Minnesota Gov. Tim Walz on Tuesday proposed a $52.4B state budget.
The proposal would raise taxes on the wealthiest residents of the state and would include a $1 tax hike on packs of cigarettes.
The proposal also calls for $150M for businesses affected by the 2020 riots.
“Minnesotans have met the challenges of COVID-19 pandemic as they always do when faced with hardship – with grit and resiliency. Now, as we look toward the future, Minnesotans are ready to confront the challenges we face today while investing in a brighter future. That’s why I am proposing Minnesota’s COVID-19 Recovery Budget to ensure we emerge from this crisis stronger than before,” said Governor Walz.
“Not every Minnesotan was impacted by the COVID-19 pandemic equally. We know the COVID-19 pandemic hit our working families, small businesses, and students particularly hard. They need our help,” Governor Walz continued. “The budget I am unveiling today will make significant strides in helping those Minnesotans stay afloat.”
Majority Leader Gazelka said "a budget that increases taxes is not a Minnesota priority."
“I have been clear since day one of session: we are not balancing the budget with tax increases. A budget that increases taxes is not a Minnesota priority. People have suffered enough already. Employees, entrepreneurs, and many businesses have sacrificed for 11 months. The budget reserve can be used to protect people from hurtful tax increases that will further stretch their family budget and harm our economy. Senate Republicans will ask the government to tighten its own belt before we ever ask Minnesotans to tighten their belts even more," Gazelka said.
According to documents released Tuesday, the state plans to solve the budget gap by doing the following:
Carryover from the current budget: $217M
Budget reserves: $1.04B
Stadium reserve: $130M
Additional revenue (includes $230M in tax cuts targeting working families: $1.66B
You can see the full press release below: