Minnesota lawmakers pitch competing bills to tackle affordability issues
From groceries to gas bills, Minnesotans see sticker shock every day.
It's why at the state capitol, lawmakers are pitching solutions to make life more affordable for Minnesotans, though Republicans and Democrats have contrasting visions for how to do that.
Ultimately, both must find compromise to pass any legislation because of the tied House and that could scale back or take entire ideas off the table. But in the initial days of session, they push for their competing priorities despite the political headwinds.
GOP leaders lay blame on the policies that DFL lawmakers approved when they had total control of the Legislature and governor's office two years ago and vowed to undo at least some of those measures.
"There were piled on hidden costs like retail delivery fees, a new payroll tax and paid family medical leave and massive unfunded mandates on local governments that would drive up property taxes," said Republican House Speaker Lisa Demuth during a news conference Wednesday.
Among their proposals includes repealing that $0.50 fee on most packages valued at $100 or more, requiring a portion of any budget surplus to go back to taxpayers and aligning state law with federal tax changes approved in the so-called "One Big Beautiful Bill" eliminating some taxes on tips and overtime.
"Minnesota has become a more expensive place to live. It's more expensive to raise a family and to run a business, and too many families feel like they're falling further behind," Demuth added. "This year, though, [Democrats are] back to advocating for millions of new taxes and even more mandates."
House DFL Leader Zack Stephenson criticized President Donald Trump for calling affordability a "hoax." He pointed to the latest state economic forecast showing people who received non-wage income like money from investments saw notable growth.
"You know, who doesn't make a lot of non-wage income? Teachers, nurses, construction workers, regular people—not to mention all the folks who rely on Medicaid for their health care, who are going to lose it because of Donald Trump's terrible bill," Stephenson said.
House Democrats' slate of bills that they say will ease the financial burden on families would stop late fees on utility bills, boosting tax credits to cover child care cost, prohibit price gouging for groceries and ban private equity firms from buying up single-family homes, among other measures.
The top Democrat in the House said his caucus is open to discussions about federal tax conformity, which Republicans say is a top priority to lower taxes. But no taxes on tips and overtime could cost nearly $500 million to the state budget, in which any tax reductions are considered spending.
"How are you going to pay for it? Are you willing to do the tough work of looking at the people who really benefited from that federal tax bill and asking them to make sure that the people who are not doing so well get a fair shake?," Stephenson told reporters at a separate news conference last week."
No matter where in the state Minnesotans live, their property taxes spiked. The statewide increase for counties was 8.1%, according to an analysis by the Minnesota Department of Revenue, with some counties as high as 12%. Cities raised their rates, too.
Republicans and Democrats alike acknowledge this and seem to agree that there should at least be a task force to study this issue and come up with legislative fixes. Both parties have pitched establishing such a panel.
The Senate GOP has a proposal that would cap property taxes at the rate of inflation plus 50% population growth for cities and counties over 2,500 people. Rate over that limit could only be raised if voters approve it.
