Minnesota Gov. Tim Walz briefs reporters on his budget proposal, on Thursday, Jan. 16, 2025, in St. Paul, Minn., which would require approval from a deeply divided legislature. (AP Photo/Steve Karnowski)
ST. PAUL (KFGO-WCCO) – Minnesota Governor Tim Walz released his revised budget Friday.
The new version trims $250 million from his original $66 billion proposal, while maintaining his plan to cut the statewide sales tax by just under 1%.
“This budget is fiscally responsible and prioritizes the programs that will set Minnesotans up for success for generations to come,” said Governor Walz. “By addressing the budget challenges we face today, we’re setting Minnesota up for long-term success and protecting the resources necessary to make Minnesota the best state to live, work, and raise a family.”
It is also making small, one-time investments in funding to respond to avian influenza and law enforcement training.
The latest budget forecast for February showed a $456 million surplus for 2026-2027. That number is $160 million lower than November forecast. The November forecast showed a $616 million surplus for ‘26-27 with a $5.1 billion deficit in ‘28-29.
Additionally the department says the projected general fund shortfall for the 2028-29 biennium is nearly $6 billion or $852 million worse than November estimates.
Walz and the Legislature must pass a two-year budget this session or risk a government shutdown. The House sits in a 67-67 tie which will necessitate a bipartisan budget deal in order to get it to the DFL-controlled Senate and governor’s desk by the end of the session.
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