Highlighting the Agreements in All Budget Areas

Since the legislature adjourned the 2019 session, Governor Walz, Senate Majority Leader Gazelka and Speaker Hortman have been working behind closed doors to iron out budget agreements. Here are highlights of the agreements that have been reached.

Regarding Taxes, the state will conform Minnesota’s tax code to the federal changes enacted in 2017. It also includes a .25 percent tax cut for second-tier income taxpayers and statewide property tax reductions for businesses.

The Transportation agreement provides additional funds for statewide road construction and maintenance without raising the gas tax. Money is provided for a new software system to replace the troubled Minnesota Licensing and Registration system and $13 million dollars is directed toward deputy registrars, whose businesses were harmed by the faulty rollout of MNLARS.

In Education, schools will receive per pupil formula increases of two percent in 2020 and another two percent in 2021. The agreement also provides additional funding for school safety, including hiring more school counselors and increased funding for special education expenses.

With regard to Judiciary and Public Safety, the agreement authorizes additional funds for more corrections officers, and two task forces are established - a sexual assault task force to look for reforms to better protect victims, and a task force to look into the disproportionate number of indigenous women who are victims of violent crimes.

The finance bill in Agriculture, Rural Development and Housing provides $40 million dollars to expand broadband services, increases access to mental health programs for farmers and invests in affordable workforce housing.

The State Government, Elections and Veterans Affairs agreement appropriates the Help America Vote Act federal election funds to the secretary of state, establishes a legislative commission on housing affordability and includes investments to support and honor veterans.

The budget agreement for Environment and Natural Resources provides funding for research into the spread of Chronic Wasting Disease, or CWD, in the deer population and institutes a surcharge to address aquatic invasive species in Minnesota lakes and waterways.

In the area of Jobs and Economic Development, contractors convicted of wage theft will be disqualified from state contracts. The agreement institutes a consumer awareness campaign on the importance of using licensed contractors and implements a modernized workers’ compensation system to process claims.

In Health and Human Services, the agreement continues the Health Care provider tax, but reduces it from 2 percent to 1.8 percent and creates a blue ribbon council to identify waste in public programs. The state will also continue the reinsurance plan for another two years.