Legislative Leaders Agree to Budget Framework; Conference Committee Working on Details

May 19, 2022

On May 15, Gov. Tim Walz and Senate and House leadership announced a budget framework deal to guide state lawmakers, as the session nears its end. 

The framework would dedicate $4 billion in new state spending and $4 billion in tax cuts over the next three years. The framework goes on to allocate $1 billion towards health and human services, $1 billion towards E-12 education, $450 million to public safety, and a combined $1.32 billion to other areas. Leadership also agreed to a $1.48 billion bonding bill to pay for new capital improvement projects. 

At press time, the Health and Human Services (HHS) Conference Committee members have yet to decide on specifics of where to spend the $1 billion allocated to their committee. 

The House and Senate have exchanged several offers throughout the week and have come closer to a compromise on some items. The House proposal spends more on early childhood initiatives, specifically in mental health services, as well as additional funding for statewide health programs. The Senate primarily invests in workforce shortages, especially in eldercare services and programs for the disabled. 

Several MMA priorities have been included in the House offers, though they have not yet been agreed to in the final deal. These items include updates to the All-Payer Claims Database (APCD) to capture value-based payment information, the creation of a workgroup to establish a statewide registry for Provider Order for Life Sustaining Treatment (POLST) forms, grant funding for rural residency programs, and language to help patients suffering from chronic pain access needed opioid prescriptions.  

The most recent House offer also includes several items from the Senate's mental health bill (SF3249), in addition to their behavioral health package. Included in this package is $2.34 million in grants to address healthcare worker mental health and well-being – a provision strongly supported by the MMA. 

The conference committee passed several policy items but has yet to come to agreement on specific fiscal appropriations. One policy item included in the committee report prohibits healthcare providers and organ procurement organizations from discriminating based on race or ethnicity. The MMA has testified in support of this policy. 

A policy to change the definition of palliative care in the hospice care statutes was also adopted. The MMA has supported this change, which modifies state statute to better reflect what palliative care is and does, and help clarify that palliative care is not synonymous with end-of-life care. 

Legislative leadership has urged all conference committees to work quickly to finalize a compromise so both bodies can pass the bills and send them to the governor before the legislature adjourns on May 23.