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An agreement that paves the way to the Minnesota Legislature’s session finish includes help for a key Minneapolis hospital, cuts to vehicle registration fees and property tax relief for homeowners, according to terms released late Wednesday. 

The pact between Gov. Tim Walz and top lawmakers will still need some massaging before bills are ready for final votes. Those must come by midnight on Sunday.

The outline calls for additional spending on education, debt service for infrastructure, technology upgrades for counties, a safety and security package and additional fraud investigators. It would leave available money from a projected surplus partly unspent to avoid budget problems later.

Here's what happened in the legislature 

There will also be a rescue package for HCMC, a vital safety-net hospital in Minneapolis that is on shaky financial ground.

“This agreement reflects the disciplined, fiscally responsible approach Minnesotans expect,” Walz said in a written statement. “We are keeping a balanced budget, making targeted reductions, and focusing every dollar on core priorities: fiscal sustainability, critical infrastructure, and the health and wellbeing of our communities.”

GOP House Speaker Lisa Demuth, a candidate for governor, said the budget deal delivers cuts to vehicle registration fees and property tax aid.

“With this budget, we’re delivering on affordability for communities across the state,” she said in a written statement. “This will help Minnesotans statewide afford their lives for years to come.”

DFL Senate Majority Leader Erin Murphy and House DFL Leader Zack Stephenson also issued statements of support, with Murphy calling it a “hard-fought negotiation.” 

Stephenson focused on the HCMC element as a key component.

“Providing certainty and stability for HCMC was a necessity, and I’m glad we were able to find bipartisan support,” he said. “DFLers are ready to pass this agreement and complete this work for the people of Minnesota.”

The assistance for HCMC includes $205 million in state support this year — and beyond that a $500 million reserve account to help ensure that the Minneapolis hospital remains open.

The deal announced Wednesday night also includes agreement on a $1.2 billion bonding bill.

Missing from the joint statement and a signed offer sheet was Republican Senate Minority Leader Mark Johnson, whose caucus is essential for passing a construction projects bill given a higher vote threshold.

But Johnson issued a separate announcement heralding the cut to vehicle tab fees, which he said amounts to $250 million for a single year. He also said enough Republicans would vote for the bonding bill to pass it.

“When we put Minnesotans first and listen to their concerns, we can get things done for the better of everyone in our great state,” Johnson said. 

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Minnesota lawmakers have an overarching deal on key session items as they barrel toward a Sunday midnight deadline to pass bills.

Tab fee cuts, property tax aid, HCMC fix are part of deal to finish legislative session

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