Minnesota Gov. Tim Walz will detail his two-year state budget plan the Democratic governor says will cut $5.4 billion in taxes and spend roughly $11 billion on schools, housing, health care, public safety and more.
Walz’s plans lean heavily on the state’s unprecedented $17.6 billion budget surplus that comes from a mix of unspent savings and higher than expected tax revenues. His plans leaves about $1.3 billion of the surplus on the bottom line after all the proposed tax breaks and new spending.
Under his plans, the state’s two-year budget would grow from a projected $54 billion to more than $65 billion, roughly a 20 percent increase in spending.
The proposals include tax rebates worth as much as $1,300 per taxpayer or $2,600 per household as well as reduced state taxes on social security. The governor also wants tax credits for child care and the other costs of raising children.
“With the largest tax cut in state history, the One Minnesota Budget invests directly in the people that made our state strong in the first place,” Walz said in a news release. “For a middle-class family of four, the One Minnesota Budget could put $10,000 back in their pocket. We are delivering a transformational budget for Minnesotans, and I look forward to getting this done.”
The Democratic governor has spent the last week outlining plans for as much as $11 billion in new spending over the next two years and $9 billion more in the years to come.
Democratic-Farmer-Labor Party members are in control of state government with a slim majority in the House and a one-seat margin in the Senate. That means, if DFLers can hold together, Walz will likely get a lot of what he wants.
Republicans have already characterized Walz’s plans as too much spending and not enough tax cuts. They plan to respond to the governor’s proposal Tuesday afternoon.
This story is developing and will be updated.
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