On July 1, Minnesota’s new two-year $52 billion state budget took effect. This budget, negotiated between Governor Tim Walz, the House DFL majority and the Senate Republican majority, runs through June 30, 2023. Early in the morning of July 1, the legislature passed its final bill, the omnibus tax bill.
Yesterday, July 1, Minnesota’s new two-year $52 billion state budget took effect. This budget, negotiated between Governor Tim Walz, the House DFL majority and the Senate Republican majority, runs through June 30, 2023.
As you might recall, Governor Walz, House Speaker Melissa Hortman (DFL-Brooklyn Park) and Senate Majority Leader Paul Gazelka (R-Nisswa) agreed to budget targets that created the framework for the FY22-23 state budget on the last day of the regular legislative session. As a result, the governor called a special session on June 14 to allow the legislature to finalize and approve the budget bills.
Over the past three weeks of special session, the Minnesota Legislature has worked to finalize twelve budget bills and vote on the governor’s 30-day extension of peacetime emergency powers. On June 30, the legislature passed its final budget bill, the omnibus E-12 education finance bill, and Governor Walz signed the twelve bills into law prior to midnight to avoid a government shutdown. The omnibus state government finance, elections, and veterans bill ended the governor’s peacetime emergency powers effective 11:59 p.m. on July 1, 2021.
Early in the morning of July 1, the legislature passed its final bill, the omnibus tax bill, signed into law by the governor yesterday. Read the 2021 1st Special Session laws.
The House adjourned the special session sine die around 1:15 a.m. on July 1, meaning they will not return for further legislative action. However, the Senate has decided to stay in the special session and is likely to meet next week to review confirmations of Governor Walz’s commissioners.
The full legislature is not scheduled to meet again until Monday, January 31, 2022 for the regular legislative session. However, legislative leaders have indicated that they are likely to return for another special session in early September to appropriate $250 million from the federal American Rescue Plan in premium pay for those who worked in frontline jobs during the pandemic.