StoryLegislative session outcomes and federal budget impacts on MinneapolisJune 25, 2025

Minneapolis Council Reviews State, Federal Legislative Impacts

Meeting date: Jun 25, 2025
Published Aug 23, 2025

The Minneapolis Intergovernmental Relations Committee received comprehensive updates Tuesday on state and federal legislative actions affecting the city, beginning with acknowledgment of the recent assassination of Speaker Hortman and shooting of the Hoffmans.

Director Topinka reported that the 2025 state legislative session resulted in a $66 billion budget for fiscal years 2026-27, down from $72 billion in the previous biennium. The city avoided cuts to Local Government Aid despite initial discussions of potential reductions, though the local cannabis aid account was repealed, eliminating an estimated $250,000 annually for Minneapolis.

The session produced mixed results for city priorities. Minneapolis secured $1 million for KMOJ's new facility and funding for traffic calming measures that could provide approximately $500,000 annually. However, the $5.7 million Water Yard project funding was not included in the bonding bill, prompting ongoing discussions between city staff and community organizations about next steps.

On the federal level, Senior Government Relations Representative Lauren Olson outlined significant proposed cuts in the federal reconciliation bill and fiscal year 2026 budget. The proposals include a 22% overall cut in discretionary spending, with substantial reductions to HUD programs, Health and Human Services, and other areas that directly impact local communities.

Committee Chair Aurin Chowdhury praised the IGR team's work during what she called an "extremely difficult legislative session," noting their success in preventing Local Government Aid cuts and securing key infrastructure funding despite challenging budget conditions.

Our proprietary artificial intelligence agent analyzed publicly available documents including meeting agendas, minutes, and transcripts to write this story to help inform local residents. Feedback helps us improve, so please consider rating how we did with the thumbs up or down below.

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Full analysis

The June 24, 2025 Intergovernmental Relations Committee meeting provided updates on federal and state legislative actions affecting Minneapolis. The meeting began with acknowledgment of the recent assassination of Speaker Hortman and shooting of the Hoffmans. Staff presented comprehensive updates on the 2025 state legislative session, including budget outcomes, transportation funding, and policy changes, followed by federal budget and reconciliation bill updates.

Source document

[0:19] >> GOOD MORNING, AND WELCOME. MY NAME IS AURIN CHOWDHURY AND I'M THE CHAIR OF THE

[0:25] INTERGOVERNMENTAL RELATIONS COMMITTEE. AT THIS TIME I'M GOING TO CALL TO ORDER OUR REGULAR MEETING FOR

[0:30] TUESDAY, JUNE 24, 2025. I WANT TO OFFER A FRIENDLY REMINDER TO

[0:35] ALL COMMITTEE MEMBERS, STAFF, AND THE PUBLIC THAT THESE MEETINGS ARE BROADCAST LIVE TO ENABLE GREATER PUBLIC

[0:42] PARTICIPATION. THESE BROADCASTS INCLUDE REAL-TIME CAPTIONING AS A FURTHER METHOD TO INCREASE

[0:48] ACCESSIBILITY OF OUR PROCEEDINGS TO THE COMMUNITY. THEREFORE, ALL SPEAKERS NEED TO BE MINDFUL OF THE RATE OF THEIR SPEECH SO THAT

[0:54] OUR CAPTIONERS CAN FULLY CAPTURE AND TRANSCRIBE ALL COMMENTS FOR THE BROADCAST. WE ASK ALL

[1:00] SPEAKERS TO MODERATE THE SPEED AND CLARITY OF THEIR COMMENTS.

[1:06] AND WITH THAT, I WILL HAVE THE CLERK CALL THE ROLL. >> COUNCIL MEMBER PAYNE. >> PRESENT.

[1:11] >> WONSLEY IS ABSENT. VETAW. >> PRESENT. >> ELLISON IS ABSENT. OSMAN IS

[1:19] ABSENT. CASHMAN. >> PRESENT. >> JENKINS IS ABSENT. CHAVEZ. >> PRESENT.

[1:27] >> CHUGHTAI. >> PRESENT. >> KOSKI IS ABSENT. PALMISANO IS

[1:33] ABSENT. COUNCIL MEMBER ELLISON. >> HERE. >> VICE CHAIR RAINVILLE. >> PRESENT.

[1:39] >> CHAIR CHOWDHURY. >> PRESENT. >> THERE ARE EIGHT MEMBERS PRESENT. >> LET THE RECORD REFLECT THAT

[1:44] WE HAVE A QUORUM. I'LL ALSO REMIND MY COLLEAGUES THAT TODAY WE'RE GOING TO BE USING SPEAKER MANAGEMENT SO MAKE SURE YOU SIGN

[1:50] IN. AND WITH THAT, WE HAVE ONE

[1:55] ITEM ON OUR AGENDA TODAY WHICH IS AN UPDATE ON FEDERAL AND STATE ACTIONS AFFECTING THE

[2:01] CITY. I'LL NOW INVITE DIRECTOR TOPINKA UP TO KICK OFF THIS ITEM.

[2:08] >> THANK YOU, CHAIR CHOWDHURY AND COUNCIL MEMBERS. JUST WANT TO START BY SAYING IT'S WITH A

[2:15] HEAVY HEART THAT WE'RE HERE TO PRESENT A SUMMARY OF THE STATE LEGISLATIVE SESSION. I KNOW THE

[2:22] WHOLE STATE IS REALLY REELING FROM THE ASSASSINATION OF SPEAKER HORTMAN, HER HUSBAND

[2:28] MARK AND THE SHOOTING OF JOHN AND YVETTE HOFFMAN. IT'S A SMALL

[2:33] WORLD AT THE CAPITAL, EVEN IF YOU DON'T KNOW SOMEONE REALLY WELL PERSONALLY, IT KIND OF FEELS LIKE YOU KNOW EVERYONE. SO

[2:40] IT'S HARD TO COME TO TERMS WITH THIS LOSS. AND SO JUST WANTED TO SHARE THAT OUR THOUGHTS ARE WITH THE HORTMAN FAMILY AND THE

[2:49] HOFFMANS AS THEY CONTINUE THEIR RECOVERY. AND CERTAINLY WITH ALL THE LEGISLATORS WE WORK CLOSELY

[2:56] WITH, ESPECIALLY THE MINNEAPOLIS DELEGATION AS THEY WORK THROUGH THIS DEVASTATING TIME. I'LL JUST ALSO NOTE IT WAS ANNOUNCED TODAY

[3:01] THAT THE HORTMANS WILL LIE IN STATE AT THE CAPITOL ON FRIDAY FROM 12:00 TO 5:00 THAT IS OPEN

[3:07] TO THE PUBLIC. THERE IS A PRIVATE SERVICE ON SATURDAY MORNING, BUT THAT WILL BE

[3:12] LIVESTREAMED FOR THE PUBLIC TO VIEW. SO WITH THAT, WE KNOW IT'S

[3:19] OBVIOUSLY STILL IMPORTANT TO SHARE ON ISSUES THAT HAPPEN DURING THE SESSION THAT AFFECT THE CITY. SO WE WILL BE

[3:25] PROVIDING A BRIEF UPDATE FOR YOU ON THE STATE LEGISLATIVE

[3:30] SESSION. MS. OLSON WILL PROVIDE AN UPDATE FOR THINGS HAPPENING RELATED TO THE FEDERAL BUDGET.

[3:37] SO THERE WERE 39 NEW LAWS PASSED IN THE REGULAR SESSION THIS YEAR. AND 15 LAWS PASSED IN A

[3:44] SPECIAL SESSION. IT WAS A ONE-DAY SPECIAL SESSION THAT WAS NEEDED TO FINISH THE WORK ON THE

[3:49] STATE BUDGET. THEY DID COMPLETE ALL THE WORK ON THE BUDGET. THE BUDGET FOR THE FISCAL YEAR 26-27

[3:56] BIENNIUM IS A $66 BILLION BUDGET WHICH IS REDUCED FROM A $72 BILLION BUDGET IN FISCAL

[4:03] YEARS 24 AND 25. SO WE'RE JUST GOING TO GO THROUGH THE ISSUE AREAS THAT WE EACH FOCUS ON. SO

[4:09] AFTER I FINISH HERE, STEVE HUGHESER WILL COME UP AND

[4:16] INDERIA FALANA. $118 MILLION

[4:23] REDUCTION. THEY DID HAVE TO MAKE SOME DECISIONS AROUND SOME

[4:28] INCREASES AND REDUCTIONS AROUND TAX PROGRAMS. THERE WERE DISCUSSIONS THROUGHOUT THE

[4:33] PROCESS OF POTENTIAL CUTS TO GOVERNMENT AID. FORTUNATELY IN THE FINAL TAX BILL THERE WERE NO CUTS TO LGA, ALSO NO CUTS TO

[4:40] COUNTY PROGRAM AID. THAT WAS A GOOD OUTCOME FOR THE CITY. THEY DID REPEAL THE LOCAL CANNABIS

[4:49] AID ACCOUNT. IN THE INITIAL CANNABIS AGREEMENT FROM TWO YEARS AGO, THERE WAS 2% OF THE

[4:55] SALES TAX REVENUE SET ASIDE TO GO TO CITIES AND COUNTIES. 1% TO CITIES. 1% TO COUNTIES. THAT HAS

[5:01] NOW BEEN REPEALED. SO WE WON'T BE RECEIVING THAT LOCAL CANNABIS

[5:07] AID. WE HAVEN'T ACTUALLY RECEIVED ANY AID YET. OUR PROJECTIONS WERE THAT IT WOULD

[5:13] BE $250,000 A YEAR. THAT WAS A PROJECTION BASED ON THE BEST INFORMATION WE HAD. IT'S NOT A

[5:19] HUGE AMOUNT OF MONEY. OBVIOUSLY IN DIFFICULT BUDGET TIMES ANY DOLLAR HELPS. BUT THAT ACCOUNT

[5:25] WAS ELIMINATED. THEY DID INCREASE THE CANNABIS SALES TAX FROM 10% TO 15%. A COUPLE OF

[5:34] OTHER THINGS IN THE TAX BILL THEY EXPANDED THE RESEARCH AND DEVELOPMENT TAX CREDIT. A COUPLE

[5:40] OF THINGS SPECIFIC TO THE CITY OF MINNEAPOLIS THAT WE WERE WORKING ON. ONE WAS A CLARIFICATION AROUND ALLIANCE

[5:46] HOUSING WHICH WAS A SUPREME COURT DECISION FROM A FEW YEARS AGO THAT HAD FOUND THAT

[5:52] CHARITABLE ORGANIZATIONS DID NOT HAVE TO PAY PROPERTY TAXES ON HOUSING THAT THEY OWNED. BUT THE

[5:57] RESULT OF THAT WAS THAT THEN THE RENTERS WHO LIVED IN THAT HOUSING, THE REVENUE SAID THEY

[6:03] WERE LIABLE FOR PERSONAL PROPERTY TAXES, AND THEY WEREN'T ELIGIBLE FOR THE RENTERS CREDIT. SO THE CITY WAS SUPPORTIVE OF A

[6:10] CHANGE THAT WAS ULTIMATELY INCLUDED IN THE TAX BILL THAT CLARIFIED THAT PROPERTIES OWNED

[6:15] BY CHARITABLE ORGANIZATIONS USED PRIMARILY FOR HOUSING ARE NOT TAX EXEMPT. SO IF IT'S

[6:22] AFFORDABLE HOUSING, THEY PAY THE 4D TAX EXEMPT RATE. BUT THEN THE

[6:29] RENTERS ARE ELIGIBLE FOR THE RENTERS CREDIT. WE'RE TALKING ABOUT PRETTY LOW INCOME RENTERS.

[6:35] SO WE WERE SUPPORTIVE OF THAT POLICY CHANGE THAT WAS INCLUDED IN THE TAX BILL. THERE WERE ALSO

[6:42] A COUPLE OF TRIBAL PROPERTY

[6:47] EXTENSIONS. ONE WAS FOR RED LAKE NATION COLLEGE, AND THE MALAX BAND. WE WORKED ON THE LANGUAGE

[6:55] TO MAKE SURE IT WORKED. THERE WERE SEVERAL THINGS THAT THE CITY WAS ADVOCATING FOR OR WORKING ON THAT DID NOT

[7:02] ULTIMATELY PASS, INCLUDING THE CUP CREDIT WHICH WAS THE CREDIT

[7:08] FOR CONVERTING BUILDINGS FROM COMMERCIAL TO RESIDENTIAL OR OTHER USES. GIVEN THE TARGET OF A REDUCTION, THEY JUST WEREN'T

[7:14] ABLE TO FUND THAT THIS SESSION. SIMILARLY, WE HAD A PROPOSAL FOR

[7:20] TIF, FOR ADAPTIVE REUSE. COUNCIL

[7:27] MEMBER CASHMAN HAD COME TO TESTIFY. THE DOWNTOWN TAXING

[7:33] BOUNDARY EXPANSION WAS NOT INCLUDED IN THE FINAL BILL. WE WILL CONTINUE WORKING ON ALL THOSE ITEMS, WE PRESUME, NEXT

[7:40] SESSION AS WELL BECAUSE THE NEEDS STILL EXIST. MOVING ON TO

[7:47] BONDING. THERE WAS A SMALL BONDING PACKAGE PASSED DURING THE SPECIAL SESSION.

[7:54] $700 MILLION GENERAL OBLIGATION BONDING BILL. A LOT OF THE FUNDING WENT TO STATE ASSETS, AND THEN THERE WERE SOME FUNDING

[8:00] FOR PROGRAMS BUT THERE WERE NO LOCAL PROJECTS NAMED DIRECTLY IN THE BILL. SO THERE WERE SOME

[8:07] FUNDING FOR WATER AND INFRASTRUCTURE PROGRAMS, INCLUDING THE MAJOR LOCAL BRIDGE REPLACEMENT PROGRAM. AND WE WILL

[8:14] BE ELIGIBLE TO APPLY FOR THOSE FUNDS TO HOPEFULLY GET THE REMAINING $2 MILLION NEEDED FOR

[8:23] THE NICOLLET AVENUE BRIDGE. THERE WAS ALSO A SMALL CASH BILL, JUST $10.5 MILLION. ONE

[8:30] THING TO NOTE FROM THAT BILL WAS THERE WAS $1 MILLION FOR KMOJ

[8:35] THAT WILL GO TO THE CITY OF MINNEAPOLIS FOR US TO GRANT IT TO KMOJ FOR THEIR NEW FACILITY

[8:40] THAT THEY ARE WORKING TO BUILD AS PART OF THE BLUE LINE

[8:46] CONSTRUCTION THEY'RE SEEKING A NEW SITE. I WILL ALSO JUST NOTE

[8:51] THAT THERE WAS NOT FUNDING INCLUDED FOR THE WATER YARD. THE $5.7 MILLION FOR THE WATER YARD

[8:58] WHICH RELATES TO THE ROOF DEPOT PROJECT. I'LL JUST SHARE THAT CPED STAFF IS MEETING WITH

[9:04] COMMUNITY ORGANIZATIONS THIS WEEK TO TALK THROUGH WHAT NEXT STEPS MAY LOOK LIKE, AND WILL CERTAINLY UPDATE COUNCIL MEMBERS

[9:10] AS WE KNOW MORE. BUT THAT WAS NOT INCLUDED IN THE BONDING BILL. MOVING ON TO ECONOMIC

[9:19] DEVELOPMENT AND WORKFORCE. THERE WAS A REDUCTION TO A COUPLE OF DEED PROGRAMS THAT ARE USED IN

[9:27] THE CITY OF MINNEAPOLIS, INCLUDING THE JOB CREATION FUND AND THE REDEVELOPMENT GRANT PROGRAM. BUT THERE WAS A SMALL

[9:33] INCREASE FOR THE MINNESOTA INVESTMENT FUND. THE MINNESOTA

[9:38] INVESTMENT FUND PROVIDES FINANCING TO ADD NEW WORKERS AND RETAIN JOBS. THERE ARE

[9:43] BUSINESSES IN MINNEAPOLIS THAT DO TAKE ADVANTAGE OF THAT PROGRAM FROM TIME TO TIME. NEW

[9:50] FUNDING FOR CHILD CARE AND EARLY LEARNING INCLUDED IN THAT JOBS BILL. THERE WAS ALSO AN EXTENSION OF THE $8 MILLION FOR

[9:56] LAKE STREET THAT WAS ORIGINALLY IN THE 2023 TAX BILL, AND THAT

[10:02] MONEY, CPED HAS A GRANT WITH THE GRAVES FOUNDATION WHO IS WORKING WITH LAKE STREET COUNCIL AND OTHERS TO PROVIDE BUSINESS

[10:08] SUPPORT ON LAKE STREET, AND THAT MONEY WAS SET TO EXPIRE JUNE 30TH, BUT IT WASN'T FULLY

[10:15] EXPENDED YET. SO IT IS EXTENDED ANOTHER YEAR TO HELP GET THAT MONEY OUT TO BUSINESSES IN THE

[10:21] COMMUNITY. WHICH IS GOOD OUTCOME. THEY ALSO MADE A FEW MODIFICATIONS TO THE PROMISE ACT, WHICH WAS THE FUNDING

[10:27] PASSED A COUPLE OF YEARS AGO TO HELP WITH RECOVERY ON WEST BROADWAY AND LAKE STREET AND

[10:33] OTHER PLACES AFFECTED BY CIVIL UNREST. SO THEY INCREASED SOME OF THE LOAN AMOUNTS AND MADE SOME OTHER TWEAKS TO THE PROGRAM

[10:39] TO HELP IT FUNCTION A LITTLE BIT BETTER. ONE OTHER ITEM IN THE JOBS BILL WAS A NEW TASK FORCE

[10:46] ON WORKFORCE DEVELOPMENT SYSTEM REFORM WHICH IS OF INTEREST TO THE CITY OF MINNEAPOLIS. WE

[10:52] RECEIVE DIRECT FUNDING THROUGH THE WORKFORCE DEVELOPMENT FUND ON A FORMULA BASIS. THAT GOES TO

[11:00] CPED TO OUR JOB TRAINING PROGRAMS LIKE STEP UP, FOR

[11:06] EXAMPLE. AND SO WHAT THE TASK FORCE WILL STUDY IS, YOU KNOW,

[11:11] HOW TO IMPROVE THE SYSTEM OF FORMULA GRANTS AND TALK ABOUT

[11:18] WHETHER FORMULA GRANTS VERSUS DIRECT APPROPRIATIONS ARE A BETTER TOOL FOR SUCCESS AND

[11:23] WORKFORCE PROGRAMS. WE ARE GOING TO BE PAYING CLOSE ATTENTION TO THE RESULTS OF THAT TASK FORCE.

[11:31] AND THEN ON LABOR, THERE WAS A LOT OF DISCUSSION ABOUT EARNED

[11:39] SECOND SAVE TIME AND PAID FAMILY MEDICAL LEAVE. BUT ULTIMATELY

[11:44] NOT A LOT OF CHANGES. ONE EXAMPLE UP HERE IS THAT IT ALLOWS EMPLOYERS TO REQUIRE

[11:50] REASONABLE NOTICE AND DOCUMENTATION IF AN EMPLOYEE IS

[11:57] USING TWO OR MORE CONSECUTIVE DAYS OF ESST. MAKING SURE OUR

[12:03] POLICIES ARE ALIGNING WITH THE STATE LAW. UNPAID FAMILY MEDICAL LEAVE THE CHANGE THEY ENDED UP

[12:10] AGREEING TO WAS REDUCING THE PREMIUM FOR TAXABLE WAGES. BUT THEY DID NOT HAVE ANY OTHER POLICY CHANGES TO THE PROGRAM.

[12:17] THAT'S SET TO GO INTO EFFECT NEXT YEAR. IN ADDITION, THERE WERE A COUPLE OF MEAL AND BREAK TIME PROVISIONS THAT WERE

[12:24] STRENGTHENED IN THE LABOR BILL. THEY INCLUDED A MISCLASSIFICATION FRAUD IMPACT

[12:29] REPORT. HAVING THE DEPARTMENT OF LABOR INDUSTRY LOOK AT WORKER MISCLASSIFICATION AND WHAT THE

[12:34] IMPACTS OF THAT ARE ON THE WORKFORCE. SO WITH THAT, I WILL

[12:41] TURN IT OVER TO MR. HUGHESER.

[12:51] >> THANK YOU, MADAM CHAIR, MEMBERS OF THE COMMITTEE. FOR THE RECORD, STEVE HUGHESER WITH

[12:56] THE IGR DEPARTMENT. SO ON THE

[13:02] TRANSPORTATION BILL WAS ONE OF THE BILLS PASSED DURING THE SPECIAL SESSION. THE FINAL BILL

[13:08] PACKAGE WASN'T RELEASED UNTIL RIGHT BEFORE THAT LAST DAY. INCLUDED IN THE BILL, THOUGH, WAS AN AGENDA ITEM FROM THE CITY

[13:15] OF MINNEAPOLIS. THERE IS MONEY FOR TRAFFIC CALMING MEASURES FOR CITIES OF THE FIRST CLASS. WE

[13:23] ANTICIPATE $1 MILLION PER YEAR FOR FISCAL YEARS 26-27. I THINK

[13:29] THE DISTRIBUTION THAT IS INCLUDED IN THAT ALLOCATION WE ANTICIPATE WILL GET

[13:35] APPROXIMATELY $500,000 PER YEAR FROM THAT ALLOCATION FOR THE CITY OF MINNEAPOLIS, BUT WE'LL GET THOSE DETAILS FROM MnDOT

[13:43] HOPEFULLY SOON. ALSO INCLUDED WAS FUNDING FOR THE WASHINGTON

[13:49] AVENUE BRIDGE SUICIDE PREVENTION BARRIER. THEY USED $2 MILLION

[13:56] FROM THE ACTIVE TRANSPORTATION ACCOUNT FROM THE METRO AREA TRANSIT TAX AS WELL AS

[14:04] $6 MILLION FROM THAT SAME TAX ALLOCATION TO HENNEPIN COUNTY. THE RAIL LINE FROM DULUTH TO

[14:14] MINNEAPOLIS WAS CUT $77 MILLION FROM ITS $194 MILLION ALLOCATION

[14:20] FROM THE 2023 BILL. THAT DOES LEAVE MONEY TO PROGRESS THAT

[14:26] PROJECT IF THAT OPPORTUNITY ARISES. THAT $77 MILLION WAS REALLOCATED TO FUND THE

[14:32] UNEMPLOYMENT INSURANCE BENEFITS FOR HOURLY WORKERS IN

[14:42] SCHOOLS. -- WERE CUT FROM THEIR GENERAL FUND ALLOCATIONS. I BELIEVE IT WAS ABOUT $61 MILLION

[14:48] WAS CUT FROM GENERAL FUND SOURCES. JUST AS A REMINDER THOUGH THAT METRO TRANSIT STILL

[14:54] DOES HAVE THE MONEY COMING FROM THE METRO AREA SALES TAX THAT CAN SUPPLEMENT SOME OF THAT WORK. BUT THAT IS A CUT TO THE

[15:03] OPERATIONS FUNDING. THEY ALSO REQUIRE NOW A BLUE LINE

[15:08] EXTENSION BRT STUDY. MET COUNCIL WILL THEN REEVALUATE THE MODE

[15:14] FOR THE BLUE LINE EXTENSION PROJECT WHICH IS CURRENTLY SET AS A LIGHT RAIL TRANSIT LINE.

[15:21] MET COUNCIL WILL COME BACK WITH A STUDY LOOK AT THE BRT AS A POSSIBLE ALTERNATIVE. THE BILL

[15:27] ALSO REQUIRES MnDOT TO STUDY A LOCAL COST PARTICIPATION POLICY AND REPORT TO THE LEGISLATOR.

[15:39] I'M AWARE THAT PUBLIC WORKS FOR THE CITY OF MINNEAPOLIS HAS BEEN INVOLVED IN SOME OF THAT WORK AS WELL. SO WE ARE LOOKING INTO

[15:46] THAT FOR NEXT YEAR AS WELL. SOME THINGS THAT WERE NOT INCLUDED IN THE TRANSPORTATION BILL. THERE

[15:52] WERE NOT CHANGES TO THE HIGHWAY PURPOSES DEFINITION FOR THE HIGHWAY USER TAX DISTRIBUTION

[15:57] FUND, FUNDING AT THE STATE. ONE THING THAT WAS BEING LOOKED AT WAS WHETHER OR NOT SOME OF THOSE

[16:02] FUNDS COULD POTENTIALLY BE USED FOR THINGS LIKE BRT AND TRUNK HIGHWAYS, THINGS OF THAT NATURE.

[16:08] BUT THAT DID NOT ULTIMATELY GET INCLUDED IN THIS BILL. AND THERE WAS A LOT OF WORK DONE ON

[16:14] LOOKING AT CHANGES TO THE STATE AID DESIGN STANDARDS FOR MUNICIPAL STATE AID STREETS, AND

[16:21] ALLOWING FOR SOME DESIGN AND ENGINEERING FLEXIBILITY, ENGINEERING TREATMENTS THAT CAN

[16:26] BE DONE TO IMPROVE BIKING, TRAFFIC SAFETY AT INTERSECTIONS. I WANT TO PUBLICLY THANK PUBLIC

[16:34] WORKS FOR THEIR HELP IN PARTICIPATING WITH ME TO MAKE SURE THE WORK THAT DID GET DONE THIS SESSION WAS DONE IN A WAY

[16:39] THAT COULD BE HELPFUL TO THE CITY OF MINNEAPOLIS. PIVOTING TO

[16:46] PUBLIC SAFETY. THE PUBLIC SAFETY BILL DID INCLUDE $103 MILLION

[16:52] ALLOCATION TO THE OFFICE OF JUSTICE PROGRAMS FOR GRANTS. THAT INCLUDES WORK FOR CRIME

[17:01] VICTIM SERVICES GRANTS, COMMUNITY SAFETY GRANTS, GRANTS FOR LOCAL LAW ENFORCEMENT. THIS IS ALL FUNDING THAT THE CITY OF

[17:07] MINNEAPOLIS WOULD BE ELIGIBLE TO APPLY FOR. THIS $103 MILLION

[17:17] ALLOCATION IS A $70 MILLION REDUCTION. SO THERE'S LESS GRANT MONEY AVAILABLE TO APPLY FOR.

[17:31] THE PHILANDO CASTILE POLICE TRAINING FUNDING. IT'S A

[17:37] REDUCTION FROM THE LAST ALLOCATION. THERE WERE UPDATES TO THE DUTY DISABILITY CHANGES

[17:43] RELATED TO THE POST-TRAUMATIC STRESS PRESUMPTION THAT WAS PUT INTO LAW A FEW YEARS AGO. THEY

[17:50] DO MAKE THE NEW LAW WOULD MAKE LIMITS TO THE LENGTH OF TIME THAT HEALTH CARE BENEFITS WOULD

[17:55] BE AWARDED TO A PERSON WHO IS FOUND TO HAVE DUTY DISABILITY

[18:00] UNTIL AGE 65 AND THEN UNDER THE NEW LAW IT WILL BE LIMITED TO 60

[18:06] MONTHS OF BENEFIT. EMPLOYEES MAY ALSO ACCESS TREATMENT WHILE THEY'RE REMAINING ACTIVELY AT WORK, AND THEY WOULD ALSO BE

[18:13] ALLOWED TO DO THEIR PTSD THERAPY WITHOUT HAVING TO USE UP SICK

[18:23] TIME. ONE OTHER PIECE THAT DID NOT GET IN THE BILL I DID WANT TO MENTION IS THAT THERE WAS A

[18:30] PREEMPTION OF LOCAL SEPARATION -- THOSE ULTIMATELY

[18:37] DID NOT BECOME PART OF THE PUBLIC SAFETY BILL. AND THEN TO

[18:45] STATE AND LOCAL GOVERNMENT. THE CANNABIS LAWS WERE CLARIFIED TO SAY THAT CITIES MAY NOT --

[18:53] BUSINESSES THAT HAVE BEEN WITH PRELIMINARY LICENSE APPROVAL UNDER THE ORIGINAL LAW, WE WOULD

[18:59] HAVE HAD TO WAIT UNTIL THERE WAS FINAL LICENSE APPROVAL. THIS WILL HELP GET SOME OF THE LOCAL

[19:05] PROCESSES STARTED AT A MORE LOGICAL TIME. THERE WAS ALSO CHANGES TO ELECTION LAW. ONE

[19:11] THAT WE WERE TRACKING A LITTLE BIT MORE CLOSELY WAS THE CHANGING OF THE DEADLINE FOR

[19:17] DROPPING OFF ABSENTEE BALLOTS ON ELECTION DAY. UNDER THE OLD LAW,

[19:22] YOU COULD DROP THOSE OFF UP UNTIL 8 P.M., POLL CLOSURE. AND NOW IT WOULD BE ENDED AT 5 P.M.

[19:29] THOSE THAT DO SHOW UP WITH AN ABSENTEE BALLOT AFTER 5:00 WOULD

[19:35] STILL BE ABLE TO DO AN IN-PERSON VOTING. THERE WERE CHANGES TO THE OPEN MEETING LAW THAT WOULD

[19:42] CHANGE HOW REMOTE PARTICIPATION FOR LOCAL ELECTED OFFICIALS CAN

[19:47] HAPPEN. THERE WERE RESTRICTIONS ON CASES OF MILITARY LEAVE OR MEDICAL REASONS FOR

[19:54] PARTICIPATING REMOTELY. THOSE ARE NOW ELIMINATED UNDER THIS LAW. IT DOES ALLOW FOR THOSE

[20:00] PARTICIPATING, LOCAL ELECTEDS PARTICIPATING REMOTELY TO NOT

[20:06] HAVE TO BE -- THESE ARE ALLOWING FOR LOCAL POLICY TO HAPPEN IN THOSE CASES. AND I WILL TURN

[20:15] THIS OVER TO INDERIA.

[20:21] >> HI. THANK YOU, STEVE. CHAIR, VICE CHAIR, COUNCIL MEMBERS, GOOD MORNING. MY NAME IS INDERIA

[20:31] FALANA. I'LL BE WRAPPING UP THE STATE LEGISLATIVE UPDATES PORTION OF THE PRESENTATION, AND THEN I'LL SHARE MORE ABOUT THE

[20:39] 2026 PROCESS. STARTING WITH HOUSING. ZONING AND LAND USE

[20:45] PROVISIONS, THE REFORM SPECIFICALLY WAS AN AREA FOCUS FOR LEGISLATORS THIS SESSION.

[20:50] THERE WERE SEVERAL BILLS MOVING AT ONE POINT. ULTIMATELY,

[20:56] LEGISLATORS COULDN'T REACH A CONSENSUS. INCREASE DENSITY, INCREASE THE SUPPLY OF HOUSING,

[21:03] AND MAKE HOUSING MORE AFFORDABLE ACROSS THE STATE. THE AREAS THEY

[21:08] WERE ABLE TO REACH WOULD ALLOW MUNICIPALITIES TO MINNESOTA

[21:15] HOUSING FINANCE OR MHFA IN THEIR SCORING PROCESS THROUGH THEIR REGULAR PROGRAMS. ANOTHER AREA

[21:20] OF FOCUS FOR LEGISLATORS INCLUDES HOMEOWNER ASSOCIATIONS REFORMS. THERE WERE A NUMBER OF

[21:29] CONVERSATIONS AS WELL AS STORIES REPORTED ON INDIVIDUALS BELONGING TO HOAs. AND HOW

[21:36] SURPRISED THEY WERE THAT THEY HAD REALLY HUGE BILLS AND FOR REPAIR THAT THEY DIDN'T DEEM

[21:42] NECESSARY. AS A RESULT OF A WORKING GROUP THAT MEANT OVER

[21:48] THE INTERIM. THOSE RECOMMENDATIONS WERE THEN TURNED INTO BILLS. FOR THE SESSION,

[21:54] NONE OF THOSE BILLS PASSED OUT OF -- WELL THE BILLS PASSED OUT OF THE SENATE. THE SENATE

[22:02] CREATED A MINI OMNIBUS BILL. BOTH BODIES DID NOT PASS THE

[22:07] BILL SO THAT'S ESSENTIALLY WHY THERE IS NO HOA BILL,

[22:14] SPECIFICALLY. BUT WHAT THEY DID APPROVE OR COME TO CONSENSUS ON WAS THE CREATION OF A NEW

[22:22] OMNIBUDS PERSON THAT'S GOING TO BE HOUSED WITHIN COMMERCE. THAT WILL BE CHARGED WITH MEETING

[22:29] DISPUTES BETWEEN HOMEOWNERS AND HOAs. FAMILY HOMELESSNESS

[22:35] PREVENTION ASSISTANCE PROGRAM, THERE WAS $8.35 MILLION ADDED TO THIS PROGRAM. NAASSISTANCE TO

[22:45] FAMILIES AND INDIVIDUALS. COVERING RENT, UTILITY PAYMENTS, OR OTHER HOUSING COSTS. HOUSING

[22:52] INFRASTRUCTURE BONDS. THERE WAS $50 MILLION PROERPTD FOR THIS. THESE BONDS ARE ISSUED THROUGH

[23:02] MHFA. PERMANENT RENTAL HOUSING. THERE WERE A FEW UPDATES TO THE LANDLORD AND TENANT LAWS. THERE

[23:08] WAS A LOT OF REFORM IN MAKING THOSE LAWS STRONGER THAN 2023.

[23:14] THE SPECIFIC UPDATES FROM THIS SESSION INCLUDES A LAW THAT WENT INTO EFFECT IN 2024 THAT'S

[23:20] RELATED TO THE HEATING LAW. SO THE SPECIFIC TECHNICAL UPDATE

[23:26] FROM THIS SESSION TO THAT LAW NOW REQUIRES LANDLORDS TO MAINTAIN A MINIMUM TEMPERATURE

[23:35] OF 68 DEGREES FAHRENHEIT IF -- TO INCLUDE KITCHENS AND

[23:41] BATHROOMS. THE NEW LANGUAGE SPECIFICALLY SAYS THAT ALSO NEEDS TO INCLUDE KITCHENS AND BATHROOMS. THERE ALSO WAS A

[23:52] CHANGE TO PROVIDE ESCROW ACTION. AND THEN LASTLY -- PRESERVES

[24:01] EXISTING REQUIREMENTS OF PRIVATE INFORMATION. LASTLY, THERE WAS A PROVISION IN THE STATE AND LOCAL

[24:06] GOVERNMENT BILL. BUT ESSENTIALLY IT REQUIRES ALL LOCAL GOVERNMENTS, CITIES AND TOWNS TO PROVIDE LANDLORDS WITH EITHER A

[24:14] PHYSICAL COMPANY OF THE GUIDE OR A LINK TO THE GUIDE ONLINE WHEN ISSUING OR RENEWING RENTAL

[24:20] LICENSES. THIS WAS A BILL THAT WAS REALLY PUSHED BY HOMELINE

[24:26] MINNESOTA. THEY WERE THE ADVOCACY ORGANIZATION. THE GOAL IS TO ENSURE LANDLORDS HAVE EASY

[24:32] ACCESS TO INFORMATION TO THE RIGHTS AND RESPONSIBILITIES, AS WELL AS THOSE OF THE TENANTS.

[24:39] MOVING ON TO ENERGY AND ENVIRONMENT. THERE WAS A

[24:45] CONTENTIOUS PUSH TO EXPLORE THE POSSIBILITY OF SUNSETTING THE

[24:50] PROGRAM. ULTIMATELY IT DID NOT GET DONE. THERE WAS LOTS OF DISCUSSION SURROUNDING THIS. IT

[24:55] HAS BEEN NOTED THAT THIS WAS THE ONE THING THAT WAS HOLDING UP THE BILL FROM FINISHING UP. THE

[25:03] BILL DID MOVE. ULTIMATELY IT WOULD HAVE ENDED THE PROGRAM IN

[25:08] 2028. BUT IT DID NOT PASS SO THAT IS NOT A POSSIBILITY. NEXT, THE ENERGY ASSISTANCE PROGRAM.

[25:14] SO WITH THE UNPRECEDENTED

[25:20] UNCERTAINTY OF THE FEDERAL LOW -- THE STATE'S ENERGY ASSISTANCE LANGUAGE WAS UPDATED. SPECIFICALLY IT INCLUDES AN

[25:26] EXPANSION OF THE DEFINITION OF WHAT CONSTITUTES TO BE LOW INCOME HOUSE HOLD. THAT WILL NO

[25:32] LONGER RELY SOLELY ON THE FEDERAL DEFINITION FROM HUD. AND THEN THERE WAS SOME MONEY THAT

[25:39] WENT OR THAT WAS SET ASIDE FOR THE COMMUNITY TREE PLANTING GRANTS, AND THE MINNESOTA RELIEF

[25:45] PROGRAM. THESE TWO PROGRAMS ARE HOUSED WITHIN THE DEPARTMENT OF NATURAL RESOURCES AND THEIR

[25:50] FORESTRY DIVISION. THE FUNDING GOES TOWARDS THE REMOVAL AND

[25:58] PLANTING OF SHADE TREES -- OR STORMS. AND THE GOAL IS TO

[26:05] ESTABLISH A MORE DIVERSE COMMUNITY FORESTRY. AND THEN FOR

[26:12] HEALTH AND HUMAN SERVICES. SO THIS BUDGET AREA, THERE'S TWO. HEALTH AND HUMAN SERVICES, AND

[26:18] THEN HUMAN SERVICES. THESE TWO AREAS EXPERIENCE THE BUDGET

[26:25] CUTS. CUT $270 MILLION FOR THE UPCOMING TWO FISCAL YEARS.

[26:32] $820 MILLION FOR FISCAL YEAR 28 AND 29. THERE WAS VERY LIMITED NEW SPENDING AND LOTS OF CUTTING

[26:39] FOR EXISTING PROGRAMS. MINNESOTA CARE COVERAGE WAS RECOVERED FOR UNDOCUMENTED ADULTS. LEGISLATION

[26:47] TO END UNDOCUMENTED ADULT IMMIGRANT ELIGIBILITY FOR

[26:53] MINNESOTA CARE WAS ONE OF THE MOST CHARGED. IT WAS A PART OF THE AGREEMENT BETWEEN THE

[26:58] GOVERNOR AND ALL FOUR CAUCUS LEADERS. THE NEW LAW STATES THAT

[27:03] UNDOCUMENTED ADULTS AGE 18 YEARS OR OLDER CURRENTLY ENROLLED IN MINNESOTA CARE WOULD NO LONGER

[27:09] BE ELIGIBLE AFTER DECEMBER 31ST OF THIS YEAR. CHILDREN WILL CONTINUE TO REMAIN COVERED.

[27:18] UNDOCUMENTED ADULTS ENROLLED IN MINNESOTA CARE WILL NO LONGER BE ABLE TO ENROLL ANYMORE. AND

[27:26] CANNABIS USE PREVENTION THAT SPECIFICALLY WAS ALLOCATED DURING THE 2023 LEGISLATIVE SESSION TO LOCAL PUBLIC HEALTH

[27:33] ORGANIZATIONS WAS CUT DURING THE 2024 LEGISLATIVE SESSION. THIS

[27:40] LEGISLATIVE SESSION, THAT FUNDING WAS RESTORED. THIS WAS MADE POSSIBLE BY SHIFTING AROUND

[27:47] EXISTING FUNDS THROUGH THE DEPARTMENT OF HEALTH. AND THE FUNDING IS TO BE USED FOR

[27:53] CANNABIS EDUCATION PROGRAMS THAT WILL ADDRESS SUBSTANCE MISUSE AND PREVENTION, ESPECIALLY IN

[27:59] YOUTH AND PREGNANT AND BREAST FEEDING INDIVIDUALS. FOR BRIDGE TO SHELTER. WE WORKED WITH

[28:04] HENNEPIN COUNTY THIS SESSION TO ADVOCATE FOR THE IMPORTANCE OF THE BRIDGE TO SHELTER LEGISLATION. THIS LEGISLATION

[28:10] WOULD HAVE PROVIDED FUNDING FOR SPECIFIC SERVICES SUCH AS 24-7

[28:18] OPERATIONS FOR EXISTING SHELTERS, AND MANAGEMENT. THERE ARE OFTEN FUNDING GAPS IN THESE

[28:26] AREAS HENCE WHY THIS WAS OF SUCH IMPORTANCE. WITH A LACK OF

[28:32] AVAILABLE FUNDING, THE BRIDGE TO SHELTER BILL DID NOT RECEIVE ANY FUNDING. AND THE EMERGENCY

[28:37] SERVICES PROGRAM, THERE WAS AN ADDITIONAL $1 MILLION TO BE

[28:43] ADDED TO THE BASE FUNDING. HOWEVER, THESE FUNDS DID NOT

[28:48] MAKE IT TO THE FINISH LINE. FORTUNATELY, THERE WERE NO CUTS TO THIS PROGRAM AND THERE CONTINUES TO BE $11 MILLION

[28:57] FISCAL YEAR 26 AND 27 FOR RENOVATIONS TO CONTINUE TO APPLY TO. AND THEN ONE OF THE CITY'S

[29:05] NON-PROFIT PARTNERS, AVIVO AND THE AVIVO VILLAGES WAS APPROVED

[29:10] TO RECEIVE THE SUPPLEMENTAL SERVICE RATE WHICH WILL HELP.

[29:17] THE FUNDING THAT THEY NOW WILL RECEIVE WILL SPECIFICALLY GO TO THEM. MEANING THEY DON'T HAVE TO COMPETE FOR FUNDING. AND

[29:24] ALLOCATES A SPECIFIC AMOUNT OF MONEY PER BED FOR ONE PERSON. SO I BELIEVE THE CURRENT RATE IS

[29:31] $495. SO THIS MONEY CAN GO TOWARDS THE OPERATION AS WELL AS THE WRAP AROUND SERVICES THAT THEY PROVIDE. AND THEN THIS IS

[29:39] GOING TO THE RATE APPLIES TO THEIR TWO FACILITIES. THE ONE IN MINNEAPOLIS AND THE OTHER ONE IS

[29:47] IN SAINT CLOUD. THE SAFE HARBOR PROGRAM. THE FUNDING ENSURES

[29:54] THAT SEXUALLY EXPLOITED YOUTH CAN RECEIVE TRAUMA INFORMED SUPPORT AND WRAP AROUND SERVICES. THERE WAS FUNDING MADE

[30:02] AVAILABLE THIS SESSION. $931,000 IN FISCAL YEARS 26 AND 27 FOR THIS PROGRAM. SO I WILL PAUSE

[30:07] HERE. FOR ANY QUESTIONS.

[30:13] >> THANK YOU. I'LL ASK MEMBERS IF THEY HAVE ANY QUESTIONS.

[30:28] COUNCIL MEMBER CASHMAN. >> THANK YOU, MADAM CHAIR. JUST A QUICK QUESTION ON THIS BILL. I BELIEVE THERE WAS SOME FUNDING

[30:35] FOR BRIDGE FOR YOUTH WHICH IS A SHELTER IN MINNEAPOLIS. ARE YOU AWARE OF THAT OR COULD YOU JUST

[30:40] FOLLOW UP WITH ME ON THE AMOUNT THAT WAS ALLOCATED TO THEM.

[30:45] >> CHAIR CHOWDHURY, COUNCIL MEMBER CASHMAN, I'D BE HAPPY TO FOLLOW UP WITH YOU SPECIFICALLY. I KNOW THAT THE SAFE HARBOR

[30:52] PROGRAM, THOSE YOUTH ORGANIZATIONS ARE ABLE TO APPLY FOR THAT FUNDING. >> OH, OKAY. >> BUT I'LL FOLLOW UP SPECIFICALLY YOU WITH YOU ON THE

[31:00] AMOUNT THAT WAS APPROPRIATED TO

[31:06] THEM. >> THANK YOU. >> COUNCIL MEMBER RAINVILLE. >> THANK YOU. I DO HAVE SOME QUESTIONS ABOUT WHAT HAPPENED

[31:11] WITH THE CUB CREDITS AND THE TIF, BUT I DON'T WANT TO TIE UP

[31:17] THE COMMITTEE TIME HERE. PERHAPS THE RIGHT PERSON. KATIE, COULD YOU CALL AND SET THAT UP. LET ME

[31:23] LOOK THROUGH MY NOTES HERE. ONE OTHER. I'D ALSO LIKE TO TALK IN

[31:30] DETAIL ABOUT THE MnDOT STUDY ON LOCAL COST PARTICIPATION. CORRECT ME IF I'M WRONG, IS THAT

[31:36] YOU, STEVE? >> YEAH, COUNCIL MEMBER. >> IS THIS WHERE THE CITY IS IN

[31:42] ESSENCE REQUIRED TO CONTRIBUTE TO STATE ROADS AND COUNTY ROADS?

[31:48] >> YEAH, CHAIR CHOWDHURY, COUNCIL MEMBER RAINVILLE, YEAH, CURRENTLY THERE IS A POLICY THAT

[31:55] MnDOT HAS THAT DETERMINES WHAT PROJECT ELEMENTS AND HOW THAT COST IS DISTRIBUTED TO LOCAL

[32:00] GOVERNMENTS. SO USUALLY BOTH COUNTY AND CITY WOULD HAVE, AND

[32:07] ANY MnDOT TRUNK HIGHWAY PROJECT THERE WOULD BE A COST THAT WOULD COME TO THE CITY. SO YES. THIS

[32:14] WOULD LOOK AT THAT POLICY TO SEE HOW THE COSTS ARE DISTRIBUTED.

[32:19] >> THANK YOU. THAT DOES INCLUDE ROADS THAT THE COUNTY REBUILDS? >> CHAIR AND COUNCIL MEMBER,

[32:26] THIS WOULD BE FOR MnDOT ONLY. THE COUNTY COST SHARE POLICY WOULD BE AT THE COUNTY LEVEL. WE

[32:32] HAVE BEEN IN DISCUSSIONS WITH THE COUNTY. I'M AWARE WE HAVE TALKED TO THE COUNTY. THIS WOULD

[32:37] BE SEPARATE FROM THAT. THIS WOULD ONLY BE FOR MnDOT ROADS. >> GREAT. I HAVE A LITTLE

[32:43] INSIGHT I'D LIKE TO SHARE WITH YOU AS WELL ON THAT. MAYBE YOU CAN CALL ME PRIVATELY. >> ABSOLUTELY.

[32:49] >> THANK YOU. LAST, I DON'T KNOW WHO THIS WOULD BE DIRECTED TO. BUT I SEE THE GOVERNOR HAS ASKED

[32:56] THE LEGISLATIVE FOR THE NEXT SESSION TO DISCUSS BANNING HANDGUNS IN THE CAPITOL. IS THAT

[33:03] SOMETHING WE CAN KEEP AN EYE ON AS IT RELATES TO CITIES? >> CHAIR CHOWDHURY AND COUNCIL

[33:08] MEMBER RAINVILLE, YES, I THINK THIS WAS ACTUALLY SOMETHING THAT WE'VE SPOKEN ABOUT. THE COUNCIL

[33:18] HAS, WE'VE LOOKED INTO THIS ISSUE ON WHAT WE CAN BE RESTRICTING IN THE PAST. I THINK

[33:24] IT'S APPROPRIATE TO HAVE A RENEWED DISCUSSION AGAIN IN LIGHT OF THE RECENT EVENTS. BUT YES, WE WILL ALSO BE MONITORING.

[33:33] IT OBVIOUSLY IMPACTS THE WORK THE TEAM DOES AT THE CAPITOL AND

[33:40] SAFETY WHEN WE'RE CONDUCTING OUR WORK. WE'LL BE LOOKING AT THAT VERY CAREFULLY AND REPORTING

[33:46] THAT BACK. >> GREAT. THANK YOU. >> THANK YOU. NEXT I'LL CALL ON

[33:52] COUNCIL MEMBER JENKINS. >> THANK YOU, MADAM CHAIR. INTERESTINGLY, I HAD SOME

[33:57] SIMILAR QUESTIONS FOR MR. HUSER. I THINK YOU MENTIONED THERE WERE

[34:03] SOME LOOSENING, I GUESS, OF

[34:08] RESTRICTIONS AROUND MINNESOTA STATE AID HIGHWAYS AND TRUNK ROADS OR WHATEVER. AND I'M JUST

[34:16] CURIOUS, CAN YOU SPEAK MORE IN

[34:26] DEPTHLY. >> YEAH, CHAIR AND COUNCIL MEMBER JENKINS, SO IT WAS

[34:32] PROPOSED CHANGES TO -- STATE AID STREETS IN THE CITY OF MINNEAPOLIS. FOR THOSE CITIES OVER 5,000, WE RECEIVE STATE AID

[34:41] MONEY FROM THE GAS TAX AT THE STATE LEVEL. IT'S CALLED THE

[34:49] HIGHWAY USER DISTRIBUTION FUND. WHEN YOU SPEND THOSE DOLLARS, THERE ARE RESTRICTIONS TO THE

[34:58] ENGINEERING AND THE TYPES OF DESIGN ELEMENTS THAT CAN BE ON THOSE CERTAIN STREETS THAT ARE

[35:04] DESIGNATED BY EACH CITY THAT GETS THAT FUNDING. WHAT THIS PART OF THE BILL WOULD HAVE PROPOSED TO BILL AND THIS IS A

[35:11] SENATE PROVISION, WOULD HAVE ALLOWED FOR FLEXIBILITY FOR THINGS LIKE LANE WIDTH OR OTHER

[35:18] TYPES OF PEDESTRIAN, BICYCLE, AND TRAFFIC SAFETY ELEMENTS AT

[35:23] INTERSECTIONS, ON THOSE COMPONENTS. THIS ENDED UP NOT BEING PART OF THE FINAL BILL. SO WE DON'T HAVE THAT FLEXIBILITY.

[35:31] BUT THIS IS PROBABLY A TOPIC THAT'S NOT GOING AWAY. I THINK

[35:36] IT WAS A GOOD DISCUSSION BUT THERE PROBABLY WASN'T ENOUGH TIME TO GET EVERYBODY THAT NEEDED TO BE IN AGREEMENT ON

[35:42] AGREEMENT ON THAT. >> OH, OKAY. I THOUGHT I UNDERSTOOD YOU TO SAY IT DID. >> SORRY IF I MISSPOKE.

[35:48] >> GREAT. AND THEN I WILL JUST REITERATE, I THINK I'VE BEEN A

[35:55] VOICE FOR BANNING GUNS IN CITY HALL FOR A VERY LONG TIME. SO

[36:03] REALLY HOPE WE CONTINUE TO FOLLOW UP AS YOU MENTIONED ON THE CAPITOL BAN ON HANDGUNS AND

[36:10] WEAPONS OR WHATEVER. BUT YOU KNOW, I DON'T KNOW IF WE WANT TO

[36:19] PUT IN ANOTHER REQUEST TO LOOK AT CITIES AS WELL. THANK YOU.

[36:27] >> THANK YOU. MEMBERS, ARE THERE ANY OTHER QUESTIONS OR ANYONE ELSE THAT WOULD LIKE TO GET INTO

[36:33] DISCUSSION? OKAY. I WILL JUST

[36:40] PUT MYSELF IN QUEUE THEN. I DON'T HAVE ANY SPECIFIC

[36:45] QUESTIONS I WANT TO FOLLOW UP ON THE IGR TEAM JUST SEPARATE FROM THIS MEETING, AND I THINK IT

[36:51] WOULD BE HELPFUL TO MAYBE SET UP A DEBRIEF MEETING FROM THIS LEGISLATIVE SESSION WITH ME,

[36:58] VICE CHAIR RAINVILLE, PRESIDENT PAYNE, COUNCIL VICE PRESIDENT, TO JUST TALK ABOUT WLA WHAT

[37:05] ACHIEVED BUT ALSO WHAT WE NEED TO CONTINUE TO PUSH FOR NEXT LEGISLATIVE SESSION AND KIND OF

[37:11] SOME OF THE LESSONS LEARNED AS WE UNDERSTAND THAT NEXT LEGISLATIVE SESSION, IT'S AN

[37:17] ELECTION YEAR. AND SO THE MAKE-UP OF THE CHAMBERS AREN'T

[37:25] GOING TO BE THE SAME. I JUST WANT TO TAKE A MOMENT TO ACKNOWLEDGE THE PROFOUND AMOUNT

[37:31] OF GRIEF AND LOSS THAT ALL OF US FEEL, ESPECIALLY YOU AS OUR

[37:39] INTERGOVERNMENTAL RELATIONS TEAM. AND I THINK IT'S IMPORTANT TO TAKE TIME AS WE HAVE IN OTHER

[37:48] MEETINGS BUT AS WELL AS THIS ONE TO SAY THAT POLITICAL VIOLENCE OF ANY KIND IS UNACCEPTABLE.

[37:54] IT'S ON US TO ENSURE THAT WHATEVER SIDE YOU'RE ON, IF YOU'RE SEEING THINGS THAT ARE

[38:00] LEADING UP TO THAT TYPE OF ESCALATION, TO CALL IT OUT. IT'S

[38:06] HARD WHEN IT'S ON YOUR SIDE, BUT IT'S IMPORTANT TO DO SO. IT'S IMPORTANT TO MENTION THAT THIS

[38:12] HORRIFIC ACT THAT WAS TAKEN WAS MEANT TO STRIKE FEAR IN

[38:19] COMMUNITY MEMBERS AND LEADERS FROM SPEAKING UP FOR WHAT THEY BELIEVE IN, AND I THINK IT'S IMPORTANT THAT WE CONTINUE TO

[38:24] SPEAK UP FOR WHAT WE BELIEVE IN AND WHAT WE FEEL IS RIGHT. AND I THINK THAT'S SOMETHING THAT

[38:31] SPEAKER HORTMAN WOULD ENCOURAGE EVERYONE TO DO. THAT WAS

[38:37] SOMETHING THAT LIEUTENANT GOVERNOR FLANNI GAN AND -- IN

[38:50] HER MEMORY. AND I JUST WANT TO

[38:57] SAY THANK YOU TO DIRECTOR TOPINKA, STEVE HUSER, INDERIA

[39:05] FALANA, LAUREN OLSON. LAUREN, I KNOW YOU'RE ABOUT TO PRESENT IN JUST A SECOND HERE. BUT YOU ALL

[39:11] HAVE DONE ABSOLUTELY PHENOMENAL JOB. THIS WAS EXTREMELY

[39:17] DIFFICULT LEGISLATIVE SESSION. BUT YOU STUCK IN THE FIGHT. YOU PUT IN THE REALLY, REALLY LONG

[39:22] HOURS. SET ASIDE TIME AWAY FROM YOUR FAMILIES TO DO THE WORK OF THE CITY OF MINNEAPOLIS. AND ON

[39:28] OUR BEHALF. YOU SPENT TIME WITH THE LEGISLATIVE DELEGATION IN MINNEAPOLIS OVER AT THE CAPITOL,

[39:35] BUT YOU ALSO WORKED WITH 13 COUNCIL MEMBERS AND A MAYOR AND MULTIPLE CITY DEPARTMENTS. AND I

[39:41] THINK THAT IS IMPORTANT TO NOTE.

[39:47] I ALSO APPRECIATE AT THE SAME TIME, WHILE WE WENT THROUGH A TOUGH LEGISLATIVE SESSION, YOU

[39:54] WERE ABLE TO EKE OUT SOME REALLY, REALLY BIG WINS THAT

[40:00] WERE DIFFICULT. LIKE WE DID NOT SEE A CUT TO LOCAL GOVERNMENT AID, AND THAT STARTED AT A

[40:08] $20 MILLION CUT. WE WEREN'T SURE WE WERE GOING TO GET ANY BONDING DONE, AND WE WERE ABLE TO GET

[40:13] THE FUNDING FOR NICOLLET AVENUE BRIDGE. AND YOU HEARD US AS

[40:19] COUNCIL MEMBERS WHEN WE SAID WE REALLY, REALLY SEE IT AS A PRIORITY TO FIGHT FOR THAT WATER

[40:24] YARD FUNDING, AND YOU STUCK WITH US IN THAT FIGHT EVEN THOUGH WE DID NOT GET THAT OUTCOME AND

[40:31] YOU'RE GOING TO STICK WITH US AFTER THE FACT TO FIGURE OUT A SOLUTION FOR THE CITY OF MINNEAPOLIS THAT'S RIGHT AND

[40:37] JUST. YOU ALSO SPENT A LOT OF TIME MAKING SURE BAD THINGS

[40:43] DIDN'T HAPPEN, ESPECIALLY THE PREEMPTION ON LOCAL JURISDICTIONS ON SEPARATION

[40:50] ORDINANCES. YOU HELPED COUNCIL MEMBERS GET READY TO TESTIFY, AND SEND IN LETTERS WHEN

[40:56] NECESSARY. AND I JUST WANT TO THANK MY COLLEAGUES FOR PARTICIPATING IN THIS

[41:03] LEGISLATIVE SESSION. COUNCIL MEMBER CASHMAN FOR TESTIFYING. YOUR WORK ON DOWNTOWN

[41:09] REVIOLATIONIZATION. SAME WITH YOU, VICE CHAIR RAINVILLE. YOU MADE IT A REALLY BIG POINT TO

[41:17] PUSH FOR DOWNTOWN REVITALIZATION. AND SHOWING UP AS A VICE CHAIR. COUNCIL MEMBER

[41:27] KOSKI, IN YOUR EFFORTS FOR TRAFFIC CALMING. WE WERE ABLE TO GET SOME FUNDING THAT WILL HELP

[41:35] US IN THIS TOUGH BUDGET YEAR. COUNCIL MEMBER ELLISON FOR JOINING ME AND STANDING UP FOR

[41:42] OUR LOCAL JURISDICTIONS AND KIND OF RAISING THE ALARM OF THE STATE OF HOMELESSNESS, AND THE

[41:47] NECESSITY OF THESE RESOURCES. IT'S REALLY HARD TO SEE WE DIDN'T GET THE BRIDGE TO SHELTER

[41:54] FUNDING. HOWEVER, THIS LEADS INTO WHAT DO WE HAVE TO DEBRIEF IN TERMS OF CONVERSATIONS WITH

[41:59] THE COUNTY, AND THEN ALSO LOOKING INTO NEXT LEGISLATIVE SESSION, WHAT WE CAN WIN. JUST

[42:04] REALLY APPRECIATE YOU SHOWING UP AND KIND OF LAYING IT OUT WITH

[42:11] SUCH GREAT CLARITY FOR OUR LEGISLATIVE LEADERS AT THIS

[42:16] SESSION. COUNCIL MEMBER CHAVEZ, FOR BEING MORAL AND CLEAR VOICE ON IMMIGRATION AND STANDING UP

[42:23] FOR OUR UNDOCUMENTED COMMUNITY MEMBERS. REALLY, REALLY PROUD OF THE WAY THAT YOU REPRESENTED US

[42:29] AS A CITY COUNCIL AND HELD PEOPLE'S FEET TO THE FIRE ON WHAT OUR VALUES ARE. THAT

[42:36] UNDOCUMENTED PEOPLE ARE A PART OF OUR COMMUNITY. THEY'RE NOT ILLEGAL AND THEY DESERVE HEALTH

[42:42] CARE JUST LIKE EVERYONE ELSE. AND COUNCIL PRESIDENT PAYNE AND

[42:48] COUNCIL MEMBER CHUGHTAI IN YOUR EFFORTS AS LEADERS OF OUR COUNCIL AND SHOWING UP TO THE

[42:53] MEETINGS THAT WE HAD THROUGHOUT THE LEGISLATIVE SESSION. AND ALSO JUST BEING A MOMENT'S NOTICE AWAY WHEN YOU'RE NEEDED.

[43:02] OUR CITY ATTORNEYS TEAMS FOR PROVIDING US SAGE LEGAL ADVICE

[43:09] BOTH AT THE LEGISLATIVE SESSION BUT OBVIOUSLY THE CHAOTIC AND UNSTABLE NATURE OF THE FEDERAL LEVEL AND HOW THAT ALL PIECES

[43:15] TOGETHER WITH THE WORK THAT WE HAVE TO DO HERE. AND A HUGE THANK YOU TO OUR MINNEAPOLIS

[43:24] DELEGATION AS WELL. THEY REALLY, REALLY SPENT TIME MAKING SURE

[43:29] THAT THEY HEARD FROM THE CITY OF MINNEAPOLIS AND THEY STUCK TO

[43:35] THEIR VALUES, ESPECIALLY WHEN IT CAME TO THE FIGHT TO PROTECT UNDOCUMENTED HEALTH CARE, AND

[43:41] JUST BEING A REALLY STRONG VOICE THERE, AND HEARING US ON OUR LOCAL PRIORITIES. IT WAS NOT

[43:47] EASY FOR THEM AND I KNOW THAT THEY'RE ALSO IN GRIEF AND MOURNING. AND I THINK THE WORK

[43:52] THAT THEY DID FOR THE CITY OF MINNEAPOLIS SHOULD BE HELD UP.

[43:57] AND I KNOW THAT THEY ARE ALSO THINKING ABOUT LIKE THE WHAT IFS AND WHAT COULD HAVE BEENS. AND I

[44:05] HOPE AS WE DEBRIEF THIS SESSION AND KIND OF TAKE SOME TIME TO HEAL, THE CONVERSATIONS THAT WE

[44:12] HAVE INTO THE NEXT LEGISLATION ARE MORE FRUITFUL AND COLLABORATIVE. WE CAN BE MORE

[44:18] STRATE STRA STRATEGIC AND FIGURE OUT HOW TO

[44:24] GET WINS FOR OUR CITY EVEN THOUGH THE CONDITIONS ARE DIFFICULT. I JUST WANTED TO SAY ALL OF THAT TO PUT A CLOSE TO A

[44:33] VERY, VERY NOTE WORTHY LEGISLATIVE SESSION THIS TIME AROUND AND JUST A HUGE THANK YOU, AGAIN, TO THE

[44:40] INTERGOVERNMENTAL RELATIONS TEAM. AND WITH THAT, WE CAN MOVE TO THE FEDERAL LEVEL UPDATES.

[44:48] WELCOME BACK, MS. FALANA. >> WE HAVE ONE MORE SLIDE, CHAIR CHOWDHURY. >> OKAY. PERFECT.

[44:55] >> AND THANK YOU FOR YOUR KIND WORDS. LOOKING AHEAD TO 2026

[45:02] POLICY LIAISON TEAM AND THE PROCESS. OUR ANNUAL PROCESS THAT OUR DEPARTMENT HOSTS. IT'S

[45:08] COORDINATED BY OUR DEPARTMENTS. BUT THE PLT TEAM ITSELF CONSISTS

[45:15] OF DEPARTMENT STAFF FROM ACROSS THE ENTERPRISE. TASKED WITH

[45:21] EVALUATED OR PROPOSING CHANGES TO AGENDA OR POLICY MAKING DOCUMENT. THEY'RE POLICY

[45:27] FOCUSED, TECHNICAL, AND THEY CAN BE LANGUAGE UPDATES TO OUR AGENDA OR POLICY POSITIONS. OUR

[45:33] DEPARTMENT WILL THEN PRESENT THESE PROPOSALS TO THE COUNCIL ON OCTOBER AND NOVEMBER. AND THEN ADOPTION OF THE FINAL

[45:39] AGENDA WILL OCCUR IN EITHER NOVEMBER OR DECEMBER.

[45:45] >> GREAT. I'M NOT SEEING ANYONE IN QUEUE. SO THANK YOU SO MUCH.

[45:50] >> THANK YOU. >> THANK YOU. CHAIR CHOWDHURY,

[45:57] JUST ONE MORE COMMENT BEFORE I TURN IT OVER TO MS. OLSON FOR A FEDERAL UPDATE. THANK YOU FOR

[46:03] YOUR KIND WORDS. I WANT TO GIVE

[46:08] THANKS TO OUR AIDE IN THE

[46:15] AUDIENCE TODAY. HELPED US REALLY STAY ON TOP OF THINGS. WE REALLY APPRECIATE ALL THE WORK AND APPRECIATE HER BEING HERE TODAY.

[46:20] JUST WANTED TO ADD THAT AS WELL. >> THANK YOU SO MUCH.

[46:29] >> GOOD MORNING, MADAM CHAIR AND COUNCIL MEMBERS. I'M LAUREN OLSON, SENIOR GOVERNMENT

[46:34] RELATIONS REPRESENTATIVE HERE TO PROVIDE A FEDERAL UPDATE. I KNOW YOU'VE ALREADY DIGESTED A LOT OF

[46:40] INFORMATION THIS MORNING. IT IS MY INTENTION TO TRY TO MOVE THIS

[46:46] EXPEDITIOUSLY. SO I MIGHT NOT COVER EVERY DETAIL ON THE SLIDES. SO YOU CAN LET ME KNOW

[46:52] IF YOU HAVE ANY QUESTIONS AS WE GO. AS ALWAYS, THERE'S ALLO THE

[46:58] -- A LOT IN THE FEDERAL LEVEL. IT'S REALLY AN EXTREMELY CRITICAL TIME RIGHT NOW ABOUT

[47:05] FEDERAL SPENDING AND PRIORITIES. SO AL LOT IS GOING TO BE

[47:12] HAPPENING. I WANT TO TALK ABOUT SOME OF THE DIFFERENT THINGS GOING ON TO MAYBE ORIENT YOU TO

[47:18] THE DIFFERENT THINGS HAPPENING RIGHT NOW. EXCUSE ME. SO

[47:23] RECONCILIATION BILL, WE'VE TALKED ABOUT THIS BEFORE. AS YOU KNOW, RECONCILIATION IS A

[47:29] SPECIAL TOOL THAT IS WHEN YOU WANT TO MAKE ADJUSTMENTS TO REVENUES OR SPENDING IN THE

[47:37] BUDGET. IT SHOULDN'T REALLY TOUCH ON POLICY ISSUES. IT NEEDS TO BE A COMPLETE AGREEMENT

[47:42] BETWEEN THE SENATE AND THE HOUSE TO USE THIS SO IF THEY AGREE THEN THERE'S NO SENATE

[47:48] FILIBUSTER INVOLVED AND IT CAN PASS THE CHAMBERS WITH A SIMPLE

[47:56] MAJORITY. PROVING A LITTLE BIT HARDER THAN SOME MAY HAVE EXPECTED. AND THE GOAL WAS TO

[48:16] HAVE THIS WRAPPED UP BY JULY 4TH. THERE IS ACTION BY

[48:24] JULY 4TH SO THAT CAN BE RECONCILED AND ACTED UPON IN AUGUST. SO WE'VE DISCUSSED THE

[48:33] HOUSE BILL BEFORE. ONE OF THE PRIMARY GOALS OF BOTH BILLS IS TO EXTEND THE TAX CUTS THAT WERE

[48:39] MADE IN 2017. JUST THE COST OF DOING THAT IS ABOUT

[48:45] $4.5 TRILLION. YOU'LL SEE THOSE NUMBERS CONTINUE TO EVOLVE. PEOPLE DO DIFFERENT MATH WITH

[48:50] THE NUMBERS. BUT IT ADDS TO A DEFICIT AND THAT'S A MAJOR POINT OF DEBATE AS THIS CONVERSATION

[48:57] GOES FORWARD. OTHER MAJOR PRIORITIES WERE TO INCREASE MILITARY SPENDING, INCREASE FUNDS FOR IMMIGRATION

[49:03] ENFORCEMENT. I THINK PEOPLE ARE

[49:10] ALSO VERY FAMILIAR WITH THE HUGE DEBATE ABOUT THE AMOUNT OF CUTS THAT ARE PROPOSED IN THESE BILLS

[49:17] AND THE HOUSE WAS DIRECTED TO

[49:22] CUT $880 BILLION FROM MANDATORY SPENDING CATEGORY. AND THAT CATEGORY ESSENTIALLY IS MADE UP

[49:30] MOSTLY OF MEDICAID. THERE'S BEEN CHANGES TO WORK REQUIREMENTS,

[49:37] INCREASED ELIGIBILITY TO TERMINATIONS AND OTHER CHANGES IN THERE THAT WOULD RESULT IN

[49:43] APPROXIMATELY 11 MILLION PEOPLE LOSING COVERAGE. IN MINNESOTA,

[49:52] 1.3 MILLION MINNESOTANS RELY ON MEDICAID. IN THE HOUSE BILL, THEY TRIED TO LIMIT PROVIDER

[49:58] TAXES. THEY'RE TRYING TO SAY NO NEW PROVIDER TAXES. WITHOUT GETTING INTO THE NUANCES OF

[50:05] PROVIDER TAXES, ESSENTIALLY, THE PROVIDER TAXES ALLOW STATES TO GET A HIGHER REIMBURSEMENT RATE

[50:11] AND GET MORE MONEY FROM THE FEDS BECAUSE THE FEDS NEED TO MATCH CERTAIN INVESTMENTS. SO THIS IS

[50:17] A BIG POINT OF CONTENTION IS WHAT TO DO WITH PROVIDER TAXES.

[50:23] WE'LL SEE MORE ABOUT THAT IN THE SENATE BILL. AND THEN THERE'S

[50:29] ALSO SOME CHANGES TO SNAP PROPOSED IN THE HOUSE BILL THAT WOULD REDUCE THE NUMBER OF

[50:36] PEOPLE ELIGIBLE. THERE ARE

[50:42] VARIOUS TAX DEDUCTIONS THAT TRIED TO FALL THROUGH ON THE PRESIDENT'S PROMISES LIKE TIPPED

[50:48] INCOME, FOR EXAMPLE. SO THAT WOULD COME IN A FORM OF A TAX

[50:53] DEDUCTION. SO YOU WOULD STILL -- YOU WOULDN'T SEE THAT IN YOUR PAYCHECK RIGHT AWAY. IT WOULD BE

[50:58] A TAX DEDUCTION OF UP TO

[51:05] $25,000. YOU'LL SEE A LOT OF THOSE TAX BENEFITS EXPIRE AT THE

[51:11] END OF 2028 IN THE HOUSE BILL. THERE ALSO IS YOU CAN DEDUCT

[51:18] YOUR OVERTIME PREMIUM PAY IF YOUR INCOME IS UNDER $160,000. IN THE HOUSE BILL, THAT CAN BE

[51:24] DEDUCTED IN FULL. AGAIN, THAT EXPIRES IN 2028. THE BILL MAKES

[51:31] THE CHILD TAX CREDIT, TEMPORARY ADDITIONAL TAX CREDIT THROUGH

[51:39] 2028. IT CREATES THESE ACCOUNTS FOR CHILDREN BORN THROUGH 2028.

[51:45] AGAIN, IT EXPIRES THEN. THERE'S A $4,000 TAX DEDUCTION FOR

[51:51] SENIORS AS A WAY TO OFFSET TAXES ON SOCIAL SECURITY. THERE ARE CHANGES TO STUDENT LOAN PROGRAMS

[51:58] LIKE THE UNDERGRAD LOANS WOULD NOT BE SUBSIDIZED. SO YOU WOULD BE PAYING INTEREST DURING

[52:05] SCHOOL. LIMITS ON LOANS FOR GRADUATE STUDENTS. CAPS ON HOW MUCH TOTAL LOANS YOU

[52:12] CAN GET. CHANGES TO INCOME DRIVEN REPAYMENT PROGRAMS. THERE'S A LOT OF NUANCES OF

[52:17] COURSE IN THESE BILLS. ON THE

[52:26] SENATE SIDE OF RECONCILIATION BILL, IT ADDS EVEN MORE DEBT WITH A COST OF ABOUT $5 TRILLION

[52:33] RIGHT NOW. IT MAKES DEEPER CUTS TO MEDICAID THAN THE HOUSE BILL. HAS SOME DIFFERENT WORK

[52:40] REQUIREMENTS. A BIG PLACE WHERE THE SENATE IS TRYING TO CUT ON

[52:46] MEDICAID IS ON THAT PROVIDER TAX AREA. TRYING TO REDUCE HOW MUCH

[52:51] THE FEDERAL GOVERNMENT IS GOING TO REIMBURSE AT THE RATE THAT STATES GET REIMBURSEMENT. SO THE

[52:59] PROVIDER TAX CONTINUES TO BE A BONE OF CONTENTION BECAUSE A LOT OF STATES HAVE REALLY COME TO

[53:08] RELY ON THAT LEVEL OF SUBSIDY OR HELP FROM THE FEDERAL GOVERNMENT. SO RED STATES AND

[53:13] BLUE STATES HAVE COME TO REALLY DEPEND ON THAT. AND IT ALSO

[53:21] AFFECTS THE ABILITY TO REIMBURSE HOSPITALS AND SERVICES, AND ENSURE THAT THEY CAN STAY IN

[53:28] BUSINESS TO PROVIDE SERVICES.

[53:35] THE SENATE BILL ALSO HAS PROVISIONS RELATED TO THINGS LIKE TAX ON TIPS. AGAIN, YOU CAN

[53:43] REDUCT TAX ON TIPS TO SOME EXTENT. A CAP OF YOU CAN ONLY

[53:51] DEDUCT $12,500. INCREASES THE

[53:59] AMOUNT YOU CAN DEDUCT FOR SENIOR

[54:04] CITIZENS. THE SENATE IS MORE OPEN AND ADVOCATING FOR SOME OF THE GREEN ENERGY TAX CREDITS. SO

[54:09] THEY'RE MORE LIKELY TO KEEP SOME OR SLOWLY PHASE THEM OUT.

[54:14] ALTHOUGH THE ELECTRIC CAR CREDIT PHASES OUT. AND SOME THAT WILL HELP YOU IN YOUR HOME TO HAVE

[54:22] SOLAR HEATING BE MORE EFFICIENT WOULD BE MORE QUICKLY PHASED OUT. SO WITH RECONCILIATION,

[54:28] AGAIN, IT CAN ONLY BE USED FOR VERY SPECIFIC PURPOSES. IT'S NOT

[54:36] MEANT TO ADDRESS POLICY QUESTIONS. SO WHAT HAS HAPPENED VERY RECENTLY IS THE SENATE

[54:42] PARLIAMENTARIAN HAS LOOKED AT THE BILL TO DETERMINE IF THERE ARE CERTAIN PROVISIONS THAT WOULD BE POLICY ORIENTED AND

[54:48] THEREFORE NOT ALLOWED. SOME EXAMPLES OF THINGS THAT THEY CUT OUT BECAUSE THEY DID NOT COMPLY

[54:54] FOR EXAMPLE THERE WAS A PROPOSAL TO CUT THE CONSUMER FINANCIAL PROTECTION BUREAU, BASICALLY

[55:00] ZERO THEM OUT. THAT MEANT ESSENTIALLY ELIMINATING THEM FUNCTIONALLY BY TAKING THE MONEY

[55:07] AWAY. THAT WAS A POLICY DECISION. SOME POLICIES WERE EXEMPTED FROM NEPA REVIEW. YOU

[55:13] CAN BUY YOUR WAY AROUND NEPA REVIEW. THAT VIOLATED THE RULE.

[55:18] OTHER EXAMPLES ARE REPEALING TAIL PIPE EMISSIONS STANDARDS

[55:23] NOT ALLOWED. LIMITS ON GRANTS TO

[55:34] SANCTUARY CITIES. PROHIBITING IMMIGRANTS WHO ARE NOT YET CITIZENS OR LAWFUL PERMANENT

[55:39] RESIDENTS FROM PARTICIPATING IN SNAP. I ALSO WANT TO BE CLEAR EVEN THOUGH THESE THINGS MAY NOT

[55:47] BE ALLOWED IN A RECONCILIATION BILL, THAT DOESN'T MEAN IT CAN'T

[55:52] BE IN OTHER WAYS. I JUST WANT TO HIGHLIGHT A COUPLE KIND OF BIG

[55:58] TOPICS THAT MIGHT BE WORTH NOTING. ONE OF THE THINGS THAT WAS IN THE HOUSE BILL WAS

[56:06] BASICALLY WOULD HAVE RESTRICTS FEDERAL COURTS ABILITIES TO HOLD

[56:12] PEOPLE IN CONTEMPT OF VIOLATING COURT ORDERS. THE SENATE WHEN THEY GOT A HOLD OF THE BILL

[56:18] REMOVED THAT LANGUAGE. HOWEVER, THEY REMOVED SOME OTHER BAD LANGUAGE, IN MY OPINION,

[56:24] REQUIRING THAT IF YOU SEEK A TEMPORARY RESTRAINING ORDER, AN

[56:30] INJUNCTION -- THAT WOULD BE A HUGE, YOU KNOW, A HUGE AMOUNT

[56:36] THAT'S NOT REALISTIC. YOU KNOW.

[56:41] SO BUT THE SENATE PARLIAMENTARIAN DETERMINED THAT WAS JUST NOT APPROPRIATE ANYWAY

[56:48] FOR A RECONCILIATION BILL. WITH ALL THESE ISSUES YOU KINDA DON'T KNOW IF IT CAN RESURFACE IN

[56:53] DIFFERENT WAYS. ANOTHER KINDA

[57:00] TOPIC TO KEEP AN EYE ON IS REGULATION OF ARTIFICIAL INTELLIGENCE. THE HOUSE BILL

[57:06] INCLUDED A 10-YEAR MORATORIUM ON STATE AND LOCAL LAWS ON

[57:13] ARTIFICIAL INTELLIGENCE. THE THOUGHT IS NOT TO INCUMBER THIS

[57:20] TECHNOLOGY. AND THE SENATE BILL, THEY TRIED TO MAKE SURE THEY

[57:27] WEREN'T GOING TO VIOLATE THE BYRD RULE. SO THEY REFRAMED IT AND SAID YOU ARE PROHIBTD TO

[57:37] REGULATING IF YOU WANT CERTAIN MONEY. THE PARLIAMENTARIAN SAID

[57:45] THIS DID NOT VIOLATE THE BYRD RULE. THERE ARE MEMBERS WHO FEEL

[57:52] STRONGLY ABOUT STATES RIGHTS, INCLUDING GOP MEMBERS THAT FEEL YOU SHOULD NOT TRY TO RESTRICT

[58:00] STATES FROM DEVELOPING LAWS, AND THAT THERE'S ALSO POTENTIAL

[58:06] VALUE AS WE ARE LEARNING TO HAVING STATES AND PEOPLE EXPERIMENT OR DIVE INTO THIS

[58:12] ISSUE. SO THIS REMAINS A CONTROVERSIAL TOPIC. SOME OTHER

[58:20] ONGOING ISSUES REGARDING THE RECONCILIATION BILL. AGAIN,

[58:26] THERE'S A NUMBER OF MEMBERS WHO ARE VERY CONCERNED ABOUT THE

[58:31] AMOUNT OF DEBT THAT THEY'RE CREATING WITH THIS BILL. SO THAT'S AN ONGOING ISSUE. AND

[58:37] THEN ANOTHER MAJOR TOPIC IS THE AMOUNT OF THE SALT DEDUCTION. SO

[58:45] THE STATE AND LOCAL TAXES. CURRENTLY, YOU CAN DEDUCT FROM

[58:51] YOUR STATE AND LOCAL TAXES WHEN YOU ITEMIZE. SOME OF THE STATES WITH HIGHER PROPERTY TAXES WOULD

[58:56] LIKE TO SEE THAT INCREASED. THAT CONTINUES TO BE A MAJOR -- SINCE IT IS COSTLY, THAT CONTINUES TO

[59:03] BE AN ISSUE OF DEBATE ABOUT THE VALUE OF THAT. MEDICAID RELATED

[59:09] CUTS CONTINUES TO BE A BIG ISSUE, INCLUDING THAT PROVIDER TAX ISSUE THAT WE TALKED ABOUT.

[59:15] AGAIN, PEOPLE ON BOTH SIDES OF THE AISLE KNOW THAT IT COULD IMPACT THEIR COMMUNITIES.

[59:21] THERE'S ALSO MAJOR CONCERN ABOUT IMPACTS TO RURAL HOSPITALS. I THINK THE SENATE IS LOOKING FOR WAYS TO TRY TO SUBSIDIZE OR

[59:30] STABILIZE RURAL HOSPITALS TO ADDRESS THEIR CONCERN. SO THAT'S

[59:36] GOING TO BE AN ONGOING DISCUSSION. AND AGAIN, THE SUPPORT FOR GREEN ENERGY TAX

[59:42] CREDITS IS AN ONGOING ISSUE.

[59:50] MOVING ON TO A DIFFERENT TOOL. JUST WANT YOU TO BE KIND OF AWARE OF RESCISSIONS. SO THERE'S

[59:57] ALSO A RESCISSION PROCESS GOING ON RIGHT NOW. RESCISSION IS A

[1:00:02] TOOL THAT IF YOU HAVE UNSPENT MONEY, YOU CAN POTENTIALLY CANCEL THAT MONEY. BUT CONGRESS

[1:00:09] NEEDS TO MAKE THAT DECISION ULTIMATELY. BUT THE WHITE HOUSE ORIGINATES THE REQUEST TO CANCEL

[1:00:15] UNSPENT FUNDS. IT'S LIMITED TO DISCRETIONARY FUNDS. THERE'S NO

[1:00:20] FILIBUSTER. MONEY THAT IS RESCINDED CAN THEN BE DIRECTED BACK TO TREASURY WHERE IT CAN BE

[1:00:26] USED FOR ANOTHER PURPOSE, POTENTIALLY. SO THE WHITE HOUSE TRIGGERED THE RESCISSION

[1:00:33] PROCESS. SO THIS IS ESSENTIALLY

[1:00:42] MOSTLY CUTS TO THE CORPORATION FOR PUBLIC BROADCASTING AND THE

[1:00:49] CUTS THAT DOJE INITIATED, AND

[1:00:55] OTHER SUPPORT. AND SUPPORT FOR HIV AND AIDS PREVENTION ARE EXAMPLES OF PROGRAMS HERE. SO

[1:01:03] IT'S A TOTAL OF $9.4 BILLION THEY WOULD LIKE TO RESCIND. SO

[1:01:09] CURRENTLY, THIS IS ON A SPECIFIC TIME TABLE BECAUSE RESCISSION HAS A SPECIFIC PROCESS AND THE

[1:01:14] HOUSE HAS ALREADY AGREED TO DO THIS BASICALLY, AND NOW IT'S IN THE SENATE'S HANDS. IF THE

[1:01:20] SENATE DOES NOT -- IF THEY DON'T ACT BY JULY 18TH, THEN THE MONEY

[1:01:27] SHOULD BE SAFE. BUT THE SENATE, OTHERWISE WE'RE WAITING TO SEE WHAT THE SENATE DOES ON THIS. SO

[1:01:33] THAT'S CURRENTLY PENDING. SO

[1:01:38] WE'VE GOT RECONCILIATION. WE'VE GOT RESCISSIONS. AND WE'RE ALSO

[1:01:43] REALLY HAVING THE CONVERSATION RIGHT NOW ABOUT THE FISCAL YEAR 26 BUDGET PROCESS. SO THE FISCAL

[1:01:50] YEAR STARTS OCTOBER 1ST. AS YOU KNOW, THOUGH, IT IS NOT UNCOMMON

[1:01:56] FOR THEM TO USE CONTINUING RESOLUTIONS TO NOT ACTUALLY ADOPT THE BUDGET CLOSE TO THAT

[1:02:02] FISCAL YEAR. BUT THERE ARE ACTIVE CONVERSATIONS HAPPENING RIGHT NOW ABOUT THE FISCAL YEAR

[1:02:08] 26 BUDGET. WHAT I'M GOING TO RUN THROUGH BRIEFLY HERE IS JUST WHAT THE WHITE HOUSE PROPOSED,

[1:02:14] AND SOME OF THE TOP LINE NUMBERS FROM WHAT THE WHITE HOUSE WANTS TO SEE. BUT RIGHT NOW, YOU KNOW,

[1:02:20] IT'S REALLY IN THE HANDS OF THE HOUSE OF REPRESENTATIVES WHERE THEY'RE WORKING THROUGH THEIR

[1:02:25] PROPOSALS. BUT THEY DO FEEL, I THINK A LOT OF MEMBERS DO FEEL PRESSURE AND WANT TO ALIGN WITH

[1:02:31] THE PRESIDENT'S GOALS. SO THE BUDGET, I MEAN, YOU CAN KIND OF

[1:02:36] IMAGINE THE GIST OF THIS. BUT THERE'S AN INCREASE IN DEFENSE

[1:02:42] SPENDING. THERE IS 22% OVERALL CUT IN DISCRETIONARY SPENDING. A

[1:02:48] COUPLE OF AREAS WHERE THERE'S VERY SIGNIFICANT CUTS WOULD BE CUTS TO HUD. THERE'S PROPOSAL TO

[1:02:57] CONSOLIDATE VARIOUS RESIDENTIAL ASSISTANCE PROGRAMS, CUT RENTAL ASSISTANCE PROGRAMS. IT WOULD

[1:03:05] HAVE A HUGE IMPACT TO US AND OTHER COMMUNITIES. SIGNIFICANT CUTS TO HUD ARE PROPOSED.

[1:03:11] ANOTHER AREA VERY SIGNIFICANT CUTS WOULD BE HEALTH AND HUMAN SERVICES. $33 BILLION CUT

[1:03:18] PROPOSED. YOU KNOW, CUTS TO CENTER FOR DISEASE CONTROL. CUTS TO THE SUBSTANCE ABUSE, MENTAL

[1:03:25] HEALTH SERVICES. THERE'S A LOT OF CONSOLIDATION OF PROGRAMS BEING PROPOSED IN THE 2026 BILL,

[1:03:32] INCLUDING SAMSA AND OSHA AND SOME KIND OF STRANGE

[1:03:38] CONSOLIDATIONS GOING ON. IT WOULD ADD $500 MILLION FOR

[1:03:45] ROBERT KENNEDY'S MAKE AMERICA HEALTHY AGAIN INITIATIVE TO LOOK

[1:03:52] AT FOOD AND ADDITIVES. I MAY NOT BE DESCRIBING THAT VERY WELL. I

[1:04:03] FEEL LIKE I SKIPPED. DID I SKIP ANYTHING? OH. MORE CONSOLIDATION

[1:04:12] OF PROGRAMS FOR PEOPLE WITH

[1:04:17] DISABILITIES. CUTS TO FEMA PREPAREDNESS PROGRAMS. CUTS TO

[1:04:22] CYBERSECURITY. RANDOM INCREASE TO RAIL FUNDING. I JUST NOTICED

[1:04:28] THEY DO LIKE THAT. RAIL SAFETY FUNDING. CUTS TO DEPARTMENT OF EDUCATION. SO AS I SAID, RIGHT

[1:04:38] NOW THE HOUSE IS REALLY -- THIS IS THE WHITE HOUSE PROPOSAL. THE

[1:04:44] HOUSE IS WRESTLING WITH THEIR PROPOSAL. AND SO ALL THESE

[1:04:49] THINGS ARE HAPPENING SIMULTANEOUSLY. I GUESS I'LL JUST STOP THERE.

[1:04:55] >> THANK YOU, MS. OLSON, FOR YOUR PRESENTATION. AND YOUR WORK ON KEEPING TRACK OF THIS. I KNOW

[1:05:03] IT IS NOT EASY. I PUT MYSELF IN QUEUE. I JUST HAVE ONE QUESTION

[1:05:09] AND IT'S MAYBE MORE OF A FOLLOW UP TO YOUR PRESENTATION. YOU SHARED A NUMBER OF PLACES WHERE

[1:05:17] THERE'S POTENTIAL TAX CUTS. ONE PIECE OF INFORMATION THAT I THINK WOULD BE HELPFUL IF YOU CAN DO SOME RESEARCH AND SHARE

[1:05:23] BACK WITH US IS WHAT DOES A TAX CUT IMPACT LOOK LIKE FOR THE WEALTHIEST INDIVIDUALS IN OUR

[1:05:28] COUNTRY. I THINK MANY OF US HERE

[1:05:37] REPORTING ABOUT HOW, WHAT REPUBLICANS ARE CURRENTLY CONSIDERING, WHAT THE PRESIDENT IS PUSHING FORWARD WOULD GIVE

[1:05:44] REALLY, REALLY LARGE TAX CUTS TO THE MOST WEALTHY. IT WOULD BE GOOD TO UNDERSTAND WHO WOULD BE

[1:05:50] IMPACTED AND WHO IS JUST REALLY BENEFITING FROM THIS BILL. AND

[1:05:55] THEN A QUESTION THAT I HAVE IS WHAT'S THE TIME LINE THAT CONGRESS IS ON FOR COMPLETING

[1:06:03] RECONCILIATION AND THEIR WORK ON THIS? >> THANK YOU, MADAM CHAIR. AS I

[1:06:10] NOTED WITH RECONCILIATION, THE PRESIDENT'S ORIGINAL GOAL WAS TO HAVE THE RECONCILIATION PROCESS

[1:06:17] COMPLETED BY JULY 4TH. THAT WAS THE ORIGINAL GOAL. MOST

[1:06:23] RECENTLY, THOUGH, I'VE HEARD I FEEL LIKE MAJORITY LEADER THUNE

[1:06:28] IS TRYING TO GET HIS BILL THROUGH THE SENATE BY JULY 4TH.

[1:06:34] I THINK IT WAS VICE PRESIDENT VANCE WAS TALKING ABOUT AUGUST

[1:06:39] FOR A TIMELINE TO COMPLETE THE RECONCILIATION BILL. I DO, IN

[1:06:46] GENERAL, THEY'VE WANTED TO WRAP THIS UP BEFORE THEY GO ON AUGUST RECESS. BECAUSE BY THE TIME THEY

[1:06:51] EVEN GET BACK FROM AUGUST RECESS, THEY'RE ALREADY REALLY STARTING TO WORRY ABOUT THE

[1:07:01] FISCAL 26 YEAR BUDGET. NOW THE SENATE ALSO BELIEVES THAT, OR

[1:07:07] MAJORITY LEADER THUNE FEELS LIKE THE HOUSE JUST NEEDS TO ACCEPT WHATEVER IT IS THE SENATE PASSES

[1:07:12] SHORTLY FOR THEIR RECONCILIATION BILL. IF THE HOUSE IS WILLING TO

[1:07:18] ACCEPT THE SENATE BILL, THAT COULD ALL MOVE QUICKLY. IT'S NOT CLEAR I THEY WILL. IF THERE

[1:07:24] WILL BE ENOUGH VOTES IF THEY BOTH AGREE ON THE BILL. SO WE'LL SEE. >> THANK YOU. YEAH. WE WILL SEE.

[1:07:34] I WILL RECOGNIZE COUNCIL MEMBER CASHMAN. >> THANK YOU, MADAM CHAIR. THANKS FOR THE UPDATE, LAUREN.

[1:07:41] THIS IS REALLY EGREGIOUS AND TERRIBLE. I JUST CAN'T BELIEVE THEY WANT TO INCREASE DEFENSE

[1:07:47] SPENDING, WAS IT 13%? AND THEN CUT ALL THESE THINGS THAT IMPACT

[1:07:53] US ACTUALLY LOCALLY. IT'S JUST REALLY TERRIBLE. AND I'M SURE OUR FEDERAL REPRESENTATIVES ARE

[1:07:59] GOING TO STAND WITH US IN OUR GOALS. SO THERE'S NOT A LOT THAT

[1:08:05] WE CAN DO BECAUSE I THINK THEY'RE ALREADY ON OUR SIDE. AT LEAST I WOULD HOPE THEY ARE IN TERMS OF OPPOSING THIS. BUT I DO

[1:08:12] HAVE ONE QUESTION WHICH IS SOMETHING I'VE BEEN HEARING ABOUT FROM CONSTITUENTS WHICH IS

[1:08:20] THE CORPORATE BROADCASTING BUDGET CUT. DO YOU KNOW WHAT PERCENTAGE OF THE BUDGET THAT IS

[1:08:25] OR THAT WOULD AMOUNT TO?

[1:08:30] >> YOU KNOW, I'M REMEMBERING A NUMBER BUT I'M JUST GOING --

[1:08:37] BECAUSE BASICALLY THE $1.6 BILLION I THINK IS THE

[1:08:43] FUNDING THROUGH 2027 FOR THEM. BUT HOW MUCH OF THEIR TOTAL, YOU

[1:08:48] MEAN HOW MUCH OF THEIR TOTAL BUDGET IS THAT. >> RIGHT. >> I'M REMEMBERING A NUMBER BUT

[1:08:55] I'M RELUCTANT TO RELY ON IT. >> WOULD YOU MIND FOLLOWING UP WITH ME? I DID HAVE SOME

[1:09:02] QUESTIONS FROM RESIDENTS ON THIS. I THINK THIS IS PARTICULARLY BAD BECAUSE OF HOW

[1:09:08] UNDER EDUCATED WE SEEM TO BE ON CIVICS AS A NATION. AND YOU

[1:09:15] KNOW, PROPAGANDA AND DISINFORMATION ARE DEFINITELY TOOLS OF AUTHORITARIANISM THAT

[1:09:21] WE NEED TO BE COUNTER ACTING WITH ACCURATE AND GOOD INFORMATION ABOUT THE STATE OF

[1:09:27] OUR GOVERNMENT. AND SO I'M VERY CONCERNED ABOUT THIS PARTICULAR CUT. AND WOULD LIKE TO KNOW WHAT

[1:09:34] THE IMPACT IS AND BE ABLE TO TRACK WHAT ACTUALLY HAPPENS WITH THAT PROPOSAL. THANK YOU.

[1:09:40] >> I'LL FOLLOW UP ON IT. >> THANK YOU. IS THERE ANYONE

[1:09:46] ELSE THAT WOULD LIKE TO GET INTO QUEUE FOR DISCUSSION? OKAY.

[1:09:56] SEEING NO FURTHER DISCUSSION, I WILL ASK THE CLERK TO RECEIVE AND FILE THAT PRESENTATION. AND

[1:10:02] WITH THAT, WE'VE CONCLUDED ALL BUSINESS TO COME BEFORE THE COMMITTEE TODAY. AND WITHOUT

[1:10:07] OBJECTION, WE ARE ADJOURNED.

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