Governor Revises Budget

On March 21, Governor Tim Walz released a revised FY 2026-2027 biennial budget, which incorporates the impact of the latest budget and economic forecast released on March 6. The revised budget includes just under $250 million in budget reductions that carry over into FY 2028-2029. Also included were small, primarily one-time investments related to Avian Influenza and law enforcement training. The Legislature will now need to shift its focus to the budget, with only two working weeks left until their April 11 deadline for budget bills to be finalized by committees.

Senate Releases Budget Targets

The Senate released budget targets today. The budget target spreadsheet lists general fund net spending numbers by each major budget area. The House has not yet released its targets.

Special Election Scheduled

Following last week’s resignation of Senator Justin Eichorn, the Governor has called a special election to fill the now-vacant Senate District 6 seat. Candidates have already begun filing and may continue to do so until 5:00 p.m., April 1. If needed, a primary election will be held on Tuesday, April 15, with the special election taking place on Tuesday, April 29. The new member will likely be seated on Monday, May 5. To date, five Republicans and one Democrat candidate have filed for the seat.

Walz Calls Workers Back/Unions Push Back

Earlier this week, Governor Tim Walz called for most state agency employees to return to the office at least 50% of the time beginning on June 1, with an exception for those who live at least 75 miles away from their primary work location. St. Paul Mayor Melvin Carter indicated that he and the Governor had been discussing the return to work of state employees for months and that the return of employees to the city on a regular basis would be extremely beneficial for the struggling downtown. However, unions that represent the affected workers expressed surprise and dissatisfaction with the announcement. Bart Anderson, Executive Director of AFSCME Council 5, stated that “we will not tolerate unilateral changes to our members’ work,” and Megan Dayton, President of the Minnesota Association of Professional Employees (MAPE), didn’t rule out the possibility of a strike.

State of the State

Governor Walz and legislative leaders have agreed on a date and time for the Governor to deliver his State of the State Address. Members of the legislature will convene on Wednesday, April 23 at 7:00 p.m. in the Minnesota Capitol for the update. While the Governor of Minnesota does typically deliver a state of the state address, both the timing and location of the event are very flexible and vary from year to year.

March 28, 2025