What to Expect for the Special Session
May 24, 2021
By Tom Freeman, Director, Faegre Drinker Biddle & Reath LLP. Tom is NAIOP Minnesota’s lead lobbyist.
Last week, Governor Walz and legislative leaders reached a compromise and framework to establish the FY2022-23 biennial budget. Though leadership established a budgetary agreement, chairs in the House and Senate will establish work groups to continue the work of the conference committees to establish the granular details of the entire budget, including policy provisions. The agreement set a deadline for the work groups to be done by May 28, with final language agreed to by June 4. This will allow a special session to be called in mid-June to codify the budget into law. It is anticipated that they will pass the agreed-upon bills no later than June 14.
Some key provisions of the agreement were agreed to in writing. This includes using $1.6 billion of the federal American Rescue Plan Act (ARPA) funds in this budget and will negotiate the remaining $1.233 billion during the 2022 legislative session. Regarding the tax bill, the agreement cuts taxes $754 million in FY2022-23, which will include full Paycheck Protection Program (PPP) and unemployment insurance (UI) exemptions and does not raise any new taxes. The budget target does allow for additional items that could include an extension of the historic tax credit and state general levy property tax relief.
We appreciate all of the work our public policy leaders in the industry did this session to help tell our story to state leaders. Thank you!