Minnesota legislative leaders and Gov. Walz are "inching" towards budget deal with 10 days left in session
The Minnesota Legislature is racing against the clock to complete its work in the 10 days left until lawmakers must adjourn or run into overtime.
Even as the end of session nears, legislative leaders and DFL Gov. Tim Walz have not yet cleared a big hurdle to finish on time: a budget agreement.
They have been negotiating some of the details for days on how much to cut to stave off a $6 billion budget deficit in the future and by how much, where to spend fewer state resources and what a compromise may look like on partisan policy proposals that are priorities of both sides.
Because of the tied House, Republicans and Democrats are forced to compromise this year after two years of total DFL control of the State Capitol. Lawmakers and Walz are breaking Saturday for the fishing opener in Crosslake, but will return to negotiations on Sunday night.
"I would say [negotiations are] definitely progressing. That's the only reason that things keep moving forward. You know, if people get stuck, then we no longer meet," said House Speaker Lisa Demuth, R-Cold Spring. "We are only breaking to be fishing. That is the only reason — we will all be out there together, or in some way, shape or form. So if you hear we're not meeting, it's because of fishing, but it's not because anything is broken down."
The Minnesota Legislature must balance its budget for the next two years, but it's keeping an eye on the following two years where budget officials are projecting that $6 billion deficit. That state financial forecast is casting a cloud over negotiations this year.
Some other points of contention extend beyond funding the government and its programs. Senate Democrats, for example, want to raise revenue by implementing a special tax on social media companies, but Republicans say tax hikes are a nonstarter for them.
Meanwhile, Republicans say they want to change or eliminate DFL-backed laws they passed in the last two years, like unemployment insurance for hourly school workers and paid family and medical leave.
"I've heard some of my Republican colleagues talk about how difficult it was to be in the legislature when there was a DFL governing majority, with the House and a Senate majority and the governor who is a Democrat, and I think some of those feelings are lingering," Senate Majority Leader Erin Murphy, DFL-St. Paul told reporters Friday. "It takes them back to 2023 with some interest to try and undo some of the things that were accomplished in that biennium. And I continue to urge people to remember that our job now is about the future. It's about going forward."
Will there be a special session?
If Minnesota history serves as the guide, then a special session is certainly possible. There have been four in the last five budget-writing sessions — odd-numbered years — because the legislature didn't pass the state's spending plan before the clock ran out.
All of those special sessions happened when there was a divided government, like this year. Two years ago, when Democrats controlled the House, Senate and governor's office, they finished on time.
GOP and DFL leaders are expressing confidence about the state of their negotiations, but they are five days past the initial date they hoped to wrap up those conversations and strike a deal.
Walz told reporters that their discussions are productive and respectful, and that they are "inching closer" to an agreement. He noted that in 2019, leaders didn't get a deal until after Mother's Day. They had a one-day special session that year.
"It is getting late, that is an acknowledgement. But I think there's a commitment to getting this thing down on time, a commitment to balancing the budget, as we're required to do," Walz said.
Murphy admitted that the closer they get to May 19 without a deal, the harder it will be for staff to draft the bills and get everything passed by that day.
Even still, she too is hopeful.
"I'm a little worried about the time frame from that perspective, but it is the case that legislatures prior to this have reached conclusions, entering [budget] targets at a date later than this and have gotten their work done," Murphy said.
