Session Update: State Budget Offers Exchanged

Monday, May 6, was the self-imposed deadline for legislative leaders and Governor Tim Walz to reach an agreement on general budget targets for the 10 budget areas. The began meeting early and following their discussion, they met separately with the media.

Governor Walz and leaders continued their discussion into the evening, when both sides offered proposals with the goal of reaching agreement. Governor Walz’s proposal, to which the House agreed, would reduce net spending by $200 million dollars while continuing the 2% health care provider tax and maintaining his transportation proposal which includes raising the gas tax. The Senate’s offer increases their proposed funding for E-12 Education by an additional $200 million dollars, paid for with savings to be found in the Health and Human Services budget. The Senate proposal would maintain current law by allowing the provider tax to sunset at the end of the year and maintain current mechanisms for funding transportation.