In This Issue:
- 2025 Metro Cities Policy Committees
- Global Budget Agreement Sets Committee Targets
- Omnibus Bill Updates
- Metropolitan Council Announces Expanded Policy and Affordable Housing Program Development Grants
- Community Stabilization Program Information Session
- Bills of Note
2025 Metro Cities Policy Committees
Metro Cities 2025 policy committee process begins in July. Participation is open to member city elected officials and staff. Committee descriptions and dates are on the website. Please be sure to sign up for the committee(s) you wish to attend. This will help us keep rosters accurate. We look forward to seeing you this summer!
Global Budget Agreement Sets Committee Targets
On Thursday this week, the Governor and legislative leaders announced that they had reached agreement on budget targets, as part of the setting of the state’s budget. Conference committees will be charged with working out details on budget bills. The overall agreement contains a tax reductions target, and budgets for debt capacity to service a $700 million capital investment bill.
View the budget framework HERE. The legislature must adjourn by Monday, May 19th. It is not certain whether agreements on specific budget and policy bills will be reached. A special session is all but guaranteed given the work that remains and the required adjournment date of the regular session by Monday, May 19.
Please stay tuned for additional updates. Questions? Contact Patricia Nauman at [email protected].
Omnibus Bill Updates
Adult-Use Cannabis
The conference committee for SF 2370 (Dibble/Stephenson) met on Friday 5/16. The committee adopted a conference committee report that includes language that authorizes municipalities to hold both a lower-potency hemp business license and an adult-use cannabis retailer license. Click HERE to view the full text of the SF 2370 conference committee report. Conferees included Representatives Stephenson, West, Hanson, J., and Allen, and Senators Dibble, Rassmusson, and Port.
Judiciary and Public Safety
The conference committee for HF 2432 (Novotny/Latz) continued its work this week. Last week the committee agreed upon policy language including a provision that expands the definition of “public official” to include the 16 members of the Metropolitan Council and certain Council staff for the purposes of making data related to complaints or charges available to the public. The committee also adopted language regarding the use of tracking devices on fleeing or stolen vehicles.
The committee met throughout the week to adopt agreed upon policy language. Click HERE to get an overview of what was adopted by the committee when they met on Monday 5/12. On Wednesday, among the provisions adopted was language regarding theft or damage to telecommunications equipment and street lighting. This committee did not meet on Thursday but intends to on Friday, 5/16.
Click HERE for a side by side of the House and Senate versions of the Judiciary and Public Safety bill and HERE for the budget tracking spreadsheet. Conferees include Representatives Novotny, Moller, Scott, and Liebling, and Senators Latz, Oumou Verbeten, Seeberger, Westlin, and Clark.
Legacy
After being tabled earlier this session, HF 2563 (Hawj), the Senate Legacy finance bill, was passed, as amended on 5/12 with vote of 41 to 26. Click HERE for the associated budget spreadsheet. Conferees named for the Legacy bill include Representatives Vang, Hussein, McDonald, and Skraba, and Senators Hawj, McEwen, Pha, Mohamed, and Pratt.
State and Local Government and Elections
The conference committee for SF 3045 (Xiong/Klevorn) met on Monday 5/12 where they adopted a slate of State Government policy provisions with some being amended. The committee met again on Tuesday where they focused on areas of agreement for Elections policy.
Side by sides of the House and Senate language can be viewed HERE. Click HERE for the budget tracking spreadsheet. Conferees include Representatives Klevorn, Nash, Frieberg, and Altendorf, and Senators Xiong, Carlson, Maye Quade, Westlin, and Lang.
Transportation
The conference committee for HF 2438 (Koznick/Dibble) met on Monday 5/12 where members discussed policy differences between the House and Senate bills including the funding source for pedestrian improvements to the Washington Avenue bridge. The Senate bill takes $9 million from regional sales tax revenue allocated to the TAB for active transportation projects.
Included in the slate of provisions adopted at their Wednesday hearing was language regarding free fares for Metro Mobility users on regular bus service, changes to the Metropolitan Council’s contracting authority, and changes to Metropolitan Council financial reporting requirements. This conference committee is scheduled to meet again in the afternoon on Friday, 5/16.
Click HERE for a side by side of the House and Senate language and HERE for the budget tracking spreadsheet. Staff has also produced a summary table of provisions contained in either bill. Conferees include Representatives Koznick, Koegel, Olson, and Tabke, and Senators Dibble, Johnson Stewart, Jasinski, Carlson, and Clark.
Housing
The global budget agreement that was announced on Thursday for the Housing budget includes $15 million in additional spending for the next biennium, and $3.8 million for the out years.
Metro Cities has been working with housing chairs, legislators and our city organization partners to determine whether there may be some points of compromise on a narrow set of policy items relating to housing policy. Metro Cities is seeking feedback from city officials as we review language.
Please contact Ania McDonnell at [email protected] if you have any questions.
Economic Development
This week, the Jobs, Labor, and Economic Development conference committee began its meetings. View a side by side of the policy provisions HERE, spreadsheets HERE, and policy language HERE.
The conference committee began discussing policy provisions in both bills, starting with those that are same or similar, and discussed items that are different between both bills. The committee has yet to adopt any policy language or discuss funding differences between the two bills. The final leadership budget agreement committee target for the Jobs and Economic Development committee that was announced on Thursday is -$30 million for the next biennium, and -$40 million in the out years.
Please contact Ania McDonnell at [email protected] if you have any questions.
Metropolitan Council Announces Expanded Policy and Affordable Housing Program Development Grants
The Metropolitan Council recently announced a second-round expansion of the former Policy Development grant program to allow all cities consistent with comprehensive plan requirements to apply for the program. This grant round will offer up to $800,000 to remove barriers to producing or preserving affordable housing and/or prevent displacement in areas receiving new investment, support wealth building and economic opportunity, and for program and partnership development to remove barriers to producing and preserving affordable housing. Applications are due on July 21, 2025. Learn more about the program and find the application HERE.
Community Stabilization Program Information Session
Minnesota Housing is hosting a virtual information session to provide more information on the Community Stabilization Program, which provides funding to help preserve naturally occurring affordable housing (NOAH), specifically multifamily rental housing.
The virtual information session is on Wednesday, May 21st at 10:00 am. You can register HERE for the program. The NOAH multifamily Rental Housing Program has $41.75 million in one-time state appropriations, and this funding will be distributed as loans through a competitive RFP. The application deadline for this RFP is noon on Thursday, July 24th. You can find the application materials HERE.
Bills of Note
HF 3322, Franson: Bill imposes a plastic bottle tax – money raised on this tax would be transferred into the water infrastructure account. Any remaining balance as of July 1 would be transferred to the MPCA for future dispersal.
HF 3327, Howard: Bill makes class 4d(1) low-income rental property aid permanent and appropriates funding.
SF 3517, Champion/HF 2584, Lee: Bill appropriates $1 million in FY26 for local government aid to remove Emerald Ash Borer infested trees on residential properties if residents are below the poverty line.