Dear Neighbor,
We are now in the final month of the 2022 legislative session and numerous omnibus bills are making their way to the House and Senate floors.
Upon receiving preliminary approval, conference committees will form to reconcile differences between each body’s proposals, find agreement and send the bills back for final passage before the Legislature adjourns May 23. Here is more:
Budget work in a non-budget year
Much of the focus this session centers on state finances in light of Minnesota’s historic surplus of around $10 billion. I noted in my last newsletter there are vast differences between how the legislative majorities propose appropriating these dollars, with Senate Republicans approving tax relief of more than $8 billion, and House Democrats approving $21 in state spending for every $1 of tax relief. With such a wide gap, it is important to note the state is fully funded for the biennium, so there is no threat of a state shutdown if no agreement is reached.
Omnibus bills
Omnibus packages related to agriculture/broadband/workforce housing, K-12 education and state government/transportation/veterans/pensions were among the first House Democrats brought to the floor this week for votes on preliminary approval. Robust discussions took place on each subject and, in each case, House Republicans offered amendments to improve the bills. Each time, House Democrats voted them down.
One of the more interesting amendments was one House Republicans offered requiring voter ID. House Democrats opposed it despite voter ID being required for their party’s upcoming state convention. Another House Republican amendment related to transportation would have diverted funding from further expanding commuter rail toward law enforcement. In the end, House Democrats chose to provide more money for increasingly obsolete passenger trains instead of supporting law enforcement.
On the horizon
We expect an omnibus bill with components related to energy to soon come to the floor. The House’s version includes language I have authored to help spare consumers from spikes in their home energy bills if/when we have disasters – natural or otherwise – that cause mass cost increases. A number of states, both red and blue, have securitization laws similar to the one I am proposing, and it can help spread out energy costs, potentially saving consumers hundreds of millions of dollars over the long haul through the use of bonds. Stay tuned for more on this as things develop.
Update on UI bill
The House on Monday provided preliminary approval of a bill to repay the deficit in Minnesota’s unemployment insurance trust fund and reverse the recent tax hikes that Minnesota employers are needlessly suffering. The Senate approved a clean version of this bill more than two months ago, so it was good to see the House finally act by bringing that legislation up for a vote. Concerningly, however, the House majority complicated matters by adding more than $1 billion in additional spending in other areas. A conference committee now has major work to do ironing out this bill before this legislation can receive final approval and head to the governor for enactment. Meantime, each day this bill is not enacted needlessly costs Minnesota taxpayers another $50,000 in interest.
Sincerely,
Jordan