Gov. Tim Walz on Tuesday announced the details of his state budget proposal. The $49 billion proposal is a 9% increase from the last budget, and sets Minnesota on a path to government-run health care. Senate Finance Committee Chair Julie Rosen (R-Vernon Center) issued the following statement:
“The governor’s budget is simply unsustainable and unaffordable. Nearly doubling the gas tax? Increases in license tab fees? Reinstating the tax on sick people? More money for child care assistance with no reforms to stop pervasive fraud? A total government takeover of health care by the same folks who brought us MNLARS and MNsure, without even attempting lower costs? This budget might be good for his special interests, but it’s not good for Minnesota families.”
Watch the Republican response to the Governor’s budget.
Facts about the governor’s budget:
- Increases state spending by 9% in one budget cycle, from $45,549 in 2018-19 (November 2018 forecast, page 12) to 49,471 in 2020-21 (Walz budget documents).
- Increases taxes on every Minnesotan by over $3 Billion:
- $1.3 billion gas tax increase
- $991 million sick tax increase
- $848 million in FY 2020-21 through selective Minnesota tax conformity to the federal tax bill
- $74 million tax increase by clawing back bipartisan tax relief from 2017
- Ends permanent, bipartisan funding for roads and bridges (via sales taxes on auto parts). Replaces it by almost doubling the gas tax, a revenue source that declines each year starting in 2020. (MNDOT Transportation Funds Forecast November 2018, page 9)