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State worker layoff notices likely despite budget deal among lawmakers near

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Published  May 28, 2025 6:27pm CDT
Politics
FOX 9
Layoff notices could be headed to state workers

Layoff notices could be headed to state workers

Eleven working groups - made up of members of both legislative bodies and both parties – have been working since last week to sew up deals on large bills that encompass funding for the state, and could avoid a government shutdown that would lay off workers on July 1.

The Brief

    • Minnesota's budget negotiations may be close to the finish line, but thousands of state employees will probably be getting layoff notices next week.
    • The state government would shut down on July 1 without a deal, and those notices have to go out a month in advance.
    • Gov. Tim Walz says he's not happy that it seems inevitable the notices will go out, but he's confident the layoffs won't come to pass. He expects there will be a budget, possibly as soon as Wednesday night.

ST. PAUL, Minn. (FOX 9) - Minnesota’s long budget nightmare may be nearing an end.

New deadline

10 p.m. pledge:

FOX 9 learned about a semi-secret deadline Wednesday night, and leaders are pledging to stick to it.

But state employees are still likely to get layoff notices before it’s all said and done. A longer wait could turn a lot of lives upside down.

"My pledge is by 10 o'clock tonight, we get this thing buttoned up," Gov. Tim Walz said on Wednesday morning.

The finish line looks pretty close to Gov. Walz and most legislative leaders.

But nine days after the end of the regular session, there are still gaps in the negotiations for a budget. 

"It's been a real challenge because basically every single legislator has a veto," the governor said.

The House is split 67-67 with a Republican serving as Speaker. The DFL controls the Senate with a 34-33 majority.

Making moves?

Show your work:

A total of 11 working groups - made up of members of both legislative bodies and both parties - set out last week to sew up deals on big omnibus bills, mostly in private.

We know a few of them have finished the job, including human services on Tuesday night.

But with a government shutdown looming on July 1, and no special session announced, the state will have to give layoff notices next week to employees deemed not to work in "critical services".

"When the legislature doesn't do their job, and they don't get a budget deal and everything done by June 1, their lives hang in the balance," said Bart Andersen, executive director for AFSCME Council 5.

Impact of layoff notices

Liquor, beer, and parks, oh my:

Andersen represents more than 18,000 state employees doing everything from health science, to regulating liquor and beer.

Without them on the job, important operations wouldn’t function.

"For folks that are wanting to go to state campgrounds, we're not sure who's going to be there to maintain the facilities to make sure trash is picked up, things like that," Andersen said.

He says just getting the notices is disruptive.

Some state workers will probably find other jobs. Others will just live in the stress, even with reassurance from Gov. Walz.

"I am not happy about that, but it's the nature of it," the governor said about layoff notices on Wednesday. "But we're going to get it done. So if they go out, there will be letter of the law to get that done, but it's not because there's not going to be a budget."

What's next:

The governor and legislative leaders planned to meet again Wednesday night with the hopes of breaking small logjams and finalizing bills.

But even if they met the 10 p.m. goal, the special session would probably happen next week and those layoff notices have to go out, just in case it all falls apart.

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