HOFFMAN: Via WCCO-Radio this morning, Fluence Media’s Blois Olson, filling in for Adam and Jordana, talked with Senator John Hoffman (DFL-Champlin) who expressed disappointment in the budget proposal Governor Tim Walz released Thursday. HOFFMAN: “50 percent of the deficit, that is in that projected deficit, 50 percent of that is covered by cuts in health and human services. And both those buckets. And, to me, that says, is that the priorities that we, as Minnesotans have?” LISTEN: https://fluence-media.co/42cMrUK
MORE: As the standoff over whether the Minnesota House is truly in session continues, House DFLers, who are currently boycotting in an effort to deny the GOP a quorum, held a news conference this morning to outline their priorities for the upcoming session.
HORTMAN: “While the Republicans continue to play fake House, DFLers are focused on the issues and policies that improve the lives of Minnesotans — which is what Minnesotans are expecting of us,” said Speaker-designate Melissa Hortman. “While corporate profits continue to grow, Minnesota workers are not receiving their fair share of the wealth they create. Everyone has a story of being nickeled and dimed, overcharged and unpaid, and it’s time for that to change. DFLers are working on lowering costs, reducing stress in people’s lives, and building an economy with jobs that have wages and benefits that can support a family.”
LONG: “Democrats are fighting for a fair economy and a future where every Minnesotan, not just the wealthy and well-connected, can get ahead,” said DFL Floor Leader Jamie Long. “Meanwhile, Republicans are attempting an illegitimate power grab in the Minnesota House not just to overturn the will of voters and unseat a duly elected representative, but also to roll back critical solutions like paid family leave, lower prescription drug costs, and our state’s clean energy transition, and we refuse to let them. Our session priorities reflect many of the most important actions we can take at the Capitol to lower costs and protect the ability of working families to thrive.”
WATCH: https://fluence-media.co/4g6YFkW
MORE: Via House DFL, a list of session priorities. SEE: https://fluence-media.co/4hhnj3o
BUDGET: via Bring Me The News, VERBATIM: “Gov. Tim Walz on Thursday unveiled his plan for the next two-year budget, proposing to implement the first sales tax rate reduction in Minnesota history and rein in spending [via] what he called ‘common sense cuts’ that he believes will help erase Minnesota's looming structural deficit while maintaining services. … Walz's approach to savings would reduce ballooning spending in fast-growing state programs, particularly those administered by the Department of Health and Human Services. … If adopted, the [$66 billion] budget would leave a $2.1 billion [surplus] in FY 26-27, and $355 million in FY 28-29.” READ: https://fluence-media.co/4at0Xd1
CUTS: via Pioneer Press, VERBATIM: “Budget officials have warned the cost of reimbursements for home disability care has been growing. [Gov. Tim] Walz is proposing about $350 million in cuts over the next two years, and $980 million in the following biennium. … If the state doesn’t take action to limit growth in long-term care waivers, they could end up being about an eighth of the state budget by 2028, and possibly half of the budget by the mid-2030s, Walz said. … Walz [also] said it will be necessary to make cuts to disability home care spending and reimbursements for special education transportation.” READ: https://fluence-media.co/3WoPAgx
SALES TAX: via House Session Daily, VERBATIM: “[Gov. Tim] Walz announced a first in Minnesota history: A cut in state sales tax, shaving .075% off the current state sales tax of 6.875%. Even with the reduction, Walz said the state would still collect more sales taxes overall [by] eliminating what he called existing sales tax ‘loopholes,’ such as those that currently exempt legal, accounting, brokerage and trust services from taxation. … [However], Republicans called any sales tax expansion a non-starter.” READ: https://fluence-media.co/4jlmbgX
MORE: via FOX 9, VERBATIM: “Lawn services, pet grooming, car washing, and several other services are already subject to sales tax…but Walz also wants the tax levied on the kind of professional services more likely to be used by people with higher incomes. … The average family will save about $42 a year in reduced sales taxes if the governor’s ideas pass. But all of those savings could be erased by spending $620 on the newly taxed professional services, [if used].” READ/WATCH: https://fluence-media.co/42h1qgc
NOTE: Adding sales taxes to more services was something former DFL Gov. Mark Dayton also tried to pass during his time in office, but his initiative failed.
DETAILS: via KSTP, VERBATIM: “The proposed budget also includes the creation of a corporate franchise tax division unit that would do audits and work to close loopholes. Also included in the proposal would be an increase to the surcharge for health maintenance organizations from 0.6% to 1.25% of total premium revenue, cuts of state funding to private schools and reduced Special Education transportation reimbursement costs by 5%. … Other items included in Walz’s proposal include the expansion of both the Research and Development and Sustainable Aviation Fuel tax credits, as well as permitting efficiency measures, which his office says would help shorten the time it takes for business owners to get permits.” READ/WATCH: https://fluence-media.co/4at0eZl
MORE: See yesterday’s lunch take for more details on the governor’s budget proposal. The budget itself is available online. LUNCH: https://fluence-media.co/4ajKUhs BUDGET: https://fluence-media.co/3PovYFy
TRUMP: Axios’ Torey Van Oot noted on social media that Gov. Tim Walz’s office first shared details of his Minnesota budget proposal with Politico — a national publication based in the Washington, DC metro — and framed his statewide efforts in contrast with President-elect Donald Trump’s nationwide economic agenda. During his budget presentation yesterday, Walz specified that he is proposing a sales tax cut because he anticipates Trump’s tariffs will raise consumer prices. TWEET: https://fluence-media.co/40i88Ae
REACTIONS: GOP leaders in the House and Senate released statements criticizing Gov. Tim Walz’s budget proposal for not making enough cuts to spending and taxes, but some advocacy groups lamented that the budget’s spending does not go far enough.
Via Rep. Lisa Demuth, QUOTE: “A budget that raises taxes on Minnesotans and cuts funding for long term care is not a budget that values the people of Minnesota. … Any tax increases are off the table. House Republicans will push for a responsible budget that makes life more affordable for families, not one that raises their costs and hurts our seniors.”
Via Sen. Mark Johnson, QUOTE: “We have an opportunity to get back to responsible spending, lowering taxes, and helping every Minnesotan. … The Governor's proposal today missed that opportunity. We need a budget that puts Minnesotans first, not government first. Republicans will stand firm against budgeting tricks that raise fees and taxes on regular Minnesotans.”
Via Minnesota Housing Partnership, STATEMENT: “Minnesota Housing Partnership (MHP) is disappointed in Governor Walz’s proposed budget for FY2025. While no cuts to housing were proposed, Minnesota needs serious and robust long-term solutions to provide the housing our state needs to thrive. Inflationary pressures and chronically underfunded resources for housing mean that existing budgets are not keeping up [with] housing needs.”
Via Long-Term Care Imperative, STATEMENT: “The biennial budget proposed by Minnesota Governor Tim Walz cuts critically needed assistance for Minnesota’s long-term care community. … Today’s proposal is nothing short of a slap in the face to Minnesota’s seniors, who are already facing a crisis in diminished access — particularly in rural Minnesota. This budget leads us to conclude that the Governor does not consider Minnesota’s seniors a priority.”
(DISCLOSURE: Long-Term Care Imperative is a client of Fluence Advisory)
BOYCOTT: From Sophia Lauber via Northern News Now, VERBATIM: “Duluth’s state representatives Liish Kozlowski and Pete Johnson toured Union Gospel Mission on Thursday rather than gather at the state capitol for the start of session. As DFLers are still boycotting the House session, the pair of Northland lawmakers returned to Duluth to meet with constituents in person.” QUOTE: “When I did run and when I got elected, my plan wasn’t just to be sitting in an office in St. Paul either,” said Johnson. “It was going to be talking to people, it was going to be getting feedback and things like that. That’s exactly what we’re doing here today.” WATCH: https://fluence-media.co/4g8qrNT
MONDAY: From Ana Radelat via MinnPost, a look ahead at Monday’s inauguration of President-elect Donald Trump – Representatives Betty McCollum and Ilhan Omar do not plan to attend, choosing instead to be in their districts to honor Martin Luther King Jr. Day. VERBATIM: “Other Minnesota lawmakers plan to attend, however, and Sen. Amy Klobuchar will play a role in Trump’s swearing in. As chair of the Joint Congressional Committee on Inaugural Activities, the Democrat will make brief remarks before Trump places his hand on a Bible and takes his oath to serve the United States.” READ: https://fluence-media.co/4gYpt8a
WILD ABOUT READING: More than 500 Minnesota classrooms and 15,000 students are participating in the “Wild About Reading” program, a partnership with Flint Hills Resources which encourages students to read more using Minnesota Wild-branded posters, reading logs, and bookmarks. Teachers set weekly reading goals and give certificates to students who complete the four-week program. Fun program incentives include classroom visits from the Wild’s mascot, Nordy – and the team dog, Rookie; a pair of tickets to a Wild home game, player signed pucks and photos; and a pizza party for a classroom. LEARN MORE: Wild About Reading SPONSORED: Flint Hills Resources
FLANAGAN: Following reports of a rift in their professional relationship, Lt. Gov. Peggy Flanagan appeared alongside Gov. Tim Walz for their first public event together since the 2024 election. Flanagan told reporters she feels “pretty great” about the governor and did not directly address their reported feud, saying she expects they will “continue to do incredible work together.” TWEETS: https://fluence-media.co/4aoJP8s
FUTURE: via Star Tribune, VERBATIM: “[Gov. Tim] Walz is facing a new political reality with the Legislature now narrowly divided between the two parties, [meaning] he will have to work to craft a deal with Republicans. … Lawmakers will get an updated economic forecast in February, but the governor is required under law to present his plan first. They face a July 1 deadline to strike a deal or risk shutting down government services.” READ: https://fluence-media.co/40AkCUZ
DINNER: From Peter Callaghan via MinnPost, VERBATIM: “The Minnesota Chamber of Commerce puts on an annual dinner the first week of the state legislative session that usually features a panel discussion among the four caucus leaders. Also, by tradition, moderator Tom Hauser of KSTP includes a ‘lightning round’ where he asks for one or two-word answers to a series of questions. Asking doesn’t mean that the politicians stick to the ground rules. Here is a transcript of that round with some editing to remove asides and an entire interaction about which character from the sitcom ‘The Office’ each of the four felt represented them (that part was hard to follow if you weren’t there).” READ: https://fluence-media.co/4g8pJQJ
FRAUD: From Kevin Miller via CCX Media, VERBATIM: “Amid the chaotic start to the legislative session at the state Capitol, a Maple Grove lawmaker is heading a new committee in the Minnesota House of Representatives that aims to root out fraud. Rep. Kristin Robbins, R-Maple Grove, has been named chair of the Fraud Prevention and State Agency Oversight Policy Committee. The creation of the new committee is being created in the wake of the massive Feeding Our Future fraud scandal.” WATCH: https://fluence-media.co/4gULYuM
FEED FRAUD: From Matt Sepic via MPR, VERBATIM: “The judge presiding over the second Feeding Our Future trial is implementing new jury security measures after a juror at the first trial was the target of a bribery attempt. Jury selection starts Feb. 3 in the trial of Feeding Our Future founder Aimee Bock and her co-defendants Salim Ahmed Said, Abdi Nur Salah and his brother Abdulkadir Nur Salah. During a pretrial hearing on Thursday, U.S. District Judge Nancy Brasel said that the defendants may view paper copies of juror questionnaires and take notes on them, but must hand over any notes to their attorneys before leaving the courthouse.” READ: https://fluence-media.co/3WmSL8m
LAW ENFORCEMENT: From Susan Du via Star Tribune, VERBATIM: “Minnesotans can look up any police officer’s current employer on the Board of Peace Officer Standards and Training’s website, but starting this week, they’ll be able to research officers’ past employment too, using a free tool created by a nationwide coalition of journalists and attorneys. ‘So-called ‘wandering officers’ have presented a significant danger to residents of every state, and an impediment to lasting police accountability,’ said Chaclyn Hunt, legal director of Invisible Institute, a Chicago nonprofit journalism organization.” READ: https://fluence-media.co/4alf9ou
FRESH15: The latest season of Fresh15 includes interviews with new Minnesota House members. So far, five new members have shared their goals, background and fun facts before they take office in a historic session this January.
Rep.-Elect Kari Rehauer
Rep.-Elect Wayne Johnson
Rep. Elect Julie Greene
Rep. Elect Keith Allen
Rep. Elect Peter Johnson
Follow on your favorite podcast platform, or at www.TheDailyAgenda.com/Podcasts. (SPONSORED: Minnesota Telecom Alliance)
RED LAKE: From Nathan Bowe via Detroit Lakes Tribune, VERBATIM: “All state-owned land and real property within a mile of Upper Red Lake must be given to the Red Lake Band of Chippewa Indians, along with all state-owned land and real property in the Red Lake State Forest, under a new bill submitted by Mary K. Kunesh, a DFLer from New Brighton. The bill, Senate File 194, allocates $20 million to the Minnesota DNR in fiscal year 2026 to purchase private land prior to the turnover.” READ: https://fluence-media.co/3CgfxIf
MINING: From Jimmy Lovrien via Duluth News Tribune, VERBATIM: “As an Iron Range taconite mine appeals a decision by state regulators denying its request to allow sulfate levels in a downstream lake to remain nearly eight times higher than the standard for wild rice waters, federal regulators have alleged the facility violated sulfate limits on wastewater nearly 300 times over three years. On May 15, the Environmental Protection Agency sent a notice of violation to U.S. Steel’s Keetac iron ore mine and pellet plant, alleging that it released wastewater with sulfate levels higher than the permitted amount 299 times into nearby waters between September 2019 and September 2022.” READ: https://fluence-media.co/4haRzNy
TINY HOMES: From Rob Olson via KMSP-TV, VERBATIM: “A Maple Grove church is planning to add 12 tiny homes to its property for people experiencing homeless, but is facing pushback from neighbors. What we know: The Church of the Open Door is hoping that by the summer of 2026, 12 tiny homes will be ready for occupancy on the grounds of their Maple Grove campus. Eight would house people considered chronically homeless, while the other four would house volunteers, who the church calls ‘intentional neighbors.’” READ: https://fluence-media.co/3PCaEwh
AI: From Feven Gerezgiher via MPR, VERBATIM: “The University of Minnesota expelled a third-year health economics Ph.D. student in November after faculty accused him of using artificial intelligence on an exam. He denies their claims and, this month, filed a lawsuit accusing the U of M of violating his due process. He has also filed a defamation suit against one of his professors. In a federal lawsuit, Haishan Yang, 33, alleges a student conduct review panel unjustly found him guilty of academic dishonesty through a process riddled with ‘procedural flaws, reliance on altered evidence, and denial of adequate notice and opportunity to respond.’ The review was prompted by accusations that Yang used a large language model like ChatGPT on a written preliminary exam, which doctoral students must pass to start their dissertation.” READ: https://fluence-media.co/4anC4PZ
BLOOD: From Mark Freie via WCCO-Radio, VERBATIM: “A new tool in the form of whole-blood products inside Burnsville ambulances looks to better-treat individuals experiencing significant blood loss. Burnsville Fire/EMS added whole blood products to their ambulances this month, becoming the first in the state to do so. The goal is to start the healing process and give emergency responders an extra tool outside their typical saline solution used to treat patients in the field.” READ: https://fluence-media.co/42h1gp8
LISTENING, LEARNING AND REDEFINING INDIGENOUS PARTNERSHIPS - “We want to build partnerships with Indigenous Nations. We continue to listen to and learn from Indigenous leaders and communities, and that’s informing how we engage communities in B.C. and across North America,” said CEO Greg Ebel of Enbridge’s approach to be the “first-choice partner” for Indigenous Nation interested in pursuing energy infrastructure opportunities. READ MORE: https://fluence-media.co/3Yht20R (SPONSORED: Enbridge)
BEER: From Dustin Nelson via Bring Me The News, VERBATIM: “For those looking to explore Minnesota's brewing scene, Rochester's Forager Brewery is one to keep an eye on. At least, Hop Culture believes so. The beer-focused publication has named Forager as one of its ‘17 best breweries to watch in 2025,’ in addition to naming its ROMP barleywine as one of the ‘19 best beers we drank in 2024’ in a December roundup.” READ: https://fluence-media.co/4gUFNqA
POP-UPS: From Macy Harder via Minnesota Monthly, VERBATIM: “If Pazzaluna in St. Paul was your favorite spot for pre-theater dinner and drinks, you’re in luck. After closing in 2020 due to the pandemic, the beloved Italian restaurant made a comeback in October with a six-night-only pop-up dining experience. And just a few months later, the pop-ups are back by popular demand.” READ: https://fluence-media.co/4hh5IIS
FASTENAL: Via Associated Press, VERBATIM: “Fastenal Co. (FAST) on Friday reported fourth-quarter net income of $262.1 million. The Winona, Minnesota-based company said it had profit of 46 cents per share. The results fell short of Wall Street expectations . . . The maker of industrial and construction fasteners posted revenue of $1.82 billion in the period, which also did not meet Street forecasts.” READ: https://fluence-media.co/3CcUPsG
TOMORROW: Via Minnesota Spokesman Recorder, VERBATIM: “The dinosaurs are roaring back into town! Minnesota Children’s Museum is bringing back the popular exhibit ‘Dinosaurs: Land of Fire and Ice’ on Jan. 18, inviting families to step into the prehistoric world of the Cretaceous Period, where dinosaurs last walked the earth 70 to 65 million years ago.” READ: https://fluence-media.co/4aonJmh
From yesterday’s Fluence newsletters:
UNITEDHEALTH: Via Associated Press, VERBATIM: “UnitedHealth posted a better-than-expected profit in the final quarter of 2024, but a nagging rise in medical costs and care utilization surprised Wall Street. Shares of the health care giant slid early Thursday after it released its first financial report since the brazen shooting of one of its executives outside a New York City hotel touched a national nerve and brought to the surface American frustration over health care access.” READ: https://fluence-media.co/4hifOZZ
ACA: Via news release from the Attorney General, VERBATIM: “Attorney General Ellison today announced that he and 13 other states are joining together to defend health insurance access for Dreamers from court challenges. The motion to intervene comes as the incoming Trump Administration is expected to halt federal efforts to legally defend the U.S. Department of Health and Human Services (HHS) and Center for Medicaid and Medicare Services’ (CMS) Final Rule granting access to Affordable Care Act (ACA) exchanges for Deferred Action for Childhood Arrivals (DACA) recipients from a legal challenge brought by a coalition of States led by the State of Kansas.” READ: https://fluence-media.co/4hb7sUB
NOROVIRUS: From Mohamed Ibrahim via Sahan Journal, VERBATIM: “Amid a particularly bad flu season, where respiratory infection cases like coronavirus and respiratory syncytial virus (RSV) are surging in Minnesota, another virus is also making the rounds. Norovirus, also known colloquially as stomach flu or food poisoning, is seeing some of the highest outbreaks in recent years, spiking to more than three times the normal rate in December. Doctors, state health officials and public health experts are working to get the word out on prevention methods to help stop the spread and limit the strain on emergency rooms across the state. The highly contagious illness spreads rapidly in crowded settings like schools and nursing homes.” READ: https://fluence-media.co/4gYZL3y
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RETAIL: From Christine Schuster via Bring Me The News, VERBATIM: “Outdoor recreation retailer Eddie Bauer is departing Burnsville Center. Closing sales are underway at the store, which is set to close Jan. 29.” READ: https://fluence-media.co/4ajshdL
DIGI: From Hopkins-based Digi via Business Wire, VERBATIM: “Digi International Inc. (NASDAQ: DGII) will release its financial results for the first fiscal quarter 2025 on Wednesday, February 5, after market close, at approximately 4:00 p.m. ET.” READ: https://fluence-media.co/4jkCsmk
PROTOLABS: From Maple Plain-based Protolabs via Business Wire, VERBATIM: “Protolabs (NYSE: PRLB) announced today that it will issue its financial results for the fourth quarter and full year 2024 before the opening of the market on Friday, Feb. 7, 2025. Protolabs will host a conference call to discuss the results at 8:30 a.m. EST on the same day.” READ: https://fluence-media.co/3Wm6c8B
CLEARFIELD: From Brooklyn Park-based Clearfield via Globe Newswire, VERBATIM: “Clearfield, Inc. (NASDAQ: CLFD), the leader in community broadband fiber connectivity, today announced that it will release results for the first quarter of fiscal 2025, ended December 31, 2024, on Thursday, February 6, 2025, after the close of the market. The company will host a conference call at 5:00 p.m. Eastern time (4:00 p.m. Central time) to discuss its financial results with the investment community.” READ: https://fluence-media.co/42o98FH
ANDERSEN: From Bayport-based Andersen via PRNewswire, VERBATIM: “Andersen Corporation (Andersen), manufacturer of America's most trusted brand of windows and doors, has named Jeremy Behler senior vice president and chief financial officer. Behler will succeed the company's current chief financial officer, Phil Donaldson, who will retire this spring after 25 years with Andersen.” READ: https://fluence-media.co/3PEQh1j
RASSMUSSEN: From Minneapolis-based Rasmussen via PRNewswire, VERBATIM: “Rasmussen University is pleased to announce the appointment of Mark Arnold as its next President, effective January 22, 2025. Arnold succeeds Paula Singer, who will transition to the Rasmussen University Board of Directors as Vice Chair and Chair of the Academic Affairs Committee.” READ: https://fluence-media.co/4jjzcYi
FORUM: If you’re interested in having the Fluence Forum host a topic, please contact Blois Olson at bloisolson@gmail.com
ICE: From Emma Salomon via MplsStPaul, VERBATIM: “Are you even a Minnesotan without braving the cold and having fun in the snow, ice, or whatever our unpredictable weather brings? With historic festivals returning, Ice Castles to tour, mazes to get lost in, and winter sports to peruse—let's bundle up and get out there!” READ: https://fluence-media.co/47Tmbi2
DATE NIGHT: From Justine Jones via Eater Twin Cities, VERBATIM: “Fragrant bites of carbonara and brandy pours in basement speakeasies: These are the ingredients of a romantic date night in the Twin Cities. From prix fixe tasting menus to a vintage bowling alley, Minneapolis and St. Paul have an array of romantic restaurants to choose from, all with different price points and tastes. Here are some essential date night spots in the Twin Cities.” LIST/MAP: https://fluence-media.co/3WEnPh8
BDAYS: meteorologist Sven Sundgaard, Sen. John Hoffman, communications pro JacQueline Getty SAT: ad guy Matt Burgess, politico Justin Perpich, Xcel’s Rob Clark, school board member Jonathan Weinhagen
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