Menu

Ewald at the Capitol

Minnesota Legislature’s Unrelenting Pace

The fast pace of work at the Minnesota legislature does not show any signs of slowing down. A record number of bills have been introduced by both bodies and a closer examination of the numbers tells the full story. By the end of the fourth week of session the House and Senate outpaced the average number of bill introductions three-fold.* At that point, the House had introduced 968 bills and the Senate had introduced 903 bills.** As of Thursday, the House has introduced 1,582 bills and the Senate has introduced 1,526 bills.


The record number of bill introductions has also been accompanied by late night/early morning floor sessions and Friday Committee hearings that are usually reserved for the end of session. The unseasonably early push to pass high priority items through the legislative process contrasts with the typical end-of-session push. While it cannot be argued that lawmakers are procrastinating, only time will tell if the momentum keeps up throughout the session.

*For the fourth week of a biennium.
**The average number of bills introduced by the fourth week for an odd year session is 314 in the House and 265 in the Senate.

More on bill intros

 

Gov. Walz Signs Carbon Free Bill

On Tuesday, Gov. Walz signed HF7 into law, requiring electric utilities to move to 100 percent carbon free energy by 2040, and energy utilities must show that 55 percent of energy sales are from renewable sources by 2035. The bill passed through both bodies of the legislature after lengthy floor session debates ending in votes along party lines.

The distinction between “carbon free” and “renewable” is also important to note. According to the law: wind, solar, and nuclear power all count toward the carbon-free goal, but nuclear energy is not considered renewable and will not count toward the renewable energy sales goal. If a utility can not meet these deadlines by generating or buying carbon-free energy, utilities can pay for energy credits. Utilities can also ask for an “off ramp” if they can demonstrate an inability to meet these standards without driving up costs or impacting reliability.

 

Attorney General’s Budget Request Approved by House

Following passage of the bill by the Senate, the House approved $4.3 million in funds to the state attorney general’s criminal division. $269,000 of the funds would be allocated immediately, and an additional $2 million would be infused into the attorney general’s budget for each year of the biennium.

The funding would help hire more prosecutors and support staff, increasing the number of full-time attorneys from three to ten, and allowing the office to take an estimated 70-80 additional cases each year. Attorney General Keith Ellison emphasized that the bill would allow his office to better assist counties with high profile or complex cases that they may have less experience with. The bill now awaits signature by Gov. Walz.

 

Minnesota Roads to Receive $315 Million

Gov. Walz has signed HF26 (Koegel/Dibble) which unlocks federal funds from the federal Infrastructure Investment and Jobs Act to improve Minnesota’s roads.

The bill includes $235 million to restore Trunk Highway Bonds used as a state match for bridge, community resiliency and carbon reduction programs and to address inflationary impacts and gaps in existing projects. There is also $80 million to fully fund the approved State Transportation Improvement Program.
HF26/SF24 passed both the House and Senate unanimously.

 

Senate Confirms Several Commissioners

Several of Gov. Tim Walz’s cabinet members were confirmed by the Senate this week. In Minnesota, commissioners can begin working once an announcement of their appointment is made to the Senate. Once confirmed, the appointee can serve at the will of the governor — but it is common practice for the Senate to confirm appointees. Though it’s rare for commissioner confirmations to be rejected (only 17 appointees have been rejected by the Senate since 1937) it has happened twice in Gov. Walz’s tenure. The following commissioners appointed by the governor were confirmed this week:

  • Department of Transportation Commissioner: Nancy Daubenberger
  • Department of Agriculture Commissioner: Thom Petersen
  • Department of Revenue Commissioner: Paul Marquart
  • Department of Administration Commissioner: Alice Roberts-Davis
  • Department of Management and Budget Commissioner: James Schowalter
  • Department of Veteran Affairs Commissioner: Larry Herke

Senate Majority Leader Kari Dziedzic announced that more confirmations will come before the Senate next week.

 

Dates to Remember

March 10: First Committee Deadline
March 24: Second Committee Deadline
April 4: Third Committee Deadline
April 5-10: Legislative Break
May 22: Last day of the 2023 Legislative Session

Tax Conformity

 
Governor’s “One Minnesota Budget Plan”

This week, Gov. Walz unveiled the first two parts of his four-part budget plan. The first piece of the budget would allocate $12 billion over the next four years for increased investments in education, children and families. The second part of the budget unveiled this week focuses on the economy. This $4.1 billion package includes money for a paid family leave program, small businesses, agriculture, workforce development, and renewable energy. The entirety of the budget plan will be released on Jan. 24.

Committee Deadlines

It is the middle of January, and the third week of the 2023 legislative session. While the Minnesota constitution predetermines the start and end dates of each legislative session, committee deadlines are determined by an agreement of both the House and Senate. These set restrictions for when committees can hear and decide upon certain types of bills and are important to keep the legislature on track for the end of session. The final committee deadline, on April 4, comes right before the legislative spring break that is scheduled for April 5-10 this year.

 

  • Friday, March 10 — Committees must act favorably on bills in their house of origin
  • Friday, March 24 — Committees must act favorably on bills that met the first deadline in the other body
  • Tuesday, April 4 (5 p.m.) — Committees must act favorably on major appropriation and finance bills
Budget and Revenue Update


The $17.6 billion budget surplus, the largest in state history, continues to grow. The Minnesota Management and Budget (MMB) office found that net general fund receipts for November and December of 2022 were $217 million more than forecast in November. In February, MMB will release an updated forecast which lawmakers will rely on to create the two-year budget.

DFL Priorities Move Forward


Several top priorities for the Minnesota House and Senate DFL majorities are making their way through the committee process. These include marijuana legalization, driver’s licenses for undocumented immigrants, paid family leave, and earned sick time for workers.

  • HF100/ SF73: would decriminalize the recreational possession and use of marijuana for those over the age of 21, as well as begin a process to expunge the records of Minnesotans who have been previously convicted of low-level marijuana crimes. The nearly 250-page bill is likely to make several committee stops before it reaches to the House and Senate floor.
  • HF4/SF27: would allow undocumented immigrants to obtain a driver’s license or state identification card. It would also include data practices to ensure immigration status isn’t shared across state agencies. The bill’s most recent stop was the House Judiciary committee, where it passed on Thursday morning.
  • SF2/HF2: would create a state-government run paid family and medical leave program. Workers would be given up to 12 weeks of paid family leave and an additional 12 weeks of paid sick leave. The bill passed the Senate Labor committee but was amended and is now being re-referred to the committee.
  • HF19/SF34: would mandate employers to provide earned sick and safe time at the rate of 1 hour for every 30 hours worked up to a maximum of 48 hours per year, unless the employer decides to provide more. HF19 has been approved in two House committees and awaits a hearing in the House State and Local Government Committee. SF34 has been approved by the Senate Labor Committee and awaits a hearing in the Senate State and Local Government and Veterans Committee.
  • HF26/SF24: proposes to unlock federal funds from the Infrastructure Investment and Jobs Act so the construction industries can begin planning. The bill includes $235 million to restore Trunk Highway Bonds used as a state match for bridge, community resiliency and carbon reduction programs and to address inflationary impacts and gaps in existing projects. There is also $80 million to fully fund the approved State Transportation Improvement Program. HF26 has cleared the House committee process and is scheduled for a vote on the House floor on Monday, Jan. 23. SF24 is scheduled for a hearing in the Senate Transportation Committee on Monday, Jan. 23, at 3 p.m.

Walz “One Minnesota Budget” Details Announced

 
Gov. Walz unveiled the final part of his four-part budget plan for the 2023-2024 biennium on Jan. 24. The total budget expenditure sits at $65.2 billion, with an additional $8 billion in tax cuts. Most of the record-shattering $17.6 billion budget surplus will be spent with these budget proposals, but the recommendations also include leaving $1.3 billion on the bottom line.

Details on each section of the four-part plan are outlined below. Links to further information can be found in the headline of each section.

Children, Families, and Schools:
  • Child tax credit of $1,000 per child to families making less than $50,000
  • Increasing the general education formula by 4 percent in 2024 and 2 percent in 2025
  • Reduce the special education cross subsidy by 50 percent
  • Free school meals for all Minnesota students

Economy and Workforce:
  • Establish a paid family and medical leave program at a cost of $4.1 billion
  • $500 million in tax credits to investments in companies with founders who are women, veterans, people of color, or headquartered in greater Minnesota
  • Broadband for all homes and businesses by 2026

Health, Housing, and Public Safety:
  • $1.5 billion for affordable housing, $100 million to rehabilitate existing affordable housing
  • $300 million for public safety funding for to city, county and tribal governments to determine how to use
  • $17 million for a MinnesotaCare public health care option

Tax Cuts, Tax Hikes, Walz Checks:
  • $4 billion for direct, non-taxable checks of $1,000 to Minnesotans making less than $75,000; $2,000 for families earning less than $150,000
  • $219 million to reduce Social Security benefit taxes
  • 1.5 percent surcharge on capital gains of individuals, trusts and estates valued at $500,000-$1 million
  • 4 percent surcharge on capital gains of individuals, trusts and estates valued over $1 million
Dates to Remember
March 10: First Committee Deadline
March 24: Second Committee Deadline
April 4: Third Committee Deadline
April 5-10: Legislative break
May 22: Last day of the 2023 Legislative Session
 
 

The 2023 Legislative Session Begins, Walz Inaugurated for a Second TermThe 2023 Legislative Session Begins, and more

The 2023 Legislative Session Begins

The 2023 legislative session began this week with in-person floor sessions in both bodies after almost three years of virtual legislating at the Minnesota Capitol. Governor Tim Walz was inaugurated to his second term on the eve of the first day of session. Lawmakers in both bodies were sworn in on Tuesday before session officially began at noon.

With this new freshman class, Minnesota swore in a historically diverse legislature. There are a record number of people of color, women, and people who identify as LGBTQ, the House and Senate are both led by women, and Bobby Joe Champion is the first Black president of the Senate.

While the first floor sessions in the House were sleepy this week, the Senate spent hours Wednesday determining a proposal to allow remote voting.

Walz Inaugurated for a Second Term

Governor Tim Walz and Lieutenant Governor Peggy Flannagan were sworn into office for their second term on Monday. Constitutional officers Attorney General Keith Ellison, Secretary of State Steve Simon, and State Auditor Julie Blaha were also sworn in during the inauguration ceremony at the Fitzgerald Theatre. Governor Walz’s second term will have him presiding over a DFL majority House, Senate, and a full DFL slate of constitutional officers. During his inauguration, Walz mentioned several priorities he hopes to advance this session including:

  • Investing in public education, including special education and universal school meals
  • Climate change mitigation efforts, including the goal to make Minnesota carbon emission-free by 2040
  • Paid family leave program
  • Expand voting rights, including automatic voter registration
  • Conform the state tax code to federal law
  • Legalizing adult use of marijuana

Read more: DLF lays out priorities, resources, and more.

$17.6 Billion Budget Surplus, Inflation, and more

$17.6 Billion Budget Surplus
On Tuesday, Dec. 6, the Minnesota Management and Budget (MMB) office released the much-anticipated state Budget and Economic Forecast. The twice-annual forecasts are essential information for Minnesota lawmakers to determine how much money they have to work with when creating the next two-year budget. The previous record-setting surplus of $9.25 billion announced in February 2022, has been dwarfed by the forecast $17.6 billion budget surplus for 2023. Much of this massive surplus has to do with a large portion of last year’s surplus remaining unspent, when legislators left almost $8 billion on the table when the 2022 legislative session ended. In addition to the surplus that remained from last session, the continued budget growth is credited to strong performance in income, sales and corporate taxes, the three main revenue sources for Minnesota. With this information in mind, Gov. Tim Walz must submit his budget recommendations by the end of January. Legislators will pay close attention to his proposals as they decide upon a final budget that must be in place by the end of June.

Inflation
The Budget and Economic Forecasts released by MMB do not take inflation into account. The current rate of inflation (8.1%) is more of a factor for the 2023-2024 budget than ever in recent history. High rates of inflation impact the cost of funding current services and projects and may make it difficult to determine the cost of funding future services and projects. Legislative leaders and the governor have raised a desire to include inflation into the forecast, so look for more debate and conversation on this topic.

Read more: Final recounts and more.

Aftermath of Election, Walz Cabinet, and more

Aftermath of Elections
On Tuesday, Nov. 29, the State Canvassing Board made elections official, although two election outcomes remain uncertain. The board approved plans for taxpayer-funded recounts in House districts 3A and 3B because the vote count difference was less than .5%. Since our last update, House minority leadership has been elected, committee structure has been decided and chairs have been appointed. Expect more updates on committee member assignments in upcoming issues of Ewald at the Capitol.

Walz Cabinet
Despite Gov. Tim Walz’s successful re-election bid, the executive branch is going through changes. Gov. Walz reappointed just 16 cabinet members, leaving 6 positions vacant. The open positions include commissioners in the departments of Health, Education, Revenue, Public Safety, Labor and Industry, and the Iron Range Resources and Rehabilitation Board. Gov. Walz hopes to fill these positions by mid-December. Expect updates on the new commissioners in upcoming issues of Ewald at the Capitol. Leadership The latest round of leadership elections for the 2023-2024 biennium has concluded with House Republicans electing Representative Lisa Demuth (Cold Spring) to serve as the minority leader. Following her election, she appointed Rep. Paul Torkelson (Hanska) to serve as Deputy Minority Leader, Rep. Jim Nash (Waconia) to serve as Minority Whip; as well as Rep. Dave Baker (Willmar), Representative-elect Elliot Engen (White Bear Lake), and Rep. Spencer Igo (Grand Rapids) to serve as Assistant Minority Leaders.

Read more: Committee Chairs announced, and more.

Election Brings Change

Election day 2022 will shape local, state and federal policy for years to come. All 201 seats in the Minnesota Legislature, as well as all constitutional offices, Minnesota’s U.S. congressional seats, and several county and local seats were up for election. Redistricting this year also meant that all candidates were running in newly drawn districts, creating a lot of uncertainty on the outcome.

It will take some time for the dust to settle now that the election is over. The first weeks following the election will be busy for new and familiar faces alike, regardless of who controls the Minnesota House and Senate. After voting on party leadership, caucuses in both bodies will have to sort out committee structure, appoint new committee chairs and make committee assignments. In addition, members will have to settle into their offices and pick their seats in the respective chambers. This will occur in the coming weeks — so we will have to wait until closer to the start of the 2023 session for the dust to settle.

So far, Sen. Kari Dziedzic (DFL-Minneapolis) has been elected as the Majority Leader in the Senate, and Sen. Mark Johnson (R-East Grand Forks) has been elected as the Minority Leader. The Senate DFL caucus also elected Sen. Bobby Joe Champion (DFL-Minneapolis) as President, Sen. John Marty (DFL-Roseville) as Finance Chair, and Sen. Ann Rest (DFL-New Hope) as Tax Chair. In the House, Rep. Jamie Long (DFL-Minneapolis) has been elected as the Majority Leader. Rep. Melissa Hortman (DFL-Brooklyn Park) will remain the Speaker of the House. Expect more updates on committee assignments and House minority leadership elections in upcoming issues of Ewald at the Capitol.

Although election results will not be made official by the state canvassing board until Nov. 29, Democrats held on to their House majority (70-64) and obtained a narrow majority (34-33) in the Senate. DFL Gov. Tim Walz and Lt. Gov. Peggy Flanagan were elected to another term as well as the incumbent Democrats in each constitutional office.

However, we are awaiting pending recounts in several races in northern Minnesota. In House District 3A, Republican candidate Roger Skraba beat Rep. Rob Ecklund by just 15 votes. In House District 3B, Republican Natalie Zeleznikar is 35 votes ahead of Rep. Mary Murphy. The narrow margins in these two races automatically triggered a recount. Results will not be final until these recounts are completed.

A roster of all members-elect of MN legislature is included in the resources section. Notable races include:

Minnesota Senate

SD3* – Grant Hauschild (DFL) beat Andrea Zupancich (GOP)
*SD3 gave Democrats their one-vote majority in the Senate
SD 14 – Sen. Aric Putnam (DFL) beat Tama Theis (GOP)
SD 35 – Sen. Jim Abeler (GOP) beat Kari Rehrauer (DFL)
SD 36 – Heather Gustafson (DFL) beat Sen. Roger Chamberlain (GOP)
SD 41 – Judy Seeberger (DFL) beat Tom Dippel (GOP)

Minnesota House

HD 3A – Roger Skraba (GOP) beat Rob Ecklund (DFL) (pending recount)
HD 3B – Natalie Zeleznikar (GOP) beat Rep. Mary Murphy (DFL) (pending recount)
HD 7B – Rep. David Lislegard (DFL) beat Matt Nori (GOP)
HD 14B – Rep. Dan Wolgamott (DFL) beat Aaron Henning (GOP)
HD 18A – Jeff Brand (DFL) beat Rep. Susan Akland (GOP)
HD 23B – Rep. Patricia Mueller (GOP) beat Thomas Stiehm (DFL)
HD 32B – Matt Norris (DFL) beat Rep. Donald Raleigh (GOP)
HD 35A – Rep. Zack Stephenson (DFL) beat Rep. John Heinrich (GOP)
HD 48B – Lucille Rehm (DFL) beat Rep. Greg Boe (GOP)
HD 54A – Brad Tabke (DFL) beat Rep. Erik Mortensen (GOP)

See links below for more detailed election results and a roster of new elected officials

Roster of elected members of MN legislature
All 2022 general election results for Minnesota

November Election Just Ahead and Looking Ahead to 2023

November Election Just Ahead

The November election is just weeks away. A reminder that every constitutional office, congressional office, the state senate, and the state house of representatives is on the ballot. Ewald Consulting has prepared a voter guide outlining information on the candidates for the state legislative races. You can find that link in this update. 

Looking Ahead to 2023

Despite reaching a global budget agreement, the 2022 regular session ended without a bonding bill, a tax bill, and several other supplemental budget bills. 2023 is a budgeting year, where the legislature and the governor must agree to a two-year state budget. If they fail to do so and a budget is not enacted by June 30, 2023, Minnesota could face a shutdown of state government services.

Control of the 2023 legislature remains uncertain ahead of election day, but a few key factors will certainly come into play for the new legislature. First, 2022 was a redistricting year. Incumbents running for re-election are doing so in seats that are in some cases vastly different than the districts they faced in the last election cycle. Regardless of election results, the 2023 legislature is likely to introduce a near-historic number of new faces onto the scene at the Capitol. A total of 47 legislators retired after the 2022 session, and the count increases to 59 when you include members seeking office in the other body or seeking elected office elsewhere. These retiring legislators represent more than 600 years of experience and knowledge of the legislative and budget processes.

The first weeks following the election will be busy for new and familiar faces alike, regardless of who controls the house and senate. In addition to voting on party leadership, the caucuses will have to sort out committee structure, appoint new committee chairs, and make committee assignments. 

Read more: budget updates and more

Announcing: 2022 Minnesota Election Outlook Presented by Ewald Consulting on Oct. 6

Please join us on October 6 for an event with Walker Orenstein and Todd Rapp! We look forward to their election prognostications for the 2022 Minnesota legislative and statewide races and their implications for the 2023 legislative session. Get expert analysis from our speakers on the current political landscape, trends, polling and other factors that will come into play for the November election.

Learn more and register here

Midsummer Updates, Hero Pay Applications, and more

Midsummer Updates
Early voting has begun for the August 9 primaries. Register to vote at the link in our resources section at the end of this newsletter, or ensure you bring all necessary paperwork for same-day voter registration at your voting location. APM Research Lab has created a resource to analyze poll results for the 2022 election. In addition, we will provide this information in all upcoming editions of Ewald at the Capitol until the November election. In budget news, the Minnesota Department of Management and Budget (MMB) estimates an increase in the state general fund for 2022. In its July monthly update, MMB estimates that net general fund receipts for FY22 are now estimated to total $30.329 billion, $2.927 billion (10.7 percent) more than projected in the February 2022 Budget and Economic Forecast. However, MMB noted that some of this increase is the result of the timing of payments from Pass-Through-Entities (PTE).

Hero Pay Applications
During the 2022 session, the legislature passed a bill to provide $500 million in one-time bonus checks to pandemic frontline workers who qualify. The deadline to apply for these checks passed with nearly 1.2 million individuals applying, almost twice as many as were expected to qualify. The Minnesota Department of Labor and Industry must review these applications to determine who is eligible according to parameters set by the legislation. Next month, applicants will receive an email to let them know of their eligibility, though they would still be able to appeal this decision. Checks are expected to be out sometime in early fall, once the size of payment and pool of recipients is confirmed. Poll Watching APM Research Lab put together a page to track and analyze poll results for this year’s election season in Minnesota. It includes a summary of poll results, candidate lists, fundraising summaries, and forecasted election outcomes as available. It tracks this data for the Governor, State Auditor, Attorney General, and Congressional races. Be sure to check the resource section of future Ewald at the Capitol newsletters to see updates to poll results in the weeks leading up to the election.

Primaries
The August 9 primary is only 18 days away. Minnesota voters will decide who they want to represent their party in the 2022 congressional and legislative races. Voters will also vote in contested primaries for local races such as county commissioner and city council on their primary ballot. At the legislative level, there are 25 Senate primaries and 19 for the House. Several incumbents in the House and Senate are facing primary challenges. Incumbents facing challengers (Senate):

  • Senator Gary Dahms (R)
  • Senator Gene Dornick (R)
  • Senator Omar Fateh (DFL)
  • Senator Jeff Howe (R)
  • Senator Mark Johnson (R)
  • Senator Eric Pratt (R)
  • Senator Paul Utke (R)
  • Senator Bill Weber (R)
  • Senator Sandy Pappas (DFL)

Incumbents facing challengers (House):

  • Representative Kurt Daudt (R)
  • Representative Greg Davids (R)
  • Representative Aisha Gomez (DFL)
  • Representative Josh Heintzman (R)
  • Representative Ron Kresha (R)
  • Representative Erik Mortenson (R)
  • Representative John Thompson (DFL)

Incumbents paired due to redistricting:

  • Andrew Carlson (DFL) vs. Steve Elkins (DFL) for District 50B in Bloomington
  • Sandra Masin (DFL) vs. Liz Reyer (DFL) for District 52A in Eagan and Burnsville

Check out the Ewald 2022 Voter Guide:

Ewald Voter Guide 2022

More Resources:

 
 

Load More

Let's Get Started!
Loading...