Minnesota Legislature Kicks Off New Session
Today the Minnesota Legislature gavels in the 2024 legislative session with approximately 14 weeks to assemble a biennial capital investment proposal and address a number of outstanding policy issues. In early December, the Office of Minnesota Management and Budget (MMB) released the first of two budget forecasts in anticipation of the 2024 legislative session projecting a FY 24-25 surplus of $2.4 billion. Consumer spending and corporate profit growth contributed to an increased FY 24-25 tax revenue forecast as well as greater than expected consumer spending, investment, and employment. However, higher than expected spending on health and human services and education in the next biennium along with less than previously projected total tax revenues, are expected to create a structural deficit in FY 26-27. This will limit the amount of funds the 2024 legislature has for any capital investment and infrastructure bills, as well as outstanding bills that have fiscal implications.
Capital investment (or “bonding”) and infrastructure bills are generally the focus of session the second year of the biennium. We are expecting to see a bonding bill, as the governor has already rolled out his proposal. With the potential budget issues in coming years, the legislature and governor will need to be careful about spending in all areas.
Senate DFL Picks New Leader
In early February, Majority Leader Dziedzic announced that she was stepping away from her leadership position to focus on her health after receiving a renewed cancer diagnosis. Senate Democrats met last week and elected Sen. Erin Murphy (DFL – St. Paul) as the new Senate Majority Leader. The election was not without controversy within the caucus and, with only a one vote majority, Sen. Murphy will have significant work to do to navigate this session with a unified caucus.
Early Priorities
The session is expected to move quickly this year. A few priority bills already have hearings scheduled, including a bill that would make changes to the School Resource Officer bill that was passed last year and has been problematic in the interim. A tax bill “fix” related to the omnibus tax bill that was passed last session is also scheduled for hearings in each chamber this week as well. Last year’s tax bill mistakenly utilized an out-of-date amount for the standard deduction. If not addressed, this mistake could cost taxpayers $352 million over the next two years. The error won’t affect 2023 filers but will impact filers in the coming two years.
Deadlines Have Been Announced
Legislative deadlines are below. Of note, the first and second deadlines have been combined in a way that historically has not been done. The legislature must complete its work by May 20, 2024.
Important Dates to Remember
February 12, 2024 2024 Legislative Session Begins
March 22, 2024 First and Second Deadline
March 27, 2024 at 5pm Easter Recess Begins
April 2, 2024 at 12pm Easter Recess Ends
April 9, 2024 at 5pm Eid Recess Begins
April 11, 2024 at 12pm Eid Recess Ends
April 19, 2024 Third Deadline
April 22, 2024 Passover Recess Begins
April 24, 2024 at 12pm Passover Recess Ends
May 20, 2024 Deadline to Adjourn Legislative Session
