Minnesota Democrats have control over state government and hope to use that power to pass laws some may find controversial including abortion protections, paid family leave, legal cannabis and a health care public option.

Those are just some of the policies that Democratic-Farmer-Labor Party members have tried to approve for years, but failed to under divided government when Republicans controlled the Senate.

Now is DFLers’ chance to approve those priorities and more, but to do so they’ll need to keep together a slim majority in the House and a one-seat advantage in the Senate. Or they’ll need to moderate their proposals enough to win over Republicans to help pass their bills.

An unprecedented $17.6 billion budget surplus makes paying for some of Democrats’ priorities easier. But roughly $12 billion of that surplus is one-time money and the projected $6 billion in ongoing revenue could easily shrink due to inflation or new spending.

Opportunities

Top Democrats Gov. Tim Walz, Senate Majority Leader Kari Dziedzic and House Speaker Melissa Hortman are confident that their thin majorities will hold together. They also say they’re willing to work with Republicans.

“We are not here to score political points. We are not here for victory laps. We are here to improve lives,” Walz said in his Jan. 2 inaugural speech. “This is our opportunity to make change, to make what was previously impossible possible, and to strengthen faith in government as a force for good.”

Republicans are looking for ways to influence the DFL agenda any way they can. They’ve pushed DFLers to focus on issues that already have bipartisan backing like tax cuts, improving schools and increasing public safety funding.

“I believe we can work together and Minnesotans are looking for that right now,” Rep. Lisa Demuth, R-Cold Spring, the new House minority leader, said on the first day of the legislative session. “They are looking to have their values represented, not necessarily by a political party, but definitely the things that are important to Minnesota.”

Here’s a look at some of the most contentious issues lawmakers will tackle:

Abortion

Legislation guaranteeing the right to an abortion and other reproductive care cleared its first committee this week on a party-line vote. DFLers say the U.S. Supreme Court decision to overturn Roe v. Wade drove voters to the polls in 2022 and helped them win control of government. Protecting abortion is expected to be one of the first bills that the new DFL majority approves this session.

Republicans and anti-abortion activists criticized the bill during the health committee hearing, saying it lacked any restrictions on how or when abortions could be performed. Supporters of the bill say those decisions should be between doctors and patients and not include the government.

Since the Roe decision was overturned in June, 18 states have enacted prohibitions on abortion. In Minnesota, abortion is now protected by a state Supreme Court case similar to Roe that supporters worry also could be overturned.

Paid leave

Democrats have pushed for years to develop a universal program to provide paid family leave and earned sick time to workers whose employers don’t offer those benefits. They say no one should have to choose between caring for themselves or a loved one and a paycheck.

Republicans and businesses have opposed the program because it would require a new payroll tax on workers and businesses. A 0.6 percent tax on wages would generate roughly $1 billion a year to fund the program to provide as much as 12 weeks of leave.

Nationwide, at least 12 states and Washington, D.C., require paid family leave and employers in 16 states must offer some sick time.

Taxes

The state’s unprecedented $17.6 billion budget surplus has a lot of Minnesotans looking for a tax cut or a rebate check. There’s a broad bipartisan consensus among lawmakers to make changes to the tax code, but what those changes look like will take time to develop.

Walz wants to give taxpayers $4 billion worth of rebate checks of $1,000 per filer or $2,000 per family, something GOP and DFL leaders have been lukewarm to, at best. Democrats say they want to focus tax cuts and credits on lower- and middle-income “working families” and Republicans say they want permanent rate cuts.

Many DFLers have backed away from a previous bipartisan agreement to eliminate taxes on Social Security because it would reduce revenues by $603 million a year and mostly benefit retirees with other income. Instead, they prefer to raise the income level at which Social Security is taxed.

Eleven states tax Social Security income in some way and the federal government also taxes the benefit above a certain income level.

Cannabis

A bill legalizing adult-use cannabis is expected to have its first committee hearing in the coming week. The legislation would regulate recreational sale of cannabis and expunge criminal records of those convicted of marijuana offenses, which are disproportionately people of color.

The DFL-led House passed a similar bill last year only to see it stall in the then GOP-controlled Senate. This year, with a one-seat DFL majority, lawmakers say legalization will become law.

Republican leaders have urged Democrats to slow-walk the changes, saying there are health and public safety concerns that need to be addressed. Recreational marijuana is now legal in 21 states and 37 allow its use for medical purposes.

Legal pot would be taxed, likely at a rate of less than 10 percent, but it isn’t expected to be a financial windfall for the state. The estimated $150 million a year in new revenue would largely go to funding oversight of the new marketplace.

Immigrant driver’s licenses

Gov. Walz joined a packed rally on the first day of the session in support of allowing residents to apply for driver’s licenses regardless of their immigration status. Walz noted his long-standing support for the measure, calling it an issue of “human dignity” that would make state’s roads safer.

Eighteen states offer driver’s licenses to immigrants in the country without the proper legal authorization. There are an estimated 80,000 people living in Minnesota without legal immigration status.

Concerns have been raised about the change, including how federal officials might authorize state driving records and whether they might be used to vote.

Climate change

Walz and DFL leaders say they want Minnesota to use 100 percent renewable energy by 2040. To do so, the state needs to make big investments in its electricity grid and transportation infrastructure.

Critics say renewables, such as solar and wind, are not reliable enough to be the state’s sole source of energy. They argue electric vehicles’ limited range is not realistic in rural areas and are too expensive for many.

Health care

Democrats are renewing their push to create a public health insurance option by broadening the eligibility to MinnesotaCare, the state program for the working poor. About 100,000 residents are on MinnesotaCare and roughly 5 percent of the state’s 5.7 million residents are uninsured.

Expanding MinnesotaCare would basically allow more people to use the structure of Medicaid to receive low-cost coverage. The cost is lower because reimbursement rates for hospitals and medical providers are significantly less than what private insurers pay.

That’s problematic for health providers who say the pandemic has already hurt their finances. Hospitals are already struggling with workforce shortages and, in 2020, 33 of the state’s hospitals and health systems lost money.

Last year, Walz proposed about $50 million a year to operate an expanded MinnesotaCare that supporters estimate will be mostly paid for through insurance premiums. Three states offer public health care options with Colorado and Nevada approving plans in 2021 to join Washington state to offer government-run health insurance plans.

Such plans are different than MNsure, the state’s marketplace where individuals can buy insurance from providers under the Affordable Care Act and receive tax breaks and financial help.

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