Governor Walz’s Budget Proposal

On March 18 Governor Walz announced his revised budget proposal for MN that includes support for an MA Waiver that would provide funding for addiction treatment in jails. Focusing on treating low-level offenders who are waiting trail or soon to be paroled would dramatically reduce overdose, crime and recidivism rates. The budget also included the following:

•  Providing additional funding for Direct Care and Treatment programming. This funding will go towards repurposing Substance Use Disorder facilities to increase bed capacity thereby allowing the psychiatric hospital to increase admissions, providing funding for the Child and Adolescent Behavioral Health Hospital (CABHH) at Willmar to operate at full bed capacity, funding full-time resources to provide support and technical assistance to county correctional facilities, and the creation of a Mentally Ill and Dangerous (MID) Commitment Reform Task Force to review the current statute and make recommendations.
• Changes to the state law concerning funding allocation from the Opiate Epidemic Response Fund to addressing the impact of opioids on child welfare. The proposal includes updating how funds are distributed and broadening the use of these funds to cover prevention efforts that help families before they become involved in the child welfare system. Additionally, the Governor proposes removing the sunset on fees assessed on opioid manufacturers and distributors. Additionally, the Governor recommends adding the Director of the Office of Addiction and Recovery to the Opioid Epidemic Response Advisory Council as a non-voting advisory member.
• Transformational investments to reduce recidivism and overdoses across the state. This proposal implements the first phase of a federal 1115 Medicaid Demonstration Waiver that will reimburse for certain physical and behavioral health services in prisons and jails, 90 days prior to a person’s release. This proposal will implement the first phase of this waiver in three state and seven local facilities, enabling people eligible for Medicaid, which will enable people who are eligible for Medicaid to receive select services in three state and seven local facilities. This proposal also provides ongoing funding for the Bridging Benefits program, which assists people who are identified as high risk for recidivism to access supports upon release.
• Programmatic and technical changes to portions of Chapter 63 from Laws of 2023, which legalized adult-use cannabis. This recommendation will best position the Department of Health and its partners in Local and Tribal health departments to provide long-term, coordinated cannabis education for youth and pregnant and breastfeeding women. This proposal also includes enhanced flexibility to use funding for substance use disorder treatment and prevention activities. The proposal also includes a minor reduction in the total appropriation, with savings redirected to a related public health budget recommendation on effective cannabis testing.
• Cancelling the amounts appropriated in fiscal year 2024 for the Substance Use Treatment, Recovery, and Prevention account. Separate budget initiatives related to substance use treatment, prevention and recovery are addressed in recommendations for the Minnesota Department of Health.
• Redirecting the amounts appropriated in the Laws of 2023 for Substance Use Treatment, Recovery, and Prevention account under Minnesota Statutes, section 342.72, to the Department of Health (MDH). MDH will establish a grant program for substance use disorder and mental health recovery and prevention. This has been developed in coordination with MDH, the Office of Cannabis Management, and the Office of Addiction and Recovery. This recommendation is budget neutral.

Bills in Process

SF 3459

A bill for an act relating to substance use disorder treatment; modifying continuing education requirements for licensed alcohol and drug counselors; allowing for religious objections to placements in substance use disorder treatment programs; modifying comprehensive assessment requirements; prohibiting courts or other placement authorities from compelling an individual to participate in religious elements of substance use disorder treatment; requiring a report; amending Minnesota Statutes 2022, sections 148F.075, subdivision 2; 244.0513, by adding a subdivision; 245F.10, subdivision 1; 245G.13, by adding a subdivision; 245G.15, subdivision 1; 253B.03, subdivisions 4, 10; 253B.04, subdivision 1; Minnesota Statutes 2023 Supplement, sections 241.415; 245I.10, subdivision 6; 254B.05, subdivision 1; 609.14, subdivision 2a; proposing coding for new law in Minnesota Statutes, chapter 254B.

SF 3866/HF 3812

A bill for an act relating to public safety; providing immunity for individuals assisting another to seek medical assistance for a drug-related overdose; amending Minnesota Statutes 2022, section 604A.05, subdivision 1.

HF 4005

A bill for an act relating to public safety; establishing limited drivers’ licenses for certain participants in treatment court; requiring treatment court coordinators to provide certain information; providing for notification of termination from treatment court; classifying data; amending Minnesota Statutes 2022, sections 13.6905, by adding a subdivision; 171.30, subdivision 1, by adding subdivisions.

HF 4563

A bill for an act relating to human services; establishing the Mental Health and Substance Use Disorder Education Center and the youth care professional training program; modifying rules for mental health providers; amending Minnesota Statutes 2022, sections 245.4663, subdivision 2; 245I.04, subdivision 6; proposing coding for new law in Minnesota Statutes, chapters 144; 245.

HF 4959

A bill for an act relating to public safety; establishing the Task Force on Holistic and Effective Responses to Illicit Drug Use; requiring a report; appropriating money.