Session ends with repeal of county cannabis aid and cuts to aquatic invasive species funding; Crow Wing to lose $236,096

Nathan Jessen, policy director at the Minnesota Inter-County Association (MICA), told the Crow Wing County Committee of the Whole on June 17 that the 2025 special legislative session repealed the local government cannabis aid and cut funding for aquatic invasive species (AIS) by half beginning with aids payable in 2027.

Jessen said the cannabis aid — a share of gross-receipts taxes set aside in 2023 to be split between cities and counties — was eliminated in the final bills and that the AIS program was cut from its current level by 50 percent starting with aids payable in 2027. “We end up playing defense on all fronts essentially,” Jessen said, summarizing how counties had to protect existing programs in the face of an out‑biennium deficit.

Why it matters: the changes reduce predictable new revenue that counties had expected from cannabis receipts and scale back AIS support that funds local prevention and response. Jessen quantified the local impact: Crow Wing County’s share of the AIS reduction is $236,096. He said county program aid (CPA) was not cut in the final agreement and that payment in lieu of taxes (PILT) also avoided the governor’s proposed one‑third reduction.

Details and context: the 2023 law that authorized distribution of cannabis retailers’ gross‑receipts tax earmarked 20 percent of that tax for local government (half to cities, half to counties), with county distributions based partly on number of retailers and ensuring every county received a minimum payment. Counties had only received a small, one‑time $2,100 payment previously; because no steady stream had yet been distributed, Jessen said counties found it difficult to argue a cost‑shift when the money had not been received at scale.

Jessen also reviewed other tax provisions that affected counties: proposals to reduce CPA were proposed at times but ultimately not enacted, and the tax negotiations included an assortment of other measures (including a higher state cannabis excise tax rate that does not benefit counties). He urged commissioners to coordinate directly with legislators and with MICA and AMC when county‑specific needs arise.

Looking ahead: Jessen said some cuts will take effect after the next budget year and recommended county staff track aids payable in 2027 and beyond. He offered to provide updated PILT payment figures and other county‑specific calculations on request.