At the Capitol: Historic Session Kicks-Off with $7.7 Billion Surplus

Posted on February 3, 2022 by Matt Steele

On Monday, lawmakers gathered back in Saint Paul to begin the 2022 legislative session with a projected $7.7 billion surplus top of mind for most at the Capitol. About four months before adjournment on May 23, LeadingAge Minnesota and our partner in the Long-Term Care Imperative are seeking support from the state to pay caregivers the wages they deserve and ensure access to care in all the places seniors call home.

While we have sounded the alarm bell for years with lawmakers asking that they take steps to prepare to meet the needs of our growing senior population, the pandemic has laid bare the deep needs of our aging care system, beginning with chronic workforce shortages fueled by near-poverty level wages. With over 20,000 positions unfilled, more and more seniors cannot receive the care they need when they need it close to home.

Top Legislative Priorities for Long-Term Care

In conjunction with our Long-Term Care Imperative Partner, our 2022 legislative priorities highlight two critical needs in long-term care:

• To support professional caregivers with the wages they deserve, and
• To ensure seniors have access to the care they need in all the communities to call home.

Developed by LeadingAge Minnesota members through the committee process, approved by the LeadingAge Minnesota Board of Directors, and adopted by the Long-Term Care Imperative, our 2022 legislative advocacy focuses on the funding and regulatory changes you identified throughout the policy development process.

The priorities include efforts to:

• Fund permanent wage increases for caregivers;
• Invest in Elderly Waiver;
• Improve the Value Based Reimbursement System by reducing the 21-month delay, making non-direct care positions cost-based, and providing upfront funding to allow providers to raise wages immediately;
• Update the Assisted Living License with several technical changes, expand the role of LPNs, and better define who is and is not an assisted living resident; and
• Explore new ways to serve seniors through PACE and virtual Adult Day Services.

Other Issues

Budget Surplus: In Dec. 2021, Minnesota reported a record-breaking $7.7 billion budget surplus. Most of the debate will revolve around what to do with this extra money: how much to spend, return to taxpayers via tax breaks, and save in the state's rainy-day fund. LeadingAge Minnesota advocates that about $700 million of the surplus be used to fund permanent wage increases for long-term caregivers.

Infrastructure: During non-budget years at the legislature, the focus has historically been on passing an infrastructure bill. All sides agree the legislature will pass an infrastructure bill this session; however, lawmakers will debate its size, with Democrats proposing a much larger package than Republicans.

Redistricting: Every ten years after the census is complete, the legislature and governor are directed to redraw legislative and congressional districts to represent population changes in Minnesota. Due to a divided government, the process often gets decided by a judicial panel appointed by the Minnesota Supreme Court. This year is no exception. The panel is expected to release its findings by mid-February, and they will significantly impact the 2022 election cycle as lawmakers will see changes in the areas they represent. In some instances, it could mean more than one lawmaker is vying for the same seat after the lines are redrawn since a state lawmaker is required to reside in the district they represent.

COVID-19: Despite the peak of the most recent omicron variant reportedly passing, there is still much the pandemic is influencing that will have the legislature's attention this session. At the outset, legislative leadership and the governor have been unified in their calls to pass Hero Pay, a bonus to frontline workers, an initiative left over from the 2021 session. While the total amount and recipients are still being determined, lawmakers seem ready to quickly iron-out any disagreements and get it signed into law. While we appreciate the short-term relief Hero Pay could provide the senior caregivers, our focus is on permanent wage increases that can help remedy the systemic workforce crisis in long-term care.

What’s Ahead

The beginning of the legislative session will mainly consist of committee hearings and individual meetings with lawmakers as bills get drafted and introduced. At the moment, Senate committee hearings will be hybrid, allowing the public to participate virtually or in person. In contrast, House committee hearings will be entirely virtual; however, House floor sessions and the Capitol are open for the public to attend in person.

The beginning of the legislative session also means LeadingAge Minnesota’s annual Day at the Capitol is right around the corner. This year’s Day at the Capitol will be held on April 5 and includes opportunities to virtually meet with your colleagues, learn more about how to advocate for seniors and their caregivers, and make your voice heard in meetings with your lawmakers. Register today! If you have any questions, don’t hesitate to reach out to Matt Steele, Director of Government Affairs.

Each week during the legislative session, follow Advantage for regular updates about what’s happening at the Capitol.