Ewald at the Capitol

March 28, 2022

First Committee Deadline, Senate Advances Paid Leave Proposal, and more

First Committee Deadline

Today marks the first committee deadline, where bills must be acted upon favorably in policy committees of their house of origin. Both the House and Senate held additional floor sessions on Wednesday to process bills for their next committee. Meanwhile, the Governor, House and Senate leadership are continuing to negotiate on the Unemployment Insurance Fund and Frontline Worker pay. The House is holding out on replenishing the unemployment insurance fund to gain bargaining power to increase the scope of frontline worker bonuses. The Senate has already passed a bill to replenish the unemployment insurance fund and are opposed to increasing frontline worker bonuses. Governor Walz is hoping that the two bodies will find a way to link the issues and take action.

Senate Advances Paid Leave Proposal
On Monday, Senator Julia Coleman (R – Waconia) unveiled the Senate’s paid leave plan. The plan would allow for the creation of family leave insurance, a product that is currently not allowed in state law. Workers with a newborn or sick family member would take paid time off through a private insurance plan. Businesses would be incentivized to participate through tax credits. $50 million would be set aside for businesses with less than 50 employees who could qualify for up to $3,000 per employee. SF3885 has already passed the Senate commerce committee on Monday.

This is an alternative plan to the House proposal that would offer 12 weeks of paid leave through a state-managed fund that employers and employees would pay via payroll tax, similar to social security.

These measures may be in response to the growing childcare crisis and consequential labor shortage that has slowed pandemic recovery. The Pew Research Center found that in 2021, 48% of parents with kids under 18 cited childcare issues as a reason for quitting their job.

March 4, 2022

Session Week Five, February 2022 Budget & Economic Forecast Released, and more

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Session Week Five
This week was marked by the unveiling of the February 2022 Budget and Economic Forecast. Legislators will use this forecast to guide fiscal decisions for the 2022 session. Debate over how to spend the $9.25 billion surplus is expected to pick up in the coming weeks. The number of committee meetings this week decreased slightly from last week’s 93, down to 88; a total of 560 bills have been introduced. In addition to the usual Tuesday and Thursday floor sessions, the Senate convened on Wednesday at noon to process bills to be referred to their next committee.

February 2022 Budget & Economic Forecast Released
On Monday, Feb. 28, the Office of Minnesota Management and Budget unveiled the February 2022 Budget and Economic Forecast. The general fund surplus has increased to $9.25 billion, up from the $7.7 billion projected in December. While the projection is for the 2022-23 biennium, the state should still be at a surplus for 2024-2025. The legislature will rely on this updated projection to guide their fiscal decisions for the rest of the 2022 session. It’s important that legislators approach this projection with caution, as shifts in the U.S. economy and geopolitical conflict in Ukraine could still impact the general fund for the 2022-2023 biennium. In addition, much of the $1.15 billion projected in the February forecast is considered as one-time money.

Contributions to the surplus:

Higher than expected income tax collection
Increased consumer spending and sales tax collections
Increased corporate profits
Decreases in spending in E-12 education (down $158 million), less than predicted in November forecast
Decreases in health and human services spending (down $108 million), less than predicted in November forecast

What to do with the surplus:

Gov. Walz wants to triple his one-time rebate “Walz Checks” to $500 for singles and $1,000 for couples, said he is open to tax cuts
Republicans want to pass permanent ongoing tax cuts
Democrats want bigger bonuses for frontline workers

February 25, 2022

Session Week Four, Frontline Worker Bonuses Pass the House, and more

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Session Week Four

As the first bill deadline approaches, committee hearings in the House and Senate are ramping up, with a total of 93 hearings in both bodies this week. A total of 398 bills have been introduced in the legislature, though the Senate and House floor sessions have had a relative break in momentum as several bills are being heard and passed through committees. The combination of an election year and new district maps has triggered a flurry of retirements, with more to come in the following weeks.

Frontline Worker Bonuses Pass the House
The House bill to deliver $1 billion in frontline worker bonuses was passed by the House on Thursday by a vote of 68-63. Those opposing the bill argued mainly against the wide scope, which covers more types of workers and costs four times more than the $250 million agreed to by the legislature and the governor last session. Those supporting passage of the bill argued that all the workers included in this new bill put themselves at risk during the pandemic to keep the economy moving. The bill’s sponsor, Rep. Cedrick Frazier (DFL–New Hope) estimates that 667,000 Minnesotans will be eligible to receive bonuses with this new bill. The bill now heads to the Senate where Sen. Erin Murphy (DFL–St. Paul) is the sponsor. The Senate has yet to advance companion legislation.

February 18, 2022

Redistricting, Senate Proposal to Recruit Law Enforcement Passes, and more

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Redistricting

On Tuesday, Feb. 15, a panel of five judges released Minnesota’s new congressional and legislative district boundary maps. The panel justified their new maps with a combination of accounting for population shifts and a “least change” approach. These maps will shape the local and federal political landscape for the next ten years as well as the upcoming election cycle. Several incumbents may decide to retire early, as they are facing dramatically different districts and/or competition between their colleagues.

Predicted incumbent competitions:

In the Senate: 4 GOP pairings, 2 DFL pairings, 1 DFL-GOP pairing
In the House: 9 GOP pairings, 7 DFL pairings, 4 DFL-GOP pairings

Senate Proposal to Recruit Law Enforcement Passes
Monday, the Senate passed SF 2848 to attract and recruit more peace officers. The bill, authored by Sen. Karin Housley (R-Stillwater), appropriates $1 million in advertising dollars to improve public opinion of law enforcement. An additional $1 million would go to the pathways to policing program, which recruits more diverse candidates into law enforcement. Sen. John Marty (DFL-Roseville) proposed an amendment to the bill that would eliminate the advertising budget, instead redirecting that funding to the pathways to policing program. The amendment ultimately failed, and the original bill passed.

February 14, 2022

Second Week in Session, Frontline Worker Bonus Pay Moves along in the House, and more

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Second Week in Session

This marked the second week of the 2022 legislative session. The Senate and the House are continuing hybrid floor sessions, with masks required at the House. Committee hearings began in full this week. The House is conducting its committee hearings fully virtual, and the Senate is using a combination of hybrid and virtual hearings. Each body is moving forward with hearings forbills relating to frontline worker bonus pay, public safety, teacher licensure, and refilling the unemployment insurance trust fund.

Frontline Worker Bonus Pay Moves along in the House

Rep. Cedrick Frazier (DFL–New Hope) is sponsoring a bill to deliver $1 billion in bonuses for frontline workers. The bill would send $1,500 checks to every one of the 667,000 Minnesotans who qualify under the bill’s definition of a frontline worker. Last year, frontline worker bonuses were halted by disagreements among the working group in charge of distributing the $250 million approved by the legislature. While the GOP wants to stick to last year’s appropriation that would primarily focus on health care workers, this bill would expand the bonuses to child care, health care, school, grocery store, food service, transportation, long-term care, building service, public safety, retail, and manufacturing workers.child care, health care, school, grocery store, food service, transportation, long-term care, building service, public safety, retail, and manufacturing workers.

HF 2900 received a hearing in the House Workforce and Business Development Committee on Wednesday. It passed with a 9-4 vote and is now headed to the House Labor, Industry, Veterans and Military Affairs Finance and Policy Committee. In the Senate, the companion bill SF2650 is waiting on a hearing with the Senate Jobs and Economic Growth Finance and Policy Committee.

January 21, 2022

Historic $7.7 Billion State Surplus Projected, Additional Surplus Projected in January, and more

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Historic $7.7 Billion State Surplus Projected

As reported in December, the state has a $7.7 billion projected budget surplus. The $7.7 billion is in addition to $1.2 billion in federal COVID-19 relief funds directed to Minnesota that has yet to be designated for a specific purpose. Much of the projected surplus is being attributed to robust growth in income, consumer spending, corporate profits, and a major influx of federal funds for Fiscal Year 2021. It is the largest budget surplus in Minnesota history. Also contributing to the surplus are slightly lower state spending estimates in education, health and human services and other areas. With the Minnesota Legislature set to reconvene on January 31, 2022, expect to hear plenty of debate over how to spend the new funds and/or tax cuts.

Additional Surplus Projected in January

In addition to a $7.7 billion projected budget surplus announced in December, a quarterly review and economic update released in January by the Minnesota Department of Management and Budget showed the state tax collections continue well above forecasted levels. Earlier than expected tax payments have resulted in $362 million more in collections than was projected by state economists just two months ago. While these revenues will not be added to the projected record surplus yet, they indicate that tax collections continue to come in higher than expected.

December 3, 2021

President Biden Visits Minnesota, Special Session, and more

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President Biden Visits Minnesota

President Joe Biden visited Minnesota this week for the first time since the 2020 election to highlight signing the $1.2 trillion infrastructure funding bill that recently passed Congress. The president also promoted his $1.75 trillion social and economic bill, referred to as the Build Back Better Act, which is currently being negotiated in the U.S. Senate.

Speaking to a small group at the Dakota County Technical College in Rosemount, Biden stressed the need for skilled workers and said schools like the technical college would benefit from passage of the Build Back Better Act and provide training for tomorrow’s workforce.

Special Session?

Capitol followers have expected the legislature to be back this fall to pass legislation for frontline COVID worker pay, but that has yet to come to fruition. However, it appears something may happen before the end of the year — as a major barrier has been removed.

Throughout the fall, the Senate majority held firm on its right to take up commissioner appointments during the special session. Gov. Walz was unlikely to call a special session over concerns the Senate might take up, and reject, the confirmation of Commissioner of Health Jan Malcolm. However, just before Thanksgiving, the Senate majority announced it is willing to set aside the issue so that talks on a special session can move forward.

The working group responsible for putting together a proposal on frontline COVID worker pay met throughout July and August but was unable to reach an agreement by their self-imposed September deadline over two major sticking points — who should be eligible and the size of the bonus. Instead, they put forward two proposals for further negotiation among the House, Senate and the governor. The legislature and the governor will need to find agreement on frontline worker pay for a special session to be called.

November 5, 2021

Frontline Worker Pay Working Group, COVID-19 Vaccination Expansion, and more

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Remembering Doug Ewald

Ewald Consulting’s Government Relations Team offers our condolences to the Ewald family on the passing of Ewald Consulting’s founder, Douglas Ewald. Doug had an infectious personality, loving heart, and business savvy. He will be missed.

Frontline Worker Pay Working Group

The Frontline Worker Pay Working Group met for the final time and was unable to reach a compromise on which frontline workers should get pandemic pay bonus checks. The panel voted instead to send both a GOP plan and the DFL plan back to the full Legislature.

October 22, 2021

Walz and Flanagan Running Again, House Will Operate Remotely, and more

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This week, Gov. Tim Walz announced that he and Lt. Gov. Peggy Flanagan are running for re-election in the 2022 election. His campaign announcement focused on his response to COVID-19, overseeing the passage of police reform legislation, spending on education and child care, new renewable energy initiatives and investments in infrastructure.

A Republican has not been elected as governor in Minnesota since 2006, when Tim Pawlenty was reelected.

October 8, 2021

More Leadership News, What’s Happening with Special Session

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House Majority Leader Ryan Winkler (DFL-Golden Valley) has formally announced his candidacy for Hennepin County attorney. The Hennepin County attorney’s office includes 208 attorneys and has a current annual budget of $61.9 million. Winkler announced he will not step down from his role as Majority Leader for the House DFL Caucus while running.