February Budget Forecast to be Released on Monday

In the past few months, I along with Corey Anderson and other NAIFA Minnesota members have been meeting with a group of industry professionals and nonprofits that have combined to create the Financial Literacy Coalition of Minnesota (FLCM).  This group is aiming to advance financial literacy for Minnesota youth by requiring a high school course in personal finance to graduate. Over the course of this legislative session, a bill will be in the state legislature to ensure this requirement is implemented. We are proud to be partnering with the FLCM and the Minnesota Council on Economic Education (MCEE) to help accomplish this goal. 

Big Picture Issues

Walz Releases Budget

Walz Set to Release Budget
Governor Tim Walz will release his budget proposal on Tuesday, a plan expected to call for record spending as well as major policy initiatives. The State’s record $17.6 billion budget surplus will allow the Governor to make significant spending increases. Walz began rolling out pieces of the budget this week. On Tuesday Walz proposed spending $5.2 billion on schools, including more money for special education, mental health and free breakfast and lunch for all students. He also wants to expand Minnesota’s child and dependent care tax credit to help about 100,000 families with day care costs. Families earning less than $200,000 could get up to $4,000 for one child, $8,000 for two children and $10,500 if they have three kids. Walz also wants to create a new Department of Children, Youth and Families from portions of the Education, Human Services and Corrections Departments. His office said he is also thinking of dividing the Department of Human Services into three separate agencies. On Thursday Walz announced plans to spend $4.1 billion on economic development, job training, family medical leave and tax breaks for small businesses. His health care budget ideas are expected to be released on Monday        

Big Picture Issues                 

Quote of the Week: "I would expect this would be the fastest start anyone can remember for bills moving through the Minnesota legislature. …It will be a very busy January!” House Speaker Melissa Hortman commenting on the start of the 2023 session.

Valued Clients, while many of you watched the election returns in real time, below are the facts of the outcome, what it means for the 2023 legislature and why things happened as they did, at least in my humble opinion.

Here in Minnesota, a multi-million dollar cash advantage combined with a more sophisticated data and get-out-the-vote system and a strong pro-choice message created a blue wave that gave the DFL control of the Governor’s office, the Senate and the House for the first time since 2014.  This means the DFL can set and pass an agenda without having to compromise with Republicans.  The fights in St. Paul will now be between a progressive Senate and House and a liberal Governor to their Right. 

The state Commerce Department says health insurance premiums on average statewide would have been 15 to 20% higher without the program between 2018 and 2022.