Friends and neighbors,
It has been a busy week on the Senate floor, with lawmakers hearing six omnibus budget bills along with several single-issue proposals. Many of these measures have now passed the Senate and are heading to conference committee to be reconciled with House versions.
As we approach the final stretch of session, with less than three weeks remaining before the constitutionally required adjournment, Minnesota faces a troubling fiscal outlook. The state is now grappling with a $6 billion structural deficit, driven by poor budgeting decisions made during the last biennium. The $19 billion surplus has vanished, replaced by $10 billion in new tax increases, all while the size of government has expanded by 40%.
At the same time, a concerning trend has emerged in Minnesota’s health care system—one that adds pressure to our budget and raises important questions about priorities.
In the 2023 Health and Human Services budget, MinnesotaCare was expanded to cover people who are here illegally. Lawmakers projected that about 5,000 people would enroll at a cost of $220 million over four years. However, just three months into the program, enrollment had already exceeded 17,000. This is nearly triple the original estimate and means costs are likely to exceed $600 million.
While the cost of providing free health care to undocumented immigrants continues to rise, Governor Walz has proposed cutting more than $1 billion from Minnesota’s nursing homes and disability services. These critical programs support our most vulnerable citizens, and the proposed cuts would have a devastating impact. As Minnesota faces a $6 billion budget deficit, the funds currently allocated to health care for undocumented immigrants could be redirected to reduce the deficit and safeguard essential services for residents. It is disheartening to see these funds redirected to subsidize health care for individuals who are here illegally.
We need to put Minnesotans first.
Agriculture budget provides cottage food win, concerning new fees
Agriculture is the heart of our community, and I always value the bipartisan spirit that the Senate Agriculture Committee consistently brings to its work. As a member of the committee, I am encouraged by the progress reflected in this year’s Agriculture, Broadband, and Rural Development budget and policy package, SF 2458.
A highlight of this legislation is the long-overdue reform of Minnesota’s cottage food laws. These changes will benefit more than 10,000 small food businesses by allowing direct shipping, raising the sales cap, and lowering registration fees. These updates will open the door for more local entrepreneurs to grow their businesses and reach new customers.
The bill also makes meaningful investments in Minnesota’s farming communities. This includes key provisions that support livestock protection, mental health services, rural development, and agricultural education. These are critical areas that strengthen our agricultural future.
While I have concerns about some of the new fees included in the bill, it still represents meaningful progress for Minnesota agriculture. I am hopeful that, through the conference committee process, we can continue to refine and strengthen the final package.
Sincerely,
Senator Gene Dornink