Disability community advocates and organizational leaders are mobilizing in response to sweeping budget cuts proposed by Gov. Tim Walz. The cuts, which focus largely on disability services and special education, were announced at a time of turmoil at the capitol.

The legislative session began January 14. The House’s power struggle created uncertainty for anyone bringing forward legislation. As of late January, almost 500 bills were introduced in the Senate. Fewer than 200 bills were introduced in the House, all by Republicans. DFLers, sworn in before the session began, staged a boycott until legal issues were resolved by the Minnesota Supreme Court January 24.

The budget proposal is raising the most alarm, with disability advocacy groups meeting to hone their messages and counter the cuts. One message, discussed at a recent Minnesota Consortium for Citizens with Disabilities (MNCCD) meeting, is that advocate are willing and able to work with state officials to find costs savings while preserving key aspects of programs.

Another issue eyed warily is what federal cuts could mean on top of what happens at the state level.

“This budget is responsible, measured, and honest, and it starts with one goal: fiscal responsibility,” said Walz. “Our plan sets Minnesota up for success in the future by addressing long-term budget challenges and protecting the investments we made to improve lives, including universal meals, paid family and medical leave, and tax cuts for seniors and middle-class families.”

Recently state officials have emphasized that the two biggest deficit drivers are long-term disability care and special education transportation costs. The proposed budget would reduce state spending on the Medicaid waivers used by more than 70,000 low-income Minnesotans with disabilities.

Minnesota faces a projected $5.1 billion deficit for the 2028-2029 biennium. In comparison, the surplus for 2025-2026 is just $616 million. In announcing his $66 billion budget proposal, Walz noted that per person spending under waivers is more than $50,000 annually. Waivers cover needs including personal care, employment support, transportation and home health services.

But people seeking services are bringing more complex needs to the table, in the midst of a severe, ongoing staffing shortage.

Walz would reduce growth in what is allocated through waivers, but not decrease the number of people getting waiver services. Inflation is projected at 6 percent per year. Walz would reduce that to 2 percent, which advocates contend wouldn’t even begin to cover costs.

Another cut is a 5 percent reduction in special education transportation spending.
Walz also focuses on stepped up efforts to combat fraud. Much of the $45 million eyed for fraud prevention in his budget is for social services.

Another proposal would lower the state sales tax rate by 0.075 percent across the board. Walz called that the first state sales tax decrease in Minnesota’s history. The 6.875 percent state sales tax rate would be 6.8. He also would expand the sales tax to cover so-called wealth services provided by investors, bankers and lawyers.

The budget also proposes increasing the surcharge currently levied on health maintenance organizations from 0.6 percent to 1.25 percent of total premium revenue.

A numbers game

With House DFLers boycotting the first two weeks of session, work on House legislation is behind. That’s a worry in a budget year when the state must have a new spending plan in place by July 1.

It’s been a tale of two chambers. The Senate is split between DFLers and Republicans, 33-33. Both parties agreed to share leadership of the chamber and committees. The balance tipped by one seat after a January 28 special election, filling the Senate District 60 seat vacated by Kari Dziedzic’s death in December after battling cancer. The election was held after Access Press went to press.

Then there is the House and its fight over control and what constitutes a quorum. All House seats were on the 2024 ballot. At first election results showed a 67-67 tie, initially leading to an agreement to share leadership. Then two elections were challenged. DFLer Brad Tabke retained his District 54A House seat in a fight over a recount and missing ballots. But DFLer Curtis Johnson left his District 40B seat after he didn’t meet residency requirements. A dispute over a special election date means it may be March before a replacement is elected.

Republicans with their one-vote majority quickly dropped shared leadership and took control. The DFL boycott was met with a threat to have missing members brought in by state troopers. Legal challenges came from House DFLers and Secretary of State Steve Simon over what constitutes a quorum or number of members needed to do business. The Minnesota Supreme Court heard arguments January 23 and ruled January 24. The court’s decision means that 68 members must be present to conduct business. Republicans hold 67 seats in the 134-member House.

The court stated that justices “assume the parties will now conform to this order without the necessity of issuing a formal writ.”

Republicans still have a one-vote majority. Speaker-designate Lisa Demuth (R-Cold Spring) released a statement:

“This decision drives home the fact that House Democrats are disrespecting not just their own constituents, but the entire state of Minnesota by refusing to do their jobs. House Republicans will be showing up to work on Monday — it’s time for the Democrats’ walkout to end and for the legislature to get on with its work.”

DFL Speaker-designate Melissa Hortman also released a statement:
“Republicans tried to seize power that the voters did not give them. Now that it is clear Republicans must work with Democrats for the House to operate, I am hopeful we will be able to shortly negotiate an acceptable path forward. We’re ready to roll up our sleeves and return to the negotiating table immediately.”

In the wake of everything happening, MNCCD and Minnesota Council on Disability have postponed legislative forums. The state council moved its forum from January 27 to March 14. MNCCD postponed its January 28 session start-up. No new date was available.