One Minnesota’s transformative budget

The nearly $72 billion budget passed by the Minnesota Legislature and signed into law by Governor Tim Walz last week has been both hailed as historic and lamented by opponents.

The DFL majority in both houses addressed longstanding issues such as paid family and medical leave, gun safety measures, voting rights and democracy protections, based on a $17.5 billion surplus that enabled Democrats to expand state programs. Republicans criticized the record spending and argued that they were left out of the legislative process, noting that many bills were passed with only DFL support. 

“The legislative session was the best for workers, families, and children in Minnesota’s history,” said ISAIAH, a multi-faith, multiracial, statewide non-partisan community organizing coalition, in a press release. “The transformative policies and resources we won are the culmination of over a decade of organizing thousands of regular Minnesotans to make more possible.”

Some of the key highlights of the One Minnesota Budget:

• Provides the largest tax cut in state history that includes a one-time tax rebate of $260 for single filers with an adjusted gross income (AGI) of $75,000 or less, $520 for joint filers with an AGI of $150,000 or less, an additional $260 per child up to three dependents for families meeting the AGI filing thresholds, and a child tax credit up to $1,750 per child for lower-income families.
• Allocates $400 million for programs targeted to Minnesota’s youngest learners, including a $40 million increase to Head Start.
• Funds the North Star Promise Program, which provides free college tuition for students with a family income of less than $80,000.
• Invests $2.9 billion over the next four years for long-term care, substance use and addiction, funding for nursing homes, and workforce retention in long-term care facilities.
• Provides $1.3 billion for improvements to state roads and bridges, including the necessary matching dollars for the federal Infrastructure Investment and Jobs Act.
• Provides funding to help more families access affordable child care; funds programs to address homelessness and food insecurity in Minnesota; and provides greater stability for Minnesotans living in poverty. 
• Sets aside state money to pay the difference between federal funds for Title I-eligible students and what is needed to provide free meals to all students, starting in the next school year.
• Provides a record $1 billion to address Minnesota’s housing needs.
• Provides a $3.5 billion public safety budget with $880 million in new funding and new gun control restrictions.
• Provides more than $1 billion in new funding over the next two years for state transportation projects.
• Increases spending on state government by more than $400 million.

The State Innovation Exchange (SIX), the nation’s only movement-based network of state legislators advancing progressive policies, is calling Minnesota a “lab” for progressive policies. Co-Executive Director Neha Patel told the MSR that the wins didn’t happen overnight or on their own.  

“I’m really excited about what we’re seeing in Minnesota,” declared Patel. “State legislators are on the front lines of the most important issue of our time.”

The Minnesota DFL “trifecta,” with control of the House, Senate and governor’s office that came about after last November’s elections, is “this new shift in power…with the promise of a government that would work to protect and care for all Minnesotans,” added Patel.

After the elections, SIX held a three-day conference in Washington, D.C. “We gathered about 500 state legislators and people’s movement partners and national leaders for a three-day conversation about governance and power in governing,” explained Patel.  

Minnesota state legislators Leigh Finke, Erin Maye Quade, and Ruth Richardson were among the attendees. 

“The fight doesn’t stop because the policies are becoming law,” continued Patel. “The Minnesota State Legislature [must] continue investing in this coalition and being prepared, not just in a defensive posture but an offensive posture, for the backlash” from opponents.

However, Patel pointed out that what happened in Minnesota might not be replicated elsewhere because of Republican-controlled legislatures not looking to pass progressive bills and/or GOP governors who could veto progressive bills when they come to their desks.

Patel said the Minnesota DFL majority should be praised as they leveraged their new majority to help pass legislation that hopefully keeps its progressive policy momentum going into 2024. “The policies actually have an incredible positive impact on the lives of children and Minnesotans of color,” she concluded.

Updated June 2, 2023: This story was updated to fix the description of the State Innovation Exchange.