Minnesota Revenues Continue to Grow

Minnesota Management and Budget (MMB) reported this week that Minnesota’s revenue collections for February and March are $241 million more than was forecasted in the February 2024 Budget and Economic Forecast. MMB also reported that the State’s macroeconomic consultant now expects a slightly improved economic outlook in the “near term”. Annual GDP is expected to be 2.5 percent this year, compared to the 2.4 percent predicted in their February forecast.

Lobbyist Registration Requirements Get Another Look

Both the Minnesota House of Representatives and the Senate have created an omnibus elections policy bill, H.F. 4772 (Rep. Mike Freiberg, DFL-Golden Valley) / S.F. 4729 (Sen. J. Carlson, DFL-Eagan). While the bills contain several different issues, both have provisions that further address the significant changes that were made to lobbyist registration requirements last year. Provisions related to the following issues are included in at least on the bills:

  • A study on lobbyist registration requirements, to determine if further changes should be made;
  • A deferral on new registration requirements based on last year’s changes, to provide additional time for Administrative Rules to take effect and to better alert lobbyists and potential lobbyists to the changes;
  • Clarification of provision of professional services versus lobbying to entities.

While the House has passed its bill, the Senate is expected to pass its version sometime next week. The bills will go to conference committee where the differences will be reconciled.

Recycling Issues Take Center Stage at Legislature

Two major recycling bills are moving through the legislature. H.F. 3566 (Rep. A. Hollins, DFL-St. Paul) / S.F. 3940 (Sen. R. Kupec, DFL-Moorhead) would expand Minnesota’s electronic waste law, which currently covers appliances and computers, to all electronics and impose a 3.2% retail fee. Another bill, H.F. 3577 (Rep. S. Jordan, DFL-Minneapolis) / S.F. 3561 (Sen. K. Morrison, DFL-Deephaven) would create an Extended Producer Responsibility (ERP) program organized and funded by producers of packaging and papers products to collect, recycle and reuse packaging and paper products. Both bills are facing significant opposition but are close to being heard on the Senate and House Floors.

Set-Aside

As the legislature begins putting together omnibus finance bills, it has already become apparent that several issues are not making the cut this year. One of the key issues that had been discussed over the interim that is being set aside for the year is an expansion of child care subsidies with a price tag of $500 million (H.F. 3681 – Rep. Carlie Kotyza-Witthuhn, DFL-Eden Prairie). With limited budget targets, high dollar provisions like this will not be passed this year.

Uber/Lyft Saga Continues to Make Headlines

This week the Minneapolis City Council unanimously voted to delay the start of an ordinance requiring minimum pay for Uber and Lyft drivers in the city. Passed earlier this year and set to take effect on May 1, the ride sharing companies threatened to pull out of the city when the ordinance goes into effect. The new effective date is now set for July 1, and is intended to provide additional time to further negotiate with Uber and Lyft and provide additional time for other ride sharing companies to establish operations in the city.

April 12, 2024