House speaker sees sticking points in budget negotiations, remains optimistic

House Speaker Lisa Demuth (R-Cold Spring) is looking for some unity, and she believes the Legislature and Gov. Tim Walz can find it.

Speaking after Tuesday’s House floor session, Demuth said she believes it’s important for the governor to “pull everyone together,” and that she sees Wednesday evening’s State of the State address as a fine opportunity to do so.

“We’re looking forward to what he has to say,” Demuth said.

That said, negotiations continue between co-chairs of some House committees on their final omnibus bills. Demuth identified a pair of sticking points.

“On the health bill, we’re kind of stuck on the insurance for those who are here illegally,” she said. “For MinnesotaCare, families that qualify get their health insurance from the state. Typically, 90% of that dollar amount is paid by the feds and the state pays 10%. In this case, health care is provided at no cost to people who are here illegally. But that’s 100% on the backs of the state’s taxpayers, because there is no federal match.

“It was projected that there would be 5,000 people taking advantage of that, but we now know that there are 17,000. We’ve got to pull that back. … But what we’ve heard from Democrats is that that’s a non-starter for them. … I’m not exactly sure where the governor stands on it.”

In a Monday statement, Senate Majority Leader Erin Murphy (DFL-St. Paul) said: “There are very few issues on which hospitals, doctors, nurses, religious organizations, labor unions and insurers agree and speak with one voice. Stripping insurance coverage and health care access from undocumented Minnesotans is one of them. This proposal does financial harm, costing people more in the form of increased premiums and uncompensated care. Denying care is an affront to human dignity. That is wrong.”

Demuth said that negotiations have hit other sticking points.

“In pre-K-12 education, it’s unemployment for hourly workers,” she said. “The state has put a lot of money in for that unemployment. … Those are hourly workers who had temporary jobs, whether they were a few months or a few hours. It doesn’t line up with regular unemployment for seasonal workers, in which companies are paying into the unemployment trust fund. Schools do not do that, so it’s completely different. … The chairs are working really hard on that.”

There was a flurry of activity April 22 in the House Ways and Means Committee, with lawmakers approving several finance bills. Five more budget bills are scheduled before the committee on Wednesday. (Photo by Andrew VonBank)

Joint budget targets

As for agreed-upon budget targets, that’s a work in progress, Demuth said.

“We haven’t finished putting together global targets at this point, but you’ll see the work coming out of the House this week and into next.”

Special session?

“I don’t see a reason we should go past May 19, but it’s going to take practical ways of coming together,” Demuth said. “The governor has expressed concern about what federal cuts could do to a state budget. But we’ve got to get control of our state budget spending first, then look at solutions if that comes to pass.

“That would be a reason to potentially bring us back for a special session. After the state work is done, though.”

She said she remains optimistic about how the session will play out.

“I think we’re in a good spot, but we have a lot of work ahead of us,” she said. “A lot of long days and internal work.”