Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the State Fiscal Policy topic
No spam. Unsubscribe anytime.
State lawmakers brief council: LGA preserved, cannabis tax increased, local bonding left out
Summary
Sen. Mark Johnson and Rep. Steve Gander told the council that local government aid and county program aid were preserved in the recent session, a cannabis tax rose by 50% at the state level, and local bonding/sales-tax exemptions sought for projects were not included; they asked the city to document implementation costs for cannabis regulation.
State Sen. Mark Johnson and Rep. Steve Gander gave a wrap-up of the 2025 legislative session and the subsequent special session, and answered council questions on funding and local impacts.
Representative Gander said the legislature completed a one-day special session that bundled about 14 items. He described a difficult fiscal environment: a swing from an $18 billion surplus to a multi-billion-dollar projected deficit and a variety of budget choices. "We came out of an $18,000,000,000 surplus a couple years earlier. We went to a projected $6,000,000,000 deficit in the out years," Gander said.
Gander and Senator Johnson told the council the cannabis tax at the state level increased by roughly 50 percent and some fees rose; they said local government aid (LGA) and county program aid were preserved and that the Philando Castile Memorial Training Fund for police officers was maintained at about $5.5 million statewide. Johnson said local bonding requests and sales-tax exemptions for a park project were not approved in the final package.
Council members asked whether state legislators could provide support or data to quantify local costs of implementing cannabis retail regulation. Gander encouraged the council to document municipal costs (staff time, inspections, enforcement) so lawmakers can evaluate the local burden. The legislators also discussed reinsurance and other insurance-related supports for controlling premium increases, and touched on housing and workforce-development programs for rural areas.
Next steps: legislators asked the city to assemble cost estimates and local data on cannabis implementation and other local needs (e.g., sidewalks) so they can pursue targeted assistance and follow up during the next session.
