House DFL Leadership Announce 2022 Priorities:

Last week House DFL leadership announced their vision for the 2022 legislative session, which includes a legislative agenda that they hope will support workers, increase affordable housing, and address the unemployment insurance trust fund deficit. Speaker of the House Melissa Hortman (DFL-Brooklyn Center) and Majority Leader Ryan Winkler (DFL-Golden Valley) both indicated the previously agreed-upon $250 million for frontline worker pay is an extremely urgent matter this session. Both Hortman and Winkler have advocated for increasing the funds dedicated to worker bonuses as a way of breaking the nearly five-month deadlock.

According to DFL leadership, Rep. Ruth Richardson (DFL-Mendota Heights) and Rep. Liz Olson (DFL-Duluth) will again take leadership positions in promoting paid family and medical leave and earned sick & safe time proposals respectively. When combined, the two DFL proprieties are expected to cost $1.6 billion for the first two years. Meanwhile, Rep. Mohamud Noor (DFL-Minneapolis) and Rep. Rob Ecklund (DFL-International Falls) will take the lead on affordable housing, broadband, and the looming $1.2 billion deficit in the state’s unemployment insurance trust fund.

Gov. Walz Releases Supplemental Budget Proposal 

On Thursday, Gov Walz released his recommendation for the 2022 supplemental budget. Highlights include $1 billion in frontline worker pay—effectively quadrupling the $250 million set aside as part of the 2021 budget agreement—and $700 million in direct payments to taxpayers, colloquially being referred to as ‘Walz Checks’ (alluding to the ‘Jesse Checks’ issued in the late 1990’s as part of a budget surplus proposal promoted by then-Gov. Jesse Ventura). Details of the governor’s budget recommendations include:

• Frontline Worker Pay: Appropriates $1 billion in one-time payments to frontline workers (including first responders, hospital staff, homecare workers, and others deemed “essential” in early 2020 who were unable to work remotely). The governor’s proposal would cover eligible workers who make $70,000 or less and would amount to a roughly $2,000 payment per worker. 
• ‘Walz Checks:’ The proposal would include roughly $700 million in direct cash payments. Couples making up $273,470 can get $350 and single taxpayers making up to $164,400 can get $175 in direct payments. An estimated 2.7 million Minnesotans would be eligible for a payment.
• Workforce Development: Gov. Walz’s proposal allocates $115 million for workforce retention targeting individuals who provide care for people with disabilities. The budget proposal also included $15 million for the Department of Employment and Economic Development to modernize its workforce development program.
• Tax Cuts for Families and Small Businesses: The Walz proposal allocates $2.73 billion to restore it to the pre-pandemic balance and offset tax increases designed to help restore the fund. The proposal also includes an increase to the income threshold and maximum credit amount for Minnesota’s Dependent Care Credit. The budget also recommends increasing eligibility for the Education Credit to make it easier for Minnesotans to buy school supplies.
• Broadband: The proposal included $170 million in broadband funding to increase internet access for rural Minnesotans as part of the state’s “Border-to-Border” program, effectively ensuring 93% of Minnesotans have access to high-speed internet.
• Agriculture: The proposal also includes a $10 million investment for farmers who suffered losses during last year's drought, including $5 million in rapid response grants to livestock producers and specialty crop growers and $5 million for the Rural Finance Authority’s Disaster Recovery Loan Program. 

 

House DFL Climate Caucus Announces 2022 Initiative:

The House DFL Climate Caucus announced a $1 billion plan to fight climate change. The plan consists of about 30 separate bills tackling different issues. The plan invests $105 million in energy, $130 in land, $355 million in built environment, and the largest portion invests a massive $376 million in transportation. However, it’s not very clear how the collection of bills will be received by the Republican-controlled Senate.

Please reach out to any of the Larkin Hoffman Government Relations team members with any questions.