Governor’s Budget Proposal Makes Major Investments in Housing, Workforce, Local Communities

by Betsy Hammer, Minnesota Budget Project

Governor Tim Walz’s budget makes significant investments in housing, workforce development, economic development, and local communities. These proposed changes would mean thousands of Minnesotans across the state would have access to expanded housing opportunities, workplace protections, and economic opportunity for all.


The governor’s budget proposal for the FY 2020-21 biennium includes nearly $132 million in additional general fund housing investments. These dollars would go to expand housing options for families with kids, low- and moderate-income homeowners and home buyers, and people with mental illness. The proposal includes a focus on helping Minnesotans find and keep stable and safe housing, as well as increasing housing opportunities in regions where there isn’t enough housing for a growing workforce.

Families and financial health

Minnesota workers of color and low-income workers experience significant disparities in paid leave benefits. About three-fourths of Minnesotans on family or medical leave received some type of wage; however, among low-wage workers, that percentage drops to only 46 percent, and among African American workers only 42 percent of family or medical leaves included pay. Walz proposes a new system for offering paid family and medical leave insurance. While the proposal is a placeholder and leaves the precise details to be developed through the legislative process, data supports the need.The governor’s budget also proposes investments for financial fraud awareness and prevention, particularly for seniors. The proposed budget also includes an investment of nearly $2 million per year to enhance state action on wage theft to ensure that workers are paid what they are owed for work completed. This work would also bring in about $172,000 per year in additional penalty revenues for the state. Wage theft disproportionately impacts low-wage workers, women, and workers of color. Additional funding in this area would help the Department of Labor and Industry deploy more resources and more aggressively safeguard Minnesota workers.

Workforce development

Walz’s plan includes a “Close the Opportunity Gap” effort with nearly $25 million focused on supporting economic success for Minnesotans of color in the workforce and entrepreneurship realm. The proposal also calls for an additional $8 million per biennium for vocational rehabilitation programs that help people with disabilities find and keep jobs in integrated settings, $1.2 million per biennium for youth skills training focused on experiential learning opportunities, and $1 million for the biennium in one-time funding to support child care providers with business start-up and expansion efforts.

Local communities

The proposal includes $70 million for broadband development to improve access in underserved areas, funding for grants to help schools install solar panels, and $2 million in prosperity grants for local governments. These grants would go to support business development, entrepreneur support, and workforce development.


The governor’s proposed housing and economic development budget includes meaningful investments for families, workers, local communities, and businesses across Minnesota. By supporting safe housing, fair workplaces, and vibrant local communities, we can work to ensure economic security for Minnesota families.