Capitol Letter for May 24
Observer Reports
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LWVMN Observer and Lobby Corps Member Carol Seiler
Conference Committee Activity SF2298
The bill contains the budget for the Housing Finance Agency and other appropriations. It contains provisions relating to housing and agency programs. Requires the Agency to include information about available tax credits and notice requirements related to manufactured home park sales in the annual letter to manufactured home park owners. Adds to the powers and duties of the Housing Finance Agency and requires an annual report on the financial stability of the affordable housing industry. Limits the rent increases on rental housing built with low income housing tax credits. Modifies the community-based first generation homebuyers assistance program enacted in 2023.
We'll begin with the House vote on 4/29/25. Rep. Spencer Igo (07A) presented the bill that would go to Conference Committee. He said there are three goals they are pursuing: affordability, stability, diversity. This is a bipartisan issue for both the House and Senate to fix the housing shortage.
Rep. Michael Howard (51A) quoted several statistics: Average age of the first time homebuyer is 38. The largest group of properties for sale are in the $500,000+ price range. There are 690,000 Minnesotans that are cost burdened in housing. 16,000 children experience homelessness in Minnesota. The shortage of housing is 400,000. Amendment 6 reduces barriers to create more affordable homes. Represenative Igo said that this is a good amendment and encourages approval.
Rep. Natalie Zeleznikar (03B) addressed Amendment A5. It’s a voice for seniors. She supports adding a senior to the group to represent that part of the population. Rep. Zeleznikar discussed Amendment A5 which is a Minnesota Nice Housing Pilot Project that includes housing sharing for seniors. She recommends approving the 3rd reading of Amendment A5.
Rep. Jim Nash (48A) said that home is a powerful word. There are great barriers to first time home buyers. The supply is 107,000 under what is needed. We need regulatory reform. He supports SF2298. We have to own responsibility for regulatory reform and wishes we could do something more meaningful this session. He encourages a green vote.
Rep. Katie Jones (61A) said she and her husband were fortunate in buying a tri-home.
Rep. Roger Skraba (03A) Stated that this is not a partisan problem; it is a math problem.
Rep. Huldah Momanyi-Hiltsley (38A) said how great it was to see the bipartisan work by the Committee. One goal is to prevent Minnesota families from falling into homelessness. One medical bill can put them in that position. We need to act before a crisis - not after.
Rep. Jeff Dotseth (11A) said that this is just one step to solve homelessness. We need to look at out-of-the-box thinking. This bill lightened the load to housing providers. 60% went into funding; more to Greater Minnesota and increased housing stock.
Rep. Michael Howard thanked the entire Committee and asked that we think about the future where we have solved the housing shortage. We now have the highest level of students graduating. Minnesota is a shining light of support. Is this future possible? Vote yes. Rep. Spencer Igo said that Minnesota is the best place to live. People need homes. We can start us in that direction to develop more family housing. Let's make sure there is a home for everyone. The bill passed the House with 106 yes votes and 25 no votes.
The House and Senate Conference Committee met on Saturday, 5/17/25. The meeting was called to order by Rep. Igo.
Erik Olaphson, House Finance Analyst, discussed the conference agreement spreadsheet and will go only through the change items. Mr. Olaphson went through every line item that was changed. Karina Heimark, House Finance Analyst, continued to cover line item changes including homeowner's assistance. Justin Cope, House Legislative Analyst, discussed Article 3 which modifies the annual requirement for credit and proceeded through the conference committee report line-by-line. It modifies the high rise sprinkler program and preserves affordable housing. Laura Payneter, Senate Analyst, discussed the income required to be used on qualifying projects. Landlords must provide heat to tenants. This was a clarification in language. She also said it calls for delay of the Minnesota Cooperative Housing Act by one year.
Sen. Eric Lucero (30) questioned the language and who changed it. He was concerned about language that could cause conflicts between landlords and tenants.
Rep. Michael Howard (51A) said we should look for another bill that made changes to language when it passed two years ago.
Rep. Jim Nash (48A) said that this Session has been a lesson in compromising. He said that community groups have slow rolled this legislation.
Sen. Lindsay Port (55) said that our priority was first generation downpayment assistance. It is a step in the right direction, but won't create an end to the housing crisis.
Rep. Liish Kozlowski (08B) said we need more affordable housing. Minnesota citizens can't wait. She is proud of what they accomplished but said it doesn't meet the need.
Sen. Liz Boldon (25) supports this bill and thanked everyone who testified. She is pleased with what had been accomplished.
Sen. Eric Lucero discussed the commercial rate on buildings that are not stick frame and the question to staff provision had fallen out of the bill because there wasn't money as well as the issue of Federal funding. Sen. Lucero said this was a very productive Committee because we all agree with the priority of increasing affordable housing.
Rep. Michal Howard said the issue is too important to not pursue emergency rental assistance. Many families will see their lives improve because of this bill; however, we missed the mark. The 2023 Session included a great deal of emergency housing help. We need more help for people. This is a drop in the bucket for home purchase assistance. We need to move our eyes to the Homes Agenda and must approve that next year.
Rep. Spencer Igo said we will bring this back next year. A motion was made to approve the 5/16/25 spreadsheet and passed unanimously. A motion was made to accept the conference 2298 Committee report and passed unanimously.
More Coverage: After the Conference Committee report passed the Senate on 5/17 and the House again on 5/18, the Housing budget agreement headed to governor, but calls for more action persist (House News)
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LWVMN Observer and Lobby Corps Member Carol Seiler
SF 2884 is a strong Omnibus pension bill that makes meaningful improvements to retirement benefits for the people who keep our state running and our communities safe. This includes teachers, firefighters, paramedics, State Patrol officers, and public employees across the state. Public school teachers will be eligible to retire sooner with lower early retirement penalties at age 60 if they have 30 years of service (known as the "career rule"). Retired public employees are provided improved cost-of-living adjustments (COLAs) to ensure their pension benefits aren't eroded by inflation, including PERA Police and Fire, which will receive a one-time, compounded three percent COLA.
Additional funding will allow police officers and firefighters in this plan to receive a COLA one year sooner than under current law. State Patrol Troopers will receive a permanent 1.25 percent annual COLA. Other retirees will benefit from strengthened COLAs that help maintain purchasing power over time. This passed the Senate with a vote of 55-12. It then went to the House where it passed 133-1.
The hearing started under call and roll call was taken by the Senate Secretary followed by the Pledge of Allegiance. An accounting of Senate bills that had been sent to the House were returned to the Senate. The bills are SF 1959, SF 2370, and SF 1740. Senator Erin Murphy (64) stated Rule 26, SF 2884, Senator Nick Frentz, Pension Omnibus Bill. Thanked the nonpartisan staff for all their hard work over the previous night to get it ready for today. It includes legislative members pension and retirement. The bill represents $80 million base target to cover Minnesota pension improvements and public safety for the 2026 payment of a 3% COLA. The State Patrol will get a COLA of 1.25% for every retiree at $2.3 million cost. Teachers will have the career rule (60/30) pension. Teachers retirement accounts will take this money and apply it to career rule.
Senator Judy Seeberger (41) asked about the provisions of disability.
Senator Bill Weber (21) was concerned that St. Paul teachers were not included in this bill.
Senator Jordan Rasmussen (09) said a good teacher can change peole's lives. These benefits are not fully funded ($40 million in costs with only $20 million funded). He presented Amendment A51 which adds money into the teacher's pension fund to eliminate underfunding and includes St. Paul teachers. Senator Nick Frentz (18) said he cannot support the A54 amendment and encourages a no vote.
Senator Carla Nelson (24) stands in support of A51 and encourages a yes vote. Senator Zach Duckworth (57) is in favor of the amendment and said it should have been done in the last session where we had a surplus. Senator Eric Lucero (30) had many discussions with teachers. One resounding them was that the State of MN has made many promises regarding pensions, but nothing has been done. He is in favor of A51. Senator Sandra Pappas (65) said St. Paul teachers would not be included. They have a career rule and pay for it themselves. She says to pass the without A51. Senator Jordan Rasmussen (09) says the amendment gives $20 million each year to ensure pensions are fully funded A vote is taken and does not pass with a 31-35.
Senator Matt Klein (53) is concerned about teachers, police, etc. would not want an amendment (A50) change and risk the bill not passing in this session. A vote was taken and it was not adopted by 33-34.
Senator Jordan Rasmussen (09) presented amendment A52 says that teachers are paid out of teacher's funds. The salary of the executive director of Teacher's Retirement Association (TRA) cannot be paid in excess of the Governor's salary. Senator Nick Frentz encouraged a no vote and said this amendment would threaten a delay of vote of the bill in this session. Senator Rasmussen reiterated what is in the amendment and encouraged a yes vote The amendment was not adopted with a vote of 33-34.
Senator Jeff Howe (13) said a line needs to be drawn between physical and psychological (60 month) disability and between permanent and partial disability and proposes amendment A53. Senator Bill Lieske (58) asked why is this being pushed through now? One of the reasons for this was because the other side did not participate for three weeks. Senator Jeff Howe withdraws amendment A53.
The Senate Secretary gives the third reading.
Senator Zach Duckworth (57) says the arguments against the amendments because they may prevent passage of the bill this session are ridiculous. We should have revisited this last session when we had a surplus rather than a deficit. He is angry we didn't take care of this when we had a surplus.
Senator Robert Farnsworth (07) said if we amend the bill and make it better, it would go to the House. The amendments offered today would not kill the bill. In the 1980s, Rule of 90 was put in place for teachers. We need to fix it. Teachers pay 1/3 of their salary to fund pensions. Let's correct the historical injustice.
Senator Heather Gustafson (36) said she is a 2 Tier teacher. She knows the problems that exist. This is about respect, fairness. The surplus went to infrastructure and schools. Please vote yes for this bill.
Senator Steve Drazkowski (20) said this has been a priority on how to support our tier 2 teachers. It will improve outcomes for our children and make sure all students are getting the best. He supports SF 2884.
Senator Jim Abeler (35) will vote yes. There is a lot of good things in the bill. Our Minnesota pension funds are doing well.
Senator Steve Cwodzinski (49) thanked everyone who has worked on this bill. In his youth, teachers were highly respected. We listened to you teachers when you said you need help.
Senator Bill Lieske (58) is not in favor of this bill. We are taking things away from fist responders. We are hurting those that are disabled. I vote no.
Senator Jeff Howe (13) is concerned that the benefits not funded are taken out of sufficiency. If the markets go down, this could be financial trouble. We're giving people a carrot not a bandaid.
Senator Erin May Quade (56) thanks teachers and all the work the committee did to pull this together.
Senator Glen Gruenhagen (32) is a son of a teacher. We could have taken care of this in 2023. We could have used the surplus to fund the pension plan. The amendments would have made it a better bill but I will vote yes.
Senator Carla Nelson (25) It is good for teachers and first responders. Not perfect but a step in the right the right direction. I will vote yes.
Senator Nick Frentz (18) has a son and brother who are teachers. Thanks to members of the Legislative Commission on Pensions and Retirement (LCPR). The Rule of 90 went into effect in 1989.
HF 1143 Senator Jennifer McEwen (08) stated that hourly paid school workers have been excluded from unemployment comp (UC). They are mostly women. In 2023, we voted to bring hourly workers into the UC. We need to tax the wealthiest in our state.
Senator Jason Rarick (11) presented A3 amendment to include fund schools, help failed inspector general in department of education find fraud. Money goes to each school on the basis of per pupil. This is something we can get done. I ask for your support. Senator Mary Kunesh (39) are you saying take the Senate out of the funding bill? Are you suggesting that we take the House bill and accept that? Senator Rarick, yes that is what is being suggested. Senator Kunesh reminds everyone that it is our responsibility to our citizens; it takes out of the funding. This is sloppy, irresponsible. Vote no. Senator Rarick said it opens two accounts in the Department of Education. Senator Robert Farnsworth said the amendment may only reply to the issue. The Senate President stated a rule which was challenged by a Senate member. Shall we take a roll vote on the president's rule? It was decided to do so. The rule remained in place with a vote 35-32.
Senator Rarick said that the bill is here today because in 2023 we brought hourly workers in to the unemployment market and offers the A5 amendment which would put $100 million in UI but will sunset this program. Schools hire out to companies (bus drivers and cafeteria workers) and would not be included in this program. Senator Jennifer McEwen opposes the A5 amendment and asks you to vote no.
Senator Rarick said the inclusion of UI is because the school schedule is known. The president asks the secretary to take a roll vote on the amendment. The amendment was not adopted by a vote of 32-35. Senator Mary Kunesh asked they vote no. UI funds are those funds special education is lagging. Senator Jeff Howe asks for a green vote on A2. The amendment is not adopted with a vote of 33-34.
Senate secretary does the third reading of HF 1143.
Senator Rarick said this should have gone through Education.
Senator Maye Quade thanked Senator McEwen and Senator Liz Boldon (25) and said it was the right thing to do.
Senator Kruen (32) encourages a no vote.
Senator Kunesh said that hourly workers asked her when you get elected would you get us UI. After that, she visited a school and witnessed a different culture than had been before because of UI.
Senator Grant Hauschild (03) asked do we extend UI to steelworkers when we don't to lower paid workers? Vote green.
Senator Lindsey Port (55) is proud to vote for this bill. Thank you Senator McEwen for your work. She didn't give up on these workers. Senator Nelson said that paraprofessionals are extremely important in school districts. In the past, it was funded fo one time only. I encourage a green vote.
Senator Rarick said one of his constituents is a school bus driver who emailed him saying we don't need UI. A no vote isn't telling workers they don't matter.
Senator McEwen said we had a good debate this week. Tax breaks for wealthy and corporations and tons of loopholes put a disproportionate financial burden on lower paid. The answer is taxing. Keep the North Lights Project alive and well. A roll call vote on SF 2884 resulted in passage with 55-12.
Senator Erin Murphy made a motion to recess and come back around 5:30. She believes they will receive information from the House. The motion carries.
Later in the day they reconvened under call. Senator Boldon made a motion to excuse some members who had other committee commitments.
Representative Leon Lillie (44B) suggested that SF 2884 be placed on the legislative register with ab $80 million target in each biennium. The motion passed. Rep. Lillie made closing remarks. This is work we can all be proud of. We have a great staff to work with. Representative Zach Stephenson (35A) made a motion that SF 2884 be placed on the legislative register. The motion passed and the meeting was adjourned. The House passed the bill with a vote of 133-1.
More coverage from House News: Lawmakers pass bill boosting pensions for Minnesota teachers, police and firefighters
News from MN State Capitol
Page added to House website for special session working group information (House News)
“At a May 23 signing of the pension law, Gov. Tim Walz said he is “very confident” a special session will be completed before June 1 when preparations for a partial state government shutdown would begin.”
Effort to create state budget continues at Minnesota Capitol mostly out of public view (Minnesota Reformer)
What did — and didn’t — get done at the Minnesota Capitol this session (MN Star Tribune)
Ag budget includes funding to replace canceled federal grants, but food banks say it cuts assistance (Minnesota Reformer)
Lawmakers play blame game as session comes to end without major budget bills (Minnesota Reformer)
Please learn more about the status of LWVMN priorities on our Legislative Session 2025 webpage.
News Relating to Federal Action
Millions of people depend on the Great Lakes’ water supply. Trump decimated the lab protecting it. (Minnesota Reformer)
U.S. House Republicans push through massive tax and spending bill slashing Medicaid (Minnesota Reformer)
The Topline: Tens of thousands of Minnesotans to lose health insurance (Minnesota Reformer)
Please see the Actions of the Week at our Take Action webpage including tools to Stand Up for Medicaid.
