Gov. Tim Walz’s order for state employees to return to the office at least half-time went into effect this week as Minnesota government workers started receiving warnings of potential layoffs if the Legislature fails to pass a budget by the end of June.
Parking lots around the state Capitol complex appeared slightly fuller than usual Monday as the requirement kicked in for the main offices of some agencies based in St. Paul, though many agencies won’t have to return to the office more until later this summer.
John Wilson, an economist with the state Department of Transportation, said he had already been working at the office most days, but his office has gotten much busier.
Work hasn’t changed much for Wilson for now. But the prospect of temporary layoffs next month looms over his head. He’s worked for MnDOT for 15 years and remembers the 20-day government shutdown in 2011, when the GOP-controlled Legislature and Democratic-Farmer-Labor Gov. Mark Dayton couldn’t reach an agreement on the budget.
“Everybody says, well, you know, there’s no sign it will come to that, but I remember it felt like that last time,” Wilson said. “ I certainly wouldn’t place my bets now.”
Session ended without budget passing
The Department of Transportation is one of many state agencies that will run out of funding after June 30. It’s been two weeks since state lawmakers ended the regular legislative session without passing all of a roughly $66 billion two-year budget. Areas that make up two-thirds of the budget — Health, Human Services and K-12 Education don’t have new funding yet either. However, corrections and public safety budget bills have been passed.
Legislative leaders from the DFL majority Senate and the House tied between the DFL and Republicans say a final budget is close and could pass in a special session by the end of the week. Most conversations have been happening in private meetings, though lawmakers have provided signed agreements for big spending areas like education and health.
It comes after several delays. When the regular session ended on May 20, House DFL Leader Melissa Hortman said she hoped to get a budget done before layoff notices went out. But the process has already started.
Minnesota has already told 700 employees that they could be temporarily out of a job a month from now if the Legislature doesn’t pass a new two-year budget, according to Patrick Hogan, a spokesman with Minnesota Management and Budget. The first group to get notices was represented by the Minnesota Nurses Association, and more could follow.
If there isn’t any action by June 9, thousands more will receive messages, according to MMB.
Union opposes return to office order
The Minnesota Association of Professional Employees, which represents around 18,000 state employees, opposes the return to office order and is holding informational rallies at the Capitol on Tuesday and Wednesday this week as it continues to negotiate a new contract with the state.
MAPE, which has said a strike is not off the table over the return to work order, also called on state leaders to overcome “political gridlock” and pass a budget amid continued uncertainty about funding at the federal level as well.
“These notices may be conditional, but the harm is real. Workers will have to prepare for lost income, disrupted lives and a government shutdown that would impact every Minnesotan who relies on public services,” union president Megan Dayton said in a recent statement. “We hoped our elected officials in Minnesota would serve as a barrier to the dysfunction and chaos coming out of Washington.”
MAPE has said it’s concerned about disruptions to families who have adjusted to flexible schedules and caring for children at home. They’re also concerned about whether there will be enough office space after years of remote work. Agencies, including the Department of Human Services, Health and Revenue, have gotten exemptions to the June 1 return date.
Oder intended to boost ‘collaboration,’ organizational culture
This spring, Walz ordered government workers to report to the office at least 50% of the time if they live within 50 miles of their workplace in a move that state employee unions claimed caught them by surprise. Originally, the range was 75 miles, but the governor reduced the distance in April.
Around 60% of state employees already worked in person and did so throughout the pandemic, according to the governor’s office. The state has about 50,000 employees.
The governor has said his order aims to boost “collaboration” and help state agencies build better organizational cultures. The move is also supported by businesses in downtown St. Paul, who say they’ve struggled from the post-pandemic shift in work styles.
It’s yet to be seen just how much the return to office order will affect downtown, but St. Paul Downtown Alliance president Joe Spencer said businesses are excited to have more workers back.
“There are a lot of great things about working in downtown, especially in the summertime,” he said. “So, hopefully, they find a welcome reception, and they indeed feel our enthusiasm to have them back in the office.”
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