Yesterday, May 15, 2025 legislative leaders and Governor Walz announced the high level details of a global budget deal. The 2025 regular legislative session is set to adjourn on May 19, 2025 but a special session will likely follow to wrap up a few major budget bills, including the E-12 budget bill. The plan will keep E-12 funding at its forecasted levels for FY 26-27, but reduces E-12 spending by $420M in the “tails” budget or FY 28-29.

The tails reduction will likely result from reductions in either or both the forecasted increases on the basic formula or in special education cross-subsidy aid. GOP leaders said there won’t be cuts to nonpublic school aids, and DFL leaders said a plan to sunset Unemployment Insurance benefits won’t be a part of the final bill. These and all other E-12 changes will be hammered out over this coming weekend and into early next week.

2 Weeks Remaining in Session

The legislature must adjourn two weeks from today, and the race is on to see if they will complete the state’s budget in time. A special session is not out of the question, but some legislators remain hopeful that they’ll finish on May 19. Legislative leaders are committed to on-going budget negotiations with hopes of reaching a comprehensive agreement soon. Following several in-depth meetings last week, Governor Tim Walz indicated that the group is working productively toward the final budget framework. Still, House Speaker Lisa Demuth warned that a finalized deal may take longer to come together. Once finalized, the budget targets will serve as a roadmap for conference committees to craft legislation on major issues including education, health care, transportation, and public safety.

SAFF Educational Leaders:

After the prolonged election drama delaying the official start and full organization of the 2025 legislature, this budget setting session is about to pivot from what was a shortened period of hearing ‘all ideas’ to a narrowing process that will have us focus on omnibus policy and budget bills.

Hello SAFF Members,

As the legislative session is in full swing, Capitol Hill Associates (CHA) would like you to take note on a few bills currently under discussion that affect our districts with low property wealth tax base.

The 94th Minnesota Legislature’s session has been marred by a significant impasse in the House of Representatives. Following a judicial ruling that invalidated the election of Democrat Curtis Johnson in District 40B, the House was left with a temporary 67-66 Republican majority.  In response, House Democrats initiated a boycott to prevent Republicans from leveraging this advantage. The Minnesota Supreme Court subsequently ruled that a quorum requires 68 members, effectively halting House proceedings until the vacant seat is filled.