Dear Friends,
Committee work at the Minnesota House has shifted into high gear as today represents the 1st and 2nd committee deadlines for a bill to be heard this session. In other words, if legislation hasn’t been debated by a committee in either the House or Senate by the end of the day, it is essentially dead for the 2025 session.
HOUSE AGREES TO BUDGET FRAMEWORK
House leaders agreed to a budget framework recently that begins to address Minnesota’s future spending crisis.
Lasts session lawmakers went on a spending spree, going through an $18 billion surplus, raising taxes by $10 billion, and growing government by 40%. Because of these actions, Minnesota is projected to see a $6 billion deficit in the next budget cycle.
The House budget framework reduces state spending by $3.9 billion when compared to the 2024-25 budget and is $1.159 billion below the 2026-27 budget base. For the 2028-2029 projected budget, more than $2.6 billion in spending would be eliminated. It does not include any tax increases.
With a mammoth budget deficit on the horizon, lawmakers need to prepare now, be responsible with the taxpayers’ money, and act like adults in the room. Projected revenue collections are not coming close to keeping up with expected spending, just as many of us warned when the spending spree took place. There is no way taxpayers should have to make up for this irresponsible spending with higher taxes, and under the House budget framework that would not happen.
MY BILL TO ADD TIGHTER CONTROLS FOR TAX FUNDED NON-PROFITS
This week, the House education finance committee debated my bill that would put tighter controls on grants and payments to nonprofit organizations. The Minnesota Department of Education would be prohibited from issuing a grant or would be required to terminate a grant if a nonprofit entity fails to maintain their tax-exempt or nonprofit status or fails to comply with their state mandated reporting requirements.
If the Feeding Our Future debacle ($250 million in taxpayer funds lost to fraud) taught us anything, it is that we can’t be too careful when your tax dollars are on the line. Current government practices for overseeing non-profit payments have been an abject failure. We need to put tighter controls on government grants and payments to non-profits and respect our taxpayers and their tax dollars.
To watch my bill presentation in committee, please click here.
OTHER BILLS OF NOTE
Enhanced penalties for causing substantial harm while driving without a valid driver's license
On the House floor this week, we approved legislation that enhanced penalties and established minimum fines for people citied with repeat violations for driving without a valid license or causes a collision resulting in substantial bodily harm, great bodily harm, or death. The impetus for this bill was a crash in Nisswa where a man with a long history of moving violations and driving with a suspended license caused a crash that caused substantial injuries to a mother and her young daughter. The current penalty is a misdemeanor.
Work in Minnesota requirement added for those receiving free college tuition in Minnesota
In higher education, the committee discussed a proposal that would require those who are receiving free college tuition in Minnesota to stay in Minnesota for three years after they graduate. Not only is this just good common sense, but it’s an opportunity for the state to get a return on its investment. Why should state taxpayers pay for someone’s college and watch them take their first job in Iowa? Would Chevrolet spend years training someone so they could immediately take a job at Ford?
Universal free lunch program modified for families who make more than $150,000
The education finance committee also considered a bill that reduces state spending on school lunches and redirects that money ($85 million per year) back to schools through Local Option Revenue. It does so by reinstating lunch meal fees on families who earn $150,000 or more each year. The bill would not impact free breakfasts. As one parent who wanted to help schools stated in committee, “I can pay for my kid’s meal, but I can’t give schools money to stop teacher or program cuts.”
Schools are facing significant budget deficits. This reasonable compromise honors the spirit of the original program – no hungry kids – while getting needed funding back into school budgets.
Have a good weekend,
Peggy