MN HF2694

Amends Minnesota Statutes section 179A.16, subdivision 7, to specify factors arbitrators must give substantial weight to when deciding public sector labor disputes, including decreases in local government aid, the public employer's general economic condition and ability to raise revenues, and wage increases negotiated with other employee groups at the same employer.

Requires arbitrators to exclude budgetary reserves when determining a public employer's "ability to pay" in interest arbitration cases.

Maintains existing arbitration procedures where arbitrators for principals and assistant principals must select between final offers on each impasse item, while other essential employees (except state and University of Minnesota employees) have arbitrators select between final offer total packages.

Effective the day following final enactment and applies to all cases the commissioner of mediation services certifies for arbitration after that date.

Creates a new exception in chapter 572B stating that chapter does not apply to arbitration under chapter 179A, effective July 1, 2012.