As Minnesota lawmakers return to work this Monday after a week-long break, they face a challenging task ahead: finalizing spending plans for the state’s education and health systems. With a looming May 19 deadline, both the GOP and DFL are struggling to bridge significant gaps in their proposed budgets, especially in the two largest sections of the state’s financial plan.
Health Care Negotiations Continue Amid Divided Parties
Negotiations over health care spending are taking center stage as lawmakers from both parties continue to hash out differences. The state’s health budget has become one of the most contentious topics this session, with the House and Senate offering divergent approaches.
The House Health Finance and Policy Committee, led by Rep. Robert Bierman, DFL-Apple Valley, and Rep. Jeff Backer, R-Browns Valley, is wrestling with how to balance cuts and spending increases within the health system. The committee has been tasked with trimming $225 million from the health portion of the state budget over the next four years.
Meanwhile, the Senate’s proposal calls for increasing fees on health plans to raise funds for mental health provider payments. However, this strategy has faced significant pushback from House Republicans. “Our caucus is not interested in raising fees, taxes, revenues… whatever you want to put the name on it,” said Rep. Backer.
A critical point of tension is the funding for undocumented immigrants’ health care, a policy that was introduced in January. While Democrats argue that removing this coverage would lead to overburdened emergency rooms and higher long-term costs, Republicans see it as an unnecessary financial burden. The GOP claims that eliminating this coverage would save the state $74.6 million over the next two years, but the DFL is adamant that removing health care would exacerbate public health issues.
Despite these divides, lawmakers are hopeful. Bierman remains confident that both parties can find common ground, but acknowledged that the process will require intense negotiation and compromise. “There’s a reason they call this the season of disappointment,” Bierman noted. “You never get everything you want.”
Diverging Views on Education Funding Proposals
Education spending has become another major point of contention, with the House and Senate presenting starkly different approaches to the budget. While the House is proposing a $40 million increase in funding for the next two-year budget, Governor Tim Walz and Senate Democrats are calling for cuts of over $680 million in the coming four years.
The House’s focus is on funding the Minnesota READ Act, which aims to improve literacy by emphasizing phonics and new teacher training methods. Rep. Cheryl Youakim, DFL-Hopkins, who co-chairs the House Education Finance Committee, has expressed her support for the $40 million increase. However, GOP Rep. Ron Kresha, of Little Falls, views this increase as insufficient. “Maintaining the schools’ funding and the flexibility to get them through some difficult budget years ahead is important,” Kresha said.
On the Senate side, the proposed cuts are largely seen as necessary to address budget constraints. Senator Mary Kunesh, DFL-New Brighton, chairs the Senate Education Finance Committee and has defended the cuts, pointing out that they would primarily affect the 2028-29 fiscal cycle, and are designed to prevent more drastic budget reductions.
Bonding Bill in Play for Infrastructure Projects
Alongside health and education spending, the state’s infrastructure projects are also on the docket as lawmakers push for a bonding bill to fund essential public works across Minnesota. Last year, the legislature failed to pass a bonding bill, leaving several projects in limbo.
This session, Senate Democrats have pushed for a public works bill that could reach as high as $1.3 billion, while the House is advocating for a more conservative $700 million package. After a recent meeting with Gov. Tim Walz, Senate Majority Leader Erin Murphy expressed optimism about reaching an agreement on a bonding bill. “There does appear to be a real desire to move on a bonding bill this year,” Murphy said.
While the bonding bill remains a priority for both parties, legislative leaders are cautious. Senate Minority Leader Mark Johnson, R-East Grand Forks, stressed the importance of avoiding a special session. “The state of Minnesota doesn’t need to be putting more money into a special session. Let’s get this done now,” he remarked.
A Tense Road to Resolution
The race to finalize Minnesota’s state budget before the May 19 adjournment is shaping up to be a tense and time-consuming process. The divided state House, with its narrow partisan split, has made it difficult for lawmakers to agree on key issues. However, with the state’s budget clock ticking down, legislators are under pressure to make progress on health and education funding, as well as a long-overdue bonding bill.
As negotiations continue, both the GOP and DFL are expected to face more challenges in reconciling their differences. But despite the hurdles, lawmakers are determined to reach an agreement in the coming weeks, hoping to avoid the need for a special session to settle unfinished business.
