Legislative Update
Hello from the State Capitol,
It took a little longer than expected, but this week an organizing agreement was struck between House Republican and Democrat leadership that allows for official House business to move forward. The full House met in the Chamber yesterday, so legislative work can officially begin immediately.
Organizing Agreement
Election night, about three months ago, left the Minnesota House in a tie of 67-67. Joint power negotiations began, but after a Minnesota court found one Representative-Elect ineligible to run due to residency issues, the chamber was set at 67-66. A special election was called on Wednesday to fill the 134th seat. The constitutional start of the session was January 14th, but an organizing agreement needed to be in place in order to conduct business. That took negotiators until this week to resolve. For the politically minded, there are far more details that I could go into, but I know the readers of this update are more interested in what work is being done.
Committee work will start in earnest on Monday, starting with a newly created committee on Fraud and Agency Oversight. Headline grabbing instances of fraud have grown in the state and this committee is tasked with bringing a spotlight to prevention.
Chairing Human Services
As part of the organizing agreement, I will serve as chair of the Human Services Committee. Depending on the outcome of the special election next month, this role may be shared as was initially negotiated. I always stand happy to work with people who are willing to work with me. We have a lot of work that needs to get done during this session in the area of Human Services, and I am excited about the opportunity to lead in this area.
Minnesota’s Budget Forecast: What we Know and What to Expect
As we start to organize the committees, one looming fact over our work is the budget.
At the end of the 2026-2027 budget we’ll be crafting, the state is expected to have a $616 million surplus. This figure will change based on the unpredictable nature of world events, spending estimates, and economic health.
Approximately $900 million is projected to come from inflation adjustments, which were recently incorporated into the budget to account for fluctuations in the value of the dollar.
Looking ahead to 2028-2029, a deficit of $5.1 billion is projected. This deficit is due to $3.5 billion in overspending and $2.2 billion in reduced purchasing power caused by inflation. The $616 million surplus expected at the end of 2026-2027 is factored into this overall shortfall.
While the November forecast starts to level-set for us, the budget we write will come from the February forecast which we expect to receive in early March.
Please Contact Me
Just a reminder, if you are ever in St. Paul and have an issue to discuss, I’d be happy to meet with you. Please email rep.joe.schomacker@house.mn.gov or call 651.296.5505 to schedule a visit.
Have a good weekend,
Joe