With Policy Deadlines Behind Them, Legislature Turns Attention to Budget
March 17 marked the second policy committee deadline at the Minnesota Legislature. Policy committees worked late into the evening for a second week in a row as they attempted to review and evaluate a broad number of legislative initiatives. Legislation needed to passed through all policy committees in both bodies before midnight last Friday in order to continue to progress. Legislation that met the second committee deadline now has until midnight on March 31 to either be included in an omnibus bill or moved to the floor of the House and Senate as a stand-alone measure. The Legislature continues to be busy as finance committees assemble, debate, and pass their respective omnibus finance bills.
Gov. Dayton Releases His Supplemental Budget Proposal
Governor Mark Dayton released his supplemental budget proposal last week, which called for $100 million in early childhood education spending. Dayton, joined at the press conference by Lieutenant Governor Tina Smith, also proposed an increase in licensing fees on pharmaceutical companies to support a $42 million investment in the Opioid Stewardship Program. These proposals would be added to the two-year, $45.8 billion budget proposal Dayton announced in January.
Gov. Dayton also proposed a $3 million, six-month demonstration project, in coordination with Amtrak and BNSF railroad, extending the Northstar commuter rail line to St. Cloud. The supplemental budget proposal also included:
- an additional $10 million for the Pathways to Prosperity jobs program
- $10 million for buffer implementation
- $2.8 million to reimburse Roseau for flood mitigation
- $1.5 million to establish “Farmer-Led Councils” for water quality
The increased investments proposed by Gov. Dayton follow the Office of Minnesota Management and Budget’s announcement last month that the state’s budget surplus for the upcoming biennium is projected to increase from $1.4 billion to $1.65 billion.
Legislative Leaders Present Finance Committee Budget Targets
Legislative leaders in the Minnesota Senate and House of Representatives responded to the governor’s supplemental budget by releasing budget frameworks of their own. On Monday, Speaker of the House Kurt Daudt (R-Crown) and House Majority Leader Joyce Peppin (R-Rogers) released proposed budget targets. The House proposal calls for $1.35 billion in tax relief as well as the creation of a $450 million “Transportation Priorities Fund” to fund road and bridge construction. The proposal would statutorily dedicate general fund revenues generated by existing taxes on auto part sales, motor vehicle leases, auto repairs, and car rentals. These investments would be offset by reductions in other budget areas, particularly health and human services.
This week Senate Majority Leader Paul Gazelka (R-Nisswa) and Senate Republicans released budget targets of their own. The Senate proposal calls for $900 million in tax relief and a similar statutory dedication of funds for the purposes of road and bridge construction. The Senate proposal also increases funding for K-12 and higher education while calling for a $330 million reduction in health and human services spending. Gov. Dayton has expressed hesitation to support the volume of tax reductions proposed by the Legislature citing unreliability of federal funding under the Trump administration.
Lt. Gov. Tina Smith Not Running for Governor
In something of a surprise announcement, last Friday Lt. Gov. Tina Smith announced that she will not be running for governor in 2018. Smith was elevated from chief of staff to lieutenant governor as part of Dayton’s 2014 reelection. Many political insiders saw Smith as strong general election candidate a likely heir-apparent to Dayton. Smith cited personal and family reasons as playing a large part in her decision not to run, and stated a renewed energy as she looks to her remaining two years in office.
Former House Majority Leader Rep. Erin Murphy (DFL-St. Paul), State Auditor Rebecca Otto and St. Paul Mayor Chris Coleman have all publically announced their intention to seek the Democratic nomination for governor. Other DFLers, including Congressmen Tim Walz (MN-1), Congressman Rick Nolan (MN-8), former Speaker of the House Rep. Paul Thissen (DFL-Minneapolis), and Attorney General Lori Swanson are also all rumored to be considering bids.
Among Republicans, Speaker of the House Kurt Daudt (R-Crown), former House Majority Leader Rep. Matt Dean (R-Dellwood), and Hennepin County Sheriff Rich Stanek are also considered likely gubernatorial candidates.
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