Stay Curious. Stay Connected.
MailNewsletters♡Donate Now
Sign up
*Password must be at least 8 characters and contain one uppercase letter, one lowercase letter, one number and one symbol.
Already have an account?
By submitting, you consent that you are at least 18 years of age and to receive information about MPR's or APMG entities' programs and offerings. The personally identifying information you provide will not be sold, shared, or used for purposes other than to communicate with you about MPR, APMG entities, and its sponsors. You may opt-out at any time clicking the unsubscribe link at the bottom of any email communication. View our Privacy Policy.
Sign in to your profile
Forgot Password?
New to MPR News?
Welcome back
to news
for you
Reset Password

Enter the username on file and we'll send you a code to reset your password.

Still require assistance or not sure what your User Name is?
Welcome back
to news
for you
Email Verification

A verification code has been emailed to

Still awaiting the code?
Politics and Government News
Tim Pugmire
St. Paul

State workers may lose pay raise as economy tanks

The Minnesota State Capitol from a distance.
The Minnesota State Capitol is seen on March 26, 2020. The state House voted Monday to ratify state employee contracts that would deliver salary increases at a time of a looming budget deficit. The DFL-backed move sets up a showdown with Senate Republicans, who say it’s not a good idea to raise salaries with a budget deficit looming.
Evan Frost | MPR News file

Go Deeper.

Create an account or log in to save stories.

Log inCreate a free Account

Like this?

Thanks for liking this story! We have added it to a list of your favorite stories.

Show me!

The contract agreements covering more than 50,000 employees were reached between bargaining units and Gov. Tim Walz’s administration long before the economic downturn triggered by the pandemic.

Then, the state had a $1.5 billion surplus. Now, the projections show a $2.4 billion deficit. 

The agreements call for a 2.25 percent salary increase for the first year of the state’s two-year budget cycle and a 2.5 percent raise in the second year. The first year salary increase began last summer. The second year begins this summer. The money for both was included in the two-year budget passed last session.

But the agreements require legislative approval.

Rep. Leon Lillie, DFL-North St. Paul, said lawmakers should OK the agreements, which he described as “reasonable.” Lillie noted that many workers are on the front lines of the pandemic. 

“We know that our state workers are keeping us safe and healthy,” he said. “They’re our team, and these contracts were negotiated in good faith.”

DFL House Majority Leader Ryan Winkler, of Golden Valley, said lawmakers need to stand up for state workers.

"Now is not the time to go after those employees that we're counting on and go after the contracts that they have fairly bargained for,” Winkler said. “Layoffs and wage cuts are not going to help the economy. Nobody is going to be helped by more people making less money."

House Republicans opposed the bill.

Republican House Minority Leader Kurt Daudt said he’s grateful for state workers. But under the current financial circumstances, he argued the contracts are no longer affordable. Daudt said approving the contracts would be a slap in the face to unemployed Minnesotans.

“We cannot put our heads in the sand and pretend like this does not exist,” he said. “We cannot continue on business as usual, pretending like money that’s not coming in is going to come in magically somehow.”

Senate Republicans are also opposed.

Senate Majority Leader Paul Gazelka, R-East Gull Lake, said he is willing to let last year’s raise stand, but ratifying the contracts with another raise scheduled to kick in July 1 would be irresponsible. 

If lawmakers fail to ratify the contracts, provisions revert to the terms of the previous contracts, and state workers would see a pay cut. Time runs out on the contract debate on Monday, when the legislative session ends.

Gazelka said he has reached out to the Walz administration and the unions but has not heard back. He has asked the Walz administration and the unions to renegotiate and forgo this year’s raise.

“We really would like to let them keep their raise from last year, and if they’ll work with us, they can do that,” Gazelka said. “But our only option at this point is to approve the contracts, which give the raise in July or to say no. And if that’s my option, then it’s going to be a definite no.”