Hello from St. Paul,
May 19 marks the official end to the 2025 legislative session, but we will need a small overtime period in order to finish up our budget items.
Late last week, legislative leaders and Governor Walz came to a budget agreement. Since then, lawmakers have been approving House/Senate compromise plans for different areas of state government. For example, I was pleased to support the agriculture finance proposal for our farmers, and the public safety finance bill that will help local law enforcement keep our communities safe.
A few others still need to be wrapped up, such as K-12 Education and health, and my best guess is that Governor Walz will call a special session in the coming days once we have reached agreement on all the unfinished proposals.
Minnesotans should be pleased that balance was restored at the Capitol this year. We were able to stop $8 billion in tax increase proposals this session, and because of this, no Minnesota family will see a tax increase in this budget. Further, the agreement eliminates nearly half of the projected budget deficit for the next budget cycle.
After special session has been called and completed, I’ll be sure to give you a more comprehensive breakdown of the specifics contained within the budget deal.
FIGHTING TO IMPROVE TEACHER PENSIONS
Nearly every teacher I talk to asks when the legislature is going to improve their pensions. Minnesota’s teachers’ pensions are not comparable with what neighboring states provide.
Burnout for teachers is on the rise, and far too many of them are leaving the profession because of it. This is something our communities, and our children, cannot afford.
Teachers are rightfully frustrated, and they should be.
Last session, an all Democrat-led legislature and Governor Walz wasted an $18 billion budget surplus, raised taxes by more than $10 billion, and grew government by roughly 40%.
With that record amount of money available, did Democrats address the teacher pension problem?
Nope.
House Republicans recognize that a solid pension system for educators might entice many of those thinking of leaving the classroom to stick around. We also recognize that the state needs to stop meddling in local school district affairs and let teachers teach. It’s a tough job, and certainly not for everyone, and it is critical that we keep our best in our schools for as long as they care to teach.
House Republicans listened to educators from across the state and crafted a package of common sense reforms based on what we heard and learned from teachers who spend every day in the classroom. These included:
- House File 2318, which allows teachers to retire with an unreduced pension at age 62 with 30 years of service.
- House File 2329, which expands reduced Early Special Retirement option from 62/30 to teachers age 60 with 30 years of service.
We even offered to end the free school lunch program (not free breakfast) this session for families who make more than $150,000 a year. This would have freed up $111 million to provide much needed assistance to teacher pensions and help stabilize the Teachers Retirement Association.
Unfortunately, Education Minnesota (EdMN) – the teachers’ union - testified against this idea. While unions play a role in advocating for educators, it is crucial to acknowledge that this opposition ultimately helped block an opportunity to bolster teacher retirement benefits.
On the final day of session, House Republicans were finally able to some support. Right now, teachers who retire before 65 see a steep reduction in their benefits. The approved plan allows educators to retire as early as 60 and still receive a more reasonable benefit - still reduced, but not as severely.
We invest $40 million every two years to cover increased pension contributions from schools, lightening the load on local budgets and not making schools choose between funding pensions or keeping dollars in the classroom.
These improvements aren’t just about fairness; they’re about making Minnesota a place where great teachers want to work and build a career. House Republicans recognize this pension problem isn’t going away and will continue working on behalf of teachers to improve their retirement security.
Talk to you soon,
Tom