The governor said he anticipates Minnesotans will “start to see the dial turns happen faster and rapidly happen over this.” He estimated that by the middle of April, over 2.5 million Minnesotans will have been vaccinated. “That is a real game changer,” he said.

Senate Passes PPP Tax Conformity Legislation

Today, the Minnesota Senate passed Senate File 263, authored by Senator Tom Bakk (I-Cook), by a margin of 55-12. This legislation makes forgiven federal Paycheck Protection Program (PPP) loans tax-exempt by the state. In addition to PPP tax relief, this bill provides tax relief for Minnesotans who received expanded federal unemployment benefits. It also provides some small businesses greater flexibility to file as C-corporations, which will help reduce their tax burden.

For many businesses in Minnesota, the tax filing deadline is March 15. This legislation includes a 30-day extension for business filings.

When asked today if he supported the legislation, Governor Walz responded that while he is open to the bill, he believes it should also include his proposal for funding summer school programming. He told reporters that he has asked legislators to bring these proposals up together.

Walz Calls on Legislature to Immediately Pass Summer Learning Plan

Today, Governor Tim Walz called on the Minnesota Legislature to immediately pass his summer learning package to ensure schools have the support they need to help students recover from COVID-19. The Governor’s $150 million plan would address opportunity gaps and expand summer learning opportunities. The proposal must be passed by April 15 in order for schools to have time to plan for summer learning.

“After a year of unprecedented challenges for our students, families, and educators, there is an urgent need for action,” said Governor Walz. “The learning disruptions caused by COVID-19 have impacted every single student across Minnesota. I call on our Legislature to come together and pass the summer learning plan to help ensure our students aren’t left behind.”

The Governor’s proposal includes school and community-based learning opportunities, field trips and hands-on learning, mental health support, summer preschool, and college courses for graduating seniors.

As school leaders finalize plans and set budgets for programming, staffing, health and safety protocol, and transportation, they require guidance from the state by mid-April in order to thoughtfully and accurately plan. Without immediate action by the Legislature, hundreds of thousands of Minnesota students and their families will face uncertainty about access to academic support over the summer.                          

“While we’ve seen incredible innovation from schools, we’ve also seen opportunity gaps widen along the lines or race and zip code,” said Lieutenant Governor Peggy Flanagan. “It is our responsibility to meet our students’ academic and emotional needs as we move forward. An investment in our students’ learning is an investment in the future of Minnesota. It’s critical that we work together to get this done for our children.”

On February 18, Governor Walz sent a letter to legislative leaders requesting they take swift action to pass HF1064/SF973, his summer learning package. The proposal:

• Expands summer 2021 programming by providing students with opportunities to catch up on learning. It dedicates $57.5 million in federal funds to expand summer programming with small class sizes and transportation for students. The proposal creates partnerships with community organizations to offer academic enrichment. The legislature must approve federal spending.
• Expands summer 2021 preschool for 4- and 5-year-olds by providing $20 million in one-time funding for early learners to attend a star-rated public or private preschool or pre-kindergarten in-person learning program at no cost to them. Programs may be able to extend their school year, build upon summer programs they are already offering, or offer new summer programs.
• Expands mental health support in summer 2021 by providing $7 million to expand school-linked mental health services and provide access to well-being support at summer learning programs.
• Provides field trips and hands-on learning in summer 2021 by providing school districts and charter schools with $10 million in supplemental one-time funding for students.
• Accounts for pandemic enrollment loss by maintaining programming that serves all students across the state, including those who are historically underserved. The proposal would provide $25 million in one-time funding to reduce the financial hardship incurred by school districts and charter schools due to a decline in enrollment because of the COVID-19 pandemic.

More details can be found here, under “Priorities for COVID-19 Federal Funding and Summer Programming,” “Pandemic Enrollment Loss,” and “Summer 2021.”

Amos A. Briggs | Government Relations
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