Minnesota lawmakers reconvene with giant surplus for 2022

Published 6:29 am Tuesday, February 1, 2022

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ST. PAUL — Minnesota lawmakers returned to the Capitol for the 2022 legislative session on Monday with a $7.7 billion surplus to wrestle over as they take up policy issues including frontline worker bonuses and which party has a better vision to rein in crime.

Priorities that include addressing rising crime rates through funding for police, boosts to education funding and reducing taxes were among the agendas of Democratic Gov. Tim Walz and the divided Legislature as lawmakers reconvened on Monday. For Senate Republicans, those priorities include addressing crime through proposals like mandatory minimums and limiting prosecutorial discretion to ignore low-level crimes as top priorities, as well as a focus on literacy rates among students.

GOP Senate Majority Leader Jeremy Miller, of Winona, said his caucus is also going to push for ongoing tax relief in the form of income tax rate cuts for lower- and middle-income Minnesotans and the elimination of taxes on Social Security benefits to combat inflation. Miller said a one-time direct payment could be effective in that regard but a proposal like Walz’s $700 million request — which would send checks of $175 or $350 to more than 2.7 million Minnesota households — is not enough.

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“We might be OK with a one-time payment but you know what, it’s got to be a heck of a lot larger than what the governor is proposing,” Miller said. “And we’re not going to call it a ‘Walz check.’ It is not Governor Walz’s money — it’s the people’s money. It’s the taxpayers’ money.”

Democratic House Speaker Melissa Hortman, of Brooklyn Park, urged caution on how to spend the surplus before the next state economic forecast comes out in February. But, she said, lawmakers in both parties want to parcel out $250 million in federal relief as “hero pay” early during the session after a special panel formed last year couldn’t agree on how to share out the money.

Senate Republicans wanted to offer $1,200 in bonuses to about 200,000 workers like nurses and long-term care staff while House Democrats wanted to give roughly $375 to a wider range of 670,000 essential workers. Walz and House Democrats want to increase that amount to $1 billion, but Senate Republicans are not interested in going above $250 million, Miller said Monday.

Republican House Minority Leader Kurt Daudt, of Crown, said the majority of the surplus should go unused except for permanent tax relief since the state passed its two-year budget last session.

“It’s tough to make the case now that we need to spend more on state government. We’re collecting too much, it’s time to give that money back,” Daudt said.

Senate Democrats had the opposite approach Monday as they unveiled their legislative priorities, which were similar to proposals from Walz and House Democrats last week, like law enforcement and crime prevention funding, affordable housing and improving resources for students in schools.

“Although the Senate DFLers do not set the day-to-day agenda, we didn’t come here to be passive spectators or partisan obstructionists,” said Democratic Senate Minority Leader Melisa López Franzen. “Our caucus is made up of serious legislators who will bring forth thoughtful and serious proposals.”