March 8, 2021

Budget Surplus Brings New Spending Initiatives

Activity at the Minnesota Legislature picked up last week as committee chairs responded to the state’s improved budget forecast. With a projected $1.6 billion surplus instead of a $1.3 billion deficit, legislators were quick to put forward their preferred spending initiatives and tax reform proposals. With the first committee deadline approaching Friday, many legislative committees have scheduled additional hearings and evening sessions to process the high volume of proposals being brought forward by legislators. Eyes also turned toward state agencies as they too work to respond to the improved budget forecast. The Walz Administration is expected to release a revised budget proposal later this month and many Capitol insiders expect significant changes from the proposal released in February.

Gov. Walz and legislative leaders continue to negotiate a high-profile and controversial public safety funding package. The proposal (initially outlined as $35 million), is intended to reimburse law enforcement agencies that could be called on to respond to issues arising during or after the trial of former Minneapolis police officer Derek Chauvin. The trial of Officer Chauvin, who is being charged with the murder of George Floyd, is scheduled to begin this week. Many legislators had hoped to have a final public safety package signed into law prior to the trial beginning, but both Republican Senators and DFL Representatives have expressed concerns with the bill. The Senate is expected to pass another iteration (SF 1354-Weber) later today while the House of Representatives has not taken up the measure since HF 445 (Mariani) fell five votes short of passing on February 18, 2021.