Local Government Compensation Cap Repeal Clears First House Committee

February 22, 2021

The League supports the bill partly because it would give cities local control over compensation decisions.

HF 325 (Rep. Sandra Masin, DFL-Eagan), a bill that would repeal the local government compensation cap, was approved on Feb. 17 by the House Local Government Division.

The companion bill, SF 33 (Sen. Steve Cwodzinski, DFL-Eden Prairie), has not yet been scheduled for a hearing, but Sen. Cwodzinski has introduced an identical second, non-companion bill, SF 1060.

Support for the bill

Testifying in support of the bill was Rochester Councilmember Patrick Keane. He described challenges Rochester has had recruiting and retaining staff.

League staff also testified in support of the bill, stressing that:

  • Decisions in employee compensation should be made by city councils.
  • The waiver process, which involves a state agency determination, does not allow for adequate consideration of local needs and circumstances.

Amendment fails

During the hearing, Rep. Duane Quam (R-Byron) offered an amendment to increase the current cap from $180,927 to $200,000 and resume inflationary adjustments in 2023. The amendment was not adopted.

For more background information about this bill, read a previous article.

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