(St. Paul, MN) – Senate Republicans adjourned an unprecedented and historic session on Sunday night. Last January, priorities were placed on passing a public bonding bill, providing tax relief with the projected surplus, and reforming the state’s beleaguered Department of Human Services. In March the coronavirus pandemic paused, and then filtered the remaining months of session.
“The 2020 session was very unique, the virus really threw a wrench in our operations and priorities, but we managed to accomplish a lot considering the circumstances,” said Senate Majority Leader Paul Gazelka (R-East Gull Lake). “We got there by working together and by focusing our priorities to what must be done to stop the spread of COVID-19, what we needed to do to revive the economy, and not taking up items that would exasperate the state’s projected deficit.”
To address COVID-19, the Senate approved $20.9 million to fund the initial public health response and $200 million was put in a newly formed “Minnesota COVID Response Fund” for the Governor to use immediately for COVID-related needs to prepare hospitals and care centers for COVID-19, flatten the curve, and save lives. The money was also used to purchase personal protection supplies to prevent the spread of the coronavirus, renovate rooms into specialty care, or purchase life-saving equipment. Finally, $347 million in funding was given to hospitals, clinics, nursing homes, and state agencies, child care providers, small businesses, college students, and veterans, along with $1.25 million to Second Harvest Foodbank to support increasing demand on local food shelves.
In addition to funding, many changes in state policy were adopted in response to COVID-19. A bipartisan bill provided worker’s compensation benefits for frontline workers should they become infected with COVID-19. To help defer health care costs of COVID-19 to individuals, the screening, testing, and treatment of COVID-19 were waived for anyone without insurance, and medical assistance was made available for those who need it for COVID-19 testing and treatment.
Outside of COVID-19, the 2020 legislature made significant improvements to improve transparency for the cost of prescription drugs. The Governor signed a bipartisan bill for elections with “Help American Vote” Act (HAVA) and “Coronavirus Aid, Relief, and Economic Security” Act (CARES) funding to support voters who cast their absentee ballot by mail and provide safety precautions for those who choose to vote in-person. Finally, some very long-running issues: T-21, the TCE ban, and Insulin were passed with bipartisan support in the middle of the pandemic.
However, several key items remain on the table after adjournment. Senate Democrats failed to support the passage of nearly $1 billion for a public infrastructure and jobs bill. The bill focuses on key infrastructure needs, and projects that will get Minnesotans working, preserve the state’s assets or stimulate the economy. The bonding funds for roads and bridges, airports, and freight rail will provide safe and fast transportation for commerce, education, and recreation. “It’s disappointing that we couldn’t come together on this responsible, important bill,” said Gazelka. “All four leaders and all four caucuses- including Senate Democrats- and the Governor, have to work together for Minnesota.”
The Senate also passed an economic relief tax bill that was targeted to employers and farmers with Chapter 179 conformity. To help businesses recover from COVID-19 business closures, the Senate approved legislation to give businesses more time to pay their taxes and exempted any federal Paycheck Protection Program dollars received from state taxes to maximize the impact those dollars can make. A housing bill with $100 million in bonds for affordable housing and $100 million in housing assistance for those affected by COVID-19 was passed by the Senate in the final hours. The bill included reforms to remove the expensive regulations for a long-term impact to lower the cost of homes across the state. None of the tax or housing language was taken up by the House in the final hours of session.
In light of the projected $2.4 billion deficit, Senate Republicans took strategic action to protect both the state employees on the front line of the COVID crisis and the state’s budget with a modified contract approval. The modification pus in place a wage freeze for the second year that begins July 1, 2020. The 2.5% pay raise for the second year of the contract would be restored for state employees if the state achieves a surplus by July of 2021.
Without an agreement between the House and Senate, state employees now face a 2.25% cut in pay, retroactive to last July. “That would be completely unfair,” said Gazelka. “State employees are not at fault here; we’re just trying to make the best of what could be a disastrous situation, either face a very harsh pay cut, or layoffs at the state to manage a deficit. We have more than $650,000 Minnesotans unemployed due to COVID-19. The modified ratification to freeze the pay of state employees is the commonsense, fair solution. I hope the Governor will work with the union leaders to accept these changes and do what’s right for all Minnesotans.”
The Bonding bill, tax relief, housing support, and state employee contracts could all be taken up in a special session, should the Governor call the legislature back in June.
Watch Gazelka’s Press Conference from May 18th, 2020