State shut down avoided Bill summaries available

Publish Date

The House and Senate pressed forward to pass a budget before midnight July 1, averting a government shutdown and keeping agencies running. Many last-minute compromises were made to pass the bills through the respective chambers, including some police accountability measures and an end to the governor’s peacetime emergency powers on July 1. After passing all agency budgets and getting them signed by the Governor before midnight, the tax bill was passed overnight and is likely to be signed by the Governor shortly. While the end to the peacetime emergency meant that the legislature was no longer required to meet in special session every 30 days, they are anticipated to convene again in September to determine how to allocate the $250 million in essential worker premium pay from the federal COVID relief funds.

Additionally, an amendment was added to the tax bill to authorize the commissioners of health or human services to declare public health disasters, as well as extend the executive order permitting MMB to redeploy the state workforce until August 1st, 2021 in order to allow state employees who were redeployed for COVID 19 response to transition back to their original positions.

State Budget Summaries

Agriculture Policy and Finance

  • Department of Agriculture received the Governor’s recommended operating adjustment of $1.539 million in FY 22-23.
  • Board of Animal Health received the Governor’s recommended operating adjustment $307,000 in FY 22-23.

Commerce and Energy Finance and Policy

  • Department of Commerce received the Governor’s recommended operating adjustment of $1.718 million in FY 22-23.
  • The bill also provides additional resources for the Insurance Division, the Weights and Measures Division, and additional staffers for the Securities Unit.
  • The bill establishes a Student Loan Borrower’s Bill of Rights and provides tighter regulations and licensing requirements for student loan servicers.

E-12 Education

  • Minnesota Department of Education received an operating adjustment of $2.742 million in FY 22-23.
  • Perpich Center for the Arts received the Governor’s recommended operating adjustment of $351,000 in FY 22-23, which is a reversal from the Senate’s proposal to close Perpich.
  • Professional Educator Licensing and Standards Board received the Governor’s recommended operating adjustment of $193,000 in FY 22-23.
  • The State Academies received the Governor’s recommended operating adjustment of $778,000 for FY 22-23.

Environment and Natural Resources

  • Minnesota Pollution Control Agency received the Governor’s recommended operating adjustment of $152,000 for FY22-23.
  • Department of Natural Resources received the Governor’s recommended operating adjustment of $3.984 million for FY 22-23 as well as increases in numerous fees.
  • Board of Water and Soil Resources received the Governor’s recommended operating adjustment of $291,000 for FY 22-23.
  • The Board of Tourism received the Governor’s recommended operating adjustment $269,000 for FY 22-23.
  • The Science Museum and the MN Zoo have received federal funds for their operating adjustment and recover the lost revenue.

Health and Human Services

  • Direct Care and Treatment received $33.580 million of the $49.803 million of the Governor’s recommended operating adjustment in FY 22-23, but was permitted to carry over unspent appropriations from last year. In addition, the higher than anticipated revenue from MSOCS services cover the remainder.
  • Department of Human Services received the Governor’s recommended agency-wide operating adjustment of $16.389 million in FY 22-23.
  • Minnesota Department of Health received the Governor’s recommended operating adjustment of $2 million in FY 22-23.
  • The Health-related boards for the large part received their recommended funding requests.

Higher Education

  • The Office of Higher Ed received the Governor’s recommended operating adjustment of $354,000 for FY 22-23.
  • MN State received $45 million of its $75 million operating adjustment request. The bill includes rider language permitting a tuition increase of 3.5 percent per year, plus federal funds will be going to the agency due to tuition losses from the pandemic.
  • Continues to fund ISRS Next Gen at $16m per biennium.

Jobs, Labor and Economic Development

  • DEED received the Governor’s recommended operating adjustment of $1.525 million for FY 22-23.
  • DLI received an increase of $152,000 in their Labor Standards and Apprenticeship operating adjustment and an increase of $1.806 million for their OSHA operating adjustment for FY 22-23.
  • BMS received the Governor’s recommended operating adjustment of $205,000 for FY 22-23, while the Public Employment Relations Board (PERB) only received a one-time appropriation of $250,000. A policy rider for PERB included a retroactive implementation delay that redirects Unfair Labor Practice claims to the courts.
  • Vocational Rehabilitation Services, the State Services for the Blind, and the Minnesota Trade Office received their recommended amounts for operations.
  • The House and Senate were unable to agree on Earned Sick and Safe Time and Paid Family Medical Leave, so those were not part of the final bill.

Public Safety and Judiciary

  • Department of Corrections (DOC) received the Governor’s recommended operating adjustment of $23.335 million in FY 22-23. Also included in the bill are four additional FTEs for local jail safety inspections, 11 new DOC agents to cover the 3 counties transitioning from CPO to DOC supervision, and a workgroup to reexamine whether the CCA county subsidy is equitable. Not included in the bill is the Pre-sentence Investigative report changes nor the Minnesota Rehabilitation and Reinvestment Act (MRRA).
  • Department of Public Safety received the Governor’s recommended operating adjustments, including:
    • $7.637 million for BCA in FY 22-23. There is also funding for 4 additional FTEs for the Drugged Driving Testing lab support and the Rapid DNA program;
    • $576,000 for Homeland Security and Emergency Management in FY 22-23. The is additional funding for 2 temporary to permanent FTEs in the School Safety Center
    • $422,000 for Alcohol and Gambling Enforcement in FY 22-23
  • Department of Human Rights received the Governor’s recommended operating adjustment of $479,000 in FY 22-23. Money was also included for an additional FTE to assist in caseload processing.

State Government

  • State Auditor received the Governor’s recommended operating adjustment of $1.252 million in FY 22-23. The office also received $1.487 million in FY 22-23 for the School Finance Accountability Team to offset the costs to local school districts choosing to have the State Auditor perform their annual audit.
  • Mn.IT received the Governor’s recommended operating adjustment of $229,000 in FY 22-23.
  • Department of Administration received the Governor’s recommended operating adjustment of $896,000 in FY 22-23.
  • Minnesota Management and Budget received the Governor’s recommended operating adjustment of $1.617 million for FY 22-23. The Senate proposal to eliminate 6 budget office staff did not make it through.
  • Department of Revenue received the Governor’s recommended operating adjustment of $9.153 million.
  • Department of Veterans Affairs received the Governor’s recommended operating adjustment of $590,000 in FY 22-23, as well as an operating adjustment of $7.634 million for Veterans Homes.
  • The majority of Boards, Councils, and commissions also received their operating adjustment requests.
  • Also included in the bill was language directing SEGIP to conduct a reverse auction for selection of the state’s pharmacy benefit manager (PBM). Using this process, other states have seen substantial savings on their PBM contracts and reduction of out-of-pocket expenses. None of the anti-labor provisions made it into the final agreement.

Taxes

  • Will produce $49.1 billion in revenue in the 2022-23 biennium.

  • Provide $4.2 billion in refunds, aids and credits, including $761 million in new tax cuts and credits. 

  • The biggest portion of that $761 million tax cut is state tax conformity with the federal government on exempting Paycheck Protection Program loans and unemployment benefits up to $10,200.

  • The Revenue Department is expected to provide guidance to taxpayers on amending their 2020 tax returns. 

  • The bill also establishes a working group to make recommendations to the Legislature on how to allocate $250 million in financial support to frontline workers.

  • An amendment was added to authorize the commissioners of health or human services to declare public health disasters, as well as extend the executive order permitting MMB to redeploy the state workforce until August 1, 2021. 

  • This extension was included to allow state employees who were redeployed for COVID 19 response to transition back to their old positions.

Transportation

  • Minnesota Department of Transportation received the Governor’s recommended operating adjustment of $18.920 million for FY 22-23.