State lawmakers brief Otsego council on budget pressures, possible long‑term care cuts and HOA reform bill

Sen. Derek Lucero and Rep. Paul Novotny visited the City of Otsego council meeting to outline mid-session developments at the Minnesota Legislature, including a projected state budget deficit and measures that could shift costs to counties, cities and school districts.

Lucero, who said he serves on K‑12 education finance, elections and the senate housing committee, told the council the state faces an estimated $6 billion projected biennial budget shortfall. He said the governor’s recommendation includes proposed reductions that could affect long‑term care and disability services and reduce nonpublic pupil aid, and that local providers may see diminished reimbursements.

“I met with the executive director of Guardian Angels. Under the governor’s proposed cuts, Guardian Angels Care is going to lose $2,275,000 over four years,” Lucero said, noting he and other legislators were assessing the community impact. He added that nonpublic pupil aid reductions were presented as roughly a $540 per‑student decrease in certain aid categories used for instructional, nursing and counseling support.

Council members pressed for specifics about what types of long‑term care services or reimbursements would be reduced. Lucero said he could not detail which exact services would be cut at the program level and that facilities themselves would see a reduced funding pool that could produce varying operational outcomes.

Rep. Paul Novotny, who described the current Legislature as evenly split, echoed concerns about funding and said prior one‑time spending and new program starts have tightened the state’s fiscal position. He noted historically small increases in reimbursement translate to modest per‑patient amounts and that proposed cuts will lower facility reimbursement rates.

Lucero and Novotny also described a bipartisan legislative effort on homeowners association reform. Lucero identified the senate bill by number — Senate File 1750 — and said it grew from a work group that met 17 times and produced 41 recommendations. He said the bill aims to address conflicts of interest, lack of transparency and excessive fines and that it has bipartisan sponsorship and committee activity in the judiciary committee.

The mayor and council asked to be notified when committee hearings are scheduled. City staff later provided councilors with a copy of Senate File 1750 to review.

No formal council action was taken on legislative matters; the appearance was informational and invited questions from council members.