NAIFA - MN Legislative Update | May 2025

The legislature hit the constitutional deadline and adjourned session last night with only a part of the budget completed. Among the budget conference committee reports passed in both chambers on the Legislature were those providing funding to veterans, pensions, human services, state & local government, agriculture, housing, the judiciary and public safety, and programs supported by the Legacy Amendment. Bills that are still outstanding include: environment, jobs, energy, capital investment, commerce, education, health, higher education, labor & workforce, taxes, and transportation.

The plan is that the conference committees whose bills were not yet completed to continue as “working groups” as they have in past sessions that ran into overtime. The leadership agreement to get the job finished includes:

1. All workgroups and budget areas continue negotiations beginning on May 20^th (today – though no meetings have been announced as of 10 am).
2. Workgroups will be made up of conferees appointed during regular session or leadership will appoint workgroups for those budget areas that didn’t make it to a conference committee during regular session.
3. Workgroups will have public meetings when possible and include members of the Administration.
4. Workgroups will present offers at least twice daily and exchange offers simultaneously.
5. Workgroups will have until 5pm on Wednesday, May 21^st to complete their negotiations, sign spreadsheets (the budget numbers) and sign-off on language.

The plan appears to be signed by the governor and three of the four caucus leaders. Should the committee chairs not be able to close their bills with an agreement, it is assumed that leadership will make the decisions for them. Speaker Emeritus Hortman quipped that the governor and legislative leaders have committed to staying over the weekend and “water boarding” the committees who have not come to an agreement.

Only Governor Walz can call a special session. The earliest a special session could start based on the above timeline would be Thursday, May 22^nd or Friday, May 23^rd at the latest if the workgroups get their job done by the Wednesday deadline. Leadership is hopeful that the long weekend will motivate members to compromise and give up on positions that are just not possible given the division of the legislature. A special session could be completed in one day if all four caucuses agreed and are willing to declare an emergency, which takes a two-thirds vote so that they can vote on a bill the same day it is introduced. If not, it would take at least three days to complete the normal procedures for processing of bills.

If the outstanding budget bills are not completed by June 1^st, the state is required to give public employees notice of layoff effective July 1^st. If no budget for those areas is passed by June 30^th, government will shut down on July 1^st.

Tim Wilkin, President
Capitol Strategies, Inc.
tim@csinc-mn.com