Lawmakers appear to have deal on a $1.2 billion bonding bill which would fund HCMC, cut property taxes

$205 million will help ensure HCMC stays open this year with a $500 million hospital reserve. State Representative Esther Agbaje (DFL) co-authored the bill to save HCMC.

"And so, we will do all that we can in Minnesota to ensure that hospitals like HCMC and others around the state have the resources they need to survive," says Agbaje. "But for now, I think we can all breathe easy that HCMC will receive up to $700 million over the next five years to ensure that they are around for us."

The money for HCMC will come out of the state's general fund. That means the proposal to use the Target Field ballpark tax in Hennepin County will not be used to fund HCMC, and will cease to exist.

The deal also includes property tax relief, fraud fighting measures, and car tab fee cuts. Left out of the deal was relief for businesses that lost revenue during Operation Metro Surge.

"It's bigger than I thought it would be, and I think a lot of that has to do with retirements, that there's so many people retiring that want projects that they're more likely to vote for a bonding bill," says WCCO Radio political analyst Blois Olson. "And in fact, one source told me that if you don't vote for the bonding bill, you won't get a project."

And while there appears to be school safety money in the package, there is not a major gun-related proposal which was a priority for Governor Tim Walz, and DFL lawmakers following the shooting last summer at Annunciation.

“We are keeping a balanced budget, making targeted reductions, and focusing every dollar on core priorities," Walz noted in a statement. "Fiscal sustainability, critical infrastructure, and the health and wellbeing of our communities.”

This is not a done deal, however. The proposals still must pass the House and Senate before being sent off to the governor for his signature. The agreement was signed by every caucus leader except for Senate GOP Leader Mark Johnson. Walz, House Speaker Lisa Demuth (R), House DFL Leader Zack Stephenson and Senate DFL Leader Erin Murphy released statements praising the deal.

“Our caucus has fought all session long for car tab relief, property tax cuts, and meaningful anti-fraud measures," Demuth adds. "This budget delivers that, along with help for rural and critical access hospitals.”

As for the auto license tab fees, Olson says the temporary reduction will be in place for one year, where they will revert to the 2022 rate. A start date for that is yet to be determined.

“Senate Republicans fought hard to address one of the top issues hitting Minnesotans: outrageous tab fees," says Sen. Minority Leader Johnson (R). "I’m proud to announce that Minnesotans will get a tab fee tax cut for one year, putting a quarter of a billion dollars back in their wallets, without impacting transportation funding.

Olson says he's watching to see how both Democrats and Republicans characterize this deal to Minnesotans.

"All the things you've heard before, I think that there's something to be said about how popular it is with Republican delegates and Democratic delegates as legislators are out meeting with people," he explains.

Olson also says that there's pressure on lawmakers to pass this bill, saying he is hearing reports that suggest that, especially in the House, any member with a project in their district will have to vote for the bill. If they don’t, it may not pass or Gov. Walz may have to veto the bill.