Legislative Update
Greetings,
It’s a great week to be back from visiting my eldest son, daughter-in-law and grandkids for Thanksgiving! I sincerely hope everyone enjoyed a wonderful Thanksgiving holiday!
County-based Health Plans
My week started with several very good presentations on the implementation of the new County Administered Rural Medical Assistance (CARMA). We passed the CARMA legislation several months ago and the actual implementation date will occur on January 1st, 2027.
Although we are still two years from full implementation, our local team at South Country Health Alliance is working hard to make the transition. Why is CARMA important? It keeps control and management of our allocation of rural medical assistance funding at the county level. At the county level, our team can more effectively manage healthcare access and costs on a more personal level. Alternatively, it could be managed in St. Paul, and our county leaders would lose control and visibility of the true costs of Medical Assistance (MA) program as well as whether or not our residents are being served correctly.
Finally, I want to thank our Steele and Waseca County Commissioners who helped me learn more about CARMA before our session started in January 2025. Their education and support enabled me to fight for the passage of the legislation in 2025.
November State of Minnesota Budget Forecast
Yesterday, we received the fiscal 2026-2027 budget forecast. As you recall, our State of Minnesota 2026 budget year started on July 1st, 2025. So, fiscally, we are several months into the 2026-2027 budget.
First, we learned the Minnesota Management and Budget (MMB) office is forecasting a $2.465B surplus by the end of June 2027 which we will be able to roll over into the fiscal 2028-2029 budget cycle. At this point, I’m sure you are thinking “where is my tax rebate?” I wish I could offer one. However, MMB is forecasting a $5.4B deficit during the 2028-2029 budget cycle. Yes, I said $5.4B deficit. MMB forecasts the State of Minnesota to outspend taxes received by $5.4B. Obviously, our State of Minnesota Constitution requires us to pass a balanced budget. Thus, we will be working during the upcoming session starting in February 2026 to reduce spending in outyears to avoid the fiscal cliff we will be facing during the 2028-2029 budget cycle.
My recommendation is to avoid the blame game. Many, including the governor, are blaming Washington, DC. However, during the 2023-2024 trifecta, the State of Minnesota spent a $18B surplus and grew government by over 40% (6000 new employees). Now, as we try to account for excessive spending, we continue to discover fraud problems that exceed $1B and continue to grow. Fellow Minnesotans, we have a spending problem and a fraud problem. We must address both issues head on! I am working with colleagues to address both.
Coffee with Tom (and a guest!)
Please feel free to join me and fellow Representative Keith Allen for Coffee with Tom at the Owatonna Chamber of Commerce on Friday, December 5th at the Owatonna Chamber of Commerce from 12:00pm-1:00pm.
Our next meeting in Waseca will be on Friday, December 12th at the Waseca Chamber of Commerce from 12:00pm-1:00pm.
Thank you for your support and feedback!
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