State Leaders Hopeful For Minnesota Budget Deal Ahead Of Special Session

State Leaders Hopeful For Minnesota Budget Deal Ahead Of Special Session

Thousands of Minnesota state workers will be getting layoff notices in the next few days because the Legislature has failed to come to a budget agreement.

If the budget standoff continues through the end of this month at the Minnesota Capitol, there will be a state government shutdown on July 1 — the first time that's happened since 2011.

For weeks, legislative leaders insisted they would have a balanced budget by the end of the session on May 19. That obviously didn't happen.

The state is required to adopt a balanced budget every two years, and this is one of those years. And right now, the Legislature has a lot left to do.

Among the bills not passed is the E-12 Education budget, representing about 30% of the total state budget, and the State Health and Human Services budget, which accounts for about 28%.

Despite half the budget unfinished, leaders continue to be optimistic. DFL Majority Leader Erin Murphy, who was a guest on WCCO Sunday Morning at 10:30 a.m., says she's hopeful a budget will be ready so Gov. Tim Walz can call a special session for the Legislature to vote on it.

"Gosh, even this week, we're hoping that it can be this week. I know everybody needs to give the revisors the time to draft the legislation," Sen. Murphy said.

While the Minnesota House is tied at 67 Republicans and 67 Democrats, the Senate has a one-vote DFL Majority at 34 to 33. That slenderest of margins is one reason that reaching an agreement has proved so difficult.

Another hold up has been the issue of free health insurance for undocumented immigrants. Legislative leaders — including GOP Speaker Lisa Demuth, DFL Speaker Emerita Melissa Hortman, Sen. Murphy and Walz — agreed to roll back the benefit for undocumented adults and leave it in place for children.

But the pushback has been swift and strong. DFL legislators immediately protested the rollback agreement, even demonstrating at the governor's offices.

Sen. Murphy says with the slim majorities, a compromise had to happen.

"It is a very, very difficult vote for me and it is a very contentious issue for my colleagues, and rightfully so," she said. "But it was a chief priority for the Republicans."

With DFL legislators deeply fractured, it's unclear how and when a new budget deal will be finalized.

Walz says only when the deal is completely set will he call a one-day special session so the legislature can vote on the budget and he can sign it.

SOURCE: CBS NEWS MINNESOTA