Dear Friends and Neighbors,
Happy Holidays this season! As we look to the end of the month I hope we all find something be to joyful about. This has been one of the most challenging years in the memory of many but we have persevered. Science has been learning more and we may have Vaccines sometime in the early months of next year for Covid-19.
I know I am grateful for my family, friends, and all of those I serve and have the honor to continue serving at the Minnesota Legislature. Keep in touch, stay safe and I wish you all the best.
Sincerely,
John
Budget Forecast
Earlier this week, Minnesota Management and Budget announced the November budget forecast, which projected a positive budget balance of $641 million for the 2020-21 biennium. The forecast also projects a $1.237 billion shortfall for 2022-23. I believe the 2022-23 forecast is a bit understated because inflation is not considered. Automatic increases were built into prior legislation for future years, and the projected shortfall may be closer to $2.5 billion. It is important to remember that this is only a forecast and like the last one could be significantly different when we actually get to 2022.
The budget surplus can mostly be attributed to two simple factors. Minnesotans are spending more than expected, and state spending is way down. You can also see that there was less money being spent in Health and Human Services as such the majority of the surplus is attributed to that fact. This will be asked and discussed at our December 9th Human Services Reform Hearing. Which leads to a deeper question that if the cost savings is from Health and Human Services on supports that were meant to be used on those who need service, why would the savings be put back in the general fund and not re allocated or leveraged through the Department of Human Services? Although lower-income families have been hit harder, total income for Minnesotans did not decline as much as previously anticipated. Federal unemployment assistance helped keep sales tax and income tax receipts high as well. State spending is projected to be $1 billion less than anticipated this year. This can be attributed to fewer people using health care services, federal funding for Medical Assistance increasing, and public-school enrollment falling by nearly 13,000 pupils.
COVID-19 Response Committees/Upcoming Sessions
While the long-term economic situation of our state remains uncertain, the short-term picture reveals we can afford to pass an immediate economic relief package for workers and small businesses who are still bearing the brunt of this virus. To that end, bi-partisan COVID-19 committees made up of both House and Senate members have been created. They will be tasked to address 17 separate COVID-impact related activities, such as small business assistance, individual assistance with food and care, and the reopening of facilities, such as gyms. Also, these committees will be looking at replacing or enhancing some of the Governor’s executive orders.
If there is a consensus among the Legislature and the Governor, bills could be passed in the next special session on December 14th, and aid could get to Minnesotans by the end of the month. It is probably more likely though that recommendations will be ready for general discussion, debate and legislative action at the beginning of the next full legislative session on January 5th. The Governor’s offices estimated the package could range anywhere from $300 million to $600 million.
Since the next special session on December 14th will almost certainly be for only one day, it is very unlikely any legislation outside COVID-19 relief will be taken up. The next regular session starts January 5th, so anyone with issues or concerns you would like to have me bring up should contact me at (651) 296-4154 or at sen.john.hoffman@senate.mnThe earlier you contact me the better if you are looking to have legislation drafted.
Housing & Energy Assistance
This week Governor Walz and Lieutenant Governor Flanagan are highlighting efforts to support Minnesotans experiencing homelessness and ensure people can afford to stay in their homes during the COVID-19 pandemic. They are encouraging Minnesotans who are behind on their rent, mortgage, or utility payments to apply for the Administration’s Housing Assistance Program by Monday, December 7, 2020.
Minnesotans seeking housing assistance should call 211 or apply at 211unitedway.org by Monday, December 7, 2020. Greater Twin Cities United Way’s 211 Resource Helpline has dedicated multilingual staff available to answer questions.
Additionally, Minnesota’s Energy Assistance Program received more than $106 million in federal funding to help income-eligible Minnesotans pay their heating bills this winter. Minnesotans should submit an application to the local service provider in their area. To find your local service provider, call 800-657-3710 or visit the Commerce Department’s Energy Assistance Program web page.
It is my greatest honor to represent you the citizens of Brooklyn Park, Champlin and Coon Rapids here at our great state capitol. In addition to representing you, I absolutely enjoy it when you come visit. When this Covid scare gets better, please come on down, reach out and tell me what matters to you so I can continue working on your behalf. You can reach me by email at sen.john.hoffman@senate.mn, phone by 651-296-4154 or just stop by. I am at 95 University Avenue Suite 2235 in the Minnesota Senate Building
Sincerely,
Senator John Hoffman
If you have any questions or concerns feel free to call my office at 651-296-4154 or by e-mail at jhoffman@senate.mn
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