Dear Neighbor,
Omnibus finance bill season has begun in the House, with the majority starting to bring to the floor a series of packages that will fund our state’s next two-year budget.
Much has been made of the fact that, in total, the bills would raise state spending by approximately 40 percent – from $51.6 billion to around $72 billion. While the biggest bills are still making their way through the process, the House did approve two omnibus packages this week, one related to higher education and the other appropriating Legacy Amendment funds.
Before we get to those, I want to mention the Rural Finance Authority Board has declared an emergency for all 87 counties in the State of Minnesota in response to this winter’s excessive snow and winds. This makes zero-interest Disaster Recovery Loans available for Minnesota farmers whose operations have sustained physical property damage or loss of livestock since January 2023.
The Disaster Recovery Loan Program offers affordable financing to clean up, repair, or replace farm structures and replace livestock that may have been destroyed due to high winds and the weight of snow, sleet, and ice this year. The funds are available to farmers for expenses not covered by insurance. Eligible farmers will work with their local lender to secure the loans from the RFA.
More information, including full eligibility requirements, can be found on the Disaster Recovery Loan Program website.
Coincidentally, the House on Thursday passed a bill pertaining to RFA without opposition (129-0), providing $50 million so the Authority may continue offering valuable services to farmers as the state’s main agricultural lending arm – partnering with private lenders to offer low-interest loans to those eligible.
As for omnibus bills, the Legacy bill totals $821 million, appropriating revenue raised by a three-eighths of one percent additional sales tax that was passed by Minnesota voters in the 2008 Clean Water, Land and Legacy Amendment to the Minnesota Constitution (“Legacy Amendment”). Tax revenue is distributed into four funds as follows: 33 percent to the Clean Water Fund; 33 percent to the Outdoor Heritage Fund; 19.75 percent to the Arts and Cultural Heritage Fund; and 14.25 percent to the Parks and Trails Fund.
Regarding higher education, we need to ensure we’re making the right investments in the right places for this important section of our state budget. The bill which passed does more to fund administration than students. For example, the bill provides a $650 million (18.5%) increase in the next biennium. Universities across the state are experiencing an average 6-7% drop in enrollment. This can only mean that we are funding systems, not students. We need to prioritize funding students’ education and keeping them safe, not paying executives.
Watch for more news on omnibus bills, especially as the bigger packages make their way to the floor soon. I will be paying particular attention to the bill related to agriculture. I also have concerns related to an ag-related measure in an omnibus environment package requiring some livestock operations to provide a bond to cover losses in case of bankruptcy. I may weigh in with my thoughts on that subject as things unfold.
Until next time, have a good weekend and please stay in touch.
Sincerely,
Paul