ST PAUL, Minn. — Gov. Tim Walz has announced a series of tweaks to his budget proposal to reflect slower projected economic growth and a revised surplus.
Walz told reporters Friday that his administration took a hard look and scaled back some proposals while sparing priority areas like education and health care.
Altogether the changes include reductions in proposed new spending of $131 million, tax changes that would bring the state an additional $65 million, returning $142 million in unspent health care reinsurance funds to the general fund and new spending of $37 million that would go mostly to higher education.
The budget originally unveiled by the Walz administration called for $789 million in spending for budget years 2020 and 2021. The revised budget calls for $562 million in expenditures.
“We are proud today to release a smart, responsible budget that looks to the future,” Walz said. “While we had to take a hard look and scale back some proposals, the core tenets of our budget—education, health care, and community prosperity—remain strong. This budget tackles the great challenges facing our state and promotes opportunity for everyday Minnesotans while protecting our fiscal stability.”
Republican leaders criticized the Democratic governor for standing by his proposals for a 20-cent (70 percent) gas tax increase and for preserving a tax on health care providers that expires at the end of the year, despite a projected surplus.
“The effort today is appreciated, but Gov. Walz’s budget still spends more than we can afford," said Senate Tax Committee Chairperson Julie Rosen in a released statement. "His dependence on taxing sick people and raising the gas tax is not a sustainable solution. We have a $1 billion surplus, we don’t need another $3.5 billion in new taxes and fees.”