Legislature Begins in Unknown Territory
On Tuesday, January 14, 2025, the Minnesota Legislature convened the 2025 legislative session, but while most first days are largely ceremonial, this year the House of Representatives got off to a rocky start. The session began with all 67 members of the Republican House Caucus in the chamber when Secretary of State Steve Simon (DFL) called them to order. Meanwhile, the 66 members of the Democratic-Farmer-Labor (“DFL”) Caucus were absent as part of a dispute over control of the chamber. Following a roll call, Secretary of State Steve Simon declared that a quorum was not present and adjourned the session. House Republicans then moved to appeal the ruling of chair and, with Rep. Paul Anderson (R-Starbuck) having replaced Secretary of State Simon on the rostrum, the appeal was upheld, and the Republicans proceeded, electing Rep. Leisa Demuth (R-Cold Spring) as Speaker of the House.
The House DFL Caucus subsequently filed a petition with the Minnesota Supreme Court seeking to uphold Secretary Simon’s declaration that a quorum was not present. The Republicans have argued that their 67 members constitute a quorum as it represents a majority of the 133 members currently sworn in as state representatives. Meanwhile, House Democrats have argued that 68 members, or a majority of the 134 total seats in the chamber, are required to constitute a quorum. One seat is currently vacant after a judge determined that then Representative-elect Curtis Johnson (DFL-Roseville) had failed to establish residency in his district.
Minnesota Supreme Court Rules Against Walz
Late last week the Minnesota Supreme Court sided with Republicans in a lawsuit over the timing of the special election for the seat previously won by Johnson. Gov. Walz had called the special election for January 28, 2025, the minimum number of days following the court ruling declaring Johnson ineligible and his public “resignation” of his seat. Republicans challenged Gov. Walz’s timeline, arguing that he could not call a special election until the seat was actually vacant on the first day of the new legislature. With the special election in House District 40B now delayed until sometime in March, many capital insiders are asking what this means for the current 67-66 Republican majority and the House DFL Caucus’ absence of the Capitol grounds.
Minnesota Senate Tied; Senator Mitchell Trial Delayed
Across the Capitol building, the Minnesota Senate began last week in a much more subdued manner. With the chamber currently split 33-33 following former Senate Majority Leader Kari Dziedzic’s (DFL-Minneapolis) passing in December, Republican leader Sen. Mark Johnson (R-East Grand Forks) and DFL leader Sen. Erin Murphy (DFL-St. Paul) rolled out a power sharing arrangement similar to what was previously negotiated in the House of Representatives. Without the partisan fireworks of the House of Representatives, the Senate’s first floor session of the biennium included a somber and heartfelt tribute to their former colleague. A special election for the seat will be held on January 28, 2025. With the Minneapolis district overwhelmingly Democratic, most capital insiders anticipate that community leader Doron Clark, who immerged as the DFL nominee in a seven-candidate DFL primary, is likely to become the chamber’s 67th member later this month, giving the Democrats a one seat majority at 34-33.
An important piece of the puzzle is the trial of Sen. Nicole Mitchell (DFL-Woodbury) who is facing robbery charges stemming back to an incident last year. A court ruled just days ago that she could delay her trial until after the legislative session. While this likely extends the controversy surrounding her continued participation in the chamber, it also limits the likelihood of an additional special election for her Senate seat.
Special Election Primary Results
On Tuesday, January 14, 2025, a primary election was held to determine the candidates for special election in Senate District 60, which is the district represented by Sen. Kari Dziedzic (DFL-Minneapolis) prior to her passing in December 2024. Daron Clark (DFL-Minneapolis) and Abigail Wolters (GOP) were victorious against their primary opponents and will face off in the special election on January 28, 2025. SD 60 has been a DFL stronghold since the 1970s and encompasses much of Northeast Minneapolis. The Minnesota Senate is currently tied 33-33, which means this election will determine who takes over as the majority in the Senate.
Minnesota Department of Human Services Commissioner Resigns
Minnesota Department of Human Services (DHS) Commissioner Jodi Harpstead announced last week that she will be stepping down from her position effective February 3, 2025, after serving in that capacity since 2019. The timing of her departure coincides with a number of high-profile instances of Medicaid fraud being uncovered by federal investigators. In announcing her departure, Commissioner Harpstead highlighted work on making DHS more “effective, accountable, and easier to manage.” The search for Harpstead’s replacement is in progress.
Governor Walz Releases FY26-27 Biennial Budget
Gov. Tim Walz and Lt. Governor Peggy Flannagan released their budget recommendations for FY 2026-27, officially kicking off the state’s development of a biennial budget. The proposal outlines the governor’s spending priorities, along with making a series of changes to the state tax code. Minnesota enacts a budget each biennium, or every two years, beginning on July 1 of each odd-numbered year. The governor must propose a biennial budget in January of odd numbered years, according to state law.
Under the Walz proposal, total General Fund revenues are expected to be $71.5 billion, with almost 50 percent of that coming from individual income tax. Other sources of General Fund dollars include sales tax, corporate tax, state property tax, and liquor and tobacco tax. Walz’s proposed budget would spend $65.9 billion in FY 26-27, while transferring $350 million to the cash flow account, $3.17 billion to the budget reserves, and leave a General Fund balance of $2.16 billion at the end of FY 26-27.
In total, Governor Walz’s omnibus budget bills spend $65.9 billion from the General Fund:
$25 billion on K-12 Education
$3.98 billion on Higher Education
$4.7 billion on Property Tax Aids and Credits
$23.5 billion on Health and Human Services
$3.55 billion on Public Safety and Judiciary
$417 million on Transportation
$456 million on Environment and Energy
$834 million on Jobs, Commerce, Ag and Housing
$1.76 billion on State Government and Veterans
$1.22 billion on Debt Service
$215 million on Capital Projects and Other
Important Dates to Remember
January 28, 2025 SD 60 Special Election
TBD, February 2025 Updated budget forecast from MMB
May 19, 2025 Constitutional Deadline to adjourn legislative session
