Walz $65 Billion Budget Calls for Increased Spending, Tax Rebates

(KNSI) — Minnesota Governor Tim Walz released his two-year, $65 billion budget Tuesday, which includes increased spending, checks to families and more money for counties and cities.

Walz’s budget calls for $4 billion of the state’s $17.6 billion surplus to be sent back to 2.5 million households in the form of tax credits from $1,000 up to $2,600. The proposal also includes cutting Social Security taxes for lower-income seniors, updating taxes on capital gains, tax breaks for farmers and increasing public pension plans for retirees. The rest of the surplus would be spent on other programs.

There would also be $60 million for counties and cities to use on infrastructure projects.

Walz is also asking for more money for indigenous schools, electric vehicle charging stations, modernizing the state’s IT infrastructure, and promoting the full legalization of recreational marijuana.

House Minority Leader Representative Lisa Demuth of Cold Spring says the governor’s proposals would spend all of the state’s surplus. “In a time that there is a record surplus, $17.6 billion, Minnesotans are expecting to have that back. Unfortunately what we heard today is Minnesotans are going to be spending and it’s going to cost Minnesotans a little bit more to be here and that was a little bit surprising.”

Despite the proposed tax cuts, she says the bill is too costly for Minnesotans. “We’re increasing spending by over 25%. And that is one of the largest increases going back and looking at each biennium from 1998. We are looking at record increase in spending. We can talk about tax cuts, but I’m looking at the increased spending.”

Lawmakers will take the governor’s proposals and craft their own budgets in the House and Senate. They have until May 22nd to reach a deal before the session ends.

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