Senate Republicans proposed a nearly $51.9 billion state budget on Tuesday, arguing Minnesota doesn't need to raise taxes amid a projected budget surplus and billions in federal aid.
Leaders of the GOP-controlled Senate debuted their initial topline numbers for the next two-year state budget, offering a counterpoint to Democratic Gov. Tim Walz's plan. However, the totals could change, since they don't account for the latest federal relief package that includes an estimated $2.6 billion in one-time money for state government.
"We have billions coming in from the federal government, Minnesota has a surplus and what do we do about it? Well, here's what we don't do: First of all, we don't raise taxes," Senate Majority Leader Paul Gazelka, R-East Gull Lake, said in a video announcing the budget priorities. "The governor continues to talk about raising taxes, even with all that money. Not going to do it."
Walz proposed a $52.4 billion budget in January, which included tax increases on top earners and corporations. That was before state economists predicted Minnesota would have a $1.6 billion surplus in the next two-year budget — a major swing from the previous estimate of a $1.3 billion deficit — and before Congress approved the latest COVID-19 relief package.
The governor plans to release a supplemental budget Thursday, and House Democrats are scheduled to lay out their budget target numbers next Tuesday. The divided Legislature and Walz will spend the next couple of months trying to align their differing visions for state spending and revenue before the regular legislative session ends May 17.
"The proposed Senate Republican budget targets are woefully inadequate," House Speaker Melissa Hortman, DFL-Brooklyn Park, said in a statement. "Minnesotans deserve a budget that will help them recover from COVID-19, and the Senate Republican budget fails them."
Hortman notes that the GOP budget would reduce spending on agriculture, rural development, housing and veterans.
Budget dynamics at the Capitol have shifted dramatically in recent months. The brighter outlook and federal relief dollars have added fuel to Republicans' opposition to tax increases.
