Ways and Means lays over $779M legacy omnibus; committee emphasizes competitive grants, 40/40/20 parks split

The House Ways and Means Committee on April 16 heard House File 2563, the legacy omnibus appropriation bill, and laid it over until the Senate version arrives.

Lead co‑chairs Chair Vang and Chair McDonald said the bill packages roughly $779 million in one‑time legacy funding across Minnesota for conservation, clean water, parks and trails, and arts and cultural heritage. The bill follows established practice for the parks and trails fund with an approximate 40/40/20 split among state parks, Metropolitan Regional Parks and Greater Minnesota parks and trails. The outdoor heritage, clean water and arts and cultural heritage funds were allocated to projects recommended by the Lessard Sams Outdoor Heritage Council, Clean Water Council and the State Arts Board, respectively, with multiple competitive grant pools in the arts portion.

House fiscal staff (Brad Hagemeyer) and House Research staff (Janelle Taylor and Mary Davis) walked members through the spreadsheets and policy language. Fiscal staff identified totals in each fund: about $162.1 million (Outdoor Heritage Fund, annual recommendations), $303.9 million (Clean Water Fund), $130.2 million (Parks and Trails Fund), and roughly $180 million (Arts and Cultural Heritage Fund). Staff said each fund is required to retain a 5% reserve and described a small number of extension and cancellation requests to align appropriations with that requirement.

The arts article includes two policy adjustments: requiring a recent IRS Form 990 from applicants for certain arts and cultural heritage grants and a restriction generally prohibiting arts funds from paying capital construction costs, with enumerated exceptions (historic preservation, museum collection care, accessibility modifications and exhibits). Chairs and staff said the bill emphasizes competitive grants rather than direct appropriations in many places; the bill contains a competitive community identity and heritage grants pool of $17.5 million.

Members asked specific questions about particular projects and program amounts. Representative Pinto noted a reduction in annual funding for children's museums compared with the previous biennium (staff said prior funding had been about $1.6 million per year and the bill provides $500,000 per year), and Lessard Sams staff provided approximate figures for habitat acquisition and easement budgets. Chairs said a recent transfer/adjustment involving an overpayment to the Department of Revenue required some offsets in the legacy bill and influenced available funding.

The committee laid the bill over pending the arrival of a Senate file and potential conference negotiations.