Referring to it as Minnesota's COVID-19 Recovery Budget, Governor Tim Walz unveiled his proposal for the coming biennium at a press conference Tuesday, January 26. The $52.4 billion dollar plan focuses on shoring up education, small businesses and working families with additional revenue provided by targeted tax increases on wealthier individuals and corporations. According to the Governor, the goal is “that we create an environment that Minnesota can be a thriving state, where every child succeeds, where businesses have an opportunity to thrive and that we take into consideration that we need to recover from COVID-19…”
Shortly afterwards, Republican leaders of the Senate and the House voiced their concerns with the Governor’s proposal. Senate Majority Leader Paul Gazelka reiterated that taxes should not increase, and that the focus needs to be on the fundamentals – a vaccine rollout and getting kids back into school. He pledged to work with the Governor and other caucus leaders, suggesting that the budget reserve is the best means to achieve a balanced budget.
The February 2021 Budget and Economic Forecast is due to be released in early March. The DFL House and the Republican Senate will rely on that information to craft their own budget proposals for FY2022-23. Governor Walz’s plan will also undergo revision based on the coming budget release.
