

This budget proposal would leave $2.1 billion on the bottom line for Fiscal Year 26-27, and $355 million in fiscal year 28-29. A new budget forecast comes out in February, after which the Legislature will begin putting together its own budget proposals.

THE IMPACT OF CITIZEN TESTIMONY

Testifying before a legislative committee is a powerful way to influence policy and ensure your voice is heard. However, the process can seem intimidating, especially if you’re new to it. So, Ewald’s Government Relations Team has created a video to walk you through the steps of preparing and delivering effective testimony. We’re putting the finishing touches on the video — keep an eye on your inbox for it next week!

HELPFUL RESOURCES

A few helpful links to follow the action at the State Capitol:

To find your legislators, visit Who Represents Me

For updates on activities at the House of Representatives,
visit the House Session Daily website.

For updates on activities at the Senate, visit Senate Media Services.

To watch House committee and floor sessions, visit the
House of Representatives YouTube Channel.

To watch Senate committee and floor sessions, visit the Senate YouTube Channel.

Ewald at the Capitol: State Budget Outlook

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STATE BUDGET OUTLOOK

On Wednesday, Minnesota Management and Budget (MMB) released the state budget forecast, showing a mixed picture of the state’s financial outlook. The forecast indicates a $616 million surplus for the FY26-27 biennium, which is far less than anticipated. MMB also forecasts a structural imbalance ranging from $3.5 billion to $5.1 billion for the FY28-29 biennium, causing concerns about the state’s future financial stability.

For more information on the budget, you can read the entire forecast here as well as the presentation documents.

HOUSE COMMITTEE UPDATE

With the 67-67 tie in the House, much is still unknown about how power-sharing will work in the next legislative session. However, co-leaders Rep. Melissa Hortman and Rep. Lisa Demuth have agreed to a committee structure and appointed committee chairs. Under this agreement, committees will be chaired by DFL and Republican co-chairs and committee membership will be equally divided. Committee chairs were recently named, but committee membership is not yet determined.

HELPFUL RESOURCES

A few helpful links to follow the election and other action at the State Capitol:

To find your legislators, visit Who Represents Me

To view the election results, visit The Secretary of State’s Website

Ewald at the Capitol: Election Updates

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Ewald at the Capitol – November 8, 2024

 

 

ELECTION UPDATES

On Tuesday, November 5, voters went to the polls to elect President and Vice President, Members of Congress, and the Minnesota House of Representatives, including one special state Senate election.

Along with the Presidency, Republicans were able to gain a majority in the U.S. Senate by flipping key seats in Pennsylvania, West Virginia, Montana and Ohio. Several seats in the U.S. House of Representatives are still too close to call. Republicans came into the election with a 220-212 majority in the House.

While attention was mainly focused on the presidency, we are closely watching the state legislative races.

This year, Minnesotans voted on races in the Minnesota House of Representatives and one seat in the Minnesota Senate (District 45), which was a special election to replace retiring Sen. Kelly Morrison, who stepped down to run for Congress.

This was an extremely important race for both parties, with Republicans hoping to flip both houses. Coming into the election, Minnesota already had a unique legislative dynamic, with Democrats having a trifecta holding the Governorship, the Minnesota Senate with a 34-33 majority, and the Minnesota House with a 70-64 majority.

Democrats ultimately were able to keep control of the Senate with DFL Senator-elect Ann Johnson Stewart winning 52% of the vote. Meanwhile, House Republicans needed to win four seats to take control — they managed to win three. Republicans won vacant seats in districts 26A and 7B (both previously held by DFLers), and in 18A newcomer Erica Schwartz defeated incumbent DFLer Jeff Brand. This brought a 67-67 tie between the parties.

State law dictates that when a state legislative candidate wins by less than 0.5%, there is a publicly funded recount in that race. So, two races are automatically headed to a recount due to being too close to call. In District 14B, Democrat Dan Wolgamott won reelection by 28 votes, while in District 54A, Democrat Brad Tabke won reelection by 13 votes.

What if there is a 67-67 tie? The last time this occurred in Minnesota was in 1979 — we had a peanut farmer in the White House and the number one movie in January 1979 was a re-release of Disney’s 101 Dalmatians. The Minnesota Secretary of State is charged with gaveling in a new House, and so that year, Secretary of State Joan Growe, acting as temporary presiding officer, presided over the tied body to perform basic business — but she could not name committee chairs or set committees. After five days, an agreement was reached where the Republicans would get the speakership and the DFL would chair the rules, taxes, and appropriations committees and get one vote majorities on those committees. Bills that got to the House floor almost always had bipartisan support, and members rarely missed committee meetings or floor sessions. But as with all stories that start off easy, the end gets a little more colorful. If you’d like to learn more on the whole story, you can find it here.

HELPFUL RESOURCES

A few helpful links to follow the election and other action at the State Capitol:

To find your legislators, visit Who Represents Me

To view and/or keep up with election results, visit The Secretary of State’s Website

Ewald at the Capitol: New Laws Go into Effect

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Ewald at the Capitol – August 9, 2024

 

NEW LAWS NOW IN EFFECT

Effective dates for laws passed during a legislative session vary. Some are specified to be effective immediately once a bill is signed by the governor. Most budget bills take effect July 1 to coincide with the start of the new fiscal year and most bills without an effective date take effect August 1.

Some new laws that took effect on August 1 include:

  • Harsher penalty for “swatting” — Swatting is the act of faking an emergency aimed at sending law enforcement to the home of a target. The bill passed last session raises swatting from a misdemeanor to a felony.

  • Child passenger laws — Children under 13 must be transported in the rear seat of a motor vehicle, where available. In addition, children under the age of 13 are also required to use a child passenger restraint system or booster seat secured with a safety belt.

  • New penalties for straw purchases and guns — Straw purchases are when one party purchases a firearm for another party who is ineligible to purchase or possess one. Under the new provisions, the penalty for such an action increases from a misdemeanor to a felony.

  • New Compliance Obligations for Employers — These include new provisions related to employee wages and earnings such as:

    • While the new paid family and medical leave law will not take effect until January 1, 2026, starting on August 1, 2024, pregnant workers can take prenatal medical leave without counting against their twelve weeks of parental leave. Additionally, employers must offer the same health benefits during pregnancy and parental leave, contributing to the health benefits as if the employee were working.

    • Employers now need to pay workers the full amount of tips received by card or electronic payment, rather than subtracting a swipe fee first.

    • Employers now have to keep pay stubs for at least three years.

  • Rights for Parents with Disabilities — Prohibits a court from denying a prospective adoptive parent the ability to proceed with an adoption due to the prospective parent’s disability.

These are just some of the many laws that took effect as of August 1. For all new laws taking effect, you can view a more complete list here.

ELECTION UPDATES

On August 8, Democratic presidential candidate Kamala Harris announced Minnesota Gov. Tim Walz as her running mate and candidate for Vice President. This marks the first time since 1984 that a Minnesotan has been on a presidential ticket. The announcement came just two weeks after Vice President Harris announced her candidacy for president.

If the Harris/Walz ticket wins in November, the following would take place:

  1. Gov. Walz would resign to take on the role of Vice President of the United States.

  2. Lt. Gov. Peggy Flanagan would then immediately be sworn in as Minnesota’s governor.

  3. The most recent President of the Minnesota Senate (Sen. Bobby Joe Champion – DFL, Minneapolis) would in turn become the new Lieutenant Governor.

Some additional considerations:

  1. At the beginning of the legislative session on January 14, 2025, the Senate must elect a president of the senate as they organize themselves for the new biennium. It could be Sen. Champion, but it could be another member.

  2. A special election could change the majority in the Minnesota Senate — right now, with Sen. Kelly Morrison having resigned her seat to run for Congress, the Senate is tied 33/33.

  3. There is precedent where the President of the Senate does not resign their seat — Michelle Fischbach held both positions until the end of the legislative session in 2018. It is unclear whether Sen. Champion would follow that same pattern.

You can also see this interview with Minnesota Senate President Bobby Joe Championwhere he laid out what would happen if Gov. Walz wins and assumes the position of Vice President.

As a reminder, voters will head to the polls in November to vote for several races — including President, U.S. Senator for Minnesota, all 8 members of Minnesota’s U.S. House of Representatives delegation, and all 134 Minnesota House of Representatives districts. The Minnesota state senate is not up for election this year, but a special election will be held in Senate District 45, where Kelly Morrison resigned the state senate to run for U.S. Congress in the Third Congressional district.

Some important election dates to remember:  

June 28–August 12: Vote early by mail or in person for the August 13 primary elections 

August 13: Primary Election Day 

September 20 through November 5: Vote by mail or in person  

November 5: Election Day 

For more voting information such as how to vote, where to vote, and other questions you may have you can visit the Secretary of State’s website here. 

The Ewald Consulting Government Relations team has compiled a list of candidate filings. To find more detailed information in the races up for election, you can visit this candidate filings list.

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