Last weekend, I served as the lead GOP negotiator on a deal for nursing homes to receive $300 million in emergency funding. This agreement will include direct grants, facility rate increases, and a workforce incentive fund that adds up to an average $1.1 million for every nursing home in the state.

Nursing homes deserved so much more than what Democrats provided this year. I worked with Democrats from the House and Governor's office to work out the details of the plan, and were it not for our resolve, Minnesota could have lost up to 40 nursing homes in the coming year.  This plan will give them a lifeline to stay open and continue to provide this invaluable care for our loved ones.

Nursing Facility Grants totaling $173.5 million will be split into two payments in August 2023 and August 2024. Each nursing home will receive at least $225,000, plus additional funds based on active beds for every nursing home in the state, an average 50-bed facility could see $465,000 in grant funding. The grants can be used for various fiscal management strategies to improve the financial health of nursing homes. Unlike loans in the Human Service budget, these grants will not need to be repaid, making their impact much more meaningful for nursing homes.  

$51.5 million in state money in additional to federal funds will enable a temporary $12.32 daily rate add-on for 18 months. Nursing home administrators say that this could translate into a pay raise of about $1 per hour for nursing home staff. The remaining funds from the $300 million are put into a Workforce Incentive Fund (WIF) that facilities can use for hiring and retention bonuses, employee-owned benefits, and employee contributions to a 401k, along with professional development, childcare, meals, transportation, and housing needs of employees. The WIF caps out at $3000 per worker, per year and is available until funds are spent or July 2029.

According to Long-Term Care Imperative, a collaboration of aging service providers, 15% of nursing homes statewide have completely exhausted their financial reserves and 10% are considering closing. In Greater Minnesota, 17% have no financial reserve and 12% are considering closures. With about 350 nursing homes in the state, that puts 60 nursing homes without reserves, and 41 considering closure.

While securing this funding for nursing homes was a positive way to end the 2023 legislative session, the vast majority of this session was much more disappointing. Government is growing by about 40% and businesses will be crushed by burdensome mandates. This year marks the largest budget increase in state history, and Minnesotans will pay the bill.

Even though we started session with over an $18 billion surplus, Democrats chose to increase taxes by over $9 billion (see below for details).

On Wednesday, May 23rd, I was able to stop by the future site of the Parkers Prairie Veterans Memorial.  I was able to secure $50,000 as a part of this year's capital investment bill to help fund this project.  Thank you to all of the community leaders and volunteers who have made this project possible – it was great to secure the final funding needed right before Memorial Day. We must not forget those who have made the ultimate sacrifice in service to our nation. This project is one way to honor their memory. 

With the school year also ending, it is customary to see many schools take students to the Capitol to learn about the history and process of our state's government. I tell the students that they could be representing our area at the Legislature one day! 

With Gratitude,

Senator Jordan Rasmusson

District 9