The 2025 Minnesota legislative session begins today, January 14, 2025. The Larkin Hoffman Public Affairs team is closely monitoring all current legislative happenings and have provided a look at what could transpire over the next several months. Click here for our 2025 legislative session preview.
The Election: More Drama After the Big Night
Election night typically comes with plenty of surprises. State elections closed with a 67-67 tie in the Minnesota House of Representatives and a one-vote majority in favor of the Democrats in the Minnesota Senate. However, the drama certainly was not done after all the votes were tallied. Curtis Johnson was ruled ineligible to assume the House District 40B seat after a court ruled, he violated residency requirements. Additionally, the untimely death of Senator Kari Dziedzic (DFL-Minneapolis) has caused even more uncertainty heading into the 2025 session.
Currently, both the Minnesota House of Representatives and the Minnesota Senate are looking at special elections on January 28, 2025. Both races lean heavily Democrat, so the DFL will likely return to a one-vote majority in the Senate while the Minnesota House could remain in a 67-67 tie.
Leadership Uncertainty
Regardless of what happens in the special elections, Republicans will have a one-vote majority in the Minnesota House of Representatives to start the 2025 legislative session. This could mean Lisa Demuth (R-Cold Spring) could be elected speaker of the house at the start of session. However, Democrats have threatened to block a vote on speaker until a power sharing agreement can be reached.
In the Minnesota Senate, the two sides recently announced that they have come to a power sharing agreement for the time until the Senate is no longer tied. This power sharing agreement includes co-presiding, co-chairs, and an equal number of Democrat and Republican members on committees.
Lawmakers Set to Tackle Biennial Budget
In early December, Minnesota Management and Budget (MMB) released the November budget forecast. It, along with a budget forecast released in February, are critical as lawmakers work to craft the state’s biennial budget. The November forecast shows a projected $616 million surplus for Fiscal Year (FY) 2026-2027. That is $1.1 billion less than prior estimates. MMB cited reductions in income and sales tax revenues as well as higher spending on long-term care and special education as causes for the decrease.
MMB projections showed a structural imbalance in the subsequent biennium with a projected budget deficit of $5.1 billion by the end of FY 2028-2029. While inflation plays a key role in that projection, state spending is expected to exceed future revenue by $3.5 billion. The structural imbalance is concerning to lawmakers, as projected spending is expected to outpace revenue without a budget solution.
Notable Legislative Issues
While the biennial budget is likely to be the biggest newsmaker out of the Capitol, there are a handful of other issues that lawmakers are set to tackle.
