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It took some time to comb through the outcomes of the busy legislative session that ended in May. Judging from what has been presented by the Minnesota  Inter County Association to the County Board and by the Association of MN Counties or AMC— the  session was “historic” and in a good way.  The high note is that the legislature finished its work on time and lawmakers did not need a “special session” for the first time since 2013.

MICA is made up of Chisago County, with Benton, Blue Earth, Carver, Crow Wing, Dakota, Olmsted, Otter Tail, Rice, Scott, Sherburne, Stearns, St Louis, Washington and Winona counties.

Executive Director Matt Massman, Transportation specialist Steve Novak and Nancy Silesky, who oversees advocacy for Health and Human Services requests for MICA, told the county commissioners the big win is “ongoing increases” that have been established with actions like dedicated revenues ie: auto parts taxes and a $1.5 billion carryover.  

“It was a good year for counties,” Massman stated. 

Direct budgetary impacts won’t be defined for a while yet.  The county starts meeting with department heads to discuss the coming year levy in August. The preliminary budget must be adopted by September 30 and the final budget and levy for taxes paid in 2024 are acted on by December 27, 2023. 

Also, being fleshed out yet is the state’s new Department of Children, Youth and Families.  County HHS Director Robert Benson told commissioners the relationship between this and the county is yet to be determined.  “We are unsure how we will (interact)” he remarked.  He is meeting with state and county association officials on how the funding will flow for county programs.

In action in the session’s ending hours, the legislature adopted a bonding bill for infrastructure needs which there hasn’t been action on in three years, MICA’s Novak explained.  

Plus, the indexed gas tax (three percent per year cap will be five cents in 2027) will generate $155 million alone for transportation needs. Motor vehicle sales tax goes from 6.5 percent to 6.875 percent.  

Increases in funds the state will have for the LRIP (Local Road Improvement Program) were “the biggest in years,” Novak added.

Other fiscally positive things pointed out include:

The legislature made adjustments to the property tax system to provide some relief.  The county commissioners heard the homestead market value exclusion was increased by 25 percent, with the exclusion halted at $517,200 of residential value.  Changes are effective for pay-2024 tax.

Senior citizen deferral program had some changes and was expanded.

Renters Credit went to a refundable income tax credit and there is a 2023-only hike in rent credit.

Soil and Water Conservation District funding was changed from the earlier 70-20-10 percent distribution formula and new funding formulas that take public land into account should benefit Chisago County.

The Payments in lieu of Tax (PILT) for tax exempt public parcels got an increase from $2 per acre to $3 and is indexed to inflation.

Counties get a two year break from having to pay the cost share for civilly-committed mentally ill and dangerous persons.  Counties also no longer pickup the cost of examinations for sexual assault victims.

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