Legislative Session Update: April 2, 2024

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Good Morning, Small City Leaders ~ 



It will be another short week for the MN legislators as they return to the Capitol today at Noon. They will hit the ground running, with numerous committee hearings already scheduled and begin hustling to meet the upcoming ‘Second Deadline’ of April 19. 



Now that the Supplemental Budget is out and committees have their targets, Budget Committees will start shaping their omnibus spending bills accordingly. We have already heard from a number of finance chairs that the targets are lower than what they wanted. It should be noted that almost every chair, every year, say this same thing when presented with their target. Bemoaning the targets serves two purposes: First, it might position you near the front of the line IF any of the targets are adjusted to get a slight increase later in session. Second - and probably most important - it provides a solid defense for when your fellow legislators ask if their project will be included in the bill…. “I really wanted to include your proposal but there is just no room in the target.”  


STATE OF THE STATE: Traditionally, the governor gives the ‘State of the State' during a joint hearing of the House and Senate in the House chambers but Governor Walz has chosen to take a few of his State of the State speeches on the road instead. Last week he went to Owatonna to give the annual address. There was no real surprising news from the speech and given the timing of session there was not enough time to roll out major initiatives. Essentially, the speech outlined a list of the things he is proud of and a few goals still remaining for this session. 


The GOP response/rebuttal was mostly that Minnesotans they are hearing from do NOT like the direction the state is going and are concerned about the massive spending the DFL has done.  


AUDITOR UPDATE: We had another meeting with Auditor Blaha recently and solutions to the auditor shortage are beginning to take shape. She and her office have turned primarily to MN Small Cities for guidance about how to proceed with addressing these challenges and we are grateful for the opportunity to coordinate with them on this. We expect an announcement from the Auditor's office soon, which will offer some new options giving cities more flexibility in the auditing process.


In this week’s ‘Legislative Updates’ segment (below) you’ll see a run down of the bills we are still concerned about this session. This has been a VERY BUSY SESSION for small cities so far and there is no indication that will change. Normally at this point in session we are heavily engaged on just one or two big issues. This year however - as you’ll see - there are multiple issues requiring our attention and advocacy. 


Remember, you can always click on our real-time bill tracking dashboard to see ALL bills we are keeping an eye on.

A COUPLE OF TIMELY REMINDERS: 


To assist them in learning how cities are using their Public Safety Aid dollars, passed in the 2023 session, Legislators have asked the League of MN Cities to facilitate this survey. Depending on the level of information gathered, it’s possible that legislators could enact a statutory reporting requirement (not required in the original bill) . A 2024 bill to require a retroactive report on use of the aid has been introduced is moving through committees. If you haven’t already done so, please complete the survey at your earliest opportunity. 


Let's make sure small cities and their great leaders get the recognition they deserve, for their many great achievements. The 2024 LMC Awards Program is now open for submissions, so please take a few minutes to nominate both elected and appointed leaders that you feel have gone above and beyond in their service. Winners will be recognized at LMC’s Annual Conference in June.

LEGISLATIVE HIGHLIGHTS & UPDATES:

Here's where you can keep tabs on ALL of the BILLS MN Small Cities is Tracking

While the first half of session has a lot to do with learning what’s included in specific bills, gathering information, testifying about our position, educating legislators - and then watching to see what gets traction, AFTER the spring break is when “things get real” (that means now). It’s at this point that we generally know (for the most part) what is actually moving forward and what is still problematic for us. 


With that in mind, here is an outline of issues and proposals we’ve flagged as “still concerning". These are the bills we will continue to most actively work on in the days and weeks ahead: 


SMALL CITY ASSISTANCE FIX: Last year we THOUGHT small cities would get $23 million over the biennium. That’s what was promised, in the legislation that passed. Unfortunately the Mn DOT interpreted the bill language differently and as a result these funds will be delayed a year unless the legislature agrees to our proposed fix: SF4899 /HF4872 would restore the funding and do it this summer. This bill will be heard again on Wednesday in the Senate.


EMS: MN Small Cities have been strongly supportive of efforts to provide emergency funding to EMS services. The funding bill has had hearings in both the House and Senate, with MN Small Cities testifying in favor each time. We are asking for $122.5 million in one-time funding to EMS services throughout the state. Unfortunately, legislative leaders signed a budget agreement last week that only allows for $16 million in EMS funding .… woefully short what we are seeking. We do not think this is the final deal and our authors and supporters have assured us to keep pushing.


Committee members do seem to understand the great need, but there is concern on the part of some that this is just a band-aid and we will end up back in the same boat again very soon if we do not also adopt the bill that would entirely restructure the EMSRB - HF4738.


ESST for ON CALL FIREFIGHTERS: MN Small Cities have and will continue to push the MN Dept of Labor and Industry for greater clarification on exactly how to apply ESST to paid on-call firefighters. They have offered a smattering of answers; most of which have not been clear. So, we are continuing with our pushes for greater clarity before session ends. 


BROADBAND: One of the broadband bills being heard this session would require all projects funded with federal dollars to use only contractors that pay prevailing wage. This could cause issues with the soon-to-come rollout of federal dollars and may be incompatible with the guidelines; putting our federal application in jeopardy.. Also, the private sector has already signaled they would not apply for projects if this restriction is in place. Obviously, that would result in greater Minnesota being further and further behind in broadband accessibility. We are having ongoing discussions with stakeholders to address these proposals, in an effort to ensure the federal funds are being rolled out in a timely manner and not interrupted. 


HOUSING: 2024 has been a long session, FULL of housing bills, many of which reduce local cities’ authority. The most egregious bill was recently amended in the House, to all but eliminate small cities from these onerous policies (with just the parking restriction remaining). That’s a WIN, but we still have much work to do in the Senate to convince them to agree with their House counterparts. That being said, things seem to be trending in a promising direction.




OPEN MEETING LAWS: There are three Open Meeting Laws moving through the Senate. Two of them would change requirements around remote participation and public comment periods. The third is concerning in that, in its attempt to address closed meetings for attorney-client privilege it creates personal liability for council members and city staffers. Not only is this an issue for current council members and staff, but we imagine it will be difficult to recruit future city leaders if they are to be held personally responsible for decisions about when a closed meeting is valid or not. It’s possible this bill is currently stalled in the Senate Judiciary, since prior to ‘First Deadline’ that committee laid it over for more work to be done, when a number of committee members questioned its practical application and unintended consequences. We are still working to reduce the bill’s impact on small cities.


ELECTIONS: We mentioned this in last week’s update but since it’s still concerning, it made the list this week too. SF4729 (amended) would require ALL cities to begin using a  .gov address by 2028. This can be a costly process - especially for small cities - and we are opposed to this new language without a provision that would include funding to help cities make the change.


BONDING: Also highlighted last week, HF3582 / SF3782 would require that before receiving state bonding dollars, a city would need to demonstrate that they have set aside money to pay for maintenance and replacement expenses after project completion. This is a very high hurdle for small cities seeking state assistance for wastewater and drinking water projects through PFA. It will likely prevent a majority of small cities from seeking state assistance for infrastructure in the future.

OTHER LEGISLATIVE NEWS:


Member Cities in the News:


GARRISON restaurant granted variance

LAKE LILLIAN gets state funding to upgrade drinking water treatment

LE CENTER Council develops plans to build dog park

NISSWA Police Department hires administrative assistant + Council gets update on Highway 371 corridor study + drop-off recycling site at fire hall to close May 1

OAK PARK HEIGHTS: First responders at shooting incident honored one year later

RUSH CITY continues to wrestle with fire coverage

STACY Special Election VOTER'S GUIDE

WAYZATA one step closer to city-run cannabis dispensary, other municipalities also considering

WINNEBAGO has a new council member

Program Opportunities & Deadlines:


Check out NEW & EXPIRING Programs, Grants, Training opportunities posted on the MAOSC.org website (under the ‘Resources’ navigation link). >> Discussion Forums >> Category: "GRANTS, Programs, Training, Opportunities, etc”. 

ADMIN NOTES:



Consider Joining the MAOSC BOARD and Help Shape the Future for Minnesota’s Small Cities! We currently have three Board positions to fill: 

  • A representative from Region 1
  • A representative from Region 10 
  • One At Large seat 

If you are a city official interested in serving on the MN Small Cities Board please contact Executive Director Cap O’Rourke at [email protected]. Learn more about the requirements and get an application HERE

Thank you for reading! Continue to watch your inbox - throughout session - for these weekly updates. 


As always, we thank you for your dedication to your communities and are grateful for your participation in the MN Small Cities Association.



Cap O'Rourke
MAOSC Executive Director
612-483-1863

If ever you have questions or concerns - about something happening in your city, at the state or federal level - or regarding this organization - please feel free to reach out to me directly. I am always happy to hear from you!

Minnesota Association of Small Cities | maosc.org
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