ST. PAUL, Minn. – Nobody is pleased with the state’s 2026-2027 budget that’s emerged jn the Legislature. Not Democrats. Not Republicans. Not Governor Tim Walz. But they are pleased at to have a tentative broad agreement on major issues. As Walz put it at a joint news conference at which the bipartisan deal was announced: Not everybody got what they wanted. Such, he said, is the nature of compromise: Abut the rancorous 2025 session with 101 Democrats and 100 Republicans, Walz said: “Democracy is hard, but it still works.” The budget limits spending at $66 billion and $67 billion. The current biennium, $72 billion, was based on record revenue that is not projected to be sustained. Although details on the new budget remain to be worked out in legislative committees, this is the status of major issues:
> Social services. Keep current levels but with no expansion.
> Education. Keep current spending but curtail increases.
> Nonpublic schools. Curtail proposed new spending for transportation and supplies.
> Unemployment insurance. Phase out for bus drivers, custodians and cafeteria workers.
> Roads and bridges. Reduce spending by drawing down reserves.
> Prisons. Close the Stillwater state prison and relocatee inmates.
> Paid family and medical leave. Keep but without a proposed business tax to help pay for benefits.
Once final bipartisan agreement is reached, the new budget will go to Governor Walz to become official.