Legislative Updates and Ewald at the Capitol for 2025

Legislative Session Update for the Week of March 17, 2025

More Political Upheaval

Just when things seemed to get back to normal after the House special election, political chaos unfolded this week in the Senate. Former State Senator Justin Eichorn was arrested March 17 during a police sting operation in Bloomington for solicitation of a minor, who was actually an undercover officer. Facing bipartisan calls for his resignation and potential expulsion from the Senate, Eichorn resigned from his position on March 20, 2025. A special election will be held to fill his now-vacant seat.

Governor Walz Releases Revised Budget Recommendations

Friday the governor released his revised budget recommendations to reflect the growing budget challenges outlined in the recent updated budget forecast.

The governor’s proposed additional changes beyond the education budget beyond his initial proposals. They include:

  • Reducing Grow Your Own grant program by $8 million per year beginning FY26
  • Eliminating the computer science advancement grant program.
  • Reducing school library aid by $7.5 million in FY26-27 and $15 million in FY28-29
  • Reducing community education equalization aid by $15 million while permitting districts to levy for those costs
  • Eliminating the compensatory pilot program in FY27
  • Reducing telecommunications equity aid by $375,000 beginning FY26
  • Eliminating long-term facilities maintenance revenue for charter schools, a reduction of approximately $20 million in FY26-27 and $22 million in FY28-29
  • Eliminating the special education charter adjustment aid formula, a reduction of almost $21 million in FY26-27 and $25 million in FY28-29

Combining the governor's initial and revised proposals, his recommendations reduce the overall education budget by roughly $240 million in FY26-27 and $450 million in FY28-29.

Committee Hearing Updates

The House Education Finance heard HF1435 providing more flexibility for innovation zones and P-TECH schools and HF1607 expanding the types of experiences that districts may count toward the minimum hours of instruction for secondary school students.

Important Dates

  • March 31: Eid break
  • April 4: Policy bill deadline
  • April 11: Budget bill deadline
  • April 14-April 18: Easter/Passover break
  • May 19: Constitutional adjournment
  • June 30: State fiscal year-end

Legislative Session Update for the Week of March 10, 2025

Special election brings House to 67-67 tie

Democrat David Gottfried won the 40B special election last Tuesday, creating a 67-67 tie in the Minnesota House. This means the House will revert to the power-sharing agreement established earlier in the session. As previously agreed, Rep. Lisa Demuth will continue as Speaker of the House. Committees will now have co-chairs, Republican and DFL, and equal party representation on all committees—except the newly formed Fraud Committee, which remains under Republican control. Moving forward bills will not pass out of committee without bipartisan support. Additionally, passing a bill on the House floor requires 68 votes, making bipartisan cooperation essential for any legislation to advance.

The House was set to take up HF11, a bill proposing a one-year extension of the paid leave law’s implementation. However, during that floor session, Rep. Baker tabled the bill, expressing hope that this move would allow more time for discussion and potential compromises on proposed changes.

Committee Hearing Updates

The House Education Policy Committee the PELSB policy bill, a bill requiring legislators to spend 12 hours a biennium observing a teacher or administrator and two bills to allow more flexibility for school districts - HF1435 provides more flexibility for innovation zones and P-TECH schools and HF1607 expands the types of experiences that districts may count toward the minimum hours of instruction for secondary school students.

The House Education Finance Committee received an overview of programs to increase the teacher workforce and heard the bill to establish a statewide teacher apprenticeship program.

Important Dates

  • March 6: Updated budget forecast
  • March 31: Eid break
  • Week of April 14: Easter/Passover break
  • May 19: Constitutional adjournment
  • June 30: State fiscal year-end

EWALD at the Capitol: MMB Releases Budget Forecast--March 7, 2025

WORK IS MOVING RAPIDLY; COMMITTEE DEADLINES ANNOUNCED

With the uncertainty of the first few weeks of the legislative session behind us, work at the Capitol has been moving along at a rapid pace. The House is being run by a 67-66 Republican majority. Bills are moving through the committee process, and some have even made it to the House Floor.

A special election for the vacant seat in House District 40B will be held on March 11, which might shake things up by restoring the House to a 67-67 tie. Legislation is humming along in the Senate as well, which has an established 34-33 DFL majority.

Committee deadlines have been announced, providing a timeline for passing bills through the committee process. The first and second deadlines, where committees must act favorably on bills in both bodies, are scheduled for April 4. The third deadline, for major appropriation and finance bills, is scheduled for April 11.

BUDGET FORECAST

Minnesota Management and Budget (MMB) released its February budget forecast on Thursday, a critical milestone as the legislature begins crafting Minnesota’s state budget for the next two fiscal years.

The forecast shows a challenging outlook for the state’s finances. The projected balance for Fiscal Year 2026-27 is $456 million, which is $160 million lower than estimates in November. The projected deficit for Fiscal Year 2028-29 has risen as well, from $5.15 billion in November to almost $6 billion. Spending is outpacing revenue, largely due to increased costs in education and health and human services (HHS). HHS spending is set to become the largest part of the state budget, driven mainly by long-term care costs.

In a Thursday press conference, MMB officials also spoke about how changing policies at the federal level — like tariffs, spending cuts, and layoffs of federal workers — are introducing uncertainty into the economic forecast.

Gov. Tim Walz, speaking on the new forecast, emphasized that his budget will focus on curbing spending growth “around the edges” without stopping or drastically cutting services. Key provisions in his budget proposal from January include a reduction in special education transportation funding, a cap on automatic year-over-year growth rates in Medicaid waivers, and an expansion of the sales tax base to services provided by investors, bankers and lawyers.

Leaders from both parties also spoke at the press conference. Democratic-Farmer-Labor (DFL) leaders said that the state is in good economic shape, and that a worsening economic outlook is due to uncertainty around federal policies. Republican leaders placed the blame for the current state of Minnesota’s budget outlook on spending by the DFL trifecta during the past biennium.

House and Senate Leaders will use this updated forecast to develop budget targets for committees, which will give committee chairs an amount they have to spend as they begin developing their omnibus budget bills. Differences between the House and Senate budget bills will need to be worked out in a conference committee.

KEY LEGISLATIVE DATES 

March 11, 2025 – House District 40B Special Election

March 29-31, 2025 – Eid Recess

April 1, 2025 – Legislature Resumes

April 4, 2025 – First and Second Committee Deadlines

April 11-21, 2025 – Passover/Easter Break

April 11, 2025 – Third Committee Deadline

May 19, 2025 – Last Day of the 2025 Minnesota Legislature (Adjournment)

THE IMPACT OF CITIZEN TESTIMONY

Testifying before a legislative committee is a powerful way to influence policy and ensure your voice is heard. However, the process can seem intimidating, especially if you’re new to it. So, Ewald’s Government Relations Team has created a video to walk you through the steps of preparing and delivering effective testimony.

HELPFUL RESOURCES TO FOLLOW ACTION AT THE STATE CAPITOL

Legislative Session Update for the Week of March 3, 2025

With the uncertainty of the first few weeks of the legislative session behind us, work at the Capitol has been moving along rapidly. Bills are moving through the committee process, and some have even made it to the House floor. Legislation is also humming along in Senate committees, but few bills have made it to the Senate floor for passage yet.

A special election for the vacant seat in House District 40B will be held on March 11, which might shake things up by restoring the House to a 67-67 tie.

Updated budget forecast released

Minnesota Management and Budget (MMB) released its February budget forecast on Thursday, a critical milestone as the legislature begins crafting Minnesota’s state budget for the next two fiscal years.

The forecast shows a challenging outlook for the state’s finances. The projected balance for FY26-27 is $456 million, which is $160 million lower than estimates in November. The projected deficit for FY28-29 has risen from $5.15 billion in November to almost $6 billion. Spending is outpacing revenue, largely due to increased costs in education and health and human services (HHS). MMB officials also spoke about how changing policies at the federal level — like tariffs, spending cuts, and layoffs of federal workers — are introducing uncertainty into the economic forecast.

House and Senate Leaders will use this updated forecast to develop budget targets for committees, which is the amount committee chairs have to allocate as they begin developing their omnibus budget bills.

Committee Hearing Updates

House Education Policy

The committee heard and passed to the Education Finance Committee, HF957, legislation to provide fund transfer flexibility and allow districts to opt out of compliance with the mandates passed in 2023-2024. 

House Education Finance

The committee heard an overview of the Postsecondary Enrollment Options (PSEO) program and ideas on suggested changes to the program.

The committee also heard and laid over, HF957, legislation to provide fund transfer flexibility and allow districts to opt out of compliance with mandates passed in 2023-2024. Testimony was provided by several school districts in support of this proposal.

Bills Introductions of Interest

Note: This list is not intended to be an exhaustive list but instead a list of bills aligned with the legislative platform, other bills that may be heard, or that you might hear about locally.

SF2139: Authorizing a school district to offer career and technical education postsecondary scholarships and postsecondary grants.

SF2188: Appropriating money for additional school unemployment aid.

SF2250: Modifying hours of instruction requirements.

SF2255: Governor’s budget bill.

Important Dates

  • March 31: Eid break
  • April 4: Policy bill deadline
  • April 11: Budget bill deadline
  • April 14-April 18: Easter/Passover break
  • May 19: Constitutional adjournment
  • June 30: State fiscal year-end

Legislative Session Update for the Week of February 17, 2025

Legislative activity is increasing and although committees are hearing more bills, the pace is slower than usual. The House is beginning to find its footing, though members are still readjusting after the delayed start and awaiting the outcome of the March 11th special election. That election can shift the balance of power again, potentially resulting in another tie. The Senate, meanwhile, is proceeding at a more deliberate pace, content to wait for the budget forecast on March 6th.

Committee Hearing Updates

Senate Education Policy

The Education Policy Committee reviewed several bills, including SF360, which proposes to remove Algebra II as a credit requirement. It also allows a personal finance credit taught by a teacher with a field license or out-of-field permission in math to fulfill a mathematics credit requirement.

Senate Education Finance

The committee heard an update on teacher apprenticeship programs.

House Education Policy

The committee heard two bills to roll back new standards requirements. They include HF29, which repeals the ethnic studies requirement enacted in 2023 and suspends implementation of revised social studies standards, and HF65, the bill to repeal the requirement for MDE to adopt state standards and allow local standards instead

House Education Finance

This week, the committee heard HF6, the bill to allow districts to implement innovative programs without approval from the commissioner, transfer funds among accounts and funds, opt out of following specific laws enacted in 2023 and 2024, and amends provisions relating to the Read Act. The bill is headed to the Ways and Means Committee, its last stop before the full House votes on the proposal. The Senate companion has not received a hearing.

CTE Priority Bill Introductions 

HF1001/SF1426: Increasing career and technical revenue for school districts; appropriating money.

Other Bills Introductions of Interest

HF957, Providing mandate relief for school districts; authorizing certain fund transfers for fiscal years 2025 through 2029; authorizing a school board to opt out of compliance with certain recently enacted state laws or rules.

HF1124, Allowing a school year to start before Labor Day for two school years; requiring a report. 

HF1194, Linking extended time revenue to increases in the general education basic formula allowance, appropriating money. 

HF1284, Allowing school district noncompliance with unfunded mandates.

HF1306,MDE policy bill.

SF1462, PELSB licensing bill

Important Dates

  • March 6: Updated budget forecast
  • March 31: Eid break
  • Week of April 14: Easter/Passover break
  • May 19: Constitutional adjournment
  • June 30: State fiscal year-end

Legislative Session Update for the Week of February 10, 2025

House of Representatives Convenes

Now that the House is fully operational, activity at the capitol is gaining momentum. This week saw the continuation of official committee hearings, bill introductions, and floor sessions in both chambers.

It was great to see CTE faces at the capitol this week.  I hope you had good discussions with your local legislators!

Committee Hearing Updates

Senate Education Policy

The committee reviewed SF508, a bill requiring school districts to implement policies prohibiting cell phone use in grades K-8 and restricting their use in classrooms for grades 9-12. The bill includes exceptions for medical needs, students with an IEP, or cases approved at the discretion of the school principal. After discussion, the committee laid the bill over for further consideration.

Senate Education Finance

This week, the committee continued its series of overviews on key topics. Members received a Read Act update, including a report from MDE and insights from teachers, curriculum leaders, and superintendents on their experiences at the district and classroom levels. Additionally, the committee heard an overview from MDE on the universal meals program.

House Education Policy

The committee heard, and passed on to the Education Finance Committee, HF6, which allows districts to implement innovative programs without approval from the commissioner, transfer funds among accounts and funds, opt out of complying with specific laws enacted in 2023 and 2024, and amends provisions relating to the Read Act. The bill is scheduled for a hearing in the House Education Finance Committee next week.

House Education Finance

This week the committee heard an overview from MDE on the Governor’s education budget recommendations. The committee also heard public testimony, including input from education organizations, highlighting concerns over various budget reductions proposed by the Governor.

Bills Introductions of Interest

HF405/SF442:  Establishing a skills path program for employment-based training.

HF734:  Expanding the use of extended time to pupils enrolled in career and technical education courses.

Legislative Session Update for the Week of February 3, 2025

House of Representatives Convenes

House DFL and Republican leaders have reached a power-sharing agreement, ending a three-week stalemate that had paralyzed the chamber. The agreement establishes leadership roles, the seating of Representative Brad Tabke, and the management of committees leading up to and following the March 11 special election.

Under the agreement, Republican Leader Rep. Lisa Demuth will serve as Speaker of the House for the biennium, and Rep. Brad Tabke will be seated. Until the March 11 special election, Republicans will control and chair committees. If the special election results in a tied chamber, committees will be co-chaired by both parties, with equal membership between Republicans and Democrats.

The House was convened on Thursday afternoon and is duly organized. Committees are expected to begin next week. Click here to see Education Finance Committee membership and click here to see House Education Policy Committee membership.

Senate DFL Regains Majority

While there was speculation that the power-sharing agreement would continue after the January 28 special election, Senate DFL proceeded this week to operate under standard majority rule, with the DFL now holding a one-seat advantage.

Senate Committee Hearing Updates

Education Finance Committee

The committee received an overview from MDE on the federal education funds Minnesota receives and heard updates from independent and faith-based schools about their concerns.

Senate Tax Committee

The committee heard legislation to extend the education tax credit to include expenses related to career and technical education programs. MACTA and MNACTE provided letter of support. The bill was laid over until the committee moves forward with a tax bill later in session.

Important Dates

  • March 6: Updated state budget forecast
  • March 31: Eid break
  • April 11 (starting at noon) – April 21 (returning at noon): Easter/Passover break
  • May 19: Constitutional adjournment

EWALD at the Capitol: House Stalemate Ends--February 7, 2025

HOUSE REACHES DEAL TO END STALEMATE; DFL REGAINS CONTROL IN SENATE

Things at the Capitol have started to revert to normal as the fourth week of the legislative session comes to a close. On Monday, the Senate swore in its newest member, Sen. Doran Clark (DFL-Minneapolis), bringing the body back to a 34-33 DFL majority. The new DFL majority terminated the power-sharing agreement the body was operating under, so they will have full control of committees going forward.

In the House, the nearly month-long stalemate has come to a close. House leadership agreed on how to organize the body, with Rep. Lisa Demuth (R-Cold Springs) serving as Speaker of the House for the next two years.

The agreement allows Republicans to chair committees while they have a 67-66 majority, until the special election to fill the seat in 40B on March 11. If the DFL wins the seat, the House will be tied 67-67 and committees will be run by co-chairs from each party. Until then, Republicans will have a one-seat majority on committees.

Another provision of the agreement creates the House Fraud and Agency Oversight Committee to investigate fraud in state government programs. Last, the agreement requires Republicans to seat Rep. Brad Tabke (DFL-Shakopee), whose election was filled with uncertainty when it was discovered that 20 votes had been thrown out. With the agreement in place, DFL members returned to the Capitol Thursday for the first time this session, ending their three-week boycott. Work will now begin on putting together a new two-year state budget.

KEY DATES

  • Updated budget forecast: March 6
  • Eid: March 29-31
  • Easter/Passover: April 11-21
  • Constitutional adjournment: May 19

THE IMPACT OF CITIZEN TESTIMONY

Testifying before a legislative committee is a powerful way to influence policy and ensure your voice is heard. However, the process can seem intimidating, especially if you’re new to it. So, Ewald’s Government Relations Team has created a video to walk you through the steps of preparing and delivering effective testimony.

HELPFUL RESOURCES TO FOLLOW ACTION AT THE STATE CAPITOL

A few helpful links to follow the action at the State Capitol:

To find your legislators, visit Who Represents Me

For updates on activities at the House of Representatives,
visit the House Session Daily website.

For updates on activities at the Senate, visit Senate Media Services.

To watch House committee and floor sessions, visit the
House of Representatives YouTube Channel.

To watch Senate committee and floor sessions, visit the Senate YouTube Channel.

EWALD at the Capitol: State Budget Outlook on December 6, 2024

On Wednesday, Minnesota Management and Budget (MMB) released the state budget forecast, showing a mixed picture of the state’s financial outlook. The forecast indicates a $616 million surplus for the FY26-27 biennium, which is far less than anticipated. MMB also forecasts a structural imbalance ranging from $3.5 billion to $5.1 billion for the FY28-29 biennium, causing concerns about the state’s future financial stability.

For more information on the budget, you can read the entire forecast here as well as the presentation documents.

HOUSE COMMITTEE UPDATE

With the 67-67 tie in the House, much is still unknown about how power-sharing will work in the next legislative session. However, co-leaders Rep. Melissa Hortman and Rep. Lisa Demuth have agreed to a committee structure and appointed committee chairs. Under this agreement, committees will be chaired by DFL and Republican co-chairs and committee membership will be equally divided. Committee chairs were recently named, but committee membership is not yet determined.

EWALD at the Capitol: Election Updates on November 8, 2024

On Tuesday, November 5, voters went to the polls to elect President and Vice President, Members of Congress, and the Minnesota House of Representatives, including one special state Senate election.

Along with the Presidency, Republicans were able to gain a majority in the U.S. Senate by flipping key seats in Pennsylvania, West Virginia, Montana and Ohio. Several seats in the U.S. House of Representatives are still too close to call. Republicans came into the election with a 220-212 majority in the House.

While attention was mainly focused on the presidency, we are closely watching the state legislative races.

This year, Minnesotans voted on races in the Minnesota House of Representatives and one seat in the Minnesota Senate (District 45), which was a special election to replace retiring Sen. Kelly Morrison, who stepped down to run for Congress.

This was an extremely important race for both parties, with Republicans hoping to flip both houses. Coming into the election, Minnesota already had a unique legislative dynamic, with Democrats having a trifecta holding the Governorship, the Minnesota Senate with a 34-33 majority, and the Minnesota House with a 70-64 majority.

Democrats ultimately were able to keep control of the Senate with DFL Senator-elect Ann Johnson Stewart winning 52% of the vote. Meanwhile, House Republicans needed to win four seats to take control — they managed to win three. Republicans won vacant seats in districts 26A and 7B (both previously held by DFLers), and in 18A newcomer Erica Schwartz defeated incumbent DFLer Jeff Brand. This brought a 67-67 tie between the parties.

State law dictates that when a state legislative candidate wins by less than 0.5%, there is a publicly funded recount in that race. So, two races are automatically headed to a recount due to being too close to call. In District 14B, Democrat Dan Wolgamott won reelection by 28 votes, while in District 54A, Democrat Brad Tabke won reelection by 13 votes.

What if there is a 67-67 tie? The last time this occurred in Minnesota was in 1979 — we had a peanut farmer in the White House and the number one movie in January 1979 was a re-release of Disney’s 101 Dalmatians. The Minnesota Secretary of State is charged with gaveling in a new House, and so that year, Secretary of State Joan Growe, acting as temporary presiding officer, presided over the tied body to perform basic business — but she could not name committee chairs or set committees. After five days, an agreement was reached where the Republicans would get the speakership and the DFL would chair the rules, taxes, and appropriations committees and get one vote majorities on those committees. Bills that got to the House floor almost always had bipartisan support, and members rarely missed committee meetings or floor sessions. But as with all stories that start off easy, the end gets a little more colorful. If you’d like to learn more on the whole story, you can find it here.

WORK IS MOVING RAPIDLY; COMMITTEE DEADLINES ANNOUNCED