Four things to watch as Legislature races to pass budget

With just a couple of days until the Minnesota Legislature is scheduled to adjourn for the year, some of its most significant work remains to be done.

Lawmakers were expected to gather throughout the weekend to work out differences on legislation they must pass to fund state government for the next two years. The session ends at 11:59 p.m. Monday.

But while the Senate Democratic leadership and leaders of both parties in the House struck a budget deal Thursday with Gov. Tim Walz, the agreement faces headwinds in the full Legislature.

“I think this has been the most difficult session I have ever been a part of,” Senate Majority Leader Erin Murphy, DFL-St. Paul, said during a Twin Cities Public Television appearance with fellow legislative leaders Friday night.

Lawmakers may go into a special session to wrap up work if they don’t make their Monday night deadline. They have to pass a budget before July 1 to avoid a partial government shutdown.

Here’s what to watch over the next few days.

Far and away the most difficult decision Democrats made as part of their compromise with House Republicans was to remove health care coverage for adult undocumented immigrants after this year. Children would remain covered.

House Speaker Lisa Demuth, R-Cold Spring, has pointed to higher-than-expected enrollment in the program and said the state cannot afford to cover the more than 20,000 people who have enrolled.

Left out of the budget deal was how much — or whether — to invest in the state’s critical infrastructure projects.

Normally, Minnesota passes budgets in odd-numbered years and infrastructure (or bonding) packages in even-numbered years. But lawmakers passed bonding in 2023 and didn’t last year.

Sen. Sandy Pappas, DFL-St. Paul, has urged lawmakers to consider a major bonding bill of $1.35 billion, but House leaders have proposed a bill about half that size.

Walz said Thursday that he and legislative leaders hadn’t yet agreed on how much to spend on bonding.

With Republicans and Democrats each holding 67 seats in the House, Hortman and Demuth had to reach agreement on the budget deal already. But while Senate Republican Leader Mark Johnson of East Grand Forks took part in the negotiations with the rest of the leaders, the GOP is the only minority caucus this year.

Democrats hold a one-seat advantage in the Senate, meaning Murphy either needs her entire caucus in lockstep to pass a budget or she must pull on support from Republicans.

With progressive opposition to stripping health care from undocumented immigrants, she may not get unanimous support from DFL senators.

Murphy wouldn’t say on TV Friday night how many votes she has secured.

While Johnson hasn’t mentioned strident opposition, he hasn’t signaled he’s ready to sign onto the deal. He has said more work must be done.

While top lawmakers have a shaky agreement on a budget, drafting the bills — let alone actually passing them through the Legislature — takes time.

Legislators may not have enough left before their constitutionally mandated adjournment on Monday, but they’ve been hopeful they can wrap up next week and not have to reconvene after Memorial Day.

Hortman said lawmakers reached their agreement more quickly than they did in 2019 when they needed just one extra day to finish work.

“So if all of the members have their noses to the grindstone, we should be able to come in for a one-day special session before Memorial Day weekend,” Hortman said in the public television interview Friday.