State Budget Negotiations Continue

Earlier this session, Governor Walz and leaders of the House and Senate announced May 6 as their deadline to achieve joint budget targets for conference committees. During the early afternoon of Monday, May 6, the budget negotiators outlined their approaches to reaching agreed-upon numbers for each of the main ten budget areas.

Governor Walz said that he and the leaders are examining priorities and that reviewing the decisions behind the Senate and House budget proposals is a necessary step. Senate Majority Leader Paul Gazelka said that he is hopeful they will reach an overall budget target before agreeing to budget targets in the various areas.

Big differences between DFL and Republican lawmakers exist in nearly every budget area. In education, Governor Walz said he has proposed a $700 million dollar increase, the House $900 million dollars and the Senate $200 million dollars. In transportation, Governor Walz is proposing a phased-in gas tax increase up to 20 cents per gallon, and Senate Majority Leader Paul Gazelka said that would not happen. In health and human services, the Governor is calling for the continuation of the 2 percent tax paid by health care providers. The money would help fund his OneCare proposal. Senate Republicans are calling for the continuation of the health care reinsurance program. In the area of taxation, Senate Republicans are placing tax cuts on the second income tier, while House Democrats are calling for taxation of foreign overseas profits.