Governor Walz releases his budget
On January 26, Governor Walz released his budget recommendations for 2022-2023. The budget proposes spending $52.4 billion over the next two years, which includes $1.3 billion in new spending. To address the currently projected $1.273 billion deficit and to support the proposed budget, Governor Walz recommended the following:
- Spend down the budget reserve by $1 billion
- Shift $130 million from the stadium reserves
- Carry over $217 million from the current fiscal year surplus of $638 million to the next biennium
- Generate $1.6 billion in new revenue by creating a fifth income tax tier for those making more than $1 million per year
The majority of the new spending will go towards the state’s education systems (both K-12 and higher education) and into health and human service programs. It includes $14 million more for housing programs and $59 million for economic development. Of the new economic development spending, $50 million is for the Border-to-Border Broadband program. The Governor’s budget will be updated as session continues. Although not publicly scheduled yet, the state will release an updated budget forecast in late February or the first week of March. Governor Walz will then submit an updated budget request using the new forecast.