At the Capitol: Deadlines loom for budget details and the upcoming special session

Posted on May 26, 2021 by Matt Steele

This week, lawmakers are approaching a May 28, self-imposed deadline to decide how to allocate the money announced in the recent budget deal by legislative leaders last Monday. Throughout the week, only one legislative committee met publicly. There have yet to be any specific spending details released by budget area. With a looming special session presumed to happen on or before June 14, here is what you need to know about what is happening at the capitol this week.

Where things are at
Last week on Monday, the 2021 legislative session ended without a budget being passed. However, legislative leaders and the Governor announced a global agreement that specifies how they will allocate about $52 billion in spending between different state agencies. It's important also to note that the legislature and the Governor also gave general allocations as to how the roughly $2.2 billion in American Rescue Plan money will be spent. For immediate use, $500 million has been given to the Governor to spend as he sees fit, and $550 million has been allocated to the legislature to spend. In 2022, the legislature will have full jurisdiction to decide how to spend the remaining $1.2 billion.

Where things are going
Legislative leaders announced that committees have until Friday, May 28 to detail how the global agreement will be spent by budget subject area. Following this Friday, lawmakers have until June 4 to agree on key policy provisions that remain unresolved, such as policing reform, paid family leave, clean car standards, and frontline worker protections. If all goes as planned in meeting these deadlines, lawmakers then have until June 14, the anticipated date for a special session, to prepare the committee agreements into final bills for passage. If lawmakers do not pass budget bills by the end of June, the state government will begin shutting down all non-emergency services on July 1.

What to Watch
With the first of two deadlines quickly approaching, it is becoming increasingly doubtful that decisions around budget spending details will be achieved. If this and other deadlines are missed, lawmakers will continue to aim to finish their work before the much more consequential deadline of June 30. As we have connected with lawmakers and Capitol staff, we remain optimistic about Hero Pay's inclusion in a final budget deal and encourage you to make your voices heard to get it across the finish line. Join us in asking Governor Walz to include Hero Pay in the final budget deal through participating in LeadingAge Minnesota's most recent action alert found here.