Legislature Hits the Ground Running in First Full Week; Leaders Announce Competing Priorities for Surplus
Having gaveled in the 2020 legislative session on February 11, the Minnesota Legislature wasted little time before policy committees began working at a feverish pace. With a two-year state budget in place, most legislators’ priority for 2020 will be the passing of a robust state infrastructure proposal commonly known as “the bonding bill.”
While most legislators expect a bonding bill to pass and be signed into law, there remains significant disagreement as to the number of projects that should be included and the total cost of the final bill. Gov. Tim Walz (DFL) released a recommended capital investment package that would cost a record-setting $2 billion. House Democrats have echoed the need for a large and robust bonding bill while Senate Republicans have expressed comfort with a bill closer to the historical $1 billion level. It also remains to be seen what role road and bridge projects play in the final bonding bill as Gov. Walz continues to support raising the state’s gas tax to pay for roads and bridges while focusing the bonding bill on other basic infrastructure needs.
In addition to the bonding bill, legislators will spend the next three or so months debating a variety of supplemental spending and tax proposals. Later this month Minnesota Management and Budget (“MMB”) will release the February budget forecast. This will determine what resources legislators will have to put towards those program spending or tax relief initiatives. In November, MMB forecasted an approximately $1.3 billion surplus for the FY 20-21 biennium, but most legislators are concerned about economic projections suggesting a possible recession during the next biennium.
Speaker of the House Melissa Hortman (DFL-Brooklyn Park), House Majority Leader Ryan Winkler (DFL-Golden Valley), and the House DFL Caucus announced several supplemental budget priorities during the first week of session. They included appropriating $190 million toward early learning scholarships for children 3 and younger as well as $22 million in one-time support for child care providers. Meanwhile, Senate Majority Leader Paul Gazelka (R-Nisswa) and his colleagues announced an ambitious tax proposal that would reduce the state’s lowest income tax rate from 5.35 percent to 4.9 percent (costing approximately $440 million) and eliminate a state tax on Social Security Income (costing another $430 million).
Finally, there are several high profile and controversial issues that have carried over from the end of last session. In the first week and a half, committees have already heard bills related to emergency insulin, prescription drug prices, gun safety, voter fraud, clean energy, and statewide paid family leave and sick and safe time.
2020 Session Dates to Know
- March 20, 2020
1st deadline - (committees to act favorably on bills in the house of origin)
- March 27, 2020
2nd deadline - (committees to act favorably on bills, or companions of bills, that met the first deadline in the other house)
- April 3, 2020
3rd deadline - (for committees to act favorably on major appropriation and finance bills)
- April 3-April 13, 2020
Easter/Passover Recess
- May 18, 2020
Adjournment
Please reach out to any of the Larkin Hoffman Government Relations team members with any questions.
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