Gov. Tim Walz and the Senate GOP released the outlines of their budget proposals this week, signaling the point in the legislative session when many committees will begin to craft their budget bills.
In January, Gov. Walz released his $52.4 billion budget, and this week he released his revised budget plan. The itemized changes to the proposal can be found here. Here are some of the key changes in the revised plan:
- Proposes $670 million in tax increases (down from $1.66 billion)
- Proposes $1 billion in tax relief (up from $230 million)
- Adds tax relief for businesses that got PPP loans and unemployed workers
- Eliminates proposed tax increases on cigarettes and estates
The Senate GOP budget proposal was released on Tuesday, and includes $51.9 billion for the next biennium. This proposal includes a 5% reduction in state agency budgets and tax relief for businesses and workers. It does not include any tax increases. Senate Majority Leader Paul Gazelka (R-East Gull Lake) and Finance Committee Chair Julie Rosen (R-Fairmont) discussed the proposal on the Session Update program Wednesday evening. Watch here.
Neither the Governor’s revised budget nor the Senate plan account for the estimated $2.6 billion in federal relief that is expected to come to Minnesota in the coming weeks. Since this money will heavily impact spending decisions, it is anticipated that the Governor will release another supplemental budget plan once the specific details surrounding the federal funding are finalized.
The House DFL majority are scheduled to release their budget target numbers March 23, which committees will use to begin shaping their omnibus bills. The Legislature and Governor will then use the next few months to craft a state budget before session adjourns on May 17.
