On Tuesday Governor Tim Walz released his proposal for the upcoming two-year state budget. The $52.4 billion budget proposal would be the largest budget in state history with an overall 9.5% increase from the previous $47.87 billion budget and will also increase taxes by $1.66 billion. This amount is in addition to $3 billion in federal relief coming to the state, so the proposed budget plans to spend over $55.5 Billion in the next two years. Governor Walz’s plan also proposes a new fifth tier income tax rate at 10.85%. This would give Minnesota the third highest tax rate in the country. Another notable item included in the budget is $150 million in appropriation bonds for the Minneapolis riots. It is also estimated that Minnesota will face a predicted $1.3 billion budget deficit in the next two years. Senator Jeff Howe (R-Rockville) issued the following statement in response: 

“This budget increase makes no sense when Minnesotans are still trying to recover from the burden of the pandemic,” said Senator Howe. “I’m also concerned that the Governor removed the funding for the Health Reinsurance program. Governor Walz is offering no replacement, and this will increase health insurance costs for families and small business by up to 25%. The bottom line is that we’re still facing a budget deficit, and we should be tightening the purse strings and offering relief to Minnesotans, not spending more than what we have.”