Headlines
Murky path forward doesn’t get much clearer with just three weeks to go
With midnight May 17 getting closer (the legislature cannot take any official action on its final day of an even numbered year) the two divergent paths the House and Senate are taking do not appear to be getting any closer together. The drastic difference in policy between the two chambers is nothing new, but the House and Senate are normally able to agree on how to consider bills and the path they take to become law. With the Senate combining their committees omnibus bills into a few larger vehicles and the House still not passing omnibus bills off the floor, Republican Senators and the media have started to pick up on the challenge this creates for end of session negotiations. It’s become common for Senators to field questions either in committee or from a reporter asking what the plan is for whatever bill is under consideration to become law while its companion bill is stagnant in the House. The answer is usually that the Senate will do its work and can’t worry about the other chamber.
At the end of the day if the legislative leaders come to an agreement on significant budget items, they will be able to process that agreement. But if there aren’t conference committees, or if bills that pass one chamber don’t move in the other, it will be difficult for many smaller items to get negotiated into a bill that becomes law.
Legislative leaders continue to meet, including on county issues
On Tuesday and Thursday legislative leaders met again to discuss the state of the budget and discussed the different approaches to technology modernization as part of their broader end of session negotiations.
What they’re saying:
Technology Modernization
- Senate Majority Leader Erin Murphy described it as an important anti-fraud measure that has bi-partisan support and that the four caucuses have more in common on this issue than nearly any other issue. It was a topic of discussion at the leaders meeting last Thursday.
- Sen. Murphy also said that options for bonding to pay for technology modernization are limited, that there’s no path to use GO bonds for that purpose.
- She views appropriation bonds a possibility, but says she doesn’t see it happening this year.
- Senate Capital Investment Chair Sandy Pappas said in committee that the need to address technology concerns is real but that crowding out other capital needs is an issue.
- Governor Walz called his own technology modernization position modest but said the key is that the state cannot launch a bad system because it could set Minnesota way back.
Bonding
- House Capital Investment Co-Chair Mary Franson mentioned that House Republicans were pursuing a $995 million bonding bill compared to House and Senate DFLers seeking a $1.4 billion bill.
- Rep. Franson also noted that the Governor is insisting that any increased debt service general fund cost from a bonding bill be offset with cuts or savings elsewhere, making the path to a bill a little more difficult
- Governor Walz noted the difference in size of the bonding bill that different caucuses were pursuing as the first step to resolve before a bonding bill can move forward.
- Sen. Pappas said the next time the Senate Capital Investment committee meets would be to consider the Senate bonding bill
Path to Agreement
- The Governor noted that the meeting between leaders last Tuesday was just to get on the same page for where the budget is now including the long-term structural issues.
- He said the goal is to get joint targets by the fishing opener on May 8 (which would leave little time for chairs to negotiate bills through on their own before the constitutional adjournment date).
- Governor Walz also confirmed that his position is that he won’t sign anything that increases the spending and revenue gap in the current budget.
- Sen. Murphy noted that while the Senate is passing bills that may not necessarily match up with the House, by passing those bills off the Senate floor they’re in a better position to be included in end of session negotiations.
House Ways and Means Committee Posts Budget Resolution
On Monday morning the House Ways and Means Committee is expected to approve its budget resolution for the year, which as expected shows very little change across committees. The resolution tracks bills that have already moved through the committee rather than setting new spending targets. Approving the budget resolution is an important step for the House though, because otherwise amendments on the floor could increase spending or reduce revenue to any given bill and remain an allowable amendment. Approving this resolution means amendments will have to remain budget neutral. It is expected that the committee will continue to update the budget resolution as it processes bills.
