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Minnesota Update
Budget Surplus Initiatives are in the Works
Since last week’s release of the November budget forecast, legislators and advocates have been busy working on initiatives they believe would be the best use of surplus dollars. Leadership in the House of Representatives and Senate and Gov. Tim Walz all have differing approaches to how they think the money should be allocated. Gov. Walz will release his budget recommendations on January 24, 2023, which will give us a clearer picture of what his priorities are. The House and Senate are expected to announce committee deadlines that outline the state’s budgeting process shortly after the legislative session begins, that will govern how legislators begin hearing bills with financial implications.
There are also several large policy initiatives that advocates are calling for the passage of early on in session, including, the legalization of recreational marijuana, authorizing driver’s licenses for undocumented residents, providing for paid family leave and paid safe and sick time for Minnesota workers, new gun control measures, as well as many others. This is all in addition to the state’s biennial budget and a possible statewide infrastructure proposal.
Important Dates to Remember:
- January 3rd: First day of the 2023 legislative session
- January 24, 2023: Governor Walz releases his budget recommendations
- May 22, 2023: Last day of the 2023 legislative session
Federal Update
Progress Reported on Omnibus Negotiations
Appropriators made enough bipartisan progress over the weekend that Democrats are putting on hold plans they'd had to introduce today their own versions of a fiscal 2023 omnibus and yearlong stopgap funding bill.
Senate Appropriations Chairman Patrick J. Leahy (D-VT) "feels that sufficient progress in negotiations took place over the weekend to delay the introduction of the omnibus appropriations bill for the time being. Bipartisan and bicameral negotiations continue," a Senate Democratic aide said Sunday.
Similarly, as of Sunday night, House Appropriations Chair Rosa DeLauro (D-CT) wasn't expected to introduce today a yearlong continuing resolution that she'd been saying was the only way out of the stalemate if Republicans wouldn't budge on the chief sticking point — nondefense spending levels.
Even if a deal is reached soon, there would not be enough time to get an omnibus bill written and sent to the president before Friday’s deadline. If a framework deal is at hand, lawmakers could take up a stopgap through December 23 to buy time.
Senate up Next to Clear NDAA for Biden's Desk
The Senate is up next to clear the annual defense authorization bill for the president's desk. A vote has yet to be announced. But the expected goal is to clear the bill by week's end.
The House passed the NDAA last week after both chambers agreed to a final version that would authorize nearly $858 billion in spending on defense programs. But thanks to the Friday deadline to reach a spending deal before current government funding expires, the Senate's work on the NDAA may not be neat and tidy. Amendments to the bill are possible, in which case the NDAA would need to return to the House for another vote.
The push by Sen. Joe Manchin III (D-WV) to add energy-permitting language to the NDAA could slow the bill down.
Another possible speed bump could come from Senator Rand Paul (R-KY) who wants to reinstate troops discharged for refusing COVID-19 vaccines. Majority Leader Charles E. Schumer (D-NY) could block any such long-shot efforts through procedural methods. And it appears most senators support moving quickly to pass the measure for the 62nd straight year.
Panels in Both Chambers Examine the FTX Crash
Panels in both chambers are set to examine the crash of cryptocurrency exchange company FTX. Sam Bankman-Fried, founder and former CEO of FTX, and current CEO John J. Ray III testify to the House Financial Services on Tuesday. Then Senate Banking, Housing, and Urban Affairs will look at the situation Wednesday.
The hearings come as lawmakers probe to better understand the crash and how to protect consumers. The $32 billion company declared bankruptcy last month after a run on customer accounts. Senate Banking Chairman Sherrod Brown (D-OH) said his panel plans to play a bigger role in crypto legislation in the next Congress.
On the Radar: Sinema's Move Won't Shift Senate Majority
Arizona Senator Kyrsten Sinema's decision to leave the Democratic Party and register as an independent is unlikely to upend the political equilibrium in the Senate.
The senator plans to continue with committee assignments through the Democratic caucus, though she won't join the party for its weekly lunch where policy and strategy are often discussed. Schumer said Sinema's action will not continue the restrictions of a 50-50 Senate. “We will maintain our new majority on committees, exercise our subpoena power and be able to clear nominees without discharge votes," Schumer said. But in Arizona, a politically purple state with a strong independent streak, her move could add new complications to the 2024 race.
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