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Budget Bills (Almost) Wrapped Up
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June 25, 2021
Budget Bills Wrapped Up (Almost)

The Legislature ramped up negotiations last weekend, and now all budget areas except for public safety have been agreed upon. Special session will run over the weekend, and leaders have stated that they expect a full budget will be passed on time to avoid a state shutdown.

Bills Passed

Agriculture: Appropriates $139.4 million for the Department of Agriculture, Board of Animal Health and Agricultural Utilization Research Institute. Included in the funding are appropriations for Second Harvest Heartland, programs for farm safety and the establishment of an emerging farmer office with staff.

Commerce & Energy: Appropriates $187.9 million in General Fund and Renewable Development Account money to the Public Utilities Commission and the Commerce Department for services under their purview such as insurance and the Weights and Measures Division, as well as projects such as the Prairie Island Indian Community’s net zero energy community project and community energy transition grants.

Higher Education: Appropriates $3.51 billion for funding to the Minnesota State and University of Minnesota systems, and the Office of Higher Education for agency operation as well as numerous grant and aid programs that the department oversees.

Legacy Finance: Appropriates $385.5 million across the four Legacy funds: Arts & Cultural Heritage, Outdoor Heritage, Clean Water and Parks & Trails.

Transportation: Appropriates $7.27 billion for funding to the Department of Transportation, Department of Public Safety and the Metropolitan Council. Projects include local bridge improvement, the Safe Routes to School Program and the Local Road Improvement Program. Some policy provisions include setting Minnesota’s bus inspection standards to the national standards, providing a study of speed management in work zones and starting a pilot project for same-day driver’s licenses.
Bills Agreed to, but Awaiting Full Passage

E-12 Education: Appropriates $21 billion, which includes an increase in the general education formula, funds to maintain existing voluntary pre-kindergarten seats, and funding to the Sanneh Foundation for teachers of color training programs. Some policy provisions include limits on screen time for preschoolers and kindergarteners in publicly funded programs, respectful school meal policies and seizure training for a school nurse or other designated staff when an enrolled student has a known seizure disorder.

Environment: Appropriates $1.66 billion to the Department of Natural Resources, the Board of Water and Soil Resources, the Pollution Control Agency and Explore Minnesota Tourism. The bill includes salary increases for conservation officers, 2024 implementation for California air and emissions standards, and funding for local government water infrastructure grants.

Health and Human Services: Appropriates $18.78 billion to the Departments of Health and Human Services for items under their purview including prescription drugs, telehealth, child care assistance, disability services, behavioral health and licensing — to name just a few. This bill increases spending over the next 2 years by $100 million by using federal funds that were made available at the end of the regular session.

Housing: Appropriates $125.6 million for various programs such as the Workforce Homeownership program and the Housing Challenge Program, and places money into the home ownership assistance fund. The bill also contains negotiated language for an off-ramp to the eviction moratorium that was enacted last year due to COVID-19.

Jobs & Economic Growth: Appropriates $420 million on provisions such as the Main Street Economic Revitalization Program, workplace rights for pregnant and nursing mothers, and broadband development.

State Government, Elections & Veterans: Appropriates $1.25 billion for various state entities, boards and agencies that fall under the purview of the state government budget such as the Senate and House themselves, the State Arts Board and the Minnesota Historical Society. It also includes funding to the Department of Veterans Affairs, which includes funding an initiative to end veteran homelessness. The Elections portion of the bill shores up language in statute surrounding absentee ballot boxes and establishes standards for a manual recount on votes for a constitutional amendment.

Taxes: Produces $49.1 billion in revenue, and gives $4.2 billion in refunds, aids and credits. Among many provisions, the bill makes forgiven Paycheck Protection Program (PPP) loans and unemployment benefits up to $10,200 tax exempt, conforms to numerous federal tax changes and authorizes general local sales taxes for numerous cities.
They Said It...

It’s inevitable that this is going to be a deal that is going to disappoint some folks who are looking for more change that needs to be done. But my hope is that there will be enough things in there to say this is progress being made. Gov. Tim Walz on Public Safety omnibus bill negotiations
Ewald Government Relations Team
David Ewald
651-290-6276
davide@ewald.com

Valerie Dosland
651-265-7857
valeried@ewald.com


Phil Griffin
651-791-0341
philg@ewald.com

Troy Olsen
651-288-3425
troyo@ewald.com


Becca Pryse
651-265-7858
beccap@ewald.com

Allie Spellman

651-285-3522
allies@ewald.com

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