2022 Governor's Supplemental Budget Recommendations

1 $ in Thousands All funds, netFY 2022-23FY 2024-25FY 2022-23FY 2024-25 Expanding Economic Opportunity4,642,034 821,031 1,018,962 57,631 EducationABE Hold Harmless Formula Clarification- - Taxes, Aids and CreditsDirect Payments to Minnesotans703,700 Taxes, Aids and CreditsMinnesota's Response to Federal Tax Changes93,080 28,580 Taxes, Aids and CreditsExempt Government and Nonprofit Construction from Sales and Use Tax94,800 141,600 5,500 8,200 Taxes, Aids and CreditsExpand Homestead Benefits to Taxpayers with Individual Taxpayer Identification Numbers (ITINs)3,600 Taxes, Aids and CreditsAngel Tax Credit7,000 10,000 Taxes, Aids and CreditsIncrease Income Threshold for Senior Citizen Property Tax Deferral180 Taxes, Aids and CreditsUpdate Agricultural Land Property Tax Classification to Include Hemp70 Taxes, Aids and CreditsFrontline Worker Pay1,000,000 Office of Higher Independence Higher Education Grants Admin Costs- - University Of MinnesotaIncrease Access to the University: Reduce Cost of Attendance Burden for Minnesota Residents38,000 64,000 University Of MinnesotaIncrease Access to the University.

2 Enhanced Student Services5,000 10,000 Minnesota StateCampus Responsiveness and Stabilization24,000 48,000 Minnesota StateEquity and Affordability Directly Supporting Students Critical Needs15,000 30,000 Human ServicesWorkforce Incentive Fund for Caring Professions115,224 Human ServicesAddressing Deep Poverty82 46,080 Pollution ControlTechnical Assistance for Environmental Review600 Natural ResourcesIncrease Capacity for Broadband Licensing246 492 Natural ResourcesEnhanced Forest Management Assistance to Private Woodland Owners5,500 Water and Soil ResourcesSupport for Tribal Liaison125 262 AgricultureLivestock Processing Facilities Grants3,000 AgricultureExpand New Markets Cost Share (E-Commerce)250 250 AgricultureMeat Processing Employee Recruitment and retention Incentives1,500 1,500 AgricultureFood Retailer Improvement Assistance1,000 500 AgricultureServices to Immigrant and BIPOC Producers and Businesses2,000 AgricultureFarmers Market and Direct Marketing Support1,500 - AgricultureInformation Technology Modernization2,000 AgricultureNoxious Weed Grants1,000 AgricultureIncreased Resources for USDA Equivalent Meat Testing100 100 AgricultureMinnesota Copacking Grants250 250 AgricultureGrain Indemnity Fund5,000 (13,721)

3 2,065 AgricultureMeat Processing Technical Program2,000 500 AgricultureFarm Business Management300 200 General FundOther Funds2022 Governor's Supplemental Budget RecommendationsMinnesota Management and BudgetPage 1 of 12 January 27, 2022 (Corrected) Governor's Supplemental Budget Recommendationsby Priority Area$ in ThousandsAll Funds, netFY 2022-23FY 2024-25FY 2022-23FY 2024-25 General FundOther FundsAgricultureFood and Agriculture Systems Planning Grants500 500 AgricultureOriented Strand Board Production Incentive Amendments to Rider Language- AgricultureLivestock Investment Grant Statute Changes- - AgricultureFarm Safety Grants Amendment- AgricultureAgriculture Cooperative Grant Reinstatement- - AgricultureAgricultural Best Management Practices Eligibility Expansion- CommerceFinancial Institutions Assessment Equity783 1,566 - - DEEDB roadband Development170,000 - DEEDE quitable Economy Workforce43.

4 000 35,060 DEEDU nemployment Insurance Trust Fund2,730,000 DEEDL aunch Minnesota5,000 DEEDC lean Tech Workforce Training Program8,000 DEEDO ffice for New Americans470 940 DEEDN onprofit Resiliency & Recovery Fund50,000 DEEDB uilding Agency Capacity4,530 DEEDS tate Small Business Credit Initiative Investment Changes- DEEDF rontline Worker Pay215 Labor and IndustryExpand and Strengthen Fair Labor Standards for Agricultural and Food Processing Workers196 292 Labor and IndustryPrevailing Wage Education and Compliance(16) (45) 1,758 3,516 Labor and IndustryIncreasing Equity in Apprenticeship1,375 2,750 Labor and IndustryFrontline Worker Pay2,480 Mediation ServicesAdditional Funding for PERB400 1,050 Secretary of StateChief Information Officer210 420 Application Accessibility256 393 Accessible Technology in State Government150 300 AdministrationAMPERS Community Radio Service773 AdministrationAddressing Revenue Loss in Fleet Fund630 - AdministrationState Procurement Innovation and Participation1.

5 900 800 AdministrationImproving Human Resources and Financial Services301 396 AdministrationImproving Grants Administration Oversight400 800 AdministrationEliminating Open Meeting Law Fees1 2 AdministrationEnterprise Language Access Services1,306 2,318 - - AdministrationFostering Collaboration and Resolving Disputes150 300 Management and BudgetCapital Budget Outreach and Assistance314 628 Management and BudgetEvaluating the Impact of State Investments300 900 RevenueGovernor's Tax Bill Administration8,573 771 RevenueFrontline Worker Pay2,049 Historical SocietyOperating Adjustment500 1,000 Historical SocietyOperational Support for MNHS Statewide Reopening750 Humanities CenterOperating Adjustment22 44 Board of AccountancyLicensing & Enforcement Programs Support120 240 TransportationMultimodal Transportation Package280,000 373,322 - - TransportationCompensation Operating Impacts23,900 40,800 TransportationCorridors of Commerce Project Scoring and Statute Clarification- - Metropolitan CouncilBlue Line Light Rail Extension200,000 CorrectionsMN Rehabilitation and Reinvestment Act (MRRA)

6 - - CorrectionsExpansion of Work Release for Education1,000 2,000 Minnesota Management and BudgetPage 2 of 12 January 27, 2022 (Corrected) Governor's Supplemental Budget Recommendationsby Priority Area$ in ThousandsAll Funds, netFY 2022-23FY 2024-25FY 2022-23FY 2024-25 General FundOther FundsCorrectionsPost-Secondary Education and Employment Partnerships2,000 7,000 CorrectionsProject Management230 460 Human RightsBias and Discrimination Data Gathering and Reporting388 486 Human RightsBias Response and Community Equity Outreach Team1,185 2,002 Human RightsEquity and Inclusion Strategic Compliance228 456 Human RightsEquity and Inclusion Strategic Compliance Data Consultant250 Human RightsProhibit Rental Discrimination Based on Public Housing Assistance Status383 766 Expanding Economic Opportunity4,642,034 821,031 1,018,962 57.

7 631 Minnesota Management and BudgetPage 3 of 12 January 27, 2022 (Corrected) Governor's Supplemental Budget Recommendationsby Priority Area$ in ThousandsAll Funds, netFY 2022-23FY 2024-25FY 2022-23FY 2024-25 General FundOther FundsSupporting Children and Families1,188,933 3,881,116 26,813 (284,599) EducationUniversal Free Meals with Community Eligibility Provision (CEP)186,969 396,533 EducationPublic Pre-K for Eligible 4-Year Old Children155,000 370,000 EducationRedefine early Learning Scholarships for 0-3 Year Old Children75,000 150,000 EducationStudent Support Personnel21,955 54,934 EducationSchool Based Mental Health Screening9,983 19,966 EducationSchool-Linked Behavioral Health Grants6,000 12,000 EducationInfant and early Childhood Mental Health Consultation in Schools3,759 7,518 EducationMental Health Services and early Childhood Social Workers2,500 5,000 EducationAmerican Indian History and Culture Relicensure Requirements86 120 EducationIncrease Funding for Grow Your Own21,725 39.

8 450 EducationStatewide Teacher Mentoring Program5,500 11,000 EducationEducator Career Pathways5,000 10,000 EducationRecruit and Retain Education Support Professionals15,000 30,000 EducationAspiring Teacher retention Bonuses3,750 7,500 EducationEarly Childhood Family Education Teacher Licensing Support177 177 EducationGeneral Education Formula Increase of 2 Percent for FY 2023135,421 303,890 EducationReduce Financial Burden for Aspiring Teachers2,275 4,550 EducationReduce English Learner Cross-Subsidy11,918 27,707 EducationMulti-Tiered Systems of Support15,000 30,000 EducationExpand Competency-Based Education6,648 3,352 EducationExpand Rigorous Coursework10,000 20,000 EducationIncrease American Indian Education Aid Base Funding3,120 6,240 EducationBOLD Literacy5,000 10,000 EducationCulturally Specific Learning Opportunities5,000 10,000 EducationIncrease Career Technical Education (CTE) Revenue548 7,303 EducationExpand Supplemental Enrollment3 6 EducationPaid High School Equivalency Test345 690 EducationAdditional State Funding to Special Education Separate Site and Programs5,071 11,316 EducationReduce Funding Disparities for Young Children with Disabilities683 1,645 EducationSpecific Learning Disability (SLD)

9 Criteria Change and Multi-Tiered System of Support (MTSS)540 1,080 EducationProvision of Special Instruction3,661 7,367 EducationEstablishment of Visually Impaired (VI) Graduate Program700 1,400 EducationIntermediate School District Mental Health Innovative Grant Program4,900 EducationIntermediate District Support1,000 2,000 EducationExpand Targeted Services900 2,000 EducationSpecial Education Life Skills & Vocational Skills Secondary Transition Programs1,000 2,000 EducationReduce Special Education Cross-Subsidy45,659 110,530 Minnesota Management and BudgetPage 4 of 12 January 27, 2022 (Corrected) Governor's Supplemental Budget Recommendationsby Priority Area$ in ThousandsAll Funds, netFY 2022-23FY 2024-25FY 2022-23FY 2024-25 General FundOther FundsEducationOut of School Time / Community Partnership7,000 14,000 EducationAfter School Grant Programs5,000 10,000 EducationFull Service Community Schools5,000 10,000 EducationOnline Learning Application Fee Spending Authority26 6 EducationExpanded Use of Head Start Funds- - EducationTribal Head Start Set-Aside- - EducationCompensatory Spending at Generating Site- - EducationTechnical Correction.

10 Require Q Comp Funds to be Spent on ATPPS- - EducationClarifying Intended Recipients of American Indian Education- - EducationLink Programs to General Education Formula Allowance- - EducationAlign Student Eligibility Criteria to State-Approved Alternative Programs- - EducationIncrease Earnings Limitation for Retired Teachers10 - Prof Educator Lic. Std BdEducators Online Licensing System660 728 Taxes, Aids and CreditsExpand the K-12 Education Credit12,200 25.