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GMNP Update - November 8, 2024 |
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GMNP NOVEMBER NEWSLETTER |
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Dear GMNP Members,
November is always a month of change - fall fades into winter, the days get darker, and if you follow Minnesota politics, you start planning in earnest for the next legislative session. The election results and the November budget forecast are the two most important factors in determining the potential legislative landscape heading into 2025.
After Tuesday night, we have a slightly hazy picture of what the Minnesota Legislature will look like in the 2025-2026 biennium. The DFL retained their one-seat majority in the Senate. House Republicans had significant wins in Greater Minnesota, picking up seats on the Iron Range and in the Winona and St. Peter areas. We're expecting two of the seats held by the DFL to move to a recount, including one in St. Cloud (Wolgamott-Ek). If these seats hold, the House will be tied 67-67 for the first time in 46 years. This article from the House Session Daily discusses the 1979 legislative session, which was also tied - it's worth a read. In short, there were intense negotiations before and in the early days of session as both parties attempted to reach an agreement for the division of power, but that compromise broke down at the end of session and resulted in the non-passage of major bills.
MMB will release the November forecast in early December, which will give us a better idea of the fiscal status of the state heading into the 2025 session. Based on the monthly revenue data that MMB shares, we anticipate that Minnesota will be in a positive fiscal position but with a much smaller surplus than in previous years.
What does this mean? At this point, I'm anticipating that the 2025 legislative session will require significantly more compromise than the prior two years in order to pass any legislation. Folks who are able and willing to work across the aisle will likely be able to get some centrist policy proposals across the finish line, but it's unlikely to be a year that sees sweeping reforms or funding for big new ideas.
If you have questions or want to further discuss the election results and impact on our work, I encourage you to join my November office hours next Friday, November 15 anytime from 10am to 12pm. Click here for the event details. You can also reach out at darielle@gmnp.org or (651) 295-1908.
Best,
Darielle Dannen Executive Director, Greater Minnesota Partnership |
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INVITE A SUBSCRIBER |
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Are there others from your organization that should receive updates from the GMNP? Invite them to subscribe to our mailing list at gmnp.org/subscribe. |
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KEY UPDATES |
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Missing Middle Working Group Housing continues to be one of the most pressing issues across the state. As GMNP members may recall, a bill introduced in 2024 and referred to as the "Missing Middle bill" would have preempted local communities from making zoning and land use decisions. This proposal, which ultimately stalled in committee, was based on the idea that local land use policies are a significant barrier to housing development. Housing Chairs Sen. Lindsey Port (DFL-Burnsville) and Rep. Mike Howard (DFL-Richfield) convened an interim work group that includes the GMNP, Coalition of Greater Minnesota Cities, other city groups, developers, planners, and nonprofits to continue these conversations. Rep. Larry Kraft (DFL-St. Louis Park) has been tasked with leading the discussions.
It is not clear from the initial work group meetings that the three legislators have the same goals. Rep. Kraft appears interested in resurrecting the "Missing Middle bill," while Sen. Port and Rep. Howard are more focused on solutions to the housing crisis generally. The outcome of the election will also likely impact the kind of traction these proposals will get at the legislature.
A few weeks ago, the whole group met and discussed a list of barriers to housing that the stakeholders participating had shared with the legislators, including market failure/mismatch, the use (or alleged misuse) of Planned Unit Developments, the condo design defect look back rule, design standards, and the public feedback process on housing developments. Prohibitions on certain types of siding appeared to be the biggest concern, but participants also expressed concerns with certain types of garages, porches, and other exterior design facets. The impact of the state's building code and energy code on housing cost was also cited as a concern. Most examples given were drawn from the metro area.
Missing Middle Work Group - Greater Minnesota-specific discussion In response to concerns about the focus on the metro area, a subgroup of the Missing Middle Work Group participated in a discussion last week specifically focused on Greater Minnesota's housing challenges. Participants included Chad Adams from the Southwest Minnesota Housing Partnership, Susan Arntz from the city of Mankato, Lisa Bode from the city of Moorhead, Shaunna Johnson from the city of Waite Park, and Todd Peterson from the city of Roseau. Representatives from Habitat for Humanity, the Minnesota Housing Partnership, the Central Minnesota Builders Association, and a St. Cloud-based housing developer also joined the discussion. Many thanks to those who participated!
The subgroup discussion was much more productive than the larger group meetings. Each participant did an excellent job explaining both the universal challenges that much of Greater Minnesota faces, including the market failure/mismatch and the need for housing at all ends of the spectrum, as well as the unique challenges their communities face. Some of the key messages conveyed to legislators were:
The House and Senate Housing Chairs shared positive feedback following the discussion and expressed an interest in continuing future conversations.
State Housing Tax Credit Changes A group that included GMNP, CGMC, the League of Minnesota Cities, and the Minnesota Housing Partnership met with Minnesota Housing last week to discuss some policy and administrative changes being considered for key programs intended to facilitate rural housing development. These changes include:
If you have any feedback or want to discuss any of these ideas, please reach out at darielle@gmnp.org or (651) 295-1908.
MnCIFA Draft Investment Strategy Public Comment Form In accordance with statute, the MN Climate Innovation Finance Authority has posted their draft Investment Strategy for public comment. It will be available through Sunday, November 24.
MnCIFA welcomes your input and encourages you to share these links with anyone you feel should receive it. The links can also be found on the MnCIFA website maintained by the Minnesota Department of Commerce. |
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COMMUNITY SPOTLIGHT |
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GMNP members will be featured at CGMC Fall Conference Several GMNP members will have representatives participating in the upcoming Coalition of Greater Minnesota Cities Fall Conference, including Otter Tail County, the Alexandria Area Economic Development Commission, and CentraCare. Registration is still open and all GMNP members are invited to attend the conference. More information and registration is available here.
Share Your News! Do you have recent local projects, programs, or initiatives that you would like to share with other GMNP members? Send us a short snippet so we can include it in the next newsletter! |
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UPCOMING EVENTS & ACTIVITIES |
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Minnesota Dual-Training Pipeline Forums - November Join the Minnesota Department of Labor and Industry (DLI) to learn about the Minnesota Dual-Training Pipeline, share input about key in-demand occupations in your industry, help our team develop new occupations that will become eligible for Pipeline programming, and network and learn from others in your industry. Forums are conducted virtually with opportunities to listen, learn, and actively engage.
GMNP October Office Hours - November 15 Join GMNP Executive Director Darielle Dannen anytime from 10am to noon on Friday, November 15 to discuss the election outcome and the upcoming legislative session, share insights from your work, or just chat about anything on your mind! Download the calendar invitation here or click here to join the Zoom meeting.
CGMC Fall Conference - November 21-22 GMNP members are invited to join the Coalition of Greater Minnesota Cities for their annual Fall Conference from November 21 to 22 in Alexandria, MN. Visit the CGMC website for more information and registration. |
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RESOURCES FOR MEMBERS |
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Economic Development - Available Now:
Housing:
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The Greater Minnesota Partnership advocates for public policies and investments that stimulate prosperity throughout Greater Minnesota. |
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Copyright © 2024 Flaherty & Hood, P.A., All rights reserved. |