Bills: HB3840 , HB3431 , HB4422 , HB4117 , HB4300 , HB4298 , HB2984 , HB3344 , HB2979 , HB2980 , HB3662 , HB4107 , HB3082 , HB2997 , HB3083 , HB3055 , HB2951 , HB3469 , HB3173 , HB3287 , HB2947 , HB3784 , HB3901 , HB4275 , HR1031 , HB4359 , HB4115 , HB3467 , HB2978 , HB3026 , HB3032

Keywords: foreign ownership, land acquisition, military installation, critical infrastructure, affidavit requirements, state law, penalties, Attorney General, foreign ownership of land, foreign adversary, foreign government adversary, foreign government enterprise, foreign government entity, foreign terrorist organization, specially designated national, SDN, FTO, critical minerals, land ownership, real property

Bills: SB137 , SB504 , SB1213 , SB1216 , SB1221 , SB1224 , SB1232 , SB1238 , SB1255 , SB1256 , SB1258 , SB1264 , SB1266 , SB1325 , SB1441 , SB1448 , SB1450 , SB1460 , SB1496 , SB1543 , SB1589 , SB1597 , SB1621 , SB1655 , SB1679 , SB1687 , SB1716 , SB1730 , SB1733 , SB1769 , SB1921 , SB1932 , SB1936 , SB1980 , SB2011 , SB2030 , SB2084 , SB2112 , SB2170 , SB2182

Committee: House Judiciary and Public Safety Oversight

Keywords: electronic monitoring, Department of Corrections, criminal justice, rehabilitation, public safety, SB504, marriage, child marriage, minor marriage, age of consent, minimum marriage age, underage marriage, teen marriage, parental consent, judicial approval, marriage license, Oklahoma Title 43, family law, juvenile justice, Department of Human Services

Transcript Highlights:

• So this chart is giving you kind of a high-level overview of what we're looking at.
• The part we would not be adopting is the budgetary effects related to that revenue change.
• policies address the tax loss but they do not address any budgetary impacts so the tax loss could be
• This one is going to be very nuanced to the proposal and probably to the geographic level.
• Who can provide that to us in terms of the budgetary effects of some of these changes?

Committee: Senate Finance and Tax

Summary: The Senate Committee on Finance and Tax met to hear a presentation from Amy Baker on the state’s ad valorem property tax forecast and how the revenue estimating conference handles property-tax-related impact analyses. Baker explained that the conference process requires unanimous consensus, that the revenue estimating conference produces the state’s official forecast, and that her office recently overhauled the ad valorem model to use a bottom-up, county-by-county approach with separate modeling for county and school rolls, confidential parcels, and detailed categories such as homestead, non-homestead, residential, non-residential, and agricultural property. Baker walked through the current baseline numbers and the main components of taxable value, emphasizing the role of homestead differentials, especially Save Our Homes and portability, and homestead exemptions. She noted that differentials remove a large share of homestead value statewide, with especially large effects in South Florida and along the east coast, while exemptions are concentrated more heavily in northern and fiscally constrained counties. She also explained that many parcels have little or no remaining taxable value, while a smaller number of parcels hold a large share of taxable value, which makes exemption proposals highly uneven in their effects. The committee discussed how impact conferences evaluate proposed constitutional amendments or bills by measuring the change from the baseline forecast, converting taxable-value changes into tax-dollar losses using county millage rates, and then expressing results in cash and recurring terms. Baker stressed that impact analyses do not address broader budgetary effects or local government replacement decisions, and that each proposal is analyzed as a standalone measure rather than in combination with others. Senators asked about seven House property-tax proposals already analyzed, the availability of those reports online, possible interactions if multiple proposals passed, and whether property-tax relief could stimulate the economy enough to offset revenue losses. Baker said the economic effects would be highly proposal- and county-specific and that any budgetary analysis would require separate work beyond the conference process. The committee took no substantive action beyond receiving the presentation and then adjourned.

Transcript Highlights:

• And maintenance and related oversight via budgetary controls.
• Next slide, key terms: what are budgetary controls?
• Budgetary controls can prevent...
• State budgetary level controls reimbursement via allotments.
• So it's at the agency level now.

Committee: Senate Senate Finance

Transcript Highlights:

• the first time or to increase the amount of credit claimed, which was the experience at the federal level
• Credit claimed, which was the experience at the federal level.
• Okay, what are the budgetary items that we've laid over in this committee so far?
• items I don't think that's budgetary items I don't think that's funny<00:12:13.440><c> but</c><00:12
• items that we that we're that budgetary items that we that we're that we've<00:12:18.279><c> laid</c

Transcript Highlights:

• </c><00:06:55.520><c> If</c> state services at the current level.
• If state services at the current level.
• . level. level.
• In these cases, losses of federal funds create a direct budgetary impact to the state.
• out of the fairly steady at a high level out of the great<00:38:42.480><c> recession.

Summary: Minnesota Management and Budget officials presented the February 2026 budget and economic forecast, saying the state remains in a strong financial position but faces continued structural imbalance and significant uncertainty. Commissioner Aaron Campbell said the FY 2026-27 balance is now projected at more than $3.7 billion, up about $1.3 billion from November, and the FY 2028-29 planning period is projected to end with a $377 million positive balance. He emphasized that the improvement comes largely from higher projected revenues, especially individual income and corporate franchise taxes, but warned that the state is increasingly reliant on more volatile sources such as capital gains, interest income, and corporate profits. State Economist Dr. Anthony Becker said the national outlook improved slightly, with stronger projected GDP, consumer spending, and investment, but weaker payroll growth and ongoing trade-policy uncertainty. He noted that the forecast was complicated by missing federal data because of the federal shutdown, and that tariffs, immigration policy, equity markets, and possible AI-related shifts all present risks. Revenue projections were raised for the current biennium, including individual income tax receipts, sales tax revenue, corporate franchise tax revenue, and other revenues, while Becker stressed that federal funding threats, especially involving Medicaid and other entitlement programs, could materially alter the outlook. State Budget Director Anna Mingi said general fund spending in the current biennium is projected to be $68 million lower than previously estimated, but planning-year spending is up $152 million. The biggest spending changes came from education, where special education costs rose sharply after updated local spending data, and from human services, where a new prepayment review process for certain Medicaid benefits reduced projected spending by $133 million this biennium and $105 million in the next. She also said discretionary inflation is now estimated at $1.04 billion, up $104 million from November. Campbell closed by saying the state’s reserve remains at a record $3.8 billion and that Minnesota’s AAA bond rating and reserve policy help protect against downturns. He cautioned, however, that the long-term structural imbalance remains about $3.4 billion in the planning years, or $2.3 billion excluding discretionary inflation, and urged policymakers to offset any new spending with reductions. No votes or formal actions were taken; the meeting was a presentation and question-and-answer session on the forecast.

Transcript Highlights:

• Typically, budgetary cuts always impact staffing levels first. Proper staffing levels are critical.
• Typically, budgetary cuts always impact staffing levels first, and out of those positions, safety and
• Budgetary increases due to salary increases. ...to live in this state.
• I don't know if there's been any at the state or county level.
• County level. The gentleman mentioned his trip there.

Summary: The special commission on consolidation and cooperation in public safety held a hearing focused on correctional labor testimony, with union leaders and officers from multiple county facilities and the Department of Correction describing staffing, safety, wellness, and programming concerns. Speakers emphasized that correctional officers face high levels of workplace violence, exposure to synthetic drugs like K2, inmate suicides and assaults, and significant mental health strain. They also raised concerns about gender-identity housing policies, arguing that current practices can create unsafe conditions for staff, and urged stronger debriefing and wellness supports after traumatic incidents, including fuller use of programs like OnSide Academy. Several witnesses from unions including KCU/NCU and local county bargaining units argued against consolidating sheriff’s offices or merging them with the Department of Correction. They said consolidation could weaken collective bargaining, harm retention and recruitment, increase commute times, and disrupt locally tailored programming and reentry services. Multiple speakers stressed that county facilities are distinct and should be evaluated individually, not by a single formula, and that staffing levels, training, and facility-specific needs must drive any policy changes. One witness described innovative programming such as welding and shed-building partnerships, while another highlighted Norfolk County’s accreditation, budget stability, and reentry efforts. Commission members largely thanked the witnesses and echoed concerns about officer safety and wellness. They discussed the need for more facility tours, including Norfolk, and debated whether the commission should seek an extension beyond its September 30 reporting deadline. After discussion, the commission voted to request an extension to November 30, with the understanding that the report would still be completed and filed later. Members also discussed the possibility of examining the Norwegian correctional model and reaching out to the judiciary for additional testimony. The hearing concluded with an adjournment after public testimony closed.

Transcript Highlights:

• Typically, budgetary cuts always impact staffing levels first. Proper staffing levels are critical.
• Typically, budgetary cuts always impact staffing levels first, and out of those positions, safety and
• Budgetary increases due to salary increases. To live in this state.
• I don't know if there's been any at the state or county level.
• County level. The gentleman mentioned his trip there.

Summary: The special commission on consolidation and cooperation among public safety agencies held a hearing focused on union and correctional staff testimony. Chair Dan Hunt and Senator Brownsberger opened by noting the commission’s extensive site visits and prior testimony, and they recognized Correctional Officers Week. Union representatives from KOUF, NCEU, AFSCME, and local county correctional unions described the daily realities of correctional work, emphasizing staff safety, staffing shortages, retention problems, mental health impacts, and the need to preserve local sheriff’s offices and collective bargaining agreements. Testimony centered on several recurring concerns: violence inside facilities, the spread of synthetic drugs such as K2, inmate suicides and suicide attempts, and the strain these issues place on officers, EMS, and local resources. Speakers also raised concerns about gender-identity housing policies, arguing they can create safety and workplace issues for staff, and urged more support for officer wellness, debriefing, and programs like OnSide Academy. Several witnesses argued that county facilities should remain locally controlled and that consolidation with the Department of Correction would weaken programming, staffing, and community-based reentry work. One witness described the Norwegian correctional model as a possible source of ideas for more rehabilitative approaches. Commission members responded with support for correctional staff and asked questions about K2 detection, paperless systems, EMS transports, and possible metrics to quantify incidents and facility needs. Members also discussed the importance of individualized assessments of each facility rather than a one-size-fits-all approach. The commission voted to seek an extension of its reporting deadline from September 30 to November 30, and agreed to continue site visits, including the upcoming Barnstable visit and a June 15 hearing. The meeting adjourned after the motion passed.

Transcript Highlights:

• So you're asking a hypothetical law or future regulation or law change at the federal level.
• We're giving resources for some of the training to be here on the state level, et cetera.
• We're giving resources for some of the training to be here on the state level, et cetera.
• We're going to do our budgetary process.
• Representative McClure: We're going to do our budgetary process.

Summary: The House convened with prayer, pledge, quorum call, approval of the journal, and adoption of the Rules and Ethics Committee’s special order report for the day. The chamber then took up House Bill 1B, the immigration bill, and members were told they would have one opportunity to question the sponsor on both the House version and the anticipated Senate changes. Representative McClure described the bill as a major immigration-enforcement package creating a chief immigration officer housed in the Department of Agriculture, an Office of State Immigration Enforcement, a local law enforcement grant program, a state immigration council, and new penalties and enforcement tools. He also outlined anticipated Senate language, including stronger 287(g) participation requirements, enhanced penalties for unauthorized aliens, a mandatory death penalty provision for certain capital offenses, and additional coordination with federal agencies. The bill drew extensive questioning from Democrats about due process, constitutional issues, school and workplace impacts, and the treatment of people whose immigration status changes over time. Members asked about birthright citizenship, TPS, asylum seekers, pretrial detention standards, the lawful basis for detaining someone based on suspected status, and whether teachers, social workers, school resource officers, and even children could be required to cooperate with immigration enforcement. McClure and Representative Garrison repeatedly said the bill would require cooperation with federal authorities, that status determinations would be handled under existing court procedures, and that the Senate death-penalty language was intended to fit within Hurst by requiring a jury finding beyond a reasonable doubt that the defendant was an unauthorized alien. They also said the bill did not provide DMV funding, did not address teacher shortages, and included appropriations such as $25 million for the local law enforcement participation incentive program and broader funding for enforcement and training. Several amendments were considered. Representative Chambliss offered an amendment to protect schools, churches, and places of worship from enforcement activity; supporters argued it would preserve trust in sacred and educational spaces, but the amendment failed. Representative Escamani offered an amendment to preserve in-state tuition for Dreamers; supporters emphasized the educational and economic contributions of Dreamers and the hardship of higher tuition, but that amendment also failed. The debate ended with no bill vote in the excerpt, but the House completed the amendment votes and continued consideration of the immigration measure.

Transcript Highlights:

• We're making infrastructure improvements at The same time, the level of distraction that our drivers
• So we have gone in at a high level of detail and drilled into what is our system worth if it was brand
• flat, so we don't project a lot of growth in that budgetary projection that we use.
• The service levels are I-35, I-40, the parts of I-44, 69, 412.
• So passenger rail is all about providing a service level and an alternative to your community.

Committee: House Appropriations and Budget

Transcript Highlights:

• Typically, budgetary cuts always impact staffing levels first. Proper staffing levels.
• Typically, budgetary cuts always impact staffing levels first, and out of those positions, safety and
• Budgetary increases due to salary increases.
• I don't know if there's been any at the state or county level.
• County level. The gentleman mentioned his trip there.

Summary: The special commission on consolidation and cooperation among public safety agencies held a hearing focused on correctional labor perspectives, with testimony from union representatives and correctional officers from state and county facilities. Chair Dan Hunt and Senator Brownsberger opened by noting the commission’s extensive site visits and prior testimony, and they recognized Correctional Officers Week. Witnesses emphasized that officers are central to any reform discussion and described the daily realities of staffing shortages, violence, mental health crises, substance use, and the need for better wellness support. Kevin Flanagan of the correctional officers’ union said officers face serious safety risks, citing weapons recovered, assaults, suicides, and the spread of synthetic drugs like K2 that are often introduced through paper soaked with chemicals. He urged stronger contraband controls, including paperless systems and technology to detect synthetic drugs, and criticized policies he said can be manipulated in gender-identity housing and search situations. He also argued that staffing shortages, forced overtime, and low morale are worsening retention, and that officers need more support after traumatic incidents, including fuller use of the OnSide Academy program. Other union representatives, including NCU and county officers, opposed consolidating sheriffs’ offices or merging them with the Department of Correction, warning it could weaken collective bargaining, reduce local accountability, and harm programming and reentry work. They argued that county facilities are distinct and should be funded and staffed based on local needs, not a one-size-fits-all model, and several speakers supported expanding vocational and reentry programming. Commissioners responded with support for officer wellness and asked for more information on EMS transports, medical interventions, and possible models from other jurisdictions, including Norway and Germany. At the end of the hearing, the commission discussed extending its reporting deadline beyond September 30, with members agreeing to seek an extension to November 30. The commission also agreed to continue site visits, including the upcoming Barnstable visit, and adjourned after adopting the motion to request the extension.

Transcript Highlights:

• <00:01:15.040><c> from</c> levels from levels from 99%<00:01:17.200><c> from</c><00:01:17.680><c> to<
• But obviously this budgetary needs.
• Starting on line 43 fund level impacts.
• </c> purposes, um the general fund budgetary purposes, um the general fund budgetary balance<01:04:14.400
• So that leaves a budgetary later.

Committee: Senate Finance

Transcript Highlights:

• <00:10:43.880><c> fund</c> budgetary fund budgetary fund statements<00:10:45.839><c> and</c><00:10:45.959
• </c><00:28:08.880><c> of</c> provides agencies a certain level of provides agencies a certain level of
• It gives the agencies discretion to decide how much to retain, up to those cap levels.
• </c><00:45:25.920><c> fund</c> will add up in our budgetary fund will add up in our budgetary fund statements
• Chair, Senator, I can speak to it at a very high level.

Committee: Senate Finance

Transcript Highlights:

• </c> state services at the current level. state services at the current level.
• </c> ...remain at historically low levels.
• At MMB, we pay particular attention to federal funding that supports state-level entitlements.
• </c> funds would create a direct budgetary funds would create a direct budgetary impact<00:28:01.480>
• ><c> from</c><00:29:12.920><c> the</c> There's also budgetary risk from the There's also budgetary risk

Committee: Senate Finance

Transcript Highlights:

• So we stay to that level. You might ask yourself how we actually came up with the $43 million.
• That level. You might ask yourself how we actually came up with the $43 million.
• Centralized data and where we're making our budgetary decisions.
• We do not.” “...level of all our state obligations and buildings.
• This is absolutely wrong on every level. We owe it to every New Mexican, Mr.

Bills: SB132 , SB241

Committee: Senate House Appropriations & Finance

Summary: The committee first heard HB 158 as amended, which would require state agencies receiving appropriations from the Grow Fund to submit accountability and evaluation plans to the State Budget Division and the Legislative Finance Committee. LFC staff said the bill would put existing practice into statute and formalize agency reporting and evaluation responsibilities. The bill drew no opposition testimony, and after questions about whether agencies or LFC would do the evaluations, it passed on a 9-0 due pass vote. HB 255, the Public Safety Workforce Building Program, was then presented as a bipartisan measure to consolidate public safety workforce funding into a competitive grant program for local law enforcement, fire, detention, and public attorney offices. The sponsor said it would not require a new appropriation. There was no opposition testimony, and the committee approved it on a 9-0 due pass vote. The committee then took up SB 309, which would replace the lottery’s 30% return requirement with a fixed floor return for several fiscal years, with a reversion to the current law if the floor is not met. Lottery officials and supporters argued the change would let the lottery offer more competitive prizes, including higher-value scratchers, and potentially increase scholarship revenue; opponents, including Think New Mexico and a nursing student, warned it could cap long-term growth and reduce scholarship funding. After extended debate, the bill passed on a 7-2 due pass vote. Later, SB 79, creating a statewide mosquito-borne disease prevention program through the Department of Health, was presented by its sponsor as a response to West Nile virus and warmer winters. Testimony from the sponsor and the state entomologist emphasized rising mosquito risk and the need for county grants and statewide coordination. Although the committee initially moved to table the bill because funding had already been included in the budget, that motion failed and the bill ultimately received a due pass vote. The committee also heard HB 295, which would create a centralized accessibility reporting position in the Department of Health; after testimony for and against, an amendment stripping the appropriation was adopted, and the bill passed 5-3. The committee then heard HB 124, establishing an Office of New Americans within Workforce Solutions to coordinate workforce integration for immigrants with lawful status. Supporters described barriers faced by immigrant workers and the need for bilingual training and centralized assistance, while the sponsor said the office would have no first-year budget impact. The bill passed 6-4. Finally, the committee considered SB 273 and SB 274, both involving state financial support for affected entities and the Patient Compensation Fund. SB 273, which would provide temporary state assistance to communities affected by economic disruption, passed after debate about precedent and economic recovery. SB 274, which sought repayment from the Patient Compensation Fund for prior state infusions, drew opposition from hospitals and physicians who warned of higher surcharges and questioned the timing and legality; discussion continued around the committee substitute and the fund’s statutory restrictions.

Transcript Highlights:

• Those metrics are contribution rate levels.
• After that, I'm going to overlay some budgetary information on top of it.
• Minimum contribution rate levels that are set in statute.
• Over the past couple years, we've seen high levels of inflation.
• I move that we adopt the 3% level, recommended by the, from 2.5 to 3%.

Committee: Joint Select Committee on Pension Policy

Summary: The committee approved the July minutes and then received an informational presentation from the Office of the State Actuary on the financial condition of the state retirement systems. The actuary reported that employer contribution rates are generally declining, helped by strong investment returns and reduced funding for PERS 1 and TERS 1, while funded ratios have continued to improve; on a combined basis the plans were reported at 100% funded in 2024, with open plans above 95% and legacy plans varying by system. The presentation also reviewed projected rates and funded ratios under current assumptions, noted that pension costs are taking a smaller share of the state general fund, and discussed risks from investment volatility, policy changes, and demographic experience. Committee members asked about savings from lower rates, deferred asset smoothing, and how Washington compares with other states. The committee then considered the state actuary’s recommendation on long-term economic assumptions and adopted all four recommendations by roll call votes: inflation at 3.0%, general salary growth at 3.5%, membership growth for Plan 1 funding at 1.0%, and investment rate of return at 7.25%. The actuaries explained that the inflation and salary growth increases were driven largely by higher long-term inflation expectations, while the investment return recommendation matched the current statutory assumption. Members discussed the timing of the Pension Funding Council’s decision, the effect of tariffs and inflation uncertainty, and how assumption changes would affect future contribution rates and budgets, particularly for open plans. Staff then gave an update on the LEOFF 1 study, explaining the difference between being “ahead of schedule” and truly overfunded, and summarizing responses received from DRS, the State Treasurer, and the State Investment Board on the merger and restatement proposals. DRS said both bills could be administered, though the merger bill’s COLA banking provision would be challenging until its new system is ready; the Treasurer urged caution, especially about the restatement bill and the use of one-time funds; and the Investment Board said removing assets from the trust would have some transaction costs but likely small impacts. The committee discussed whether to invite additional agencies and local government groups to testify, and staff said more responses, including from Ice Miller and the State Actuary, were expected for the October meeting. Finally, the committee heard a briefing on PERS 1/TERS 1 COLA policy and related bills from the last session. Staff reviewed the committee’s prior ongoing COLA recommendation, the SCPP-endorsed bills that would have created a one-time 3% COLA followed by an ongoing COLA, the Senate merger bill, and a separate ad hoc COLA bill. Public testimony largely supported Plan 1 COLAs and stable contribution rates, while several speakers urged caution about transferring LEOFF 1 surplus assets or merging legacy plans, and others raised concerns about climate risk and the pension fund’s investments. No further committee action was taken on the COLA item during this portion of the meeting.

Transcript Highlights:

• </c> billion in funds for a state level billion in funds for a state level entitlement,<00:48:00.160>
• Will we need to hire more people at the state level as the county level, city level?
• </c> happens at the enterprise level as well. happens at the enterprise level as well.
• </c> going to be significant budgetary going to be significant budgetary savings. savings. savings.
• </c> the county level as possible. the county level as possible.

Summary: The Senate Rules and Administration Select Subcommittee on Federal Impacts on Minnesotans and Economic Stability met on February 20, 2026, to hear from Minnesota Management and Budget State Budget Director Anna Mingi about federal funding changes affecting the state budget. Before testimony began, Senator Rasmusson objected to a draft committee report that had been prepared in advance of the hearing, arguing it was inappropriate to summarize testimony before it occurred. The chair responded that nonpartisan staff had prepared the draft from Mingi’s submitted presentation and could revise it after the hearing if needed. Director Mingi explained that federal dollars make up more than one-third of state spending and support about 650 federal awards totaling over $23 billion this year, with more than $15 billion supporting state entitlement programs. She said the federal funding environment had changed significantly since January 2025 through executive orders, pauses, terminations, new grant conditions, delayed awards, and the July 2025 passage of H.R. 1, the federal reconciliation bill. Her main focus was H.R. 1’s effects on health care and food assistance, including work requirements for some adults, changes to eligibility for legal non-citizens, limits on retroactive Medicaid coverage and directed payments, new limits on provider taxes, and SNAP changes that shift some benefit and administrative costs to the state and counties. She estimated H.R. 1 would reduce federal funds to state-administered programs by about $327 million in the current biennium and $1.6 billion in the next, with additional costs to hospitals, counties, and other partners beyond the budget horizon. Members asked follow-up questions about whether the estimates were relative to the forecast and whether federal Medicaid funding would still rise over time. Mingi said the estimates were based on the November forecast baseline and that Medicaid federal dollars would likely continue growing overall, though the law still creates significant losses relative to prior projections. Senator Rasmusson emphasized that point in remarks to the committee. The discussion then shifted to federal grant pauses and cancellations: MMB’s tracker showed about six awards on hold totaling roughly $491 million, 13 confirmed cancellations across areas including clean energy, education, food assistance, and public health, and additional threatened or litigated cuts not included in those totals. Mingi identified two canceled violence-prevention-related grants, including a FEMA public safety grant and a justice reinvestment grant, and noted that CDC had recently moved to cancel or seek cancellation of several Minnesota public health grants, including a $65 million public health infrastructure award.

Transcript Highlights:

• The increased levels of spending do not automatically go into effect under law.
• </c><00:04:11.319><c> has</c> maintain the current service levels has maintain the current service levels
• </c> from a budgetary from a budgetary perspective<00:06:53.560><c> with</c><00:06:53.680><c> that</c
• </c> at both the national and state levels at both the national and state levels there<00:08:27.240><
• </c> uncertainties at the federal level uncertainties at the federal level introduce<00:17:17.559><c>

Summary: Minnesota Management and Budget presented the February 2025 budget and economic forecast, with Commissioner Aon Campbell, State Economist Anthony Becker, and Budget Director Anam Mingi outlining updated revenue, spending, and long-term balance projections. The state’s FY 2026-27 general fund outlook remains positive but weaker than in November, with an ending balance of $456 million, down $160 million from the prior forecast. Looking ahead, the planning years FY 2028-29 show a projected deficit of just under $6 billion, driven largely by spending growth outpacing revenues. Officials emphasized that discretionary inflation is a major factor in the forecast, but also noted that those amounts are not automatically appropriated and would require legislative action. Becker said the national outlook has changed since November, with higher expected inflation, higher interest rates for longer, and slower growth in later years. He highlighted uncertainty around tariffs, trade policy, immigration policy, federal spending, and possible changes to tax and debt-ceiling policy, all of which could affect Minnesota’s economy and revenues. Minnesota’s labor market remains tight, with low unemployment and rising wages, and the revenue forecast was revised upward overall for FY 2026-27, including higher income and sales tax receipts, though corporate tax revenue was slightly lower than previously projected. Mingi said projected general fund spending is up $79 million in FY 2026-27 and $960 million in FY 2028-29 compared with November. The largest increases are in education and health and human services, especially due to inflation, higher pupil counts, special education costs, long-term care, and higher Medical Assistance spending. She noted that higher utilization of weight-loss drugs also raises Medicaid costs, and that a smaller assumed bonding bill helps offset some debt service costs. The commissioner and staff repeatedly warned that federal policy changes, especially possible Medicaid reductions, pose a major risk; they said Minnesota could face billions in lost federal funding, including a potential $2.4 billion hit if the enhanced Medicaid match for adults without children were eliminated. No votes or legislative actions were taken in the presentation.

Transcript Highlights:

• It will be the following fiscal year where those local budgetary and state budgetary impacts will come
• It will be the following fiscal year where those local budgetary and state budgetary impacts will come
• Local budgetary and state budgetary impacts will come to fruition.
• I'm right in on this issue kind of at a 30,000-foot level.
• To level set here, these are very dramatic changes.

Summary: The Appropriations Committee first took up SB 7010, which would authorize Roth contributions in state and local deferred compensation plans. Senator Mayfield explained that current law only allows pre-tax contributions, and the bill would let the Department of Financial Services and local governments offer post-tax Roth options. The bill had one support appearance card, no debate, and was reported favorably by roll call vote. The committee then received a lengthy presentation from the Governor’s Office of Policy and Budget on the governor’s recommended “Floridians First” budget, totaling $117.4 billion and $53.2 billion in general revenue. The presentation highlighted reserves, debt paydown, tax relief, and proposed reductions and efficiencies, along with major spending areas in education, health care, public safety, corrections, transportation, and economic development. Key proposals included higher K-12 funding, teacher salary increases, funding for Everglades and water quality projects, emergency preparedness, corrections staffing and facility funding, cybersecurity, law enforcement recruitment bonuses, and affordable housing and infrastructure investments. Members asked extensive questions about property tax reserves, litigation funding, emergency response fund balances and spending, the Alligator Alcatraz detention facility and federal reimbursement, the Second Amendment sales tax holiday, animal abuse hotline funding, Hope Florida, corrections staffing, and teacher pay. A major portion of the discussion focused on the Department of Health’s planned changes to the ADAP HIV medication program, with senators and a public witness expressing concern about access to life-saving medications and possible misuse or redirection of funds. The committee did not take further action on the budget presentation, and the meeting ended after additional comments supporting the budget and the corrections funding, with SB 7010 already approved.

Transcript Highlights:

• I think the fact that we are in this bill looking to raise taxes at a time when our budgetary situation
• I think the fact that we are in this bill looking to raise taxes at a time when our budgetary situation
• situation does not when our budgetary situation does not allow<00:13:33.680><c> that</c><00:13:34.000
• There's a lot of information that we all need to be working on to level set and see the path forward,
• </c> we all need to be working on to level we all need to be working on to level set<00:14:56.040><c>

Committee: House Energy Finance and Policy