Legislative Updates and Ewald at the Capitol for 2025

 

EWALD at the Capitol--May 20, 2025

LEGISLATURE FAILS TO PASS BUDGET BEORE ADJOURNMENT

The legislature adjourned on Monday night without completing most of its key budget bills, despite an agreement announced last week by Gov. Tim Walz and legislative leaders on global budget targets. While a few omnibus budget and policy bills have passed, the legislature will need to come back for a special session to finish passing the rest of the $66 billion two-year budget this week. The governor is the only one who can call the legislature back for a special session — and he has said he will not do so until the legislature reaches agreement on the remaining budget bills.

 

Legislative leaders have agreed to a plan where working groups will form to find agreement on the unfinished bills. They are expected to hold public, in-person meetings starting Tuesday (today); they must finish their work by 5 p.m. on Wednesday, May 21. However, the special session will happen after that deadline.

 

So far, six major budget bills have passed both chambers and are headed to Gov. Walz’s desk to be signed into law: state government finance and elections, veterans and military affairs, housing, agriculture, legacy funding, and public safety. Notably, the public safety bill included a last-minute proposal to close the Stillwater prison, a move that received criticism from both sides of the aisle for being negotiated behind closed doors without input. Another significant change redirected $77 million from the Duluth-to-Twin Cities Northern Lights Express toward extended unemployment benefits for hourly school workers.

 

Several of the most consequential budget bills remain unfinished — including those for education, health and human services, taxes, and transportation. Deep divisions remain within and between the two parties. One major sticking point is the proposal to end MinnesotaCare health coverage for undocumented adults — a top Republican priority that has received fierce pushback from progressive Democrats. Democratic leaders have suggested it may be taken out of the health bill and voted on separately. There’s also growing tension around potential cuts to private school aid. Senate Democrats argue it wasn't part of the global budget agreement, while House Republicans are adamant that they won’t accept any reductions. Additionally, Republicans also want to revisit the paid leave and earned safe and sick time laws for proposed changes. Democrats have argued that is not part of the leadership agreement.

 

The divided House, which is evenly split, requires bipartisan cooperation on every vote. In the Senate, where Democrats hold a slim majority, Majority Leader Erin Murphy must secure every member’s support to pass any bill. Bipartisan compromise remains a major roadblock in getting anything passed; however, legislative leaders have expressed hope that they can wrap up the budget by Memorial Day.

Legislative Update for Special Session Ahead

Legislature Adjourns Without Completing Key Budget Bills

Although legislative leaders and the governor reached an overall budget agreement, the legislature ultimately failed to complete its work, primarily because bipartisan compromise seems to be a major obstacle to governing.

While lawmakers managed to pass a few budget bills, they'll need to come back for a special session to wrap things up — most of the budget, including Education Finance and the Education Policy bills, are still not finalized.

Legislative leaders have agreed to a plan where working groups will be formed to find agreement on the unfinished budget bills. They are expected to hold public, in-person meetings starting Tuesday and must finish their work by 5 p.m. on Wednesday, May 21. Honestly, it's a toss-up whether they will or not.

We will continue to monitor developments and provide updates as things evolve.

Omnibus Pensions Bill Agreement Reached

Over the weekend, the legislature passed the Omnibus Pensions Bill, which includes provisions to improve teacher pension benefits. The bill has passed both the House and Senate and is on its way to the governor for his signature.

Bill to Provide Funding For Unemployment Insurance For Hour School Employees Passes

As agreed to by the legislative leaders, the stand-alone bill to provide $100 million to cover the costs of unemployment insurance for hourly school employees advanced. It has passed both the House and Senate and will be sent to the governor for his signature.

While the House education finance bill passed of the House floor last Friday, which included the repeal of the unemployment insurance mandate, House DFL leader Melissa Hortman confirmed there are not enough votes for repeal, and it will not be included in the final education budget agreement, whenever that occurs.

Legislative Session Update for the Week of May 12, 2025

Legislative leaders announced a tentative agreement on the state budget Thursday, just as the regular legislative session enters its final days. However, while the deal is a bipartisan compromise, it has sparked significant controversy, particularly among rank-and-file Democrats, due to the rollback of health coverage for undocumented immigrants.

The overall agreement includes no changes to ESST, but it does include a reduction of the Paid Leave payroll tax from 1.2% to 1.1%. Leaders also agreed not to move forward with the proposed reductions of non-public aid and non-public transportation aid.

Given the limited time remaining before Monday's constitutional adjournment deadline, the Legislature will not complete its work on time, necessitating a special session next week to finalize the budget bills.

What does this mean for education finance?

The agreement sets the education target at $0 for FY26-27 and includes a cut of $420 million in FY28-29. Additionally, the agreement includes another $100 million to districts to cover the costs of unemployment insurance for hourly school employees that will advance as a stand-alone bill.

For now, the repeal of the unemployment insurance provision remains in the House Education Finance bill, but House DFL leader Melissa Hortman confirmed there are not enough votes for repeal, and it will not be included in the final budget agreement on the education finance bill.

For pensions, the budget agreement also includes an $80 million annual target for pension-related spending. The Pensions Commission meets on Saturday and is expected to advance a proposal for benefit improvements to teacher retirement.

Next steps?

The House passed the education finance bill late Friday, and the Senate will likely follow sometime over the weekend so a conference committee can be appointed to sort out the details. However, that timeline may shift, with a final agreement more likely to come together next week during a special session.

The House also passed the education policy bill late Friday. An amendment to allow school districts to begin the school year on September 1 in the 26-27 and 27-28 school years passed. Two amendments to allow more discretion on K3 dismissal failed. We would expect a conference committee to begin working on a final agreement over the weekend, but this could also be delayed until a special.

Legislative Session Update for the Week of May 5, 2025

Legislative Session Update for the Week of April 28, 2025

• $40 million for READ Act compliance.
• $30 million for unemployment insurance aid in FY26 only and repeals the program after the 2028 summer term.
• Renames Local Optional Revenue to Basic Supplemental Revenue and adds a new first tier of revenue provided to all school districts as state aid. Aid equals $40.34 per adjusted pupil unit in FY26, $40.45 in FY27, $43.72 in FY28, and $43.82 in FY29 and later.
• Reduces special education transportation reimbursement from 100% to 95% but keeps reimbursement costs for transportation of homeless and highly mobile students at 100%.
• Reduces student support personnel aid formula from $48.73 to $40 in FY26 and FY27 and $42 in FY28 and later. Expands the allowable uses. Makes no changes to the formula for cooperative school districts.
• Eliminates school library aid.
• Expands flexibility for surplus food service funds for expenses that improve the school food service, including the costs of plumbing, electrical, air handling, ventilation, or other work necessary to operate equipment essential for food service activities.

EWALD at the Capitol--March 28, 2025

HOUSE DISTRICT 40B SPECIAL ELECTION RESULTS

A story that has now been resolved since the beginning of the 2025 legislative session is the vacant seat in House District 40B. The special election for the seat was held on March 11, and the DFL candidate, David Gottfried, won 70.15% to Republican candidate Paul Wikstrom’s 29.75%. Last week he was sworn in, restoring the body to a 67-67 tie.

This development significantly changes the landscape for the rest of the legislative session, as a power-sharing agreement is now in place. This means that committees will be co-chaired by a Democrat and Republican with equal members from each party serving on the committee. Until last week, Republicans had been controlling committees with a one-vote advantage. The tie will put legislators’ ability to work together in a bipartisan manner to the test, particularly as they begin to craft the state budget for the upcoming biennium — because now bills will need bi-partisan votes to advance.

The power-sharing agreements also confirmed that Rep. Lisa Demuth (R) will continue to serve as Speaker of the House for the next two years and Republicans will maintain the majority on a new anti-fraud committee for two years.

SENATE DISTRICT 6 SPECIAL ELECTION 

Just when things seemed to get back to normal after the House special election, an unexpected shakeup unfolded in the Senate last week. State Senator Justin Eichorn was arrested on March 17 during a police sting operation in Bloomington for solicitation of a minor. Facing bipartisan calls for his resignation and potential expulsion from the Senate, Eichorn resigned on March 20. Senate Democrats now hold a 34-32 majority in the Senate until a special election takes place. The governor has called a special election for April 29 with a primary on April 15. As of March 27, six people had filed to run — five Republicans and one DFLer. Filings opened March 26 and will close April 1.

GOVERNOR'S BUDGET PROPOSALS 

Gov. Tim Walz released his new budget recommendations for the upcoming biennium on March 21, revising his previous recommendations to align with the more negative financial outlook in the February budget forecast. The proposal includes an additional $409 million reduction in spending over four years. It proposes additional cuts of $162 million for 2026-27 and $247 million for 2028-29, primarily in the education budget. The proposed cuts are on top of his budget recommendations released in January

DEADLINES

Deadlines help narrow the number of active bills. Traditionally, a bill must clear all policy committees to meet the first deadline. The second deadline requires bills to clear all policy committees in both chambers. This year the legislature agreed to a combined first and second deadline, set for Friday, April 4.

The third deadline is set for when finance committees must pass their budget bills. That deadline is scheduled for April 11.

KEY LEGISLATIVE DATES 

March 29-31, 2025 – Eid Recess

April 1, 2025 – Legislature Resumes

April 4, 2025 – First and Second Committee Deadlines

April 11-21, 2025 – Passover/Easter Break

April 11, 2025 – Third Committee Deadline

April 23, 2025 – Gov. Walz’s State of the State Address

April 29, 2025 – Senate District 6 Special Election

May 19, 2025 – Last Day of the 2025 Minnesota Legislature (Adjournment)

Legislative Session Update for the Week of March 24, 2025

The House and Senate released their respective budget targets providing the framework for the overall state budget.

The Senate budget plan proposes to reduce the state budget by $2.5 billion over the next four years. The target for the Education Finance Committee is zero in FY26-27 and a reduction of $687 million in FY28-29. The Senate also allocated a budget target for Pensions totaling $45 million in FY26-27.

The House budget plan proposes to reduce the state budget by $3.7 billion over the next four years. The target for the Education Finance Committee is $40 million in FY26-27 and zero in FY28-29. The House also allocated a budget target for Pensions totaling $248 million over the next four years.

While budget targets provide a general budget framework, the specific details won't be clear until the respective education budget bills are released. With the April 11 deadline approaching, we expect their proposals in the early part of the week of April 7.

The Senate Education Policy committee released the draft Omnibus Education Policy Bill. Key provisions that may be of interest to you include:

• Allowing school districts to begin the school year on or after August 30 in the 26-27 and 28-29 school years
• Allowing a personal finance credit to fulfill a math credit required for high school graduation
• Removing Algebra II as a graduation requirement

The committee is scheduled to pass the bill, and any amendments, next week.

The House has scheduled to take up their omnibus policy bill but no details are yet to be released.

Important Dates

• March 31: Eid break
• April 4: Policy bill deadline
• April 11: Budget bill deadline
• April 14-April 18: Easter/Passover break
• April 24: Governor’s State of the State address
• May 19: Constitutional adjournment
• June 30: State fiscal year-end

 

Legislative Session Update for the Week of March 17, 2025

More Political Upheaval

Just when things seemed to get back to normal after the House special election, political chaos unfolded this week in the Senate. Former State Senator Justin Eichorn was arrested March 17 during a police sting operation in Bloomington for solicitation of a minor, who was actually an undercover officer. Facing bipartisan calls for his resignation and potential expulsion from the Senate, Eichorn resigned from his position on March 20, 2025. A special election will be held to fill his now-vacant seat.

Governor Walz Releases Revised Budget Recommendations

Friday the governor released his revised budget recommendations to reflect the growing budget challenges outlined in the recent updated budget forecast.

The governor’s proposed additional changes beyond the education budget beyond his initial proposals. They include:

• Reducing Grow Your Own grant program by $8 million per year beginning FY26
• Eliminating the computer science advancement grant program.
• Reducing school library aid by $7.5 million in FY26-27 and $15 million in FY28-29
• Reducing community education equalization aid by $15 million while permitting districts to levy for those costs
• Eliminating the compensatory pilot program in FY27
• Reducing telecommunications equity aid by $375,000 beginning FY26
• Eliminating long-term facilities maintenance revenue for charter schools, a reduction of approximately $20 million in FY26-27 and $22 million in FY28-29
• Eliminating the special education charter adjustment aid formula, a reduction of almost $21 million in FY26-27 and $25 million in FY28-29

Combining the governor's initial and revised proposals, his recommendations reduce the overall education budget by roughly $240 million in FY26-27 and $450 million in FY28-29.

Committee Hearing Updates

The House Education Finance heard HF1435 providing more flexibility for innovation zones and P-TECH schools and HF1607 expanding the types of experiences that districts may count toward the minimum hours of instruction for secondary school students.

Important Dates

• March 31: Eid break
• April 4: Policy bill deadline
• April 11: Budget bill deadline
• April 14-April 18: Easter/Passover break
• May 19: Constitutional adjournment
• June 30: State fiscal year-end

Legislative Session Update for the Week of March 10, 2025

Special election brings House to 67-67 tie

Democrat David Gottfried won the 40B special election last Tuesday, creating a 67-67 tie in the Minnesota House. This means the House will revert to the power-sharing agreement established earlier in the session. As previously agreed, Rep. Lisa Demuth will continue as Speaker of the House. Committees will now have co-chairs, Republican and DFL, and equal party representation on all committees—except the newly formed Fraud Committee, which remains under Republican control. Moving forward bills will not pass out of committee without bipartisan support. Additionally, passing a bill on the House floor requires 68 votes, making bipartisan cooperation essential for any legislation to advance.

The House was set to take up HF11, a bill proposing a one-year extension of the paid leave law’s implementation. However, during that floor session, Rep. Baker tabled the bill, expressing hope that this move would allow more time for discussion and potential compromises on proposed changes.

Committee Hearing Updates

The House Education Policy Committee the PELSB policy bill, a bill requiring legislators to spend 12 hours a biennium observing a teacher or administrator and two bills to allow more flexibility for school districts - HF1435 provides more flexibility for innovation zones and P-TECH schools and HF1607 expands the types of experiences that districts may count toward the minimum hours of instruction for secondary school students.

The House Education Finance Committee received an overview of programs to increase the teacher workforce and heard the bill to establish a statewide teacher apprenticeship program.

Important Dates

• March 6: Updated budget forecast
• March 31: Eid break
• Week of April 14: Easter/Passover break
• May 19: Constitutional adjournment
• June 30: State fiscal year-end

EWALD at the Capitol: MMB Releases Budget Forecast--March 7, 2025

WORK IS MOVING RAPIDLY; COMMITTEE DEADLINES ANNOUNCED

With the uncertainty of the first few weeks of the legislative session behind us, work at the Capitol has been moving along at a rapid pace. The House is being run by a 67-66 Republican majority. Bills are moving through the committee process, and some have even made it to the House Floor.

A special election for the vacant seat in House District 40B will be held on March 11, which might shake things up by restoring the House to a 67-67 tie. Legislation is humming along in the Senate as well, which has an established 34-33 DFL majority.

Committee deadlines have been announced, providing a timeline for passing bills through the committee process. The first and second deadlines, where committees must act favorably on bills in both bodies, are scheduled for April 4. The third deadline, for major appropriation and finance bills, is scheduled for April 11.

BUDGET FORECAST

Minnesota Management and Budget (MMB) released its February budget forecast on Thursday, a critical milestone as the legislature begins crafting Minnesota’s state budget for the next two fiscal years.

The forecast shows a challenging outlook for the state’s finances. The projected balance for Fiscal Year 2026-27 is $456 million, which is $160 million lower than estimates in November. The projected deficit for Fiscal Year 2028-29 has risen as well, from $5.15 billion in November to almost $6 billion. Spending is outpacing revenue, largely due to increased costs in education and health and human services (HHS). HHS spending is set to become the largest part of the state budget, driven mainly by long-term care costs.

In a Thursday press conference, MMB officials also spoke about how changing policies at the federal level — like tariffs, spending cuts, and layoffs of federal workers — are introducing uncertainty into the economic forecast.

Gov. Tim Walz, speaking on the new forecast, emphasized that his budget will focus on curbing spending growth “around the edges” without stopping or drastically cutting services. Key provisions in his budget proposal from January include a reduction in special education transportation funding, a cap on automatic year-over-year growth rates in Medicaid waivers, and an expansion of the sales tax base to services provided by investors, bankers and lawyers.

Leaders from both parties also spoke at the press conference. Democratic-Farmer-Labor (DFL) leaders said that the state is in good economic shape, and that a worsening economic outlook is due to uncertainty around federal policies. Republican leaders placed the blame for the current state of Minnesota’s budget outlook on spending by the DFL trifecta during the past biennium.

House and Senate Leaders will use this updated forecast to develop budget targets for committees, which will give committee chairs an amount they have to spend as they begin developing their omnibus budget bills. Differences between the House and Senate budget bills will need to be worked out in a conference committee.

KEY LEGISLATIVE DATES 

March 11, 2025 – House District 40B Special Election

March 29-31, 2025 – Eid Recess

April 1, 2025 – Legislature Resumes

April 4, 2025 – First and Second Committee Deadlines

April 11-21, 2025 – Passover/Easter Break

April 11, 2025 – Third Committee Deadline

May 19, 2025 – Last Day of the 2025 Minnesota Legislature (Adjournment)

THE IMPACT OF CITIZEN TESTIMONY

Testifying before a legislative committee is a powerful way to influence policy and ensure your voice is heard. However, the process can seem intimidating, especially if you’re new to it. So, Ewald’s Government Relations Team has created a video to walk you through the steps of preparing and delivering effective testimony.

HELPFUL RESOURCES TO FOLLOW ACTION AT THE STATE CAPITOL

• Follow these links to keep up with action at the State Capitol:
• To find your legislators, visit Who Represents Me
• For updates on activities at the House of Representatives, visit the House Session Daily website.
• For updates on activities at the Senate, visit Senate Media Services.
• To follow committee hearings, visit the Combined Committee Schedule.
• To watch House committee and floor sessions, visit the House of Representatives YouTube Channel.
• To watch Senate committee and floor sessions, visit the Senate YouTube Channel.

Legislative Session Update for the Week of March 3, 2025

With the uncertainty of the first few weeks of the legislative session behind us, work at the Capitol has been moving along rapidly. Bills are moving through the committee process, and some have even made it to the House floor. Legislation is also humming along in Senate committees, but few bills have made it to the Senate floor for passage yet.

A special election for the vacant seat in House District 40B will be held on March 11, which might shake things up by restoring the House to a 67-67 tie.

Updated budget forecast released

Minnesota Management and Budget (MMB) released its February budget forecast on Thursday, a critical milestone as the legislature begins crafting Minnesota’s state budget for the next two fiscal years.

The forecast shows a challenging outlook for the state’s finances. The projected balance for FY26-27 is $456 million, which is $160 million lower than estimates in November. The projected deficit for FY28-29 has risen from $5.15 billion in November to almost $6 billion. Spending is outpacing revenue, largely due to increased costs in education and health and human services (HHS). MMB officials also spoke about how changing policies at the federal level — like tariffs, spending cuts, and layoffs of federal workers — are introducing uncertainty into the economic forecast.

House and Senate Leaders will use this updated forecast to develop budget targets for committees, which is the amount committee chairs have to allocate as they begin developing their omnibus budget bills.

Committee Hearing Updates

House Education Policy

The committee heard and passed to the Education Finance Committee, HF957, legislation to provide fund transfer flexibility and allow districts to opt out of compliance with the mandates passed in 2023-2024. 

House Education Finance

The committee heard an overview of the Postsecondary Enrollment Options (PSEO) program and ideas on suggested changes to the program.

The committee also heard and laid over, HF957, legislation to provide fund transfer flexibility and allow districts to opt out of compliance with mandates passed in 2023-2024. Testimony was provided by several school districts in support of this proposal.

Bills Introductions of Interest

Note: This list is not intended to be an exhaustive list but instead a list of bills aligned with the legislative platform, other bills that may be heard, or that you might hear about locally.

SF2139: Authorizing a school district to offer career and technical education postsecondary scholarships and postsecondary grants.

SF2188: Appropriating money for additional school unemployment aid.

SF2250: Modifying hours of instruction requirements.

SF2255: Governor’s budget bill.

Important Dates

• March 31: Eid break
• April 4: Policy bill deadline
• April 11: Budget bill deadline
• April 14-April 18: Easter/Passover break
• May 19: Constitutional adjournment
• June 30: State fiscal year-end

Legislative Session Update for the Week of February 17, 2025

Legislative activity is increasing and although committees are hearing more bills, the pace is slower than usual. The House is beginning to find its footing, though members are still readjusting after the delayed start and awaiting the outcome of the March 11th special election. That election can shift the balance of power again, potentially resulting in another tie. The Senate, meanwhile, is proceeding at a more deliberate pace, content to wait for the budget forecast on March 6th.

Committee Hearing Updates

Senate Education Policy

The Education Policy Committee reviewed several bills, including SF360, which proposes to remove Algebra II as a credit requirement. It also allows a personal finance credit taught by a teacher with a field license or out-of-field permission in math to fulfill a mathematics credit requirement.

Senate Education Finance

The committee heard an update on teacher apprenticeship programs.

House Education Policy

The committee heard two bills to roll back new standards requirements. They include HF29, which repeals the ethnic studies requirement enacted in 2023 and suspends implementation of revised social studies standards, and HF65, the bill to repeal the requirement for MDE to adopt state standards and allow local standards instead

House Education Finance

This week, the committee heard HF6, the bill to allow districts to implement innovative programs without approval from the commissioner, transfer funds among accounts and funds, opt out of following specific laws enacted in 2023 and 2024, and amends provisions relating to the Read Act. The bill is headed to the Ways and Means Committee, its last stop before the full House votes on the proposal. The Senate companion has not received a hearing.

CTE Priority Bill Introductions 

HF1001/SF1426: Increasing career and technical revenue for school districts; appropriating money.

Other Bills Introductions of Interest

HF957, Providing mandate relief for school districts; authorizing certain fund transfers for fiscal years 2025 through 2029; authorizing a school board to opt out of compliance with certain recently enacted state laws or rules.

HF1124, Allowing a school year to start before Labor Day for two school years; requiring a report. 

HF1194, Linking extended time revenue to increases in the general education basic formula allowance, appropriating money. 

HF1284, Allowing school district noncompliance with unfunded mandates.

HF1306,MDE policy bill.

SF1462, PELSB licensing bill

Important Dates

• March 6: Updated budget forecast
• March 31: Eid break
• Week of April 14: Easter/Passover break
• May 19: Constitutional adjournment
• June 30: State fiscal year-end

Legislative Session Update for the Week of February 10, 2025

House of Representatives Convenes

Now that the House is fully operational, activity at the capitol is gaining momentum. This week saw the continuation of official committee hearings, bill introductions, and floor sessions in both chambers.

It was great to see CTE faces at the capitol this week.  I hope you had good discussions with your local legislators!

Committee Hearing Updates

Senate Education Policy

The committee reviewed SF508, a bill requiring school districts to implement policies prohibiting cell phone use in grades K-8 and restricting their use in classrooms for grades 9-12. The bill includes exceptions for medical needs, students with an IEP, or cases approved at the discretion of the school principal. After discussion, the committee laid the bill over for further consideration.

Senate Education Finance

This week, the committee continued its series of overviews on key topics. Members received a Read Act update, including a report from MDE and insights from teachers, curriculum leaders, and superintendents on their experiences at the district and classroom levels. Additionally, the committee heard an overview from MDE on the universal meals program.

House Education Policy

The committee heard, and passed on to the Education Finance Committee, HF6, which allows districts to implement innovative programs without approval from the commissioner, transfer funds among accounts and funds, opt out of complying with specific laws enacted in 2023 and 2024, and amends provisions relating to the Read Act. The bill is scheduled for a hearing in the House Education Finance Committee next week.

House Education Finance

This week the committee heard an overview from MDE on the Governor’s education budget recommendations. The committee also heard public testimony, including input from education organizations, highlighting concerns over various budget reductions proposed by the Governor.

Bills Introductions of Interest

HF405/SF442:  Establishing a skills path program for employment-based training.

HF734:  Expanding the use of extended time to pupils enrolled in career and technical education courses.

Legislative Session Update for the Week of February 3, 2025

House of Representatives Convenes

House DFL and Republican leaders have reached a power-sharing agreement, ending a three-week stalemate that had paralyzed the chamber. The agreement establishes leadership roles, the seating of Representative Brad Tabke, and the management of committees leading up to and following the March 11 special election.

Under the agreement, Republican Leader Rep. Lisa Demuth will serve as Speaker of the House for the biennium, and Rep. Brad Tabke will be seated. Until the March 11 special election, Republicans will control and chair committees. If the special election results in a tied chamber, committees will be co-chaired by both parties, with equal membership between Republicans and Democrats.

The House was convened on Thursday afternoon and is duly organized. Committees are expected to begin next week. Click here to see Education Finance Committee membership and click here to see House Education Policy Committee membership.

Senate DFL Regains Majority

While there was speculation that the power-sharing agreement would continue after the January 28 special election, Senate DFL proceeded this week to operate under standard majority rule, with the DFL now holding a one-seat advantage.

Senate Committee Hearing Updates

Education Finance Committee

The committee received an overview from MDE on the federal education funds Minnesota receives and heard updates from independent and faith-based schools about their concerns.

Senate Tax Committee

The committee heard legislation to extend the education tax credit to include expenses related to career and technical education programs. MACTA and MNACTE provided letter of support. The bill was laid over until the committee moves forward with a tax bill later in session.

Important Dates

• March 6: Updated state budget forecast
• March 31: Eid break
• April 11 (starting at noon) – April 21 (returning at noon): Easter/Passover break
• May 19: Constitutional adjournment

EWALD at the Capitol: House Stalemate Ends--February 7, 2025

HOUSE REACHES DEAL TO END STALEMATE; DFL REGAINS CONTROL IN SENATE

Things at the Capitol have started to revert to normal as the fourth week of the legislative session comes to a close. On Monday, the Senate swore in its newest member, Sen. Doran Clark (DFL-Minneapolis), bringing the body back to a 34-33 DFL majority. The new DFL majority terminated the power-sharing agreement the body was operating under, so they will have full control of committees going forward.

In the House, the nearly month-long stalemate has come to a close. House leadership agreed on how to organize the body, with Rep. Lisa Demuth (R-Cold Springs) serving as Speaker of the House for the next two years.

The agreement allows Republicans to chair committees while they have a 67-66 majority, until the special election to fill the seat in 40B on March 11. If the DFL wins the seat, the House will be tied 67-67 and committees will be run by co-chairs from each party. Until then, Republicans will have a one-seat majority on committees.

Another provision of the agreement creates the House Fraud and Agency Oversight Committee to investigate fraud in state government programs. Last, the agreement requires Republicans to seat Rep. Brad Tabke (DFL-Shakopee), whose election was filled with uncertainty when it was discovered that 20 votes had been thrown out. With the agreement in place, DFL members returned to the Capitol Thursday for the first time this session, ending their three-week boycott. Work will now begin on putting together a new two-year state budget.

KEY DATES

• Updated budget forecast: March 6
• Eid: March 29-31
• Easter/Passover: April 11-21
• Constitutional adjournment: May 19

THE IMPACT OF CITIZEN TESTIMONY

Testifying before a legislative committee is a powerful way to influence policy and ensure your voice is heard. However, the process can seem intimidating, especially if you’re new to it. So, Ewald’s Government Relations Team has created a video to walk you through the steps of preparing and delivering effective testimony.

HELPFUL RESOURCES TO FOLLOW ACTION AT THE STATE CAPITOL

A few helpful links to follow the action at the State Capitol:

To find your legislators, visit Who Represents Me

For updates on activities at the House of Representatives,
visit the House Session Daily website.

For updates on activities at the Senate, visit Senate Media Services.

To watch House committee and floor sessions, visit the
House of Representatives YouTube Channel.

To watch Senate committee and floor sessions, visit the Senate YouTube Channel.

EWALD at the Capitol: State Budget Outlook on December 6, 2024

On Wednesday, Minnesota Management and Budget (MMB) released the state budget forecast, showing a mixed picture of the state’s financial outlook. The forecast indicates a $616 million surplus for the FY26-27 biennium, which is far less than anticipated. MMB also forecasts a structural imbalance ranging from $3.5 billion to $5.1 billion for the FY28-29 biennium, causing concerns about the state’s future financial stability.

For more information on the budget, you can read the entire forecast here as well as the presentation documents.

HOUSE COMMITTEE UPDATE

With the 67-67 tie in the House, much is still unknown about how power-sharing will work in the next legislative session. However, co-leaders Rep. Melissa Hortman and Rep. Lisa Demuth have agreed to a committee structure and appointed committee chairs. Under this agreement, committees will be chaired by DFL and Republican co-chairs and committee membership will be equally divided. Committee chairs were recently named, but committee membership is not yet determined.

• Agriculture Finance and Policy: Rep. Paul Anderson (R-Starbuck) and Rep. Rick Hansen (DFL-South St. Paul)
• Capital Investment: Rep. Mary Franson (R-Alexandria) and Rep. Fue Lee (DFL-Minneapolis)
• Children and Families Finance and Policy: Rep. Carlie Kotyza-Witthuhn (DFL-Eden Prairie) and Rep. Nolan West (R-Blaine)
• Commerce Finance and Policy: Rep. Kaohly Vang Her (DFL-St. Paul) and Rep. Tim O'Driscoll (R-Sartell)
• Education Finance: Rep. Ron Kresha (R-Little Falls) and Rep. Cheryl Youakim (DFL-Hopkins)
• Education Policy: Rep. Peggy Bennett (R-Albert Lea) and Rep. Sydney Jordan (DFL-Minneapolis)
• Elections Finance and Government Operations: Rep. Mike Freiberg (DFL-Golden Valley) and Rep. Duane Quam (R-Byron)
• Energy Finance and Policy: Rep. Patty Acomb (DFL-Minnetonka) and Rep. Chris Swedzinski (R-Ghent)
• Environment and Natural Resources Finance and Policy: Rep. Peter Fischer (DFL-Maplewood) and Rep. Josh Heintzeman (R-Nisswa)
• Ethics: Rep. Greg Davids (R-Preston) and Rep. Kelly Moller (DFL-Shoreview)
• Health Finance and Policy: Rep. Jeff Backer (R-Browns Valley) and Rep. Robert Bierman (DFL-Apple Valley)
• Higher Education Finance and Policy: Rep. Marion Rarick (R-Maple Lake) and Rep. Dan Wolgamott (DFL-St. Cloud)
• Housing Finance and Policy: Rep. Michael Howard (DFL-Richfield) and Rep. Spencer Igo (R-Wabana Township)
• Human Services Finance and Policy: Rep. Mohamud Noor (DFL-Mpls) and Rep. Joe Schomacker (R-Luverne)
• Judiciary Finance and Civil Law: Rep. Tina Liebling (DFL-Rochester) and Rep. Peggy Scott (R-Andover)
• Labor and Workforce Development Finance and Policy: Rep. Dave Baker (R-Willmar) and Rep. Dave Pinto (DFL-St. Paul)
• Legacy Finance: Rep. Joe McDonald (R-Delano) and Rep. Samantha Vang (DFL-Brooklyn Center)
• Public Safety Finance and Policy: Rep. Kelly Moller (DFL-Shoreview) and Rep. Paul Novotny (R-Elk River)
• Rules and Legislative Administration: Rep. Jamie Long (DFL-Minneapolis) and Rep. Harry Niska (R-Ramsey)
• State Government Finance and Policy: Rep. Ginny Klevorn (DFL-Plymouth) and Rep. Jim Nash (R-Waconia)
• Veterans and Military Affairs Division: Rep. Matt Bliss (R-Pennington) and Rep. Jay Xiong (DFL-St. Paul)
• Taxes: Rep. Greg Davids (R-Preston) and Rep. Aisha Gomez (DFL-Minneapolis)
• Transportation Finance and Policy: Rep. Erin Koegel (DFL-Spring Lake Park) and Rep. Jon Koznick (R-Lakeville)
• Ways and Means: Rep. Zack Stephenson (DFL-Coon Rapids) and Rep. Paul Torkelson (R-Hanska)
• Legislative Commission on Pensions and Retirement: Rep. Leon Lillie (DFL-North St. Paul) and Rep. Tim O'Driscoll (R-Sartell)

EWALD at the Capitol: Election Updates on November 8, 2024

On Tuesday, November 5, voters went to the polls to elect President and Vice President, Members of Congress, and the Minnesota House of Representatives, including one special state Senate election.

Along with the Presidency, Republicans were able to gain a majority in the U.S. Senate by flipping key seats in Pennsylvania, West Virginia, Montana and Ohio. Several seats in the U.S. House of Representatives are still too close to call. Republicans came into the election with a 220-212 majority in the House.

While attention was mainly focused on the presidency, we are closely watching the state legislative races.

This year, Minnesotans voted on races in the Minnesota House of Representatives and one seat in the Minnesota Senate (District 45), which was a special election to replace retiring Sen. Kelly Morrison, who stepped down to run for Congress.

This was an extremely important race for both parties, with Republicans hoping to flip both houses. Coming into the election, Minnesota already had a unique legislative dynamic, with Democrats having a trifecta holding the Governorship, the Minnesota Senate with a 34-33 majority, and the Minnesota House with a 70-64 majority.

Democrats ultimately were able to keep control of the Senate with DFL Senator-elect Ann Johnson Stewart winning 52% of the vote. Meanwhile, House Republicans needed to win four seats to take control — they managed to win three. Republicans won vacant seats in districts 26A and 7B (both previously held by DFLers), and in 18A newcomer Erica Schwartz defeated incumbent DFLer Jeff Brand. This brought a 67-67 tie between the parties.

State law dictates that when a state legislative candidate wins by less than 0.5%, there is a publicly funded recount in that race. So, two races are automatically headed to a recount due to being too close to call. In District 14B, Democrat Dan Wolgamott won reelection by 28 votes, while in District 54A, Democrat Brad Tabke won reelection by 13 votes.

What if there is a 67-67 tie? The last time this occurred in Minnesota was in 1979 — we had a peanut farmer in the White House and the number one movie in January 1979 was a re-release of Disney’s 101 Dalmatians. The Minnesota Secretary of State is charged with gaveling in a new House, and so that year, Secretary of State Joan Growe, acting as temporary presiding officer, presided over the tied body to perform basic business — but she could not name committee chairs or set committees. After five days, an agreement was reached where the Republicans would get the speakership and the DFL would chair the rules, taxes, and appropriations committees and get one vote majorities on those committees. Bills that got to the House floor almost always had bipartisan support, and members rarely missed committee meetings or floor sessions. But as with all stories that start off easy, the end gets a little more colorful. If you’d like to learn more on the whole story, you can find it here.

WORK IS MOVING RAPIDLY; COMMITTEE DEADLINES ANNOUNCED

 

 

 

May 20, 2025 LEGISLATURE FAILS TO PASS BUDGET BEFORE ADJOURNMENT   The legislature adjourned on Monday night without completing most of its key budget bills, despite an agreement announced last week by Gov. Tim Walz and legislative leaders on global budget targets. While a few omnibus budget and policy bills have passed, the legislature will need to come back for a special session to finish passing the rest of the $66 billion two-year budget this week. The governor is the only one who can call the legislature back for a special session — and he has said he will not do so until the legislature reaches agreement on the remaining budget bills.   Legislative leaders have agreed to a plan where working groups will form to find agreement on the unfinished bills. They are expected to hold public, in-person meetings starting Tuesday (today); they must finish their work by 5 p.m. on Wednesday, May 21. However, the special session will happen after that deadline.   So far, six major budget bills have passed both chambers and are headed to Gov. Walz’s desk to be signed into law: state government finance and elections, veterans and military affairs, housing, agriculture, legacy funding, and public safety. Notably, the public safety bill included a last-minute proposal to close the Stillwater prison, a move that received criticism from both sides of the aisle for being negotiated behind closed doors without input. Another significant change redirected $77 million from the Duluth-to-Twin Cities Northern Lights Express toward extended unemployment benefits for hourly school workers.   Several of the most consequential budget bills remain unfinished — including those for education, health and human services, taxes, and transportation. Deep divisions remain within and between the two parties. One major sticking point is the proposal to end MinnesotaCare health coverage for undocumented adults — a top Republican priority that has received fierce pushback from progressive Democrats. Democratic leaders have suggested it may be taken out of the health bill and voted on separately. There’s also growing tension around potential cuts to private school aid. Senate Democrats argue it wasn't part of the global budget agreement, while House Republicans are adamant that they won’t accept any reductions. Additionally, Republicans also want to revisit the paid leave and earned safe and sick time laws for proposed changes. Democrats have argued that is not part of the leadership agreement.   The divided House, which is evenly split, requires bipartisan cooperation on every vote. In the Senate, where Democrats hold a slim majority, Majority Leader Erin Murphy must secure every member’s support to pass any bill. Bipartisan compromise remains a major roadblock in getting anything passed; however, legislative leaders have expressed hope that they can wrap up the budget by Memorial Day.