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BONDING: $1.5B BONDING/$850M CASH • Economic Development: $443M, including: – $10M for the Business Development Public Infrastructure (BDPI) grant program (additional money for BDPI was also included in the jobs bill) – $1.5M for the Innovative Business Development Infrastructure program – $189M earmarked for local projects – $224M earmarked for grants to non-profits • Environment: $59.7M, including: – $10M for local tree planting – $49.7M for flood hazard mitigation • Housing: $75M, including: – $41.9M bond/$30.1M cash for rehab to preserve public housing stock – $3M for Greater Minnesota Housing Infrastructure • Transportation: $402M, including: – $85M for the Local Road Improvement Program – $67M for the Local Bridge Replacement Program – $12M for the Local Road Wetland Replacement Program • Water/Wastewater: $513.5M, including: – $41M to leverage federal revolving loan funds – $87.2M for Water Infrastructure Grants ($32.5M drinking water/$52M clean water) – $80M for Point Source Implementation Grants – $12M for metro-area inflow/infiltration – $293M earmarked for local/regional projects CANNABIS • Legalizes and regulates: The adult-use cannabis law legalizes and decriminalizes cannabis and establishes a regulatory framework for seed to sale oversight. • Local regulation: The law requires cities to register certain cannabis retail businesses, conduct compliance checks, and temporarily suspend registrations if needed. • Zoning authority: The law provides local zoning authority for cannabis businesses, including the authority to limit the number of retailers to one per every 12,500 population. • Local revenue: 20% of the gross receipts tax revenue from cannabis products is dedicated to local governments, to be shared equally between cities and counties. COMPENSATION CAP REPEAL • The local government compensation cap was fully repealed effective May 25, 2023. Under the cap, salaries of local government employees of cities, counties, towns, metropolitan and regional agencies, and other (but not all, such as school districts) political subdivisions were not permitted to be greater than 110% of the salary of the governor. EARNED SICK AND SAFE TIME • The new law requires employers provide employees with one hour of paid sick and safe time for every 30 hours worked for up to 48 hours the first year and 80 hours in ongoing years. • The law applies to all employees, including part- time and seasonal employees, and has no impact on existing paid leave policies that meet or exceed these requirements. ECONOMIC DEVELOPMENT • Local Economic Support: – $10M in one-time funding for Local Community Child Care Grants – $10M for Community Energy Transition Grants • Business and Workforce Development: – $2.287M in FY 24 and FY 25 for the Business Development Public Infrastructure grant program (in addition to the $10M included in the bonding bill) – $4.246M in FY 24 and FY 25 for the Redevelopment Program and $2.246M in FY 26 and each year after – Creation of $400M Minnesota Forward Fund to create and retain permanent private-sector jobs, increase local tax base, improve economic opportunity, and provide grants to local units of government for infrastructure to support local economic growth. – $8M for the Minnesota Investment Fund – $12.37M for the Minnesota Job Creation Fund ELECTIONS • Early voting: The state and local government omnibus bill establishes early voting for the 18 days leading up to Election Day, replacing the current in- person absentee ballot, or “direct balloting,” process. • Automatic Voter Registration: A new law creates a process where eligible voters will automatically be registered to vote when applying for a driver’s license or other government documents. • Elections administration updates: The state and local governments bill contains many elections administration provisions, including updates to mail voting, sample ballot publication, write-in votes, annual funding for cities and counties for administration, and more. Key Outcomes for Cities (in alphabetical order by topic)