3/10/2025 -- MN Budget Woes

🏒 The lore around Minnesota hockey hair made it to the New York Times over the weekend. There are few things more uniquely Minnesotan.

Government

Minnesota Budget Outlook Worsens: Surplus Shrinks, Deficit Looms 💲

The Summary: Minnesota's budget situation has worsened, transitioning from a surplus to a potential $6 billion deficit by 2028-2029. This shift will likely influence spending decisions in the coming years. While there is a small surplus of $456 million for the next two-year budget cycle, it may be used to mitigate the future shortfall.

Driving Factors: Rising costs in long-term care and special education are significant factors, as is the potential impact of federal actions under President Trump, including tariffs, tax cuts, deportations, and proposed federal budget cuts. Federal funds account for a third of the state's budget, with potential reductions in Medicaid funding posing a substantial risk.

Political Perspectives: There is agreement among Gov. Walz and legislative leaders that spending cuts are necessary. However, disagreements exist regarding where to make those cuts and who is responsible for the fiscal reversal. Republicans blame the Democrats' spending during their control of the legislature, while Democrats point to the economic impact of Trump's policies and potential federal budget cuts.

Business

Leader of Feeding Our Future, Aimee Bock, Testifies in Her Defense 👩‍⚖️

The Summary: Aimee Bock, founder of Feeding Our Future, testified in her defense, a move her attorney initially opposed. Her lawyer, Kenneth Udoibok, faced challenges presenting business records due to objections from prosecutors and concerns from the judge about the "untrustworthiness" of the defendant. Bock's testimony focused on her background and the nonprofit's founding.

Prosecution's Case: Prosecutors have presented over 30 witnesses, including FBI agents and former meal site operators, alleging Bock knew about and profited from the $250 million fraud scheme. Testimony highlighted how Bock allegedly instructed others to submit false expenses. Former board members claimed they were unaware of their roles.

Financial Misconduct: The case involves federally funded meal programs for low-income children. Allegedly, little to no meals were served, and funds were used for personal enrichment. Bock is accused of funneling $1 million to her former boyfriend, Malcom Watson Jr., with funds spent on luxury items. FBI accountants testified that Bock received $1.9 million in the scheme.

Co-defendant and Guilty Plea: Salim Said, owner of Safari Restaurant, is on trial alongside Bock. His organizations received over $44 million in federal funds. Abdinasir Abshir pleaded guilty to his role in the fraud scheme, marking the 37th guilty plea in the case. He was also accused of witness tampering.

What Else We’re Reading…

Minnesota Joins Multi-State Lawsuit Challenging Elon Musk's Authority in Federal Government

Minnesota has joined 13 other states in a federal lawsuit challenging the authority of Elon Musk and the Department of Government Efficiency (DOGE), created by President Trump without congressional approval. The lawsuit argues that Musk’s sweeping, unelected powers to dismantle federal agencies, access sensitive data, and redirect funding violate the Constitution’s Appointments Clause and separation of powers.

GAME: Guess The House Price 🏠 💲

The game is simple — we show you one photo of a Twin Cities house that is currently for sale and you guess the listing price.

• Location: Elliot Park

• 3,200 sq ft

• Listed on National Historic Registry

• 5 bed, 4 bath, and 4 fireplaces

Need more help? View additional photos here (spoiler alert: listing contains price)

Sports 🏒

🏒 East Grand Forks and Moorhead won the Class A and AA boys hockey titles, respectively. The Xcel Arena was packed for championship Sunday with over 20,000 fans in attendance.

🏀 The Gopher Men’s Basketball team lost their final regular season game to Rutgers and will head into the Big 10 tournament as the #12 seed.

⚽ The Minnesota United Loons have won two games in a row after defeating San Jose in yet another shut-out victory.

🏀The Minnesota Timberwolves defeated the San Antonio Spurs to extend their winning streak to five games.

🏒 The Gopher Men’s Hockey Team was upset by Notre Dame in the Big 10 tournament. Their NCAA tournament fate will be announced in two weeks.

🏒 The Gopher Women’s Hockey Team lost in the WCHA tournament championship game and will now head into the NCAA tournament as the #4 overall seed.

Quick hits

Headlines From Around The Twin Cities & Greater Minnesota ✔

❯ Three Minnesota men are missing after an avalanche occurred in Alaska (Fox9)

❯ The Trump admin cut a $1.1M grant to Winona State (Bring Me The News)

❯ A recent study shows that Minnesota has a shortage of pharmacies (MinnPost)

❯ A Minneapolis teacher says cuts are coming to special education (Fox9)

The Final Word: First Taste of Spring

It was only fitting that one of the warmest days of the year thus far also happened to fall on a day where we got an extra hour of daylight. The number of people around teh lakes was so energizing and I hope you all had a chance to get out and enjoy the beautiful weather yourselves.

-Patrick