Senator Rich Draheim (R-Madison Lake) presented two bills to the Senate Jobs and Economic Development Committee on Wednesday, aiming to help struggling cities deal with abandoned buildings and ensure state grant money is used responsibly.
SENATE FILE 240 – REINING IN EXECUTIVE PAY AT NONPROFITS
“State funds should support programs and services, not sky-high executive salaries,” Senator Draheim said. “This bill makes sure grant money goes where it’s needed most — not into the pockets of overpaid executives. Hopefully it will encourage more nonprofits to prioritize funding programs and services over executive pay.”
Nonprofit organizations that receive state grants should prioritize their mission over excessive executive pay. SF 240 ensures that any nonprofit paying its top employees more than 125% of the governor’s salary won’t be eligible for economic or workforce development grants. Compensation includes not just salary but also bonuses, stock options, benefits, and other perks.
This law would not apply to performance grants under Minnesota’s existing Job Creation Fund program
The goal is simple: taxpayer dollars should go toward helping people, not padding executive paychecks.
SENATE FILE 227 — HELPING STRUGGLING CITIES DEMOLISH UNSAFE BUILDINGS
“Abandoned buildings are a burden on cities and a safety risk,” Senator Draheim said. “This bill gives struggling cities the help they need to clean up blighted properties.”
Some cities in Minnesota struggle with high property taxes and limited budgets. Many have abandoned buildings that are unsafe and too expensive to tear down. SF 227 creates a grant program to help these financially stressed cities cover half the cost of demolishing vacant, hazardous buildings.
To qualify, cities must have property tax rates at least 125% above the state average, and the buildings must have been vacant for at least a year. The program, funded at $2.246 million per year in 2026 and 2027, prioritizes cities with the greatest financial need and the most dangerous structures.
This bill helps clear out blighted properties and makes communities safer.
Both bills were laid over for inclusion in a larger jobs bill later in session.