PASSED
One-time Tab Fee Reduction
As Minnesotans face rising inflation and costs due to Trump’s tariffs, cuts to services, tax cuts for the rich, and war of choice in Iran, Senate DFLers passed a supplemental budget that provides Minnesotans relief on their property taxes and reduces vehicle tab fees in 2027, while maintaining investments in infrastructure that support our economy and help people move about their lives. (HF 719– Pappas- Art. 4)
The one-time tab fee reduction will apply to vehicle registration periods in calendar year 2027 and will calculate vehicle registration tax amounts at a lower rate for that year only. This benefit will not lead to a tax reduction for the 50% of vehicles registered in the state that pay the minimum tax amount. This change leads to a roughly $254 million cut in revenue to the Highway User Tax Distribution Fund (HUTDF) across FY 27 and FY 28, which will be backfilled by a $254 million General Fund transfer to the HUTDF.
Legislative Safety and Security Package
The legislature passed a package of provisions providing increased legislative and capitol security, including physical security upgrades, expanded resources for threat assessments, funding for capitol area weapons screenings, and the establishment of a legislative services unit within the State Patrol.
The Legislative Services unit will lead threat investigations related to state legislators, provide guidance to and coordination with local law enforcement when needed, and develop protocols for security services communications with the legislature. A Security Services Task Force is established to oversee the implementation of the Legislative Services unit.
The legislative safety and security package totaled $32 million in FY 26-27 and $20 million in FY 28-29 and also included funding for safe and secure courthouse grants and funding to be available to reimburse local law enforcement agencies for the costs of providing protective services to legislators when needed. (SF 3432 (Latz) CCR- Articles 1 and 2)
Strengthened School Bus Safety
Senate DFLers updated Minnesota’s school bus stop arm law to improve student safety, ensuring that a driver’s obligation to stop starts as soon as a school bus’s flashing red lights activate, rather than some time later when a school bus stop arm is fully extended. This makes drivers need to drive with more caution when students are getting on or off a school bus. (SF 3623– Johnson Stewart)
Suicide Prevention on Bridges
Senate DFLers led the passage of legislation to require MnDOT and MDH to identify bridges in Minnesota with a history of suicide-related deaths and to incorporate suicide reduction measures into bridges with high rates of suicide when undergoing a bridge project that includes replacement, alteration, or addition of the bridge railing. (SF 2971– Dibble)
DVS Operating Account Transfer
The global budget agreement included a $75 million one-time transfer out of the DVS operating account to support increased general fund spending. The DVS operating account is primarily funded by processing fees on Driver and Vehicle Services transactions, including vehicle registrations, vehicle title transfers, and more. The account funds the operations of the Driver and Vehicle Services division, including staffing and operations costs for the division and for Deputy Registrars across the state.
Following the 2023 legislative session, the DVS operating account began seeing revenue by the establishment and popularity of “blackout” license plates, which charge an additional fee that is deposited in the DVS operating account. New revenue from the purchase of blackout plates, approximately $11.5 million in FY 25, contributed to the DVS Operating Account accruing an $85.768 million projected balance after FY 27, including a structural balance in FY 27 and ongoing of a projected $11.728 million per year.
The one-time transfer leaves the fund with a roughly $10 million one-time balance at the end of FY 27 and does not impact the structural balance in FY 28 and beyond. The fund also carries reserves not included in the budgetary balance that provide cash balance to maintain regular, ongoing operations, and are also available for appropriation to address capital improvement needs.
DID NOT PASS
E-Bike and E-moto safety
E-bikes, and more frequently illegal “e-motos”, are a growing safety concern in communities across Minnesota. E-motos- illegal devices that are often non-compliant motorcycles under Minnesota law, are deliberately sold as “e-bikes” in violation of Minnesota law and disclosure requirements, and are often ridden by youth on Minnesota roads and sidewalks, posing serious danger to themselves and others.
Senate DFLers passed legislation to clarify definitions, expand accident reporting for e-bikes and e-motos, educate the public, provide resources to law enforcement, and establish electrical safety standards for e-bike and e-moto batteries.
While this legislation passed the Senate, it did not make it across the finish line. Despite this, Senate DFLers led and advanced the conversation about e-bike and e-moto safety and are ready to address this youth safety crisis in the years to come. (SF 3236– Johnson Stewart)
Blocked Proposed Cuts to Transit
For the second straight year, Governor Walz proposed more than $40 million in cuts to metro area transit spending. This propose cut posed a threat to sustainable transit operations, to the expansion of transit service in the metro area, and to reaching Minnesota’s goals to reduce vehicle emissions and be carbon neutral by 2040. Senate DFLers rejected this threat to transit systems and the Minnesotans that rely on transit and passed a budget that maintains investments in infrastructure and in people.