This week on At Issue, Tom Hauser discusses a new social media tax bill, the latest on state budget negotiations and the newly created Office of Inspector General.

The Minnesota Senate Tax Committee passed a significant tax bill this week aimed at raising hundreds of millions in new revenue, positioning Minnesota to be the first state to implement a social media tax.

The legislation was approved by committee members, amidst stark opposition from Republicans who see it as a misguided move following substantial tax increases in 2023, which totaled $10 billion. The proposed tax increases are projected to be $365 million over the next two years and $370 million in the subsequent years.

Minnesota legislative leaders are in the midst of intense budget negotiations, with both House and Senate leaders participating in marathon sessions. Progress has been slow but steady, according to DFL leaders.

Key issues under discussion include whether to continue offering unemployment insurance to hourly school workers, such as bus drivers and teacher aides, as well as access to state health care for undocumented immigrants. A consensus is critical as lawmakers aim to finalize budget targets by the end of the week to meet a May 19 deadline.

The Minnesota Senate has successfully passed legislation to establish an independent Office of the Inspector General, which aims to enhance the state’s ability to combat fraud.

The new office will investigate potential fraud among entities receiving state funds, whether public or private, when there is reasonable suspicion. As the legislation awaits further consideration in the House, significant differences between the proposals from the House and Senate will need to be reconciled.