ST. PAUL, Minn. – Leaders of the Minnesota Legislature and Democratic Gov. Tim Walz announced a $52-billion deal for the state’s next two-year budget on Monday, but lawmakers will have to finish the work during a special session next month and difficult negotiations still lie ahead on police accountability and other issues.
The agreement calls for a balanced two-year budget without raising taxes, while fully exempting from state taxes federal Paycheck Protection Program loans to businesses and unemployment insurance benefits that were raised during the pandemic. It also includes extra money for summer school to help students catch up after a year of distance learning.
The task of resolving their differences was harder this year than in 2019 because lawmakers mostly met remotely due to the pandemic and had fewer chances for one-on-one deal-making.
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