Minnesota lawmakers face $7.7B surplus in 2022 session

MINNEAPOLIS (AP) — The Minnesota Legislature will get pleasure from a $7.7 billion surplus when it convenes Jan. 31, a robust monetary place however one that's sure to arrange clashes on this election yr over whether or not to spend the cash on loads of wants or return it to taxpayers.

The primary job for lawmakers in even-numbered years historically is to assemble a public works borrowing bundle often called a bonding invoice. However the huge surplus will dominate the session, which runs by way of late Might.

Some themes are already rising. Gov. Tim Walz needs everlasting will increase in baby care spending to assist households. Republicans need to use the excess to chop taxes.

COVID-19 will proceed to forged a shadow over the Capitol. A prime piece of unfinished 2021 enterprise is bonus cash for frontline employees. Home committees will meet remotely normally due to the continued illness menace, whereas the Senate will maintain hybrid hearings that lawmakers and the general public can attend in individual or on-line.

Right here’s a take a look at a number of the main points in play for the 2022 session:

THE SURPLUS

Minnesota Administration and Funds final month projected a surprising $7.7 billion surplus, saying robust development in revenue, shopper spending and company income for the reason that preliminary shocks of the pandemic are driving “extraordinary revenues.” And that determine doesn’t embrace greater than $1 billion in federal COVID-19 reduction that hasn’t been parceled out but.

Walz says he’ll suggest a supplemental funds earlier than the session that can embrace extra money for roads, bridges, infrastructure, faculties and the Minnesota Nationwide Guard. He has additionally mentioned it's going to embrace tax cuts. However he’s given few specifics to this point. Some cash is already dedicated, together with $870 million to replenish the state’s funds reserve.

BONDING

Bonding payments are usually political footballs that come collectively towards the tip of the session. They require a three-fifths majority in each chambers to cross. For the reason that Home Democratic and Senate GOP majorities are a lot slimmer than that, votes from the minority social gathering are important. That normally requires intensive behind-the-scenes deal-making.

Gov. Tim Walz on Tuesday proposed a report $2.7 billion bonding invoice that’s heavy on preserving property that taxpayers already personal. Historical past suggests he gained’t get practically that a lot. The largest earlier bonding invoice to turn out to be legislation, authorized in 2020, got here in at $1.9 billion. Whereas preliminary response was optimistic from the Democratic Home bonding chair, Rep. Fue Lue, of Minneapolis, the Senate bonding chief, unbiased Tom Bakk, of Prepare dinner, wasn’t able to set a greenback goal. However Bakk mentioned asset preservation and deferred upkeep are priorities for him, suggesting there’s a minimum of some widespread floor.

TAXES

Republicans’ prime tax precedence is rolling again an unemployment insurance coverage tax hike that’s meant to repay the state’s debt to the federal authorities for jobless support. They are saying the rise is hurting small companies which are nonetheless struggling, and the excess and unspent federal support make that pointless. The Democratic governor has mentioned he’s open to a repair.

GOP lawmakers would additionally prefer to get rid of the state’s taxes on Social Safety funds. However Walz has been cool to that, saying all the advantages would go to upper-income Minnesotans as a result of most households that gather Social Safety are already exempt. Lawmakers are anticipated to supply extra particular tax proposals within the coming weeks.

COVID-19

Lawmakers arrange a particular panel final yr to resolve how you can parcel out $250 million in federal reduction as “hero pay” to frontline employees who've carried the heaviest burdens in the course of the pandemic.

The method failed. Senate Republicans wished to supply $1,200 in bonuses to about 200,000 employees who they are saying took on the best threat. Home Democrats wished to unfold the cash extra extensively, offering roughly $375 to about 670,000 important employees. A possible answer this yr may contain tapping the excess so as to add extra money to the pot.

One cause a deal foundered was that Walz was unwilling to name lawmakers again to approve the plan until the Senate GOP majority dropped a menace to make use of the particular session to fireside Well being Commissioner Jan Malcolm over variations in how you can deal with COVID-19. Republican senators will likely be free to make good on that menace as soon as the common session convenes.

CRIME

Republicans plan to make crime a significant concern in each the session and within the 2022 marketing campaign. Warren Limmer, of Maple Grove, who chairs the Senate public security committee, helps a proposal by police chiefs to require county prosecutors to report once they decline to cost suspects with felony-level crimes. Limmer additionally needs to present lawmakers extra management over the Sentencing Pointers Fee, which is appointed by the governor, in response to proposals that might shorten some sentences.

GOP Sen. Paul Gazelka, of East Gull Lake, who’s operating for governor, plans to hunt minimal sentencing for carjackings and crimes with firearms, and hiring bonuses for cops who serve in high-crime areas.

Democratic lawmakers, who acknowledge that crime might be a potent concern in opposition to them within the November elections, are growing their very own proposals and in search of widespread floor.

REDISTRICTING

The Home and Senate have been going by way of the motions of redrawing the state's political maps to mirror inhabitants shifts away from rural Minnesota over the previous decade. However the partisan cut up means the job will nearly definitely fall to the courts, because it normally does. A particular judicial panel heard competing proposals earlier this month, and is able to impose new congressional and legislative district maps by Feb. 15 until lawmakers one way or the other attain a deal first.

WILD CARDS

The Democratic-controlled Home final yr authorized a invoice to legalize leisure marijuana for adults. It’s technically nonetheless alive, nevertheless it’s unclear whether or not it's going to get any traction within the GOP-controlled Senate. Backers of legalized sports activities betting plan to make one other push this yr. Neither concern breaks down cleanly alongside social gathering strains. Neither does the Web page Modification, a proposal to amend the Minnesota structure to make state authorities’s “paramount obligation” to supply high quality public training to all kids. The proposal comes from Minneapolis Federal Reserve Financial institution President Neel Kashkari and retired Minnesota Supreme Court docket Justice Alan Web page, an NFL Corridor of Fame member. They’ve been making a renewed push, too.