RELEASE: Minnesota’s Budget Forecast Raises Alarm in Long-Term Care

Per release from The Long-Term Care Imperative:

ST. PAUL, MINN. – Today’s state budget forecast brings troubling news for Minnesota’s seniors and the caregivers who support them. Governor Walz has signaled a willingness to cut critical support for Minnesota seniors to address the projected budget shortfall. The Long-Term Care Imperative urges lawmakers to reject his proposal to balance the budget on the backs of our seniors, who have earned their right to care, and to prioritize investments in Minnesota’s long-term care community. 

“Governor Walz has indicated he strongly opposes cuts to Medicaid at the federal level, yet his current budget proposal includes devastating cuts to Medicaid funding that supports access to long-term care,”  said Kari Thurlow, CEO of LeadingAge Minnesota. “How are we supposed to reconcile that? His proposed reductions to nursing home funding will harm seniors and their caregivers by reducing access to long-term care in our communities and restricting caregiver wages and benefits.” 

While previous state investments helped stabilize the sector – leading to financial improvements for 70% of nursing homes in 2024 – those gains are at risk. The expiration of the 2023 temporary funding, additional unfunded mandates, the skyrocketing costs to implement state-imposed regulations and Governor Walz’s proposed budget reductions threaten to undo progress in ensuring seniors receive the care they need.

“One quarter of Minnesotans will be seniors by 2030,” said Toby Pearson, CEO of CareProviders of Minnesota. “Despite this reality, the state has done little to prepare. Ignoring our aging population and using them as a scapegoat for the budget crisis not only undermines the well-being of Minnesota’s seniors, it’s downright disrespectful. Now, more than ever, we need state leaders to put their money where their mouth is.”

Staffing challenges in long-term care remain a major concern, with 12,500 positions currently vacant. Without sustainable funding to help bolster the workforce, more care settings will be forced to limit access to vulnerable seniors by restricting admissions or closing their doors altogether.

Uncertainty at the federal level and its potential impact on state budgets only heightens the need for Minnesota to prioritize reliable, long-term funding for seniors and caregivers.

“Minnesotans overwhelmingly believe seniors deserve the right to age with dignity in their communities,” said Pearson. “But that right is in jeopardy unless lawmakers make critical investments this session.”