ST. PAUL, Minn. – Governor Tim Walz’s $65 billion two-year budget plan runs $11 billion ahead of the current budget and eats into some of the $17.6 billion of unexpected tax revenue from the state’s sizzling economy. The Democratic governor called his budget fair and said it would continue to create growth. Republicans, however, were less than enthusiastic. Missing from the Walz budget was a GOP proposal to eliminate state taxes totally from pensioners on Social Security. Also missing was a GOP proposal to cut tax rates permanently rather than the one-time rebates that Walz proposes. Said House Minority Leader Lisa Demuth, a Cold Spring Republican: “If we can’t cut taxes now, when can we?” Senate Minority Leader Mark Johnson, a Republican elected from East Grand Forks, complained that Walz wants to increase state spending by 25%. A debate point among Walz’s fellow Democrats is that the governor would hike payroll taxes to help finance family and medical leave. Also, Walz would slow the downward course of motor vehicle license tab fees.
