Minnesota Lawmakers To Finalize Bipartisan Balanced State Budget In One-Day Special Session Monday

Minnesota Lawmakers To Finalize Bipartisan Balanced State Budget In One-Day Special Session Monday

ST. PAUL, MN – June 6, 2025 – Minnesota state legislators are set to convene a one-day special session on Monday, June 9, to finalize and pass the remaining budget bills for the upcoming biennium, aiming to avert a partial government shutdown before the July 1 deadline.

The agreement for the special session was announced Friday by Governor Tim Walz and legislative leaders from both the House and Senate, including Senate Majority Leader Erin Murphy (DFL-St. Paul), House Speaker Lisa Demuth (R-Cold Spring), Speaker Emerita Melissa Hortman (DFL-Brooklyn Park), and Senate Minority Leader Mark Johnson (R-East Grand Forks).

Among the critical legislation slated for passage is the Jobs and Economic Development budget, championed by Senator Bobby Joe Champion (DFL-Minneapolis), Chair of the Senate Jobs and Economic Development Committee. This bill is a key component of the overall budget agreement, which reflects weeks of bipartisan negotiations following the adjournment of the regular session on May 19 without a complete budget.

"I am pleased that after hundreds of hours of good-faith, bipartisan debate, we have reached an agreement that will allow us to pass a balanced state budget," said Senator Champion. "This Jobs and Economic Development budget represents a crucial investment in Minnesota's workforce and businesses, designed to foster economic growth and address our state's evolving economic needs, even in a tight fiscal environment."

The bipartisan budget package, totaling over $66 billion for the next two years, includes provisions to fund state government and services while also addressing a projected deficit in fiscal years 2028-29. To expedite the process and ensure passage before the July 1 deadline, the agreement limits legislative activity during the special session to the remaining 14 budget bills and prohibits amendments unless agreed upon by leaders and the Governor. Both chambers are also expected to declare an "urgency" to suspend rules requiring three readings of bills on separate days.

Senator Champion's Jobs and Economic Development budget bill, which previously cleared the Senate, aims to:

• Enhance Economic Growth: By making the Minnesota Forward Fund more flexible, allowing greater access to state funds for businesses.
• Bolster Workforce Development: Including provisions for job training, support for workforce development programs at organizations like Hired, and a professional licensure pilot program offering free preparation for licensure and academic admission tests for University of Minnesota and Minnesota State students, as well as dislocated workers.
• Support Underserved Communities: Continuing funding for the PROMISE Act, which provides targeted neighborhood development funds to historically underinvested businesses and communities, and offering bipartisan funding for technical assistance tailored to community needs.
• Address Workforce Shortages: Specifically in innovative industries like healthcare, through career education and job skills training, with a focus on assisting low-income parents and non-native English speakers.
• Extend Unemployment Benefits: Including an extension of unemployment insurance for workers impacted by Iron Range mine closures.
• Set Guidelines for Data Centers: Establishing new parameters for large-scale data center development in the state.

The legislative process has been challenging due to the closely divided nature of the Minnesota Legislature, with the House evenly split and Democrats holding a single-vote majority in the Senate. This has necessitated extensive negotiations to find common ground across various budget areas, including health and human services, transportation, education, and taxes.

If the budget bills are not signed into law by July 1, a partial state government shutdown would commence, impacting thousands of state employees who have already received layoff notices as a precautionary measure.

Lawmakers are optimistic that Monday's special session will successfully conclude the budget process, delivering a stable financial plan for Minnesota.

MinneapoliMedia