The top headline from last week was the state’s worsening budget outlook. The state’s February budget and economic forecast shows FY 2026-2027 with a projected balance of $456 million, $160 million lower than estimated in the December forecast. The projected structural imbalance in FY 2028-2029 also grew with Minnesota Management and Budget (MMB) now estimating a shortfall of $5.995 billion, $852 million worse than estimated in the December forecast. You can read Ken Bence’s full recap of the forecast here.
The Governor will now release a revised budget proposal based on the updated forecast numbers, and both the House and Senate will begin the process of crafting their budget proposals. Last Thursday, dates were released for when budget targets will be set in each body. On Tuesday, April 1st, the House will release their committee budget targets and the Senate will follow by releasing their targets on Saturday, April 5th. As a reminder, the third committee deadline is April 11th, giving committees only about one week to assemble their spending proposals.
Last Tuesday, ARRM sent detailed information to Senator Hoffman, Chair of the Senate Human Services Committee, outlining the impact of the Governor’s proposed budget and profiling the financial impact to one of our members if all the cuts the Governor proposed went into effect. ARRM staff are working on a template for other organizational leaders to use when calculating the impact of the proposed cuts on your organization. This information will be critical to share with your legislators and leaders on the Human Services Committee. Watch for more details coming your way in the next couple of days.
Looking ahead to this coming week, ARRM has multiple bills scheduled for hearings. Below is the schedule as we know it now:
- Monday, March 10: Senate Human Services Committee:
- ARRM’s Technology Grant Legislation (SF 1177)
- Wednesday, March 12: House Human Services Finance and Policy Committee:
- ARRM’s Policy Bill (HF 381)
- Best Life Alliance DWRS Rate Adjustment (HF 382)
- Thursday, March 13: House Human Services Finance and Policy Committee
- ARRM’s Indirect Billing Proposal (H 1095)
What can you be doing now?
ARRM has multiple resources for you to be using in your advocacy efforts.
- If you haven’t already, please take a few moments to complete the action alert that is found here.
- Additionally, we have put together a template for you to be using in sending handwritten letters to your legislators. You can access instructions and the template here.
- And finally, don’t forget that ARRM’s 2025 Day at the Capitol is only one week away. It has never been more important to show up and meet with your legislators about the impact of disability waiver cuts. You can find more information on ARRM’s website here.
Please reach out with any questions.
--Sara Grafstrom, Senior Director of State and Federal Policy